Key Takeaways
- Analysts at SNS Insider project the dating app industry value will increase by $7B by 2032 despite Gen Z’s flagging interest in dating apps.
- Listening to the needs of the consumer and not solely to the company’s financial goals is essential if dating apps want to remain relevant.
- Subscriptions are, and will likely continue to be, a main source of income for dating apps, but only if they provide genuine benefits and results.
The global dating app industry is expected to reach a value of $15.56 billion by 2032, a steady incline from the 2023 valuation of $8.51 billion, according to market research and consultancy agency SNS Insider. Between 2024 and 2032, the industry is projected to expand by a compound annual growth rate (CAGR) of 7%.
The main driver of the projected growth is revenue from paid subscriptions, which means apps will need to stay attuned — not just to the latest dating trends, but also to the expectations of everyday users navigating the online dating world.
SNS Insider analysts attribute the expected growth to a variety of factors, primarily premium features, an increasingly broad global user base, and innovative features that speak to the evolving needs of the modern dater.
The forecast that the industry will still become billions of dollars richer over the next decade may come as a surprise following reports of younger generations recently swiping left on dating apps. Isn’t everyone saying that dating apps are dying — that they may even have one foot in the grave?
The reason this isn’t quite true — yet — lies in the complicated whims of the consumer.
Today’s Consumers Expect to Be Valued, Not Monetized
A key lesson to learn from these findings: Apps must keep their ears to the ground and their fingers on the pulse, not only of modern dating trends, but of the average online dater.
SNS Insider emphasized the value of listening to the needs of the consumer instead of just the needs of the company.
“The integration of AI for personalized matchmaking, along with enhanced user experiences through features like video calling and location-based matching, is attracting a broader user base,” SNS Insider reported.
These key words — personalized, enhanced, and AI — highlight the types of features that dating app users will most likely want to see more of in the future. People want to feel listened to, and they want to feel cared for, especially by apps that depend on people being vulnerable and emotionally connected.
Worldwide Demand for Dating Apps Keeps Climbing
As dating app usage spreads to other parts of the world (thanks in part to increased internet access), it will become even more important for developers and marketers to understand the needs of each diverse demographic.
“The Asia Pacific region is expected to record the highest CAGR of around 8.78% from 2024 to 2032, due to swift digitalization, youth-dominated population, and increasing willingness for online dating,” according to SNS Insider. The report highlighted the need for app companies to take “cultural preferences” into account.
The ideal consumer, it turns out, can be found anywhere, inside and outside of the most common demographic, Gen Z.
“This demographic interacts with dating applications much more regularly, often using multiple platforms,” SNS Insider noted. For young daters who grew up with the internet, participating on dating apps makes them feel like they’re “part of the social landscape.”
“Due to its high daily usage, [Gen Z] generates the most advertising impressions and premium feature purchases, making it a key driver of overall revenue in the market,” SNS Insider added.
And though dating apps were initially a young person’s game, SNS Insider reported “broader adoption among younger and middle-aged demographics across the U.S.” This expansive user base means that people from all walks of life are gathering on dating apps to voice their needs and make real connections.
Dating Apps Will Bank on Subscriptions, Analysts Say
SNS Insider’s projections show that dating app subscriptions will most likely continue to make up a majority of app revenue.
In 2023, subscriptions boasted a 72% revenue share and are projected to grow at a CAGR of 8.07% through 2032, which is the fastest growing CAGR in the report.
The beauty of the average dating app subscription model is that it really does give users more bang for their buck. This is crucial, as consumers will continue to expect real results when they start using a dating app. And when they shell out hard-earned money to subscribe, they’re expecting even faster and more accurate results.
Subscribing usually gives users access to features that make online dating easier, including unlimited swipes, profile boosts, and more accurate matches, as SNS Insider notes. When apps provide features that give paying subscribers a genuine edge, these users are more likely to make the investment.
Subscribing to a dating app today really is an investment into one’s future. “Users are becoming more sensitive to the value of subscriptions as investments of time into more efficient, better-quality dating outcomes,” according to the SNS Insider report.
As more people flock to dating apps around the world, industry leaders may feel tempted to push out flashy new products and AI innovations. And, sure, AI is bound to transform the dating app industry into something altogether sleeker, more convenient, and more innovative.
But the real piece of the puzzle lies with the consumer — and whether apps are listening well enough to their ever-evolving needs and desires. Only then will the consumer pull out their wallet.