Outdoor Furniture and Grill Demand to Approach $7 Billion

US demand for outdoor furniture and grill products is expected to increase 4.0 percent annually to almost $7 billion in 2015.  This growth reflects an improvement over the 2005-2010 period, when reduced consumer spending on durable goods associated with the economic recession of the latter years limited demand for these products.  The market for outdoor furniture and grill products (including patio heaters and accessories such as umbrellas, covers, cushions and grilling utensils) will benefit from continued interest among consumers in extending their living space outdoors.  These and other trends, including market share and product segmentation, are presented in Outdoor Furniture & Grills, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The grill and related accessories segment is expected to see the fastest demand growth through 2015, as consumers increasingly trade up to higher-end, more feature-intensive grills.  However, the larger outdoor furniture and accessories segment -- which accounted for over two-thirds of value demand in 2010 -- will also experience solid demand growth, as above average demand growth for metal and wood furniture products balances slower demand growth for wicker, rattan and plastic products. 

Continued increases in imports, particularly of inexpensive products from low-cost countries, will limit value gains to some degree.  Imports have long constituted a significant share of the US outdoor furniture and grill market, and in 2010 accounted for almost three-fifths of total demand.  Chinese suppliers continue to further penetrate the US market, contributing significantly to the growth of imports.  Additionally, some US-based companies have shifted production to China in order to better compete with foreign suppliers, a trend that has further boosted imports.  Consequently, demand will continue to outpace shipments, and the US trade deficit will increase. 

Due to the dominance of the residential market, which accounted for nearly 95 percent of total outdoor furniture and grill demand in 2010, consumer spending and home decorating trends are significant drivers of demand.  Residential consumers will continue to prefer more stylish, higher quality outdoor furniture and grill products that provide an extension of living spaces into the outdoors.  Going forward, the expected rebound in the housing market, combined with the continued popularity of outdoor rooms and home entertainment activities, will offer opportunities in the residential market.  In the nonresidential market, which is significantly smaller than the residential market, demand will be driven by the continued popularity of outdoor dining and entertainment spaces at such establishments as restaurants, bars and hotels.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.