DIY Home Organization Market Gets Temporary Boost from COVID-19 Home Renovation Boom

In the US, DIY home renovations saw strong increases in 2020 during the COVID-19 pandemic, and home organization was among consumers’ top projects. A Freedonia Group survey conducted in November-December 2020 found that 38% had bought home organization products in the past 12 months:

• During the pandemic, consumers took the opportunity to improve their homes both out of necessity – working, learning, and living at home presented new challenges – and as a result of the additional time they had to complete these tasks.
• Consumers used dollars typically allocated for travel or activities outside the home and used them to improve their homes’ organization and storage.

This trend is expected to continue for the early part of 2021, maintaining the high level in sales seen in 2020. Through 2025, however, sales of DIY products are expected to increase at a slower pace than professionally installed types. This is due in part to the spike seen in 2020, but also to a shift away from pandemic-related precautions. Consumers will continue to opt to hire a professional for custom finishes or sophisticated product designs that potentially increase the value of a home.

What’s in store for the $12 billion US market for home organization products going forward? We highlight some of the key trends from a new Freedonia Group analysis.

DIY Sales Dominate Due to the Nature of Products

Through 2025, the DIY segment will continue to account for a much larger share of home organization product sales than the professional market due to the:

• majority of home organization products not requiring any installation
• rise of RTA (ready to assemble) and other DIY products, which are increasingly accompanied by tutorial videos that teach consumers to install products on their own
• affordability of DIY products compared to those that require professional installation, since the consumer avoids for paying for the associated labor

Further opportunities for manufacturers of DIY products will result from:

• offering website tools that allow consumers to design their space with organization products, which helps consumers envision their space and customize their options, while potentially allowing suppliers to sell more products per sale
• marketing catered to the aspirational nature of DIY or help consumers complete their DIY projects if they require post-sale assembly
• revamped websites that can help consumers visualize the products, whether that be through augmented reality, improved imagery, or dimensional blueprints

Professionally Installed Product Sales to Outpace DIY Market Through 2025

The faster anticipated growth in professionally installed products through 2025 is a result of pre-pandemic trends, including:

• consumers opting for professional installations as a result of better financial security
• the growing popularity of the do-it-for-me (DIFM) movement, which supports consumers choosing to save time over money
• increasing installation of modular units – which often require professional expertise during installation – in many areas of the home

The second quarter of 2020 was difficult for professional operations as the COVID-19 pandemic spread across the US. Consumers opted to delay or cancel jobs, while some operations were left without enough workers or were limited by government orders regarding “essential” businesses. While these challenges have continued to some extent into 2021, a new emphasis on improving the functionality of homes, including creating spaces that can serve multiple purposes, will spur gains going forward.

Who’s Buying Home Organization Products & Why?

The Freedonia Group Survey from November-December 2020 found that home organization purchasing habits in the past twelve months varied across various demographic segments:

• Women were slightly more likely to have bought home organization products.
• People in the 25-44 age range – which includes many first-time and trade-up homebuyers – were most likely to have purchased home organization products and that likelihood drops off significantly among those over 55.
• Those who were employed and set up to work from home at least on a temporary basis were more likely to have bought home organization products than consumers who did not do at least some work from home.
• Households with children under 18 were far more likely to have bought home organization products than households who did not. This trend also aligns with the middle age groups who are also more likely to be buying their first home or a home to fit their growing family.

As would be expected during the COVID-19 pandemic, the top reasons for buying home organization products in the past year was to improve a home office space, or set up a new one. Similarly, setting up home study space for telecommuting schoolkids also was a primary reason for purchases.

Still, evergreen reasons unrelated to the pandemic – such as replacing or upgrading an existing piece – accounted for a large number of purchases. Additionally, a sizable share of respondents needed the item for home remodeling projects.

Want to Learn More?

Home Organization Products is now available from the Freedonia Group.

About the Author:

Peter Kusnic is a Content Writer with The Freedonia Group, where he researches and writes studies focused on an array of industries.