Exciting Trends in the Birthday Party Industry

Trends in the Birthday Party Industry If you enjoy being around young children and are looking for a business in a growth industry, you will want to check out these trends.

During the past 15 years, children’s birthday parties have grown from backyard gathering’s with clowns and games into a diverse $38 billion industry in the United States alone according to celebration industry analysts. This growth has been sustained during a period of major swings in the economy.

The best evidence of this might well be the rise of party planning consultants for children’s birthday parties.  These companies see a great opportunity to fill a gap in the expanding kid sector as parents are increasingly outsourcing not only the stress of planning the event and taking care of all the details but also hosting and managing the parties themselves, including handling some little ones running around on a sugar high.

Children are Major Influencers of Parental $$ Spending

This might seem a little over the top to some, but as a birthday party business owner, what really caught my attention recently was an article detailing trends in the industry. It cited a report on child-focused businesses indicating that children today influence approximately $500 billion of their parents’ spending!

It is a staggering shift from prior generations and quite revealing, perhaps, about the way society operates today and choices parents must make in prioritizing their time between work and family life.

Parents Have a Stake in a Good Party Too

A primary reason given for this trend is that spending on children can give parents a sense of accomplishment in providing unique experiences for their child. So, it is as much about the parents as it is about the kids? It seems that way, and what a powerful dynamic in a business based on feelings and emotion.

These quotes from industry related observers leave little doubt about the strength of the industry based on the underlying psychology supporting it:

“People do find money to spend on their children because they want to make [birthdays] special for their child.”

Florida Times

“The bottom line is that modern parents end up spending lavishly on their children.”

The Franchise Handbook

“It’s great to see that even with a weak economy, parents are still focused on celebrating life’s biggest moments.”


When you take a minute to look at the dynamics that are driving trends in the industry, mainly a parent’s desire to see their children happy, the necessity to outsource the event, and willingness on the part of parents and grandparents to spend on a once a year celebration, it is easy to see why it is thriving and there is plenty of opportunity for entrepreneurs.

Very Favorable Conditions

And, according to the U.S. Census Bureau, there were approximately 50 million children age 10 or younger in 2012. Over the next ten years, this number is expected to grow by about 6 million. This alone indicates very favorable trends toward continued growth and opportunity in the industry.

The Princess Tea Party business has demonstrated strength and the ability to prosper in economic down times as well as the good times. While it is part of a large and growing industry, it is made up of small businesses run by enterprising people, primarily women.

Its reasonable cost of entry and resilience are extremely attractive features, making it well worth looking into.

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