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Invest in The $41 Billion Millennial Family Entertainment Trend

Invest in The $41 Billion Millennial Family Entertainment Trend

Story Highlights:

  • Cash in on the millennial parent mega trend – The family entertainment center market, valued at $19 billion in 2017, is projected to more than double to $41 billion by 2025.
  • One way to play this rising trend, driven by millennial parents, is a stock fund that’s up nearly 11% this year alone.

Recently, while running errands at a local shopping plaza, I had to take shelter in my car and patiently wait for a fierce Florida thunderstorm to pass.

I knew I wouldn’t be waiting long, as storms move quickly over the peninsula state.

As the saying goes: “If you don’t like Florida’s weather, wait five minutes.”

So, while counting raindrops and thunderclaps, I saw something peculiar.

I watched a steady stream of parents with their children exiting their cars and running into a family entertainment center and indoor playground.

Based on their enthusiastic sprinting, no amount of stormy weather would deter these families from getting to the fun as soon as possible.

As it turns out, according to Allied Market Research, the family entertainment center market is booming and exciting.

Valued at $19 billion in 2017, the family entertainment center market is projected to more than double to $41 billion by 2025.

How to Pocket Double-Digit Gains From Millennial Mega Money Trend

Major influencers set to propel this market forward are millennial parents.

The sheer number of millennial parents is positioned to grow exponentially over the next 10 years.

Millennial Marketing, an online source that monitors millennial trends and consumer spending habits, recently noted that in the U.S. alone, millennial parents account for 80% of the 4 million yearly births and that 10.8 million millennial-run households have children.

Moreover, Insights Center reports millennial parents are more than willing to spend on family entertainment.

It appears the numbers keep rising.

Millennial parents spend nearly 40% more on entertainment than any other group.

So, that leads me to tell you about an upcoming next-generation family entertainment center that’s taking the world by storm.

It is touted as the smartest, fastest-growing kids’ entertainment destination in the entire world today.

It is taking the family entertainment center concept to the next level and could be the next millennial parent mega trend.

The interactive center is called KidZania.

Founded in 1999 by entrepreneur Xavier López Ancona, KidZania is a global brand of interactive education and entertainment centers for children.

The very first KidZania opened its doors in Mexico City, Mexico. Since then, more than 68 million people around the world have visited a KidZania.

KidZania is an interactive city made for children age 1 through 14.

The company notes this interactive city “combines inspiration, fun and learning through realistic role-play, making KidZania one of the fastest growing global learning and entertainment brands in the world.

“Kids can independently explore a scaled indoor city of over 7,000 square meters with more than 100 exciting careers that they can try.”

Below you will see an image of the scaled indoor city.

This city is where children can role-play various occupations and work in establishments such as hospitals, supermarkets, beauty salons or fire stations. These venues are designed to give children hands-on learning opportunities.

The family entertainment center market for millennial parents, valued at $19 billion in 2017, is projected to more than double to $41 billion by 2025.

KidZania also helps kids learn about the economy and the value of a dollar. This is a subject near and dear to my heart.

The facility “supports learning goals of financial literacy by contributing to a child’s understanding of the economic cycle.”

According to KidZania:

Each KidZania city operates with a proprietary currency, named “kidZo,” which enables participants to learn about monetary management by earning kidZos through employment, letting them acquire goods and services as customers, saving into bank accounts, investing long term, paying taxes and giving back to the community through donations.

Currently, KidZania operates 27 facilities around the world, from London to Mumbai to Tokyo.

More than 9 million people across 21 countries visit a KidZania center every year.

The family entertainment center market for millennial parents, valued at $19 billion in 2017, is projected to more than double to $41 billion by 2025.

If you live in the U.S., keep your eyes peeled, as this state-of-the-art, interactive family entertainment center is set to open several facilities across the country starting this fall.

The major U.S. cities are:

  • Dallas. Opening fall 2019 at the Stonebriar Centre in Frisco, Texas.
  • New York. Opening in 2019 at the American Dream Meadowlands mall in East Rutherford, New Jersey.
  • Chicago. Opening in 2020 at the Oakbrook Center in Oak Brook, Illinois.
  • Los Angeles. Opening in 2021.

Parents, especially millennial parents, are primed and ready to help their children learn, grow and flourish.

Family entertainment centers such as KidZania offer them options to help their kids obtain these objectives.

How to Tap the Millennial Parent Mega Trend

If pouring rain and a thunderstorm didn’t stop parents from charging full steam ahead into my local family entertainment center, then we may be seeing a growing trend ripe for investment.

For now, KidZania is a privately held company. To play the overall family entertainment market, consider investing in the Invesco Dynamic Leisure and Entertainment ETF (NYSE: PEJ). This exchange-traded fund (ETF) tracks the Dynamic Leisure & Entertainment Intellidex Index, which holds 30 U.S. leisure and entertainment stocks.

It’s up nearly 11% since January.

Until next time,

Amber Lancaster

Director of Investment Research, Banyan Hill Publishing

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