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Freedonia Market Research Press Releases US Spending on Recreation to Jump 29% in Real Terms Amid Post-Pandemic Return to Trend

US Spending on Recreation to Jump 29% in Real Terms Amid Post-Pandemic Return to Trend

by Corinne Gangloff

July 22, 2022

Cleveland, OH, July 22, 2022 — US personal consumption spending on recreation services is forecast to grow 9.9% annually in nominal terms through 2026, according to Recreation: United States, a report recently released by Freedonia Focus Reports. In real (inflation-adjusted) terms, spending is projected to advance 7.9% yearly over that span. Gains will stem from a return to trend following the relaxation of COVID-19 restrictions. Further advances will be driven by increases in disposable personal income (DPI), which will support consumer travel to recreation destinations and spending during their stay. However, real DPI per capita is expected to decrease in 2022 as a result of inflation. Recreation providers also stand to benefit from a consumer trend that favors spending on experiences over products. While population growth will continue to expand the consumer base, shifting demographics as the resident population becomes proportionately older will force recreation providers to change their service offerings. Streaming media and video games are expected to continue to present strong competition, particularly amid the increasing sophistication of home entertainment systems. Further, the impact of high fuel prices on travel amidst the Russia-Ukraine conflict and related sanctions placed on Russia will weigh on spending in the short term, as consumers will be less likely to take road trips.

In 2022, revenues are expected to expand nearly 33% on the strength of a return to business as usual following the relaxation of COVID-19 restrictions. In real terms, revenue will rise nearly 29%.

These and other key insights are featured in Recreation: United States. This report forecasts to 2022 and 2026 US personal consumption expenditures (PCE) on recreation services in nominal and real US dollars. Total spending is segmented by service in terms of:

  • gambling
  • amusement parks and related services
  • clubs and participant sports
  • spectator sports
  • museums and libraries
  • live entertainment
  • movie theaters

To illustrate historical trends, total spending and the various segments are provided in annual series from 2011 to 2021.

Expenditures include services financed by third parties (e.g., business group visits) as well as services provided without a financial intermediary. Spending on other services – such as accommodation, dining, and shopping – offered by a recreation service provider is excluded from the scope of this report.

More information about the report is available at:

https://www.freedoniafocusreports.com/Recreation-United-States-FF95062/?progid=91541

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