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Metal furniture, gas grills offer best opportunities
Outdoor Furniture & Grills
US demand to increase 3.8% annually through 2013
US demand for outdoor furniture and grill products (including patio heaters and accessories such as covers, cushions and grilling utensils) will increase 3.8 percent annually to $6.9 billion in 2013. The market will benefit from growth in the number of households, the expected economic recovery 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. Despite the positive factors, increases will not match the strong pace between 2003 and 2008, as prices and consumer spending moderate slightly going forward. ( http://www.bharatbook.com/detail.asp?id=129746&rt=Outdoor-Furniture-Grills.html )
Domestic shipments to be restrained by strong imports
The increases in US shipments of outdoor furniture and grill products will continue to underperform the growth in demand. Shipments from US facilities will be restrained by strong growth in imports, including the offshoring of production by US-based manufacturers. 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 grew to more than 55 percent of total outdoor furniture and grill demand in 2008. Much of the growth was due to Chinese suppliers increasing their penetration of the US outdoor furniture and grill market. In 2008, imports from China accounted for approximately 40 percent of US outdoor furniture and grill demand, with Chinese producers key to most product segments.
Consumer trends critical to market advances
Because the residential market is critical to the outdoor furniture and grill industry, accounting for more than 90 percent of total demand in 2008, 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, grills, patio heaters and related accessories. Over this period, many homeowners 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.
Metal furniture, gas grills offer best opportunities
Demand for most types of outdoor furniture and grill products will slow through 2013, following strong growth between 2003 and 2008. Among the individual product segments, outdoor furniture will see the best gains, although growth rates will be similar for most of the major product segments. Still, certain subsegments, including metal furniture,gas grills, and cushions and covers, will register above average growth.
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