Market data

Market data is information about the market a business sells in, rather than about the business itself. Typical market data includes total market volume, market growth, market trends and each business's market share. It helps a business judge the size of a market, how it is changing and whether it is worth competing in.

Total market volume is the total quantity of goods or services sold in a market. For example, it could be the number of escape room visits sold in a city in one year. This shows the market's size in units sold, rather than in money.

Market growth is an increase in the size or value of a market over time. If a city's escape room market was worth £1.2 million last year and £1.5 million this year, it has grown by £0.3 million, or 25%. Growth can make a market look more attractive to a business thinking of entering it.

Market trends are patterns or changes in market behaviour over time. In the escape room example, a trend could be more customers booking weekday evening slots instead of weekends. A trend is a direction that continues over a period, not a single busy night.

Using market data

Market data comes from the whole market, not from one business's own sales or advertising results. It can help a business decide whether to enter or leave a market. Rising volume and strong growth may persuade a business to enter; a trend away from its product may persuade it to leave. Market data can also show when advertising needs to change to increase market share. If an escape room's market share falls while the market is growing, its advertising may not be reaching the right customers, so it could promote weekday evening bookings to match the trend.