US demand for outdoor living products is forecast to decline 5.1% to $41 billion in 2023, reflecting the elevated 2022 base. Despite this decline, 2023 spending levels are still above 2020 – and certainly above pre-pandemic – levels due to the expansion of the customer base during the pandemic. Even in segments with limited additional growth (or even declines) into 2023, maintaining the high levels of 2020 is an achievement.
Near term growth rates for many segments will be challenged by an inflationary environment that is increasingly fostering price sensitivity. Consumers are looking for value, not just a low cost. In some cases, gains in value terms in 2022 stemmed from price increases more than sales volume gains. However, interest in value-added versions slipped as customers found the high prices challenging to their budgets.
Many US consumers have embraced a DIY ethic regarding home improvement and landscaping projects. The widespread availability of home improvement information – both practical advice from experts and inspirational content from social media influencers on TikTok, Instagram, and other outlets – helps to maintain this trend.
However, use of DIFM landscaping services has grown again as consumers return to pre-pandemic habits. Still, that trend has been somewhat counterbalanced by rising inflation, which has led many consumers to economize and cancel some services. Furthermore, the shortage of professional landscape workers has made such services either too expensive or too unreliable for some homeowners.
Innovations Continue to Boost Both New & Upgrade SalesOpportunities where innovative companies can respond to consumer interest include sustainable products, indoor/outdoor integration, smart technology and automation, and items that make outdoor maintenance work easier or more convenient:
- Key sustainability features include organic products, those that minimize water use/waste, those that use electric power, and those that incorporate more recycled content in production.
- Consumers are increasingly using more comfortable, functional, and aesthetically appealing elements integrate their indoor and outdoor spaces:
- Smart technology – most widely seen in mowers and irrigation controls – can be used to make a piece of equipment easier to use, make a chore less burdensome, and make operation more efficient.
- Features that make equipment easier to use or tasks easier to accomplish will support sales across the demographic spectrum, from aging consumers less able to do work they once did to younger consumers with less time available to handle outdoor maintenance chores.
Study DescriptionThis Freedonia industry study analyzes the $43 billion US outdoor living product market. It presents historical demand data (2021 and 2022) and forecasts (2023) for products by application (lawn and yard maintenance; outdoor cooking, entertaining, and recreation; gardening; and outdoor design and landscaping products).
- Lawn and yard maintenance products include lawn and yard power equipment; lawn care consumables (both organic and non-organic formulations); and lawn watering products.
- Outdoor cooking, entertaining, and recreation products include outdoor furniture; grills; heating products; and outdoor kitchen equipment.
- Gardening products include garden consumables (both organic and non-organic formulations), power garden equipment, pots and planters, and garden watering and other products).
- Outdoor design and landscape products include hardscaping; water features; outdoor lighting; and outdoor structures.
The study also identifies top consumer trends and evaluates data-driven consumer insights from psychographics to trends in habits. This information comes from a proprietary national survey (The Freedonia Group National Online Consumer Survey, conducted quarterly throughout the year) and syndicated consumer research data. This data is cross-tabbed by key demographic segments -- gender, age group, urban vs. rural setting, region, type of housing, and presence of children under 18 at home.