Definition, Meaning & Synonyms

captive-market

Noun

/ˈkæptɪv ˈmɑrkɪt/

Definition

A captive market refers to a situation where consumers have limited choices for purchasing products or services because they are heavily dependent on a single supplier or a restricted group of suppliers.

Examples

The remote island had a captive market for goods as it was inaccessible to other suppliers.
During the pandemic, some businesses found themselves in a captive market due to restricted competition.
Utilities often operate in a captive market, providing essential services with little competition.

Meaning

In a captive market, consumers often cannot find alternatives easily, leading them to buy from the available seller, who may have greater pricing power and less incentive to improve their offerings.