Despite short-term disruptions to demand and sales as a result of the coronavirus, demand for outdoor furniture, grills, and patio heating products is forecast to grow in the long run, according to The Freedonia Group. In a new study by the Cleveland-based research firm, demand for outdoor products is forecast to expand 3.8% annually to nearly $12 billion in 2024.
In the short term, demand for outdoor furniture and grills in the United States is projected to decline as an immediate result of the coronavirus pandemic. The full extent of the economic effect on the market segment is unknown, but declines in economic activity will hurt the sales of outdoor furniture and grills in the short term. The short-term negative impact is projected to be particularly steep because the timing of shelter-in-place orders and recommended social distancing corresponds with prime opportunities for sales in the seasonal industry of outdoor furniture, grills, and patio heating products.
However, in the long run, The Freedonia Group projects positive growth as a result of the strong and still-growing popularity of outdoor living, as consumers and commercial entities increasingly invest in outdoor spaces. New, value-added products with enhanced features, including smart-home integration and multiple-function grills, will lead to more upgrade sales, according to the research organization.
Tariffs on foreign-made parts and products are likely to increase prices for outdoor furniture and grills in the short term, which could restrain many discretionary purchases. Additionally, depressed consumer discretionary spending and supply chain disruptions amid the coronavirus pandemic will temper growth, and the timing and magnitude of this effect on the market segment remain unclear.
Sales growth in the grill market is primarily being driven by increasing consumer interest in outdoor kitchens and innovative grills that boast convenience and functionality. Solid fuel grills are projected to see the fastest growth over the next four years as consumers are supplementing their gas grills with flavor-enhancing abilities of solid fuel types, such as smokers and pellet grills, according to The Freedonia Group.
Consumer insights conducted by The Freedonia Group indicate millennials are increasingly starting families and buying their first homes, leading them to purchase entry-level products for outdoor spaces. Additionally, baby boomers increasingly have the financial means to make a significant investment in their outdoor spaces and urbanites of all ages represent a demographic in need of options to complement and augment their outdoor spaces. Products with the ability to fit smaller areas or adaptability will have strong demand from urbanites.
The full study, Outdoor Furniture & Grills, is available from The Freedonia Group for $3,900. The study analyzed U.S. markets using historical data from 2009, 2014, and 2019 to make forecasts for 2024. The study only covers manufactured grill products, including kits requiring assembly, but excludes site-built cooking implements such as pizza ovens built from bricks and grating not marketed specifically for that purpose.
