US Outdoor Furniture & Grills

Report Overview

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Demand for outdoor furniture and grills is expected to decline on average 1.8% per year from a high 2021 base to $12.8 billion in 2026. Sales surged in 2020 and 2021 as consumers and businesses invested heavily in outdoor spaces because of the COVID-19 pandemic; consequently, the outlook through 2026 is subdued as the market returns to normal patterns. However, several trends will help sustain the market at an elevated level, including:

• continuing movement among consumers toward higher value products in their outdoor living spaces
• product development, particularly of cooking equipment that makes the outdoor cooking experience easier and more approachable for novices
• a “new normal” for consumers in the post-COVID world, with a greater emphasis placed on home life and better use of outdoor areas

Outdoor Living Is More Elaborate & Brings More Indoor Quality Outside the Home

Outdoor living continues to evolve as new products are introduced and consumer habits change to reflect the current state of the COVID-19 pandemic. Outdoor spaces are more elaborate than yards of the past, involving multiple areas for family use. Homes increasingly feature exterior chat areas, cooking areas, and/or fire pits, each of which requires outdoor furniture and grill pieces for enhanced comfort and usability.

Furthermore, these spaces are being outfitted with more indoor-like qualities to provide comfort and offer more seamless transitions between interior and exterior living areas. These trends support not only more intensive use of outdoor furniture and grills per household, but also higher value products with improved aesthetics.

Outdoor Cooking Equipment Is Becoming Easier to Use & More Connected

Newly released outdoor cooking equipment features state-of-the-art cooking control and connectivity. Consumers can connect to and control outdoor cooking equipment from their phones or voice-activated speakers. Grills can be programmed to cook certain foods, a feature that takes stress out of the process of cooking and facilitates entertaining. Not only are these products higher value, boosting market value, they are more approachable to novice grillers who are otherwise hesitant to use outdoor cooking equipment. Products that help users better control cooking temperatures can make grilling more similar to indoor cooking methods, which many people are more experienced in.

The Post-COVID Years Will Mean a Modified Return to “Normal” Life

The outlook for the outdoor furniture and grill market remains strong despite forecasted declines. The pandemic has changed the way people and businesses behave. Many consumers value their homes more, especially their outdoor areas, because they provide a much-needed refuge. Consumers are expected to continue to see the importance of investing in the outdoor areas of their homes going forward, supporting long-term demand for outdoor furniture and cooking equipment. Businesses like restaurants and other hospitality locations continue to revamp their outdoor areas, allowing them to meet patrons’ increased desire for aesthetically pleasing open-air spaces for dining and gathering.

Historical Trends

The outdoor furniture and grill market can be somewhat volatile due to the variability of consumer spending, building construction and renovation, and weather. In addition, trends in consumer behavior and preferences play a large role in the outdoor living market. For example, when “staycations” are popular (as in times of economic downturn, or more recently during the pandemic), there is generally greater investment in products like patio furniture and outdoor cooking equipment.

Trends in the construction sector also influence demand for outdoor products. For example, new residential construction and home improvement activities often involve the installation of new patios, decks, and other outdoor living spaces that need to be outfitted.

In addition to changes influenced by consumer spending, the outdoor furniture and grill market is generally a highly seasonal business:

• A significant share of retail sales occurs between March and June, but variations in weather can affect the timing of the market’s peak season.
• In years with an early spring, retail sales of outdoor furniture and grills can begin in early March, while a cold or rainy spring can delay such purchases until late May.
• Additionally, regional differences can affect product sales. In general, warmer climates support longer outdoor living seasons and thus higher sales of outdoor living products.

To some extent, increasing demand for patio heating products counteracts the outdoor furniture and grill market’s seasonality by making outdoor spaces more comfortable and extending their usability into nights and colder seasons. However, many US climates still become too cold for part of the year for homeowners to use their outdoor living spaces year-round. Variations that develop from climate change may cause disruptions in these patterns going forward. The COVID-19 pandemic caused some of the traditional seasonality of the industry to blur as people changed their routines and behaviors to adapt to new living situations, spending more time at home and being more likely to invest in outdoor areas.