Keeping pace: Revenue is set to return to growth as regulation reduces external competition

Although sexual services have historically proven resistant to economic slowdowns, the Brothel Keeping and Sex Worker Services industry has performed poorly over the past five years. Many sex workers have loyal clients that abandon other discretionary spending before reducing their spending on sexual services. However, industry revenue has declined as national unemployment has increased over most of the past five years. Reduced demand has contributed to industry revenue being expected to fall at an annualised 1.5% over the five years through 2016-17. The industry’s heavily regulated nature, combined with increasing external competition over the period, has pushed demand and revenue more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increases in national unemployment have contributed to falls in industry revenue
  • The internet has been fragmenting the industry, allowing individuals to cultivate their own brands
  • Greater industry regulation could boost revenue, allowing legal outlets to charge more
  • Industry Report - Industry Products Chapter

    State regulation determines the industry's services, which include brothel sexual services, escort services, massage services and legal street work.Brothel sexual servicesBrothel sexual services make up the largest service segment, at an estimated 34.8% of industry revenue in 2016-17. These services are expected to have declined as a proportion of industry revenue over the past five years due to cheaper services offered by unlicensed brothels, and a lack of discretion compared with other types of services. Some brothels take a proportion of a sex worker's earnings, while payment may also be made directly to the brothel. Whi...purchase to read more.

    Additional Insights for the Brothel Keeping and Sex Worker Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Brothel Keeping and Sex Worker Services Industry are

  • Having a good reputation
  • Having a loyal customer base
  • Providing client confidentiality
  • IBISWorld analysts also discuss how external factors such as Internet connections and Real household discretionary income in the Brothel Keeping and Sex Worker Services industry impact industry performance..

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    What's in this report

    What is the Brothel Keeping and Sex Worker Services Industry?

    The industry comprises companies that mainly operate brothels, and provide escort and sex worker services. The industry includes brothel activity and legal transactions for actual sexual services. The industry does not include stripping, erotic dancing, adult internet services (such as dating or pornography), telephone sex chat lines, making and retailing adult video entertainment, or manufacturing and retailing sexual aids.

    Industry Products
  • Brothel sexual services
  • Escort services
  • Other sexual services
  • Hospitality and entertainment services
  • Industry Activities
  • Brothel operation
  • Sexual services
  • Escort services
  • Erotic massage services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Internet connections
  • Real household discretionary income
  • National unemployment rate
  • Business tourist visitor nights
  • Consumer sentiment index
  • International travel to Australia

  • Current Performance
  • Changes and challenges
  • Rise of casual sex
  • Competition from pornography
  • Social acceptance and representation
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry changes and challenges
  • Greater industry competition
  • Future industry trends
  • Table: Brothel Keeping and Sex Worker Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Brothel Keeping and Sex Worker Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Advertising Agencies
  • Cosmetics and Toiletry Wholesaling
  • Laundry and Dry-Cleaning Services
  • Pharmaceuticals Wholesaling

  • Products & Services
  • Brothel sexual services
  • Escort services
  • Hospitality and entertainment services
  • Other sexual services
  • Chart: Brothel Keeping and Sex Worker Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Men aged 30 to 40
  • Men aged 41 and over
  • Men aged 18 to 29
  • Women and couples
  • Chart: Major Market Segmentation for the Brothel Keeping and Sex Worker Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent
  • Depreciation and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Brothel Keeping and Sex Worker Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Brothel Keeping and Sex Worker Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Brothel Keeping and Sex Worker Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Brothel Keeping and Sex Worker Services Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dating Apps
  • Smartphone applications such as Tinder and Grindr that promote meetings between interested parties, often for sexual activity.
  • Escorts
  • People working as escorts provide sexual services, but can also act as companions for clients at social events and tend to charge higher rates than other sex workers.
  • Matchmaking Sites
  • Websites that facilitate meetings between individuals, often of a sexual nature, through online communication.
  • Sex Worker
  • A person that works in a brothel or as an escort, and provides sexual services to clients. Sex workers operate legally in licensed enterprises.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Brothel Keeping and Sex Worker Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Brothel Keeping and Sex Worker Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Brothel Keeping and Sex Worker Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Brothel Keeping and Sex Worker Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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