The location-based entertainment market operates in a complex landscape defined by economic caution and evolving consumer expectations. While spending on recreational services is predicted to grow to $263.6 billion in 2025, this is largely driven by inflation, rather than increased visitation. Economic pressures and convenient access to quality at-home entertainment remain significant barriers to surmount, compelling LBEs to emphasize the social connection and memorable experiences their services provide.
LBEs must overcome these barriers to spur consumers’ underlying desires to visit these establishments into action. Highlighting their ability to facilitate socialization is nearly universal, but beyond that, generational preferences diverge. Younger audiences seek novelty and tech integration, while older demographics respond better to discounts and nostalgia. For brands to succeed, they must innovate beyond price-based promotions. Opportunities lie in diversifying attractions to appeal to all ages, leveraging technology for immersive experiences and implementing tiered offerings that create a stronger perception of value.
This report looks at the following areas:
- Market growth and projections for recreational spending
- Motivations for going to LBEs, and how the experience can be enhanced
- Barriers and market factors that make consumer hesitant to go to LBEs
- The food and beverage options guests would like to see
- Innovations across various types of LBEs and marketing strategies
Economic uncertainty and convenient in-home leisure options challenge LBEs. However, they can act on consumers’ underlying desire for social experiences.
Mike Gallinari, Senior Travel & Leisure Analyst
Market Definitions
For the purposes of this Report, Mintel defines the location-based entertainment market as “recreation services” and includes: movie theaters, live entertainment (excluding sports), membership clubs/participant sports centers, amusement parks, campgrounds, related recreational services, museums and libraries
Consumer research considers the following types of location-based entertainment and groups them in the following segments:
- Broad appeal: Movie theater, Museum/zoo/aquarium
- Interactive: Theme park, – Traditional in-person games (eg bowling, darts), Traditional outdoor activity center (eg mini-golf, batting cages), Entertainment restaurant (eg Dave & Buster’s, Chuck E. Cheese)
- Theater: Live theater (eg play, dance), Dinner theater (eg Medieval Times, Tony n’ Tina’s Wedding)
- Kid-centric: Family fun center (eg Legoland Discovery Center, Crayola Experience), Indoor active activity center (eg trampoline park, climbing gym)
- Tech-forward: Video gaming (eg VR lounge, video game arcade), Immersive attractions (eg escape room, haunted house)
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EXECUTIVE SUMMARY
- What you need to know
- Outlook for location-based entertainment
- Opportunities
- Authentic, meaningful use of IP keeps fans coming back
- Premiumization works best when in service of providing a good time
- Immersive entertainment is relatively nascent, letting bigger LBE companies enter the segment
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THE MARKET
- Snapshot – market size and forecast
- An uncertain economy jeopardizes LBE spending
- Streaming’s popularity reflects its convenience, cost-conscious subscribers
- Graph 1: screen usage and primary screen, 2023
- LBEs need to break through to a large population of mobile gamers
- Graph 2: gaming device usage, 2025
- OOH fundamentals are changing
- Tariffs hit multiple aspects of LBEs, increasing costs while lowering appeal
- Economic bumps disrupt recreational spending’s post-COVID-19 trajectory
- Recreation spending set for steady growth after short-term struggle
- Graph 3: consumer spending on recreation services*, at current prices, 2019-30
- Industry players
- The titans of entertainment restaurants modernize to stay relevant in a changing LBE environment
- Emerging attractions are growing; few expansive brands makes entry possible
- Consumers reward competitive social gaming brands prioritizing “social”
- Theme parks make heavy investments to stay competitive
- Movie theaters enhance the experience to compete with at-home streaming
- Tech-forward VR companies attempt to represent the future of LBEs
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THE CONSUMER
- LBE visitors and interest
- Appeal to a variety of interests and need to socialize
- LBEs must evolve to receive interested leisure spenders
- Graph 4: LBE segment visitation in the last 12 months, by generation, 2025
- Graph 5: LBE segment visitation intent, by generation, 2025
- LBEs catering to kids, tech-savvy attract younger visitors
- Use tech to keep the experience fresh for all ages
- Barriers and motivations
- LBE guests value the social aspect
- Graph 6: LBE visitation/intent and LBE motivations, 2025
- Novelty attracts Gen Z and Millennials
- Graph 7: motivations for visiting an LBE, by generation, 2025
- Highlighting social bonding increases a venue’s popularity
- Discounts and variety can overcome many barriers
- Graph 8: barriers to visiting an LBE, by segment, 2025
- Offer novelty and overcome Gen Z’s solitude to draw them out
- Special discounts are an ingress for Gen X and older consumers
- Position quality time as an alternative to screen time
- Graph 9: attitudes towards LBEs, by parental status, 2025
- Increasing appeal
- Novelty and premiumization can increase the appeal of kid-centric, tech-forward LBEs
- Deals aren’t enough to attract parents
- Graph 10: factors making LBEs more appealing, by parental status, 2025
- Brand apps keep Gen Z involved with the brand at home
- Middle-income “value” is based on experience, not just price
- Graph 11: factors making LBEs more appealing, by HHI, 2025
- LBE food and beverage
- Refreshments are an easy avenue for premiumization
- Don’t skrimp on snacks when upscaling food offerings
- Graph 12: desired LBE food and beverage options, by generation, 2025
- Variety is the spice of life (including international spices)
- Graph 13: desired LBE food and beverage options, by parental status, 2025
- Premium options can add an air of prestige
- Graph 14: desired LBE food and beverage options, by HHI, 2025
- Use thematic implementation of partnerships for greater effect
- Spotlight: Universal is capitalizing on the decentralized nature of tech-forward LBEs
- Leverage thematic elements to underscore emerging LBEs’ experiential value
- Universal augments parks arm with immersive attractions
- Creating leisure hubs provides more types of LBEs in one place
- Leaning on IP provides flexibility, expansion opportunities
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INNOVATION AND MARKETING
- Launch activity and innovation
- Submersive sets the bar for burgeoning wellness entertainment
- Wellness initiatives are creeping into other LBE sectors
- Use IP to attract fans
- The Field Museum enriches fandom for Pokémon lovers
- OOH leisure events spring up around food outlets
- Technology continues to create more immersive LBE experiences
- Premiumization and exclusivity still have a place
- Swingers’ strategy keeps higher-earning guests in constant motion
- Marketing and advertising
- Topgolf’s marketing aims to broaden its appeal beyond golf
- Topgolf makes its pitch for being a regular hangout
- Disney offers discounts to lock in visitation plans
- AMC leans on limited availability, memes as an entry point
- Chuck E. Cheese uses in-house broadcast assets to reach consumers at home
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APPENDIX
- Market definition
- The market
- Forecast methodology
- Forecast fan chart methodology
- Retail sales and forecast of recreation services, at current prices
- Retail sales and forecast of recreation services, at inflation-adjusted prices
- Market forecast and prediction intervals
- Consumers have less leisure time, making them more judicious about their leisure choices
- The consumer
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations
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