Brothel Keeping and Sex Worker Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC S9534Revenue
$209.0m
Past 5-Year Growth
Profit
$XX.Xm
Employees
1,824
Businesses
338
Wages
$XX.Xm
Brothel Keeping and Sex Worker Services in Australia industry analysis
While sexual services have historically proven resistant to economic slowdowns, the Brothel Keeping and Sex Worker Services industry was hit hard by the COVID-19 pandemic, a mixed economic environment, and greater external competition from online pornography and dating apps over the past five years. Despite a drop in real household discretionary income over the three years through 2023-24, overall incomes have risen and this has mostly offset other negative factors. As a result, industry revenue is expected to inch up at an annualised 0.3% over the five years through 2023-24.
Several external competitive threats have emerged as Australian society has become increasingly sexually liberalised. These include online matchmaking websites and easy access to online pornography. For the minimal time and cost of registering with a matchmaking website, potential industry clients can meet and interact with like-minded individuals looking for sexual meetings without payment. Similarly, people can easily access online pornography. Direct competition from unlicensed sex work outside the industry has also grown over the past five years, while the COVID-19 pandemic greatly reduced industry supply and demand in late 2019-20 and 2020-21. However, demand surged over the two years through 2022-23, with the end of lockdowns and restrictions and a boom in business and international travel, leading to rising profit margins. Weakening economic conditions in 2023-24 are expected to prompt a 2.4% decline in 2023-24, with revenue falling to $209.0 million.
Strong growth in international and business travel and a recovery in consumer sentiment is expected to support industry demand over the next five years. As a result, industry revenue is projected to grow at an annualised 1.0% over the five years through 2028-29, to reach $220.1 million. However, alternatives to industry services, such as matchmaking websites, dating apps and pornography, are likely to become more popular, limiting industry growth.
Trends and Insights
- The COVID-19 pandemic caused a severe drop in industry revenue. The industry saw its strongest drop in sales in decades in 2020-21, as border closures, lockdowns and restrictions hindered the operations of brothels and escort agencies.
- Online options and regulatory adjustments are moving the industry workers away from brothels. Decriminalisation efforts have reduced barriers to entry for independent sex workers, while online booking and listing sites have made it easier for them to reach prospective clients.
- New South Wales and Victorian decriminalisation is encouraging more independent sex workers in those states. These states are over-represented in terms of enterprise numbers due to reduced licensing requirements and the legalisation of solicitation and street-based sex work.
- External substitutes’ attractiveness is increasing. The rising popularity of adult matchmaking sites and the increased proliferation, low cost and innovation within online pornography is providing increased external competition for industry firms.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated $209.0m in 2023.
Trends and Insights
The COVID-19 pandemic caused a record slump in industry revenue
- The COVID-19 pandemic had a severely detrimental effect on industry revenue over the period, leading to a steep drop in revenue in 2020-21, with the industry not recovering to pre-pandemic levels until the end of 2022-23.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Decriminalisation of sex work has made strides, but there is still room for growth
- Progress in decriminalisation of sex work has been made over the past five years, most recently in Victoria. Changes have reduced onerous licensing requirements and legalised street-based sex work. New South Wales, Victoria, the Australian Capital Territory and the Northern Territory all have comparatively relaxed regulations around sex work, focused mostly on preventing exploitation and coercion.
Biggest companies in the Brothel Keeping and Sex Worker Services in Australia
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 |
|---|
There are no companies that hold a large enough market share in the Brothel Keeping and Sex Worker Services in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Brothel sexual services, Escort services and Other sexual services. Brothel sexual services is the largest segment of the Brothel Keeping and Sex Worker Services in Australia.
Trends and Insights
High-end customers of escort services are more protected from cost-of-living issues
- Escort services make up the largest industry segment. These operators tend to provide services to the high end of the market, offering a range of sexual services, including specialised sexual and bondage services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Pubs, Bars and Nightclubs in Australia
- Hotels and Resorts in Australia
- Leather and Leather Substitute Product Manufacturing in Australia
- Serviced Apartments in Australia
International industries
- Adult Stores in the US
- Adult & Pornographic Websites in the US
- Escort Services in the US
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Brothel Sexual ServicesEscort Agency ServicesHospitality and Entertainment ServicesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
SEX WORKERESCORTSMATCHMAKING SITESDATING APPSIndustry Code
ANZSIC 9534 - Brothel Keeping and Sex Worker Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The COVID-19 pandemic caused a severe drop in industry revenue. The industry saw its strongest drop in sales in decades in 2020-21, as border closures, lockdowns and restrict...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Online options and regulatory adjustments are moving the industry workers away from brothels. Decriminalisation efforts have reduced barriers to entry for independent sex wor...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales and Victorian decriminalisation is encouraging more independent sex workers in those states. These states are over-represented in terms of enterprise numbers ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
External substitutes’ attractiveness is increasing. The rising popularity of adult matchmaking sites and the increased proliferation, low cost and innovation within online po...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry is highly fragmented with increasingly fewer barriers to entry for independent sex workers, which is decreasing market share concentration. As a result, no compa...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The regulatory environment is steadily becoming more favourable to industry firms. Decriminalisation occurred in Victoria in 2022 and in the Northern Territory in 2019, follo...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Margins have recovered from the effects of COVID-19. Restrictions, lockdowns and border closures almost eliminated industry margins in 2020-21, but the industry has seen a st...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Brothel Keeping and Sex Worker Services industry in Australia in 2024?
The market size of the Brothel Keeping and Sex Worker Services industry in Australia is $209.0m in 2024.
How many businesses are there in the Brothel Keeping and Sex Worker Services in Australia industry in 2023?
There are 338 businesses in the Brothel Keeping and Sex Worker Services industry in Australia, which has grown at a CAGR of 3.8 % between 2018 and 2023.
Has the Brothel Keeping and Sex Worker Services industry in Australia grown or declined over the past 5 years?
The market size of the Brothel Keeping and Sex Worker Services industry in Australia has been growing at a CAGR of 0.3 % between 2018 and 2023.
What is the forecast growth of the Brothel Keeping and Sex Worker Services industry in Australia over the next 5 years?
Over the next five years, the Brothel Keeping and Sex Worker Services industry in Australia is expected to grow.
What does the Brothel Keeping and Sex Worker Services in Australia include?
Brothel Sexual Services and Escort Agency Services are part of the Brothel Keeping and Sex Worker Services industry.
How competitive is the Brothel Keeping and Sex Worker Services industry in Australia?
The level of competition is moderate and increasing in the Brothel Keeping and Sex Worker Services industry in Australia.
