1) How big is the global market for online dating/dating apps? Please include associated numerical information on key players: their market share/capitalization, revenue etc.

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1) How big is the global market for online dating/dating apps? Please include associated numerical information on key players: their market share/capitalization, revenue etc.

EXECUTIVE SUMMARY

The global online dating market consists of the 3 segments dating services, matchmaking and casual dating. These segments have 2017 revenues of $4.886 billion, $2.370 billion and $1.127 billion, respectively, for a total market size of $8.383 billion. The global online dating services market is expected to grow at a 5.31% CAGR (Compound Annual Growth Rate) from 2017-2021. The Match Group holds the top spot in both online dating with Match and with their dating app Tinder which has 11,000,000 downloads. Match commands a 25.7% market share followed by eHarmony which has 12.0% of the dating app market. There is a lot of overlap and combining of data with regard to revenues and market size of dating apps versus online dating websites.

GLOBAL ONLINE DATING

MARKET SIZE -

The global online dating services market consists of 3 segments: dating services, matchmaking and casual dating. The definitions of the dating and matchmaking markets overlap in terms of the “search for life partners.” In casual dating, there are, “…apps and portals focused on non-committal erotic adventures.” For these reasons, I considered all 3 segments for the total market, but I also broke out the data for each segment.
Based on the data below from Statista, the market size for global online dating is $4.886 billion + $2.370 billion + $1.127 billion = $8.383 billion. According to an October 2017 report from Business Wire, from 2017-2021, the global online dating services market is expected to grow at a CAGR of 5.31%.
• Dating Services
o 2017 revenue = $4.886 billion.
o Expected CAGR 2017-2021 = 4.7%
o Expected 2021 market volume = $5.871 billion
o Highest revenue will be generated in the US in 2017 = $2.012 billion
• Matchmaking
o 2017 revenue = $2.370 billion.
o Expected CAGR 2017-2021 = 5.4%
o Expected 2021 market volume = $2.922 billion
o Highest revenue will be generated in the US in 2017 = $0.0774 billion
o User penetration = 3.3% in 2017, 3.8% in 2021
o Average Revenue Per User (ARPU) 2017 = $18.47
o Expected users by 2021 = 153.4 million
• Casual Dating
o 2017 revenue = $1.127 billion
o Expected CAGR 2017-2021 = 4.9%
o Expected 2021 market volume = $1.365 billion
o Highest revenue will be generated in the US in 2017 = $0.572 billion
o User penetration = 2.3% in 2017, 2.5% in 2021
o ARPU 2017 = $12.36

KEY PLAYERS

I chose the key players in the global online dating market by the number of unique monthly visitors to their website according to Alexa. Based on a October 2017 article on Seeking Alpha, “Match Group has a tightening stranglehold on the online dating business with four of the top five brands.” Using this, I went to the Owler website to find the revenues for the companies.
To find the market capitalization for Match, I used FinViz. Please note that the other companies are privately held, so market capitalization figures for them were elusive in spite of extensive searching. Market share data was also difficult to find. However, the Seeking Alpha article contains estimates made by experts in the field. They estimate Match’s market share at 25.7% followed by eHarmony at 12.0%. The article goes on to say that the rest of the market (62.0%) is split among Badoo, Zoosk, Spark Networks and others, “with no other competitor reaching as high as 5%.”
Here are the top 5 key players in the global online dating market:
1. Match
Monthly Unique Visitors = 35,000,000
Revenue = $1.0 billion
Market Share = 25.7%
Market Capitalization = $6.80 billion
Monthly Unique Visitors = 23,000,000
Revenue = $100.0 million
Market Share = < 5.0%
Market Capitalization = n/a (privately held)
3. Zoosk
Monthly Unique Visitors = 11,500,000
Revenue = $178.0 million
Market Share = < 5.0%
Market Capitalization = n/a (privately held)
Monthly Unique Visitors = 10,150,000
Revenue = $10.0 million
Market Share = < 5.0%
Market Capitalization = n/a (privately held)
Monthly Unique Visitors = 7,100,000
Revenue = $51.0 million
Market Share = 12.0%
Market Capitalization = n/a (privately held)

GLOBAL DATING APPS

MARKET SIZE

After extensive searching, it was difficult to separate the market size data for online dating from that of dating apps. Much of the data overlaps or is altogether. Also, I was not able to find any data on market share for the top dating apps, even after looking at quarterly reports for Match Group which owns the Tinder brand. However, I did find information that helped differentiate the key players in dating apps from those of online dating.

KEY PLAYERS

After checking AppAnnie, SearchMan, SimilarWeb and Mobbo, I was not able to find a list of the global top dating apps. The four reference sites mentioned have the top downloads by country only, not cumulative. I continued searching and found the most downloaded iOS dating apps worldwide on Statista as of July 2016. Below are the top 5 based on the number of downloads:
1. Tinder
Downloads = 11,000,000
Revenue = $4.5 million
Market Capitalization = n/a (privately held)
2. Badoo
Downloads = 6,000,000
Revenue = $100.0 million
Market Capitalization = n/a (privately held)
3. Happn
Downloads = 4,000,000
Revenue = $1.0 million
Market Capitalization = n/a (privately held)
4. TanTan
Downloads = 3,000,000
Revenue = $3.5 million
Market Capitalization = n/a (privately held)
5. Lovoo
Downloads = 2,500,000
Revenue = $3.5 million
Market Capitalization = n/a (privately held)

CONCLUSION

Worldwide, the online dating market size is approximately $8.383 billion. Tinder, Badoo, Happn, TanTan and Lovoo are the most downloaded dating apps in the world and Match, PlentyOfFish, Zoosk, OkCupid and eHarmony are the top online dating players.

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