Amusement Parks and Arcades NAICS 7131

Dec 29, 2025 - Higher Growth Forecast

• The US amusement parks and arcades industry is projected to grow at a CAGR of 5.52% between 2025 and 2029, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy's projected growth. Spending by US households and tourists, foreign students, and other visitors largely drives the arts, entertainment, and recreation industries. Consumer confidence is expected to improve in the forecast period, which bodes well for the sector. Further increases in tariffs and decreases in immigrant labor supplies may push price levels higher and postpone the improvement of inflation. The slow rise of employment and higher consumption prices may limit expansion of real disposable income to about 1.8% in 2025 and 1.6% in 2026.
• Amusement parks and arcades enter 2026 amid continued consumer caution, as both major sentiment indicators ended the year notably weak. The University of Michigan Index of Consumer Sentiment rose slightly to 52.9 in December but remained nearly 30% below 2024 levels, with durable goods buying conditions declining for the fifth straight month and 63% of consumers expecting unemployment to increase. The Conference Board Consumer Confidence Index fell to 89.1, driven by a 9.5 point drop in the Present Situation Index, while the Expectations Index held at a recession signaling 70.7 for the 11th consecutive month. The conditions continue to push households toward lower cost leisure options. Arcades may benefit from this shift toward affordable entertainment, while amusement parks, typically higher ticket destinations, may see more selective visitation. Easing inflation and improving expectations for future finances offer some stabilization heading into 2026, though job and income concerns will keep discretionary spending restrained.

• Employment and wages for amusement parks and arcades were up in August 2025 year over year, according to data from the US Bureau of Labor Statistics. Employment by amusement parks and arcades increased 2% in August year over year while wages were up 4.2%. Employment in the industry grew 15.9% in the past three years, higher than the 3.6% growth in overall private employment. Meanwhile, producer inflation for amusement and theme parks declined 1.3% in September 2025 year over year, according to producer price index data from the US Bureau of Labor Statistics. According to the Consumer Price Index, prices for other recreation services, including leisure and entertainment activities, were up 1.5% in November 2025 year over year. Total revenue for amusement parks and arcades rose 0.3% in Q2 2025 compared to a year ago and increased 34.1% from the previous quarter, according to the US Census Bureau.
• According to the IAAPA, the US amusement park industry faced a challenging operating environment in Q3 2025, marked by volatile weather, economic uncertainty, and shifting consumer behavior. Unseasonably cool and wet spring conditions followed by extreme summer heat suppressed attendance, while guests showed resistance to pricing strategies, prompting mid-season discounting. Once inside, visitors spent less, limiting per-capita revenue. Broader concerns, such as tariff uncertainty, political instability, and potential minimum wage hikes, added pressure to operators’ bottom lines. Despite these headwinds, manufacturers reported strong equipment orders, signaling long-term optimism. Looking ahead, US amusement parks are focusing on new offerings, revenue management, and infrastructure upgrades to drive future growth.