III. Industry Analysis
The Dance Studios industry has experienced growth over the past five years, with industry revenue increasing at an annualized rate of 3.8%.
Over the five years, enrollment in dance classes has grown substantially among young millennial females who are increasingly choosing dance over more traditional fitness routines. Consequently, the number of fitness-oriented dance classes has increased, including new forms such as cardio dance, pole dancing, Bollywood dance, and barre method.
The industry has benefited from an expanding US economy, as rising disposable income and decreasing national unemployment have enabled individuals to spend more on sports and leisure activities, including dance instruction. These favorable conditions have expanded customer demand and increased the profitability of industry operators during the period.
Improving economic conditions are expected to lead to greater per capita disposable income growth, fostering more spending on recreational activities, such as dance. Furthermore, growing disposable income will likely boost demand for more lucrative private classes and high-profit merchandise sales. Additionally, the baby-boomer generation is anticipated to contribute to revenue growth over the next five years, particularly for ballroom dancing classes.
