Hard work: Competition from matchmaking websites and online products affect revenue

While sexual services have historically proven resistant to economic slowdowns, the Brothel Keeping and Sex Worker Services industry has been negatively affected by a mixed economic environment and greater external competition. Many sex workers have loyal clients that abandon other discretionary spending before reducing their spending on sexual services. However, industry revenue has declined as external competition from online substitutes has risen and national unemployment has increased over the period. Industry revenue is expected to fall at an annualised 3.1% over the five years through 2018-19. The industry's heavily regulated nature, combined with increased external competition over the period, has pushed demand and revenue lower...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increased external competition from substitutes has contributed to industry revenue declines
  • Reduced demand for brothel services has led industry enterprise and employment numbers to fall
  • Greater regulation and decriminalisation of sex work is anticipated over the next five years
  • Industry Report - Industry Locations Chapter

    New South Wales, Queensland and Victoria account for the majority of all enterprises in the industry, at an estimated 91.1% in 2018-19, with New South Wales holding the highest proportion. Combined, these three states are projected to make up 87.4% of industry revenue in the current year. Regulatory discretion heavily affects these figures. Tasmania and South Australia have criminalised brothels, meaning that any activity in the state occurs through escort agencies or on a private basis. In Queensland, brothels have a high regulatory burden and private sex work has been criminalised. As a result, the state's industry has suffered over the past five years, as activities increasingly rely on online and personal avenues of communication and advertisement...purchase to read more.

    Additional Insights for the Brothel Keeping and Sex Worker Services Industry

    IBISWorld has determined the most important Key Success Factors for the Brothel Keeping and Sex Worker Services are:

  • Having a good reputation
  • Having a loyal customer base
  • Providing client confidentiality
  • IBISWorld analysts also discuss how external factors such as Internet subscribers 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
  • Licensed brothel operation
  • Licensed brothel keeping
  • Sexual services
  • Escort agency 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 subscribers
  • 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
  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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.
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    Why buy this report?

    IBISWorld’s Brothel Keeping and Sex Worker Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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
    • Quickly build competitive intelligence
    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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