The Seven Deadly Sins

By IBISWorld Industry Analysts Josh McBee and Agata Kaczanowska

Whether through personal religious studies, music, artwork or film, most people are familiar with the vices that make up the “seven deadly sins,” or Cardinal Sins. While the origination and descriptions vary from source to source, there is truly no other depiction of the sins as viewed through an IBISWorld lens. This special report details the seven human vices in relation to industry performance. So, forecast higher disposable incomes and new technologies are anticipated to increase the potential for indulgent behavior in the coming year. More specifically, IBISWorld analysis suggests that Americans will spend the most moolah facilitating their greedy and gluttonous ways in 2012, followed by practices that promote envy and sloth.

1. Greed

Commercial Banking – 52211

2012 Revenue: $613.5 billion 

2012 Growth: 1.9%

Relaxed lending standards allowed commercial banks to issue lines ofcredit to all applicants in the early 2000s. But then the four largest banks wrote down about $79.1 billion on the value of loans, mortgage-backed securities and collateralized debt obligations, and because they were deemed “too big to fail,” the government had to bail them out. Through 2012, commercial banks will continue to benefit from the government’s Troubled Asset Relief Program.

See also: Finance and insurance sector (multiple IBISWorld reports 522-525)

2. Gluttony

Fast Food Restaurants – 72221a

2012 Revenue: $169.7 billion

2012 Growth: 2.6%

Nothing says “super-size me” like the multinational conglomerates that make a killing as they serve affordable, high calorie meals. The difference in the rate of growth between companies and their establishments indicates that existing fast-food chains will add new, convenient locations faster than new players will enter the industry. Rebounding employment is restricting consumers’ freetime, so fast-food providers are fattening bottom lines while lining bottoms with fat.

See also: Ice Cream Production (IBISWorld report 31152), Candy Production (31134)

3. Envy

Jewelry Stores – 44831

2012 Revenue: $31.6 billion

2012 Growth: 4.5%

Although consumers withheld extra sparkly spending in the wake of the Great Recession as status symbols took a backseat to paying bills, they are now making their friends green with envy.  Consumers are also likely to buy more bling as they find better deals in nontraditional jewelry hubs, like at warehouse stores and online. Jewelry sales are forecast to rise as people return to buying the glittering objects of their (social circle’s) desire.

See also: Hair & Nail Salons (IBISWorld report 81211), Tanning Salons (81219c)

4. Sloth

Maids, Nannies and Gardeners – 81411

2012 Revenue: $16.0 billion

2012 Growth: 3.4%

The do-it-for-me market makes up this industry’s primary customer, with personal chefs, gardeners, estate managers, butlers and caretakers providing services that help Americans – those with money of course – maintain comfortable, lazy lifestyles. And as the economy improves, increasing household employment and income levels will boost demand for and employment within the industry.

See also: Landscaping Services (IBISWorld report 56173)

5. Wrath

Guns and Ammunition Manufacturing – 33299a

2012 Revenue: $10.7 billion

2012 Growth: 2.3%

American consumers love to pull the trigger when it comes to buying new firearms. In fact, domestic manufacturers have not been able to completely satisfy domestic demand. Over the five years to 2011, imports have grown at an annualized rate of 4.5% to $2.4 billion. The United Kingdom and Germany, in particular, have benefited from the decidedly American impulse to shoot first and ask questions later.

See also: Tank and Armored Vehicle Manufacturing (IBISWorld report 33699b), Explosives Manufacturing (32592)

6. Pride

Tanning Salons – 81219c

2012 Revenue: $4.9 billion

2012 Growth: 2.0%

Like a peacock spreading its tail feathers, people love to display their golden-brown bodies. From real housewives in Orange County to guidos and guidettes on the Jersey Shore, Americans love their tans. To soak upeven more profit from these dedicated customers, a tanning tax recently went into effect for the use of UV booths, which is expected to boost promotion of sunless tanning booths and airbrushing since they are exempt from the tax.

See also: Hair and Nail Salons (IBISWorld report 81211)

7. Lust

Online Dating – 81299a

2012 Revenue: $2.0 billion

2012 Growth: 3.5%

Old-fashioned romance has been collecting dust as instant messaging, photo sharing and smartphone dating apps boost demand and growth for the Online Dating industry. Lured by enhanced revenue, the number of online dating and matchmaking companies is projected to rise at an average annualized rate of 2.0% to 15,455 in the five years to 2016. While some sites boast complex matrices that match like-minded members, others promote fast and easy companionship with “no strings attached.”

See also: Family Planning & Abortion Clinics (IBISWorld report 62141)

To download full research reports for the industries discussed in this article, click on the report titles below.

Commercial Banking, Financial Planning & Advice, Insurance Brokers & Agencies, Fast Food Restaurants, Ice Cream Production, Candy Production, Jewelry Stores, Hair & Nail Salons, Tanning Salons, Maids, Nannies & Gardeners, Landscaping Services, Guns & Ammunition Manufacturing, Tanks & Armored Vehicle Manufacturing, Explosives Manufacturing, Online Dating, Family Planning & Abortion Clinics           

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