Sales of home organization products in the U.S. were on a tear until the recession and housing crash ground growth to a halt. In fact sales declined in 2008 and 2009 before beginning a recovery that continued through 2014. In the report Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 3rd Edition, Packaged Facts estimates that U.S. manufacturer’s sales of home organization products reached $8.5 billion in 2014. The market grew at a compound annual growth rate (CAGR) of 3.5% between 2010 and 2014 after growing at less than a 1% CAGR between 2006 and 2010. The economic recovery, while slow and uneven, has propelled sales growth. Pent up demand for garage and closet organization products as well as sheds and general storage products has further helped drive sales increases over the last several years.
Challenging economic times have made consumers very cautious about spending on all purchases, especially those deemed discretionary. But newly frugal Americans still have plenty of stuff to store and organize so demand exists and is growing for products that make life more organized, efficient, and less stressful. The market is expected to continue on a recovery path and perform better than many other household product categories.
The pace of future growth should be at a slightly accelerated rate compared to the last several years due to expected gains in employment and housing. Closet and garage organization products should continue to be the main growth drivers. While the financial and housing collapse hurt these highly discretionary items, particularly higher-priced installed systems, consumers have shifted to buying less expensive do-it-yourself (DIY) systems or components to help propel the categories back to growth. Outdoor storage sheds are projected to grow at the fastest pace (off a small base) reflecting continued demand for storing equipment as well as possessions that overflow from garages, basements and other parts of the home. More decorative, functional and specialty items will outpace general purpose storage commodities.
Specific products that have done well tap into trends that are still relevant and growing in importance. Consumers want convenience, ease and simplicity of use and assembly, versatility and customization, utilization of wasted space for storage, and more stylish products tied into home dÃ©cor. More specifically demand will grow to organize and maximize space as people downsize, and many move in together. Modular storage products will continue to perform well since they are affordable, versatile and adaptable. Kids’ storage will continue to grow as distribution and awareness expands, and parents look for organizers that are fun, decorative and functional. Specialty products for under-used spaces and those targeting the storage and accessibility needs of aging boomers and seniors should also continue to do well.
This blog is based on research featured in Packaged Facts’ Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 3rd Edition. Add this report to your own intelligence library and receive a 5% discount during our promotional period effective through February 28, 2015. Use code PFHOMEORG2015.
- by Tom Pastre