Outdoor Furniture & Grills

Freedonia Group Inc
January 1, 2012
279 Pages - SKU: FG6784675
License type:
Countries covered: United States

US demand to reach nearly $7 billion in 2015
US demand for outdoor furniture and grill products (including patio heaters and accessories such as umbrellas, covers, cushions and grilling utensils) is expected to increase to almost $7 billion in 2015. This growth reflects an improvement over the 2005-2010 period, during the latter half of which reduced consumer spending associated with the economic recession limited demand for these products. The market for outdoor furniture and grill products will benefit from improvements in construction expenditures and consumer spending, as well as the continued popularity of outdoor living areas such as patios, porches and decks. In addition, growing interest in outdoor rooms with coordinated décor will support gains as consumers continue to invest in higher quality products.

Grills and accessories to be fastest growing segment
Outdoor furniture and accessories made up over two-thirds of value demand in 2010. The grill and accessories segment is expected to see the fastest increases through 2015, benefiting from ongoing upgrades to more expensive, featureintensive grills and the continued development of specialized grill accessories. The relatively small patio heating product segment will match the industry's overall pace, with sales supported by the availability of firepits in an expanding range of sizes, styles and price points.

Growing imports to continue limiting value gains
Continued increases in imports, particularly of inexpensive products from lowcost countries, will limit value gains to some degree. Imports have long constituted a significant share of the US outdoor furniture and grill market, and in 2010 imports accounted for almost threefifths of total outdoor furniture and grill demand. Chinese suppliers continue to further penetrate the US market, contributing significantly to the growth of imports. Additionally, some US-based companies have shifted production to China in order to better compete with foreign suppliers, a trend that has further boosted imports.

Dominant residential market to be outpaced by nonresidential demand
Due to the dominance of the residential market, which accounted for over 90 percent of total outdoor furniture and grill demand in 2010, consumer spending and home decorating trends are factors that are significant drivers of demand. Residential consumers will continue to prefer more stylish, higher quality outdoor furniture and grill products that provide an extension of living spaces into the outdoors. Consumers are also increasingly trading in basic, inexpensive furniture for higher quality dining and conversation sets. Going forward, the expected rebound in the housing market combined with the continued popularity of outdoor rooms and home entertainment activities will offer opportunities in the residential market. However, the fastest gains are expected in the significantly smaller nonresidential market, driven by the continued popularity of outdoor dining and entertainment spaces at such establishments at restaurants, bars and hotels.

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