Australians 'willing to make sacrifices' to pay for dream wedding

While wedding expenditure is relatively inelastic – we still want the fairytale whatever the prevailing economic climate – IBISWorld (Australia) general manager, Karen Dobie says current low consumer sentiment will play a part in wedding planning in the year to come.

Nuptials by numbers

"The average cost of an Australian wedding in 2012 is $36,700, a modest 1.4 per cent increase on last year in line with sluggish growth across the retail sector. And while unemployment remains low and disposable incomes continue to rise, we are opting to save rather than splurge more often than not," Dobie said.

"Having said that, weddings may be one of the key exceptions to this trend, with many couples willing to make sacrifices in other areas to stash enough cash to pay for their dream day."

IBISWorld reports that 15 per cent of Australians say "I do" in October, making it the most popular pick to marry, followed by November with nearly 11 per cent, while June remains the least favoured month for nuptials accounting for just 5 per cent.

An estimated 119,000 couples will walk down the aisle in 2012-13 – representing no significant change from last year – with the average groom aged 31.4 years and the average bride aged 29.2 years.

Figures from the Australian Bureau of Statistics reveal that between 1990 and 2005 the average age to marry increased by 3.4 years for women and 3.3 years for men. However, modern migration patterns have stabilised these figures, with the high incidence of Asian migrants (who often marry earlier) affecting this trend over the past two decades.

An estimated 43 per cent of all men who marry in Australia do so aged between 25 and 29 (down from 54.1 per cent in 1990), while 50.4 per cent of women marry between 25 and 29 (compared with 44.8 per cent in 1990).

Behind the romance

"The fact that Australian couples are tending to marry older often means they have saved more money by the time they tie the knot, and they are more likely to know what they want when it comes to wedding plans," Dobie added.

As for how this translates for the wedding industry, Dobie expects wedding venues to continue to raise prices in line with growing disposable incomes, while bridal boutiques are tipped to focus on expanding their off-the-rack ranges to compete with seasonal sales and intense price-based competition.

Breaking it down

"The most dramatic changes we anticipate in wedding spending will be in filming and videography, along with stationery, as these are areas where the growth in digitisation is lowering the cost of services. Couples are also to undertake a little DIY in areas such as designing and ordering invitations, place cards and creating personalised wedding photo books," Dobie said.

Food accounts for the highest proportion of wedding expenditure, representing 31 per cent of overall costs, and while the growing popularity of organic and healthier food is flowing into wedding spending at the table, the forecast growth is currently being reined in by consumers' cost concerns.

"As couples are increasingly style savvy and cashed-up by the time they marry, the number of companies grappling for a slice of the wedding cake will remain high. Competition will become increasingly fierce as service providers seek to differentiate their offering – and betrothed couples will benefit," Dobie added. 

Source: IBISWorld