The Event Rental Industry: Taking a slice of the recession-proof pie
What does the tent rental industry have in common with industries like healthcare, funeral, auto repair and grocery stores? Although not officially classified as “recession-proof,” the modern tent rental industry does fit the mold. One might think that events are the first to get cut by people tightening their budgets. That might be true in most cases. We are living in different times and under new rules. People are more inclined to seek out experiences that are unique and fulfilling. A great deal of those experiences are accessible and the drive to access fulfilling experiences outweighs the costs.
The future shows promise
The event rental market is projecting substantial growth in the coming years. Looking solely at the market value only, event rentals was valued at $4.78 billion in 2023. By 2024 the market had experienced a 10.8% gain, reaching a valuation of $5.3 billion. Projections for 2025 indicate a further 4.6% increase, bringing the total to approximately $5.6 billion.* This is very promising given the economic climate Americans are currently navigating through.
This upward trajectory aligns with the overall expansion of the party rental market and for companies who are well established, with a wide range of client types, and who supply products that meet the very specific needs of those clients, are well-positioned to take a slice of the gains in the market. In 2023 total revenue for the party rental industry was estimated at $15.23 billion. The five year outlook is appearing even better. The industry is expected to grow at a compound growth rate (CAGR) of 11.4% from 2024 through 2030, potentially reaching close to $32.03 billion by the end of the decade.**
Providing products & services to meet the need
Not every company within the event rental industry is going to find themselves in the “recession-proof” bubble. Many smaller, niche party rental, tabletop, and decor companies will be hit the hardest over the coming years. The companies that are set up to succeed will be tent companies. Tenting has the very important function of giving shelter from the elements. When people have shelter, they feel safe. When people are safe, they have security. In the big picture, as events grow, so do the tents. Tents become structures, creating the start of an intricate and regulated infrastructure for an event to occupy. Companies who have the ability to seamlessly make everything come together, or who have a track record of success, are going to be the companies that can tap into the billions in revenue just waiting to be accessed.
Demand for equipment has yet to wane
Increased demand for tent rentals has remained strong for Made in the Shade. A variety of industries from agriculture to professional sports, military and disaster relief, as well as construction have been very complimentary to our existing special event business. Demand is so high for tenting that int he first month of the new year we are already booking annual clients through December, leaving little room for more. It is not so much that we can’t handle more work, the industry just doesn’t have enough skilled tent installers to execute the amount of work available.
Although the bulk of rentals are for special events, festival concerts, political, and corporate events, very few have cut back on their rentals and in turn have actually increased their rentals from Made in the Shade because their events are well attended and in some cases selling out in days of being announced. This is a boon for the cities where the events take place. Soon copycat events pop up given the success of other events, generating more business. Just another residual effect of a promising event market.
In 2023, outdoor recreation generated $1.2 trillion in economic output, accounting for 2.3% of the U.S. GDP and supporting 5 million jobs. This marked the largest recorded measure since the Bureau of Economic Analysis began tracking the outdoor recreation economy in 2012.*** We know people are seeking activities outside of their day-to-day lives.
When the downturn becomes a boom in business
Maybe these facts and figures exist in a world that isn’t event the same as it was two months ago. Fast forward to 2025 and the economy is cooling, or stalled, maybe even in a free fall. Still, despite concerns about contracting economy, the event rental industry has a history of resilience in the face of disaster. While past recessions have definitely impacted event attendance, the unique circumstances that were the result of the COVID-19 pandemic have led to a renewed appreciation for in-person gatherings. This pent-up demand suggests that even in the face of potential economic challenges, people may prioritize local events as cost-effective leisure activities.****
During the 2008 housing crisis, local events flourished and grew in size all throughout Northern California. It is no surprise that outdoor events are particularly pronounced, well supported, and backed in the most populous state in the United States. With upwards of 39,000,000 residence and almost 80% of the year with at, or close to, ideal weather, the state is where events happen. For instance, Modernism Week in Palm Springs saw attendance grow from 12,000 in 2012 to over 130,000 in 2024, generating an estimated economic impact of $68 million for the Coachella Valley. These statistics underscore a robust and growing market for event tent rentals, driven by a combination of economic factors, consumer preferences for outdoor activities, and the enduring appeal of shared experiences.
Tenting and shelter are on solid ground
Rental Inquiries and request for quotes at Made in the Shade have increased in Q1 of 2025 and the queries are all over the map. Tent rentals definitely go beyond special events because the need for shelter as part of disaster relief, agriculture and in construction are very real. That type of pivot opens up opportunities that aren’t always taken advantage of. As a tent rental company, we are in the business of providing shelter and people are covered they feel safe and secure. With a planet that keeps getting hotter, and where rain storms flood cities and counties in hours, and fires decimating entire communities, the need for shelter just increases tenfold. Construction, with their deadlines cab pour concrete under tents and structures. Tenting can be deployed to aid in post-disaster cleanup. Farms and ranches seek additional cover for their workers and crops. The possibilities are endless.
Special events still drive our business and that includes large outdoor concert festivals and professional sports. Incidentally these customers are snatching tents, canopies, and structures up left and right for 2025 as their events continue to grow.
Made in the Shade Game Day advert for Levi’s Stadium and the San Francisco 49ers.
At Made in the Shade, we have been fortunate enough to have dedicated customers with whom we have decades-long relationships with. As the official tent rental company for Levi’s Stadium, Aftershock Music Festival in Sacramento, and the BottleRock Music Festival in Napa. All three entities are behemoths within the event venue and production purview. It is no coincidence that all three generate tens of millions of dollars for their local and regional economies.
LEVI’S Stadium
Levi’s Stadium, home to the San Francisco 49ers, is also a Live Nation concert venue. As the preferred tent rental company of Levi’s Stadium, Made in the Shade maintains a steady present onsite during the NFL’s regular season and during the off season, filling the stadium’s lack of a commissary space by providing tenting big enough to prepare and feed stage and productions crews as they convert the stadium into a concert venue for each show that stops in Santa Clara.
Aftershock Music Festival – Sacramento
Held annually at Discovery Park, Aftershock, produced by Danny Wimmer Presents ,has grown into California’s largest rock and metal festival. In 2024, the festival attracted approximately 160,000 attendees over its four-day span. Concert attendees pumped an estimated $30 million into the local Sacramento economy outside of what they spent on their tickets. The city welcomes the concert-goers dollars. All the hotel rooms were booked months in advance of the event. With a burgeoning food scene and a welcoming downtown city core, people want to come back. 2025 event projections suggest an economic impact close to $35 million, smashing all previous records.*****
Made in the Shade has been the tent provider for Aftershock since 2022. We have proved to be instrumental in the execution of their event build. Our crews work tirelessly, installing over 200 tents and canopies for merch & souvenir shops, vip, meet & greet, catering, bars and production. Each year we complete the total build in under seven days. We value our relationship and take a great deal of pride in our commitment to their organization.
BottleRock Music Festival – Napa
BottleRock is known for its ability to blend music, gourmet food, and premium wine. Napa Valley can attract people for just being Napa Valley but like most regions they have to find ways to keep people retuning. A concert event makes the most sense. It was a gamble that has paid off in the long run. The direct impact that BottleRock has on Napa isn’t readily available; however, tourism figures for Napa Valley are available. In 2023, Napa Valley welcomed 3.7 million visitors, who collectively spent over $2.5 billion—a 13% increase from 2018. Events like BottleRock play a vital role in attracting visitors to the tune of 120,000 each year.******
We have been instrumental is creating the overall aesthetic of the event since year#! (2013). Considered a high-level event, we only send our best equipment. Here you will find tents that are gleaming white, modern and new. It is our commitment to the client’s vision that keeps us well positioned as the tent provider.
Is recession-proof bullet-proof?
Is a tent rental company susceptible to the ills of a recession? At the end of the day no one industry is safe. If COVID taught businesses anything, it was to expect the unexpected and to be prepared to bend when needed. The real path towards success is to be flexible and open to opportunity.
*(Source: ARA News)
**(Source: Grand View Research)
***(Source: RecreationRoundtable.org)
****(Source: STAXX.com)
*****(Source: SFCronicle.com, BizJournals.com)
******(Source: City of Napa)
