Formal Wear & Costume Rental in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: April 2024
NAICS 53222Revenue
$691.4m
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,047
Businesses
877
Wages
$XXX.Xm
Formal Wear & Costume Rental in the US industry analysis
Formal wear and costume rentals have weakened in recent years resulting from stagnation in the rental customer base, which is adults aged 20 to 64. Rising external competition and falling marriage rates have also contributed to falling rentals. Also, rising household income levels allow consumers to purchase formalwear outright instead of renting. The pandemic also crushed rental services as health and safety regulations forced many physical locations to close. Many special events that require formalwear were also canceled or postponed. Overall, industry revenue has decreased at a CAGR of 4.9% to $691.4 million over the past five years, including a decrease of 5.3% in 2023 alone.The pandemic spelled disaster for formal wear and costume renters, as many companies were forced to close their locations. This was heightened by the push from online-based rental companies, which offered services during the pandemic. As stores began to reopen following the economic recovery, revenue crept upward as many consumers still preferred physical stores because of the personalized shopping experience and ability to try on multiple garments in person without worrying about returns. Even so, the continued shift towards online retailers caused profit to falter, even amid an economic recovery.Over the five years to 2028, industry revenue is expected to fall at a CAGR of 1.6% to $638.7 million. A consistent decline in the marriage rate and heightened online-based competition will place downward pressure on revenue and push unprofitable companies to exit. The pandemic showed consumers how convenient online services can be, forcing a preference shift. While small companies are set to leave, many online renters will open physical stores contributing to rental services. More extensive rental services, typically those in urban areas, will continue to thrive as they have a loyal customer base in their area. Physical stores are the best option for last-minute plans since online delivery typically takes at least a day or two.
Trends and Insights
- Younger generations are getting married less frequently than older generations. When the marriage rate is high, demand for formalwear rentals typically increases, as weddings often have dress codes that require formal attire.
- Women generally buy formal wear, costumes and accessories rather than rent them. Women’s clothing is much more diversified than men’s and many companies simply do not have the ability to stock multiple styles of clothing.
- The distribution of rental companies closely follows the US population. The Southeast and Great Lakes region are both highly populous regions and represent the first- and second-highest concentrations of establishments.
- Companies compete based on price, brand offerings, range of outfits, location, reputation and customer service. Establishments with a large stock of high-end designer options and low-cost brands will attract a large pool of customers from different income demographics.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 4.9 % over the past five years, to reach an estimated $691.4m in 2024.
Trends and Insights
The trend toward sustainable fashion has bolstered the need for rental services
- Environmentally conscious consumers have called for recycling garments and reducing waste resulting from garment production.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Falling marriage rates continue to have a negative effect
- As the number of marriages continues to fall, the need for formal wear will slump.
Biggest companies in the Formal Wear & Costume Rental in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Tailored Brands Inc. | 261.5 | 5.1 | 2.0 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Men's formal wear, costumes and accessories rental , Women's formal wear, costumes and accessories rental and Other. Men's formal wear, costumes and accessories rental is the largest segment of the Formal Wear & Costume Rental in the US.
Trends and Insights
Men's formal wear, costumes and accessories are the leading product offering
- Rental items within this segment include men's tuxedos, suits, formal shirts, vests, shoes, costumes and accessories.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Men's Clothing Stores in the US
- Women's Clothing Stores in the US
- Children's & Infants' Clothing Stores in the US
- Family Clothing Stores in the US
- Lingerie, Swimwear & Bridal Stores in the US
- E-Commerce & Online Auctions in the US
Complementors
- Industrial Laundry & Linen Supply in the US
International industries
- Furniture, Appliance and Equipment Rental in Australia
- Furniture, Appliance and Equipment Rental in New Zealand
Table of Contents
About this industry
Industry definition
Establishments in this industry primarily rent attire such as formal wear, costumes and other clothing to end consumers. This industry does not include companies that primarily sell these items, nor does it include Internet-based companies. This industry also does not include companies that primarily launder and supply uniforms and work apparel; these operators are included in the Industrial Laundry and Linen Supply industry (IBISWorld report 81233).
What's included in this industry?
Women's formal wear (e.g. bridal wear and gown) rentalMen's formal wear (e.g. tuxedo and suit) rentalCostume rentalMotion picture wardrobe and costume rentalTheatrical wardrobe and costume rentalCompanies
Tailored Brands Inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
TARIFFE-COMMERCEBABY BOOMERIndustry Code
NAICS 532281 - Formal Wear & Costume Rental in the US
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
Younger generations are getting married less frequently than older generations. When the marriage rate is high, demand for formalwear rentals typically increases, as weddings...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Women generally buy formal wear, costumes and accessories rather than rent them. Women’s clothing is much more diversified than men’s and many companies simply do not have th...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
The distribution of rental companies closely follows the US population. The Southeast and Great Lakes region are both highly populous regions and represent the first- and sec...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
Companies compete based on price, brand offerings, range of outfits, location, reputation and customer service. Establishments with a large stock of high-end designer options...
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 2019-2024
- 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
This industry is dominated by small-scale companies. Tailored Brands is the only company in this industry with a sizeable market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Tailored Brands Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Tailored Brands Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Companies must comply with hygiene and safety rules. For example, all clothes must be washed before they can be rented out and drawstrings on children's upper outerwear are n...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Online rental companies continue to harm profitability. The pandemic further exacerbated this as brick-and-mortar stores were forced to close temporarily and consumers relied...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade 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 Formal Wear & Costume Rental in the US industry in United States in 2024?
The market size of the Formal Wear & Costume Rental in the US industry in United States is $691.4m in 2024.
How many businesses are there in the Formal Wear & Costume Rental in the US industry in 2024?
There are 877 businesses in the Formal Wear & Costume Rental in the US industry in United States, which has declined at a CAGR of 4.4 % between 2019 and 2024.
Has the Formal Wear & Costume Rental in the US industry in United States grown or declined over the past 5 years?
The market size of the Formal Wear & Costume Rental in the US industry in United States has been declining at a CAGR of 4.9 % between 2019 and 2024.
What is the forecast growth of the Formal Wear & Costume Rental in the US industry in United States over the next 5 years?
Over the next five years, the Formal Wear & Costume Rental in the US industry in United States is expected to decline.
What are the biggest companies in the Formal Wear & Costume Rental in the US market in United States?
The biggest company operating in the Formal Wear & Costume Rental market in United States is Tailored Brands Inc.
What does the Formal Wear & Costume Rental in the US in United States include?
Women's formal wear (e.g. bridal wear and gown) rental and Men's formal wear (e.g. tuxedo and suit) rental are part of the Formal Wear & Costume Rental in the US industry.
Which companies have the highest market share in the Formal Wear & Costume Rental in the US in United States?
The company holding the most market share in United States is Tailored Brands Inc..
How competitive is the Formal Wear & Costume Rental in the US industry in United States?
The level of competition is high and increasing in the Formal Wear & Costume Rental in the US industry in United States.
