US Demand for Outdoor Furniture, Pottery, Fountains & Grill Products to Reach $7.5 Billion in 2011
Dragon Gardens NW's new warehouse near Shanghai, provides our customers with the opportunity to load their containers with a diverse selection of products, using our Container Direct Program providing items that will take advantage of the fast-growing, outdoor living segment. Working together with Burnt Earth Pottery we are able to create a purchasing program for garden centers and home stores that is simple, convenient and profitable.
The US demand for outdoor furniture, pottery, fountains and grill products (including patio heaters and accessories such as covers, cushions and grilling utensils) will increase 4.0 percent annually to $7.5 billion in 2011. The market will benefit from growth in the number of households and the increasing popularity of outdoor living areas such as patios, porches and decks. In addition, consumer lifestyle trends such as "cocooning" (spending significant time at home) and "outdoor rooms" (using items such as furniture and grills to extend the home's living space outdoors) will support gains as consumers continue to trade up to better products. Still, increases are not expected to be as rapid as in the 2001 to 2006 period, limited by the slowdown in the single-unit housing market. Despite solid demand increases, US shipments of outdoor furniture and grills will be limited by growth in imports, including offshoring of production by US-based manufacturers.
The relatively small patio heating product segment will see the fastest increases, due to strong growth in the South and West, where these products are more popular, and to consumers' desire to extend the season for their outdoor spaces. Grills will also see above-average gains, while the rate of increase in furniture will nearly match the overall average -- although some segments such as wicker and rattan will experience more rapid growth. Our partners in Australia have seen a dramatic rise in the sales of these items at both The Complete Garden and The Burning Log Megastore.
The residential market is critical to the outdoor decor and grill industry, accounting for more than 90 percent of total demand in 2006. We feel the garden centers that do not provide these items with a service staff to back the sales up are missing an opportunity. With the growing demographic of "do-it-for-me" vs. "do-it-myself," the retail garden centers have the physical locations to draw in the customers, but they need to develop the installation staff to deliver and install the large ticket items. Partnering up with landscape contractors may be the solution, to compete with the box stores.
Consumer spending trends and consumer lifestyle choices are critical to the industry's well-being. Over the past decade or so, these factors have significantly aided the growth of the industry, with trends such as cocooning and outdoor rooms boosting demand for outdoor furniture, container gardens, fountains, grills, patio heaters and related accessories. Over this period, many homeowners have significantly upgraded their outdoor living spaces. Initially, much of this spending focused on garden items; however, as the trend matured, spending also turned to patios and deck areas. This resulted in upgrades to outdoor furniture and grill products, e.g., from inexpensive plastic furniture to higher quality metal dining sets.
Portions of this essay furnished by: The Freedonia Group, Inc.
Tuesday, November 27, 2007
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