I agree about the younger market Kevin, but I was meaning the model market in general - there's been a very noticeable and real increase in the number of kits, accessories etc in recent years, along with fairly large price increases for these items. It may be that the bulk of the market is now the 'true, dedicated modeller', as opposed to the traditional 'pocket money' market, with real enthusiasts secondary, but whatever, there's no getting away from the fact that the products are continuing to grow, and that huge investments have been made, in the form of tooling and packaging, by mainly major manufacturers, but also many smaller companies - something that would not happen if the 'hobby' was dying out.
As an example, with 1/48th scale aircraft kits alone, the total number available at any one time, thirty years could almost be counted on the fingers of two hands. This has increased dramatically over the years, and more so over the last five years and less, and now we have extremely large listings in this scale, increasing yearly.
The youngsters might not be as prevalent in the market, but the sales are still there, investments continue to be made by the manufacturers, and product bases are growing.
I don't see that as a dying market - but I can see the reasons why 'traditional', smaller outlets are falling by the wayside - a trend that is affecting virtually every, traditional, 'high street' retail business, worldwide, not just hobby shops.