12 Dec Market research firm predicts growth in outdoor product categories in 2014 and beyond
Where we are right now, the trees have lost their leaves, the days are growing shorter and television weathermen have dusted off the term “wind chill factor” yet again. It’s a good time of year to be indoors, close by the fire and in a comfortable chair, where you can catch up on your reading.
One recommended read for patio installers comes from The Freedonia Group, a leading market research firm that publishes more than 100 industry research studies each year, says the future is bright in a number of business segments. Those include patio furnishings, landscaping (including permeable pavers) and green building products. So building and installing outdoor rooms is a good and increasingly profitable place to be, now that the market is on the road of recovery.
Here are some of the findings from The Freedonia Group. We’ve included some comments of our own, which are within parentheses below:
The U.S. outdoor furniture and grill market, which includes patio heaters and accessories such as umbrellas, covers, cushions and grilling utensils, is expected to grow 4 percent per year to $7.5 billion in 2017.
Rising interest in decorating outdoor spaces as if they were indoor rooms will spur gains; this trend will lead consumers to buy higher-value pieces that coordinate with their interior designs.
“Sales will also grow along with demand for products such as fire pits and patio heaters which enable consumers to extend the outdoor season,” said analyst Melissa Pantel-Ku.
Demands for grills and grilling accessories will grow 3.5 percent per year, the slowest rate of the product groups, but representing a healthy rebound from declines suffered during the 2007-2012 period.
U.S. demand for landscaping products is projected to grow 6.9 percent per year through 2017 to $6.5 billion, which reflects a rebound in sales following the 2007-2009 recession and subsequent slow recovery. A strong rebound in new housing construction from low 2012 base levels will be the primary driver of growth. An acceleration in sales of existing homes, growth of consumer disposable income and a rebound in the office and commercial segment will also support gains.
Hardscape products, which are projected to achieve the fastest growth through 2017, are used to create patios, walkways, edging and walls that form the basis of outdoor rooms.
The ongoing development and introduction of landscaping products that are environmentally friendly will also boost gains. Permeable pavers for hardscaping are rapidly gaining popularity over ready mix concrete due to their ability to reduce water runoff, which can cause flooding and erosion, and pollute local water supplies.
(All Pine Hall Brick Company products are environmentally friendly, because they’re made of abundant materials and they last virtually forever, which is the definition of sustainability. In addition, Pine Hall Brick’s StormPave® and RainPave® lines of permeable pavers have enjoyed increasing popularity in the marketplace.)
Additionally, drought conditions in many parts of the country have resulted in water restrictions, which have led to greater use of hardscaping, like patios, paths, and rock gardens, synthetic turf, and potted plants instead of water-intensive grass lawns.
Green Building Materials
Through 2017, a rebound in construction activity will propel growth in green building materials demand 11 percent annually to $86.6 billion.
In addition, continuing consumer interest in environmentally friendly products will increase the market share of most green building materials relative to non-green alternatives.
Over the forecast period, builders and architects will increasingly opt to earn high levels of LEED certification by specifying the use of materials that earn LEED points (such as StormPave® pavers from Pine Hall Brick Company).
In addition, demand for green building systems will include two main areas. Interest in cost-savings will spur strong residential demand for ENERGY STAR-compliant HVAC systems that lower utility bills. Permeable pavement demand will be led by interest in reducing water runoff and minimizing strains on older sewer and water systems.
Both are among those technological advancements that will see increasing popularity among developers of both residential and commercial projects in the years to come.
Full reports on each of these market segments, which have been widely used since 1985 by businesses to make effective plans for the future, are available. Outdoor Furniture & Grills (281 pages), Landscaping Products (275 pages) and Green Building Materials (405 pages) are each available for $5,100 from The Freedonia Group, Inc. For further details, please call (440) 684-9600 or visit www.freedoniagroup.com.