NEW YORK, Oct. 29, 2015 /PRNewswire/ --
US demand to rise 3.4% annually through 2019
Demand for home organization products is forecast to increase by 3.4 percent per annum through 2019 to $10.5 billion. Growth will decelerate considerably from the 2009-2014 gains, as this period saw a strong rebound in sales from a low 2009 base. As a result, advances will be more modest through the forecast period as much of the recovery has already been completed. Further growth in consumer spending, coupled with the expanding number of households, will propel sales. Demographic trends such as baby boomers moving into smaller homes and their children moving into college housing and first apartments will offer opportunities since small spaces benefit greatly from organization products.
Garage organizers among fastest growing segments
As storage space within the home becomes satisfied, consumers begin looking at other areas where storage can be optimized, including the garage. As a result, home organization products used in the garage will post the one of the fastest growth rates through 2019, a continuation of decade-long trends. In addition to general storage, an increasing number of homeowners create functional rooms in the garage for hobbies (e.g., gardening, exercise, vehicle repair), which facilitates the purchase of home organization products. Sales to the larger closets and bedrooms segment will be stimulated primarily by continued interest in more organized storage spaces within closets, increasingly incorporating more types of home organization products, such as those made with higher value materials and features. Closets are also becoming an increasingly important factor for potential homebuyers. Because of this, many new homes are being constructed with closet systems installed and a growing number of homeowners are installing at least some type of closet system before listing the home for sale.
Modular units, shelving to be fastest growing products
Bins, baskets, and totes will continue to account for the largest share of home organization product demand, and will comprise 36 percent of total sales in 2019. However, growth in this segment will be among the slowest rates through 2019 as bins, baskets, and totes represent a mature segment of the industry. Additionally, owing to the commodity status of these products, there is a high level of pricing pressure limiting value gains. Modular units and shelving will generate the fastest growth through the forecast period. Demand for modular units will be supported by ongoing interest among consumers to install these units in garages and closets as well as pantries and ("owners' entry") utility areas. Opportunities for shelving will be boosted by the need for vertical storage space throughout the home, from utilitarian shelving in garages, pantries and kitchens to more decorative versions in family rooms and bedrooms. The growing trend toward open layout floor plans in family rooms will support demand for shelving as a way to divide the space. Shelving is also utilized as a substitute for cabinetry in contemporary open kitchens.
Details on these and other findings are offered in Home Organization Products, an upcoming Freedonia industry study presents historical demand data (2004, 2009, 2014) as well as forecasts (2019, 2024) by material, product, room (e.g., family rooms, bathrooms and utility rooms, garages, closets and bedrooms, pantries and kitchens) and market (DIY, professional). The study also details market environment factors, examines the industry structure, evaluates company market share and profiles 33 US industry competitors.
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