Adult Entertainment Market to reach US$ 300 Bn by 2030 Share, Size, Growth and Forecast Illuminated By New Report 2030

OTT Reigns as Porn Industry Suffers Due to COVID-19 Restrictions

The viewership of 18+ content on OTT (Over the Top) platforms and porn sites witnessed an unprecedented rise during the COVID-19 pandemic due to self-quarantine and social distancing norms. Since several regions are still receiving coronavirus cases, this trend is anticipated to continue in 2021 and upcoming years. This signals a favorable growth for the adult entertainment industry market.

The COVID-19 crisis has triggered a surge in DIY (Do-it-Yourself) content, since the multi-billion dollar porn industry is increasing its business activities in a staggered manner. Such factors are influencing the recovery of the adult entertainment industry market. Negative repercussions of the pandemic are also reflecting in strip clubs where masks have become mandatory for all customers and workers.

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Stringent Regulations, Common Stigma around Sex Toys Affect Market Growth

Sex toys are anticipated to dominate the second-highest revenue after pornography in the adult entertainment industry market. However, pros and cons of sex toys tend to influence buyer decisions, thus affecting sales. For instance, there is a need for awareness about the appropriate use of sex toys such as its cleaning to avoid risk of contracting sexually transmitted infections, maintenance, and possible injuries if used recklessly.

Stringent regulations in countries including India have led to a shutdown of India’s first brick-and-mortar sex toys and wellness products store Kama Gizmos, owing to an alleged lack of trade license. Online news and digital magazine outlets are educating women about its appropriate usage.

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Japan’s Hostess Clubs Gain Popularity for Security, Safety of Customers

Even as pornography is estimated to dictate the highest revenue share among all entertainment types in the adult entertainment industry market, host and hostess clubs are predicted to grow at an exponential rate during the forecast period. Lately, Japan’s host and hostess clubs are being highly publicized for their safety and security, since these clubs lack nudity, prostitution, and sexual acts.

Drinks and karaoke are popular at Japan’s host and hostess clubs, which are experiencing demand in the Japan adult entertainment industry market. However, foreigners are found to receive a cultural shock at these clubs, since inappropriate conversations and acts are reported by the host and hostess that lead to an unruly warning for the client by the club security. Hence, stakeholders in the host and hostess clubs segment are increasing awareness that customers do a thorough research that suits the needs and budget of customers.

Drive-through Strip Clubs Help Keep Performers, Bartenders Employed during Pandemic

The COVID-19 crisis has led to the development of innovative drive-through strip clubs. Such trends are anticipated to revive growth of the adult entertainment industry market, since this technique is an alternative way to bring back customers. Investors are anticipated to increase focus on drive-through strip clubs in order to keep bartenders, servers, and entertainers employed. The Lucky Devil Lounge in Portland and Vivid Gentlemen’s Club in Houston are gaining recognition for introducing the new business model where customers can order eatables, while performers dance with masks on.

VPN Paves Way for Watching Porn Safely Without Risking User Data

An increasing number of users is opting to watch porn safely. Since watching porn online has raised the issue of mass data collection, companies in the adult entertainment industry market that follow ethical entertainment norms are educating viewers to opt for a virtual private network to avoid issues of data theft. VPN is being highly publicized to reroute Internet traffic through a remote server and hides the IP (Internet Protocol) address, thus preventing websites from seeing the visitor’s original IP or location.

Although pornographic website owners in the adult entertainment industry market are taking great care in protecting the user’s data, it is subject to an unforeseen attack by malicious hackers.

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Adult Entertainment Market: Overview

  • According to Transparency Market Research’s latest research report on the global adult entertainment market for the historical period 2018 and the forecast period 20192030, rising demand from the entertainment industry for sex toys are expected to boost the global adult entertainment market during the forecast period
  • In terms of revenue, the global adult entertainment market is estimated to exceed value of US$ 300 Bn by 2030, expanding at a CAGR of ~5% during the forecast period

Introduction of Hollywood Characters & Celebrity Tapes to Drive Adult Entertainment Market

  • With the introduction of celebrity sex tapes and Hollywood characters such as Batman XXX, Avengers XXX, Ironman XXX, and many others, the adult entertainment industry has become more cinematic and visually appealing. These factors contribute to the growth of the adult entertainment market.
  • Virtual reality is evaluated to lead to immense opportunities in the porn industry. Porn is one of the fastest growing industries in the world, and VR-adult content is the next big money spinner.
  • The Germany-based company “me.mento 3D” is taking virtual reality to new heights and is developing its own VR platform called vrXcity– tipped to  be the world’s first interactive erotic platform for adults where clients will be allowed to interact with naturally moving, totally automated, and AI-powered incarnations of the adult industry.
  • According to the German newspaper BILD, in 2020, it tested the Beta version of the erotic game, the “interactive erotic world,” which has brought together gaming and sex
  • North America is one of the most impacted regions with massive number of COVID-19 cases and deaths. Rapid increase in number of COVID-19 positive patients in the U.S., Canada, Mexico, etc. is anticipated to lead to economic slowdown in the near future, which will further affect the adult entertainment market. Countries in the region are making efforts to deal with the situation by implementing strict rules. The global turnover of various industries is expected to take a hit during the forecast timeline due to various restrictions imposed on many industries or sectors.
  • Governments have created regulations for prostitution and other activities due to imposition of travel restrictions. This has led to a slowdown in the adult entertainment business. Many strip clubs are closed from March 2020. This factor has had a significant impact on the adult entertainment market. The United States has declared National Emergency and all states are closely working with the Federal Government to ensure local needs are met. The pornography segment has shown a significant rise in North America during the COVID-19 situation. The number of pay-on-demand videos also increased significantly in 2020 and 2021.

Increasing Demand from Asia Pacific

  • Asia Pacific is the largest adult entertainment market at the global level. North America was the second largest adult entertainment market in 2019. Strong product innovation among manufacturers with newer features in adult entertainment are expected to boost the market during the forecast period.
  • The U.S. is the most lucrative market for adult entertainment in North America, owing to healthy economy and improving labor market. This has led to a strong demand for pornographic content in the adult entertainment market. The U.S. is the largest producer of adult entertainment products at the global level.

Adult Entertainment Market: Key Developments

  • Key providers of adult entertainments such as Playboy Enterprises, Paul Raymond Publishing, and Larry Flynt Publications are focusing on product development to attract more customers. Second tier companies catering to the adult entertainment market are Core Magazine, Private Media Group, and Hammy Media Limited.
  • Some other key developments in the global adult entertainment market are highlighted below:
    • In October 2020, Playboy Enterprises merged with Mountain Crest, a blank check company to be classified on Nasdaq Stock Market under PLBY ticker to increase its revenue worldwide
    • In 2019, Playboy Enterprises acquired Yandy, an online retailer focused on lingerie, swimwear, Halloween costumes, and women’s apparel to increase its customer base in the adult entertainment market

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