While adverse conditions have plagued the industry in recent years, demand for golf courses and country clubs will return, as participation increases. As more baby boomers reach retirement and demand for golfing increases, the industry will experience modest growth. Nevertheless, improved demand will heighten competition among operators.
This industry primarily operates golf courses and may include country clubs that have dining and other recreational facilities. These establishments often provide food and beverage services, equipment rental services and golf instruction. Golf courses can be public, private, and semiprivate or part of a country club. This industry excludes golf driving ranges, miniature golf facilities and golf course resorts and hotels.
The Golf Courses and Country Clubs industry is highly fragmented. The industry is made up of a couple of large firms that operate hundreds of courses, several medium-size companies that own and operate between five and 20 courses, dozens of companies that operate two to four courses and thousands of firms that operate a single course. The four largest golf course and country club operators account for about 5.7% of industry revenue in 2014.
The level of industry concentration is not expected to change significantly in the future. This is due to the highly fragmented nature of the industry, geographic difficulties in achieving economies of scale via mergers and acquisitions and the high costs of acquiring existing golf courses and country clubs.
Source: IBISWorld’s Golf Courses & Country Clubs Market Research Report, 2/14