Valentine's Day dating app downloads slowdown

Dating app market growth is slowing, with Match Group reporting a decline in paying customers. AI may be the future.

Valentine's Day may be upon us, but the dating app market is showing signs of slowing growth. According to a new analysis by app intelligence provider data.ai, global downloads of dating apps only increased by 1.9% to reach 128 million installs in January 2024, compared to a 29% increase in the prior year. In the U.S., growth has also slowed, with a 2.38% year-over-year increase reaching roughly 12.7 million installs, down from nearly 16% growth in January 2023.

These numbers paint a worrying picture for the industry, especially when combined with other signals that the market is losing steam. Match Group, the company behind popular dating apps like Match, Tinder, Hinge, and OKCupid, reported a 5% decline in paying customers year-over-year as of its fourth-quarter earnings report in January. Tinder's paying customer growth also slowed, dropping 8% year-over-year to reach 10 million payers.

Despite these declines, Match Group still managed to beat estimates on fourth-quarter earnings and revenue, which were up 10% year-over-year to $866.23 million. This success was attributed to the company's ability to extract more money from a shrinking paying user base, evidenced by the launch of the $500 per month subscription called Tinder Select.

In the U.S. market, only 3 in 10 adults reported ever using a dating site or app, according to Pew Research. Additionally, while one in ten U.S. adults said they met their partner on a dating app or website, a recent analysis of U.S. Census Bureau data found that a record number of 40-year-olds have never been married. This raises questions about the effectiveness of today's dating apps in helping users find long-term partners.

Tinder's dominance in the U.S. dating app market also appears to be waning, with its market share dropping from 29.8% to 29.3% year-over-year. Bumble's share also decreased from 17.6% to 14.3%, while the "Other" category of dating apps, which includes smaller companies and startups, grew from 27.4% to 29.2%.

Despite these challenges, there is still potential for growth in the dating app market. Match Group is looking to AI to improve the dating app experience, and there is a growing trend of people turning to AI tools to help them with their dating app chats. However, the rise of AI in dating apps also brings concerns about potential scams and malicious activity.

Overall, while the dating app market may be facing challenges, it still presents opportunities for investment and innovation. With the right strategies, dating apps can continue to generate significant revenue and potentially attract new users looking for something different.