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Study predicts demand will reach $7.2 billion in 2013

-- Casual Living, 1/12/2010 9:37:00 AM

Consumer lifestyle trends will continue to bring growth to the leisure industry, a new study shows.

U.S. demand for outdoor furniture and grill products (including accessories such as umbrellas, covers, cushions, grilling utensils andpatio heaters) will increase 3.9% annually to $7.2 billion in 2013,according to The
Freedonia Group, Inc., a Cleveland-based research firm.

The market will benefit from growth in the number of households and theincreasing popularity of outdoor living. In addition, consumerlifestyle trends such as staycations (spending vacation time at homerather than traveling) and outdoor rooms (using furniture, designs anddecorations intended to extend the home’s living space outdoors) willsupport gains by encouraging consumers to invest in outdoor spaces andtrade up to better products.

While many of these trends will remain in place, some retrenchment in consumer spending will slow gains going forward. In addition,continued strong increases in imports, particularly inexpensiveproducts from low-cost countries, will limit value gains.

Both the grill and furniture segments will match the industry’s overall pace, with grill sales supported by demand for more expensive,highly featured grills and furniture sales bolstered by solid gains inmetal furniture and cushion and covers. 

Imports have long constituted a significant share of the U.S. outdoor furniture and grill market. Given the double-digit increasesfor much of the past decade, imports accounted for more thanthree-fifths of total outdoor furniture and grill demand in 2008.

Much of the growth is due to Chinese suppliers increasing their penetration of the U.S. market. Chinese imports rose fivefold between1998 and 2008, growing from 14% to 43% of total U.S. demand. WhileChinese suppliers have taken significant market share from U.S.-basedproducers, they have also taken share from other suppliers throughoutAsia.