US demand for outdoor furniture and grill products (including accessories such as umbrellas, covers, cushions and grilling utensils, as well as patio heaters) will increase 3.9 percent annually to $7.2 billion in 2013. The market will benefit from growth in the number of households and the increasing popularity of outdoor living. In addition, consumer lifestyle trends such as “staycations” (spending vacation time at home rather than travelling) and “outdoor rooms” (using furniture, designs and decorations intended to extend the home’s living space outdoors) will support gains by encouraging consumers to invest in outdoor spaces and trade up to better products. 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 research firm.
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 inexpensive products from low-cost countries, will help to 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 in metal furniture and cushion and covers.
Imports have long constituted a significant share of the US outdoor furniture and grill market. Given the double-digit increases for much of the past decade, imports have grown to account for more than three-fifths of total outdoor furniture and grill demand in 2008. Much of the growth is due to Chinese suppliers increasing their penetration of the US market. Chinese imports rose fivefold between 1998 and 2008, growing from 14 percent of total US demand to 43 percent. While Chinese suppliers have taken significant market share from US-based producers, they have also taken share from other suppliers throughout Asia. Furthermore, some of the increase in imports is the result of US-based companies shifting production to China in order to better compete with low-cost imports. Many of the leading retailers of outdoor furniture and grills obtain at least a share of their private label products from Chinese suppliers -- often on a short-term contract manufacturing basis.
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.