Revenue for Youth Organizations

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Youth Organizations E-Commerce Market

While there were no precompiled industry reports available in the public domain pertaining to Youth Organizations' e-commerce market revenue and profit margin in the United States, we were able to come up with an estimated market revenue and profit using top-down market sizing analysis and triangulation through various methods, i.e. analyzing previous years trend and applying it to the United States current market and utilizing the broader segment of the market and assuming a similar trend in the specific segment.

The estimated youth organization's e-commerce revenue in the United States in 2017 was $225 million with a profit margin of 6.45%, about $14.50 million profit value. Below you will find detailed calculations, methodologies, and assumptions used in deriving these figures.

YOUTH ORGANIZATIONS REVENUE IN THE U.S.

In 2017, according to IBISWorld report, the total civic, social and youth organization's revenue in the US was $17.0 billion with CAGR of -0.2%. From a comprehensive report released in 2015, the total revenue of this industry was $17.9 billion, of which 30% of the total revenue accounts solely for the youth organizations (excluding educational group such as activities at school and community and support groups which has combined 25% share). Organizations such as Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, and programs of the YMCA are all groups that belongs to the youth organizations sector. According to the report, there were no companies with a dominant market share and no industry player controls more than 2.0% of the market. Overall, the Boy Scouts of America's market share in 2015 was 1.6%, the Boys and Girls Club of America owns 1.3% share, and the YMCA's market share was 0.60%.

Assuming that the 30% share of youth organizations continued to carry similar trend until 2017, then its revenue during this year was $5.10 billion.

2017 youth organizations revenue = $17.0 billion * 30% = $5.10 billion

SOURCES OF REVENUE

Based on the same IBISWorld report for 2015 data, there are various sources of revenues for this industry. These sources are from membership fees which was estimated to account for 20.3% of the total revenue, funds from government grants account for 4.8%, private organizations donations account for 21.9%, food, meal & beverage sales accounts for 16.3%, and the remaining percentage (about 36.7% after deducting all the mentioned percentage share) accounts for other sources of revenue such as ticket sales and the revenues from sales of organization's merchandises such as logo and accessories, apparels, souvenirs, clothing, uniforms, supplies, camping equipment, and others.

Based on above breakdown, total revenue percentage from 'non-ecommerce' revenue-generating products such as membership fees, government grants and private donations, was 47%.

20.3% + 4.8% + 21.9% = 47% Share of 'non-ecommerce' revenue-generating products

16.3% + 36.7% = 53% Share of products and services that possibly have e-commerce presence like food, meals, beverages, sales of organization's merchandises such as logo, souvenirs, clothing, uniforms, supplies, camping equipment, and others.

ESTIMATED YOUTH ORGANIZATIONS E-COMMERCE REVENUE & PROFIT MARGIN

From the above calculations, we assumed that these percentages carry similar trend specific for youth organizations in 2017.

Revenues for products and services with possible e-commerce presence
= Youth organizations total revenue in 2017 * 53%
= $5.10 billion * 53%
= $2.70 billion

While there was no statistics or industry reports that could directly quote % share of e-commerce sales for the youth organizations, we used the average % share of identified e-commerce merchandise retail sales in the U.S. which has connection or can be related to youth organizations' merchandise products based on the report released in 2017 by the Economics and Statistics Administration (ESA).

E-commerce % share from total industry by merchandise line:

Food and beverages = 3% share
Clothing and accessories = 18%
Sporting goods = 4%
Toys, hobby goods and games = 4%
Office equipment and supplies = 3%
Other merchandise, i.e. souvenirs = 18%

Average e-commerce % share of the 6 merchandise line above = 8.33%

Using the average 8.33% e-commerce share to calculate the estimated youth organizations e-commerce revenue in the US;

Estimated youth organizations e-commerce revenue
= total revenue for products with possible e-commerce presence * 8.33%
= $2.70 billion * 8.33%
= $225 million

In 2015, the profit margin, measured as earnings before interest and taxes, of the industry was 6.1% as compared to 5.3% back in 2010, which would mean that the profit's share from revenue was increasing at 2.85% annually (from CAGR calculator result with initial value of 5.3%, final value of 6.1%, and 5 as number of periods).

Using the 2.85% annual growth to calculate until 2017 and by utilizing a reverse CAGR calculator (with an initial value at 6.1%, CAGR value of 2.85% and 2 years as the number of periods), then the estimated profit margin during this year was 6.45%.

Profit value in $ for 2017
= e-commerce revenue * profit margin
= $225 million * 6.45%
= $14.50 million

CONCLUSION

Youth organizations' e-commerce revenue was estimated to worth $225 million in 2017 with about 6.45% profit margin ($14.50 million profit value). The revenue and profit value was derived from youth organizations' products and services that possibly have e-commerce presence like food, meals, beverages, sales of organization's merchandise such as logo, apparels, souvenirs, clothing, uniforms, supplies, camping equipment, and others.
Sources
Sources