Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 4th Edition

 

Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 4th Edition

Virtually all product trends and sales in the U.S. home organization products market are driven by the fact that Americans have a lot of, and many consider too much stuff. As some have noted the U.S. has reached “peak stuff” - people owning too many things. A strong trend has emerged that preaches simplicity, minimalism and control of clutter. It’s not just getting rid of things but recognizing that everything you own needs a place to store. Without dedicated proper storage spots in and outside the home there tends to be chaos, followed by stress. Therefore while challenging the home organization market continues to perform better than many other household product categories. Consumer demand exists and continues to grow for the products. Consumers say they need more products. Two thirds of American adults in Packaged Facts’ National Online Survey somewhat or strongly agree with the statement “I could use more home organization products (not including food storage) in my home”.

Packaged Facts estimates overall U.S. retail sales of home organization products reached $16 billion in 2016. Sales of do-it-yourself (DIY) products account for over 80% of the total with installed products accounting for the rest. Sales grew at a faster pace than in previous periods due to a continuing economic recovery and pent up demand for products such as outdoor storage sheds and items for closets, garages, kitchens and pantries. Sales are projected to grow at a CAGR of 4% to reach $19.5 billion in 2021.

The market, composed of hundreds of primarily small, privately held manufacturers and marketers, is highly fragmented with numerous companies having small market shares. Packaged Facts estimates that ten leading companies (excluding sheds) have a combined market share of about 20%. While new companies continue to enter the market, there are shifts occurring as major players exit the business or parts of it. Newell Brands (formed by the merger of Newell Rubbermaid with Jarden Corp.in April 2016) announced on Jan 13, 2017 that it reached an agreement to sell its Rubbermaid consumer storage totes business to plastic products producer United Solutions. Emerson Electric sold shelving and storage products company InterMetro to Ali Group, an Italian manufacturer of foodservice equipment in September 2015. The company has stated publicly that it plans to divest its ClosetMaid business in 2017.

Scope of Report

Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 4th Edition focuses on the market for home organization products sold to consumers in America. Products covered include items used by consumers to store and organize things within and outside their homes. The report broadly categorizes products for closets & bedrooms, garages, other rooms, and outdoor. Products are purchased by consumers as do-it-yourself (DIY), or installed items that are assembled by others. Not included are food storage products and furniture such as conventional cabinets and office products. For the purpose of this report, sales are estimated at the retail level and include products sold to consumers but not services rendered such as consultation and installation.

The report covers all retail channels of distribution that carry DIY home organization products such as mass merchandisers, warehouse clubs, home improvement centers, hardware stores, specialty stores, department stores, dollar stores, food and drug stores, catalogues, home shopping channels, Internet retailers, and manufacturers own websites. Also included are dealers, franchisees and agents who sell installed products for existing homes. Market size data are provided at the retail sales level for 2012-2016 and projections for 2016-2021. In addition to presenting industry statistics, this report identifies key trends affecting the marketplace and profiles key and interesting manufacturers and retailers.

Note: Current and historical sales estimates are based on current research and a revision of sales estimates from Packaged Facts’ previous editions of this report. All sales are presented at the retail level to better reflect consumer spending. In previous editions of the report sales were reported at the manufacturer level. In addition categories and segments have been redefined slightly.

Methodology

The information in this report was obtained from both primary and secondary research. Primary research included consultation with industry sources and on-site examination of retail stores. Secondary research entailed gathering data from relevant trade, business and government sources, as well as company promotional literature and annual reports. Our estimates of market size and company performance are based on various sources including reported revenues of product manufacturers and retailers, publications and other market research sources. Total sales of home organization products, as well as breakouts by manufacturer, product form and retail channel, are difficult to quantify since most sales are unaudited. Additionally, the vast majority of market players are private firms. Particularly challenging is the fact that many products such as totes and bins can be used across various rooms of the home. We used our research and analysis to develop market sales and share data estimates.

Our analysis of consumer trends relies on data from various sources including national online consumer usage surveys conducted in August 2015 and December 2016 by Packaged Facts. The Packaged Facts national online consumer surveys reflect a panel of 2,000 U.S. adults (age 18+) that is balanced to the national population on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, marital status, presence or absence of children in the household, and household income. Consumer data was also generated using Simmons National Consumer Surveys for Spring 2004 through Winter 2015 and Spring 2006 through Spring 2016 from Simmons Research. On an ongoing basis, Simmons conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population.