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Patio and Outdoor Living - US - July 2016

Published By :

Mintel

Published Date : Jul 2016

Category :

Lifestyle

No. of Pages : N/A

The patio and outdoor living market continues to steadily gain momentum parallel to the improving economy and housing market. While the majority of Americans have some form of outdoor space, living situation and household income determine what purchases and enhancements can be made. Further growth in the category hinges on appealing to key consumer groups, such as Millennials, Hispanics, and parents. Entertaining and expanding the comforts and conveniences of the indoors to the outdoors are important motivators for category purchases, which should be emphasized in marketing and in-store displays.

Table of Content

Overview

What you need to know
Definition

Executive Summary

The issues
Patio and outdoor living market experiences steady growth
Figure 1: Total US sales of outdoor furniture, at current prices, 2012-15
Space limits engagment for some
Figure 2: Types of outdoor space at primary residence, February 2016
Older adults lack interest in added to outdoor space
Figure 3: Select outdoor furniture purchases, haven’t purchased but interested, by age, February 2016
The opportunities
Entertaining, design motivate furniture and décor purchases
Figure 4: Purchase motivations, February 2016
In-store displays offer inspiration, better product visibility
Figure 5: Sources of inspiration, February 2016
Hispanics, young adults, parents express most enthusiasm for category
Figure 6: Select attitudes toward the outdoors, by age, race, and Hispanic origin, and parental status, February 2016
What it means

The Market – What You Need to Know

Sales of patio and outdoor living estimated at nearly $4.4 billion
Mass merchandisers, home improvement stores’ sales growing slowly
Favorable home improvement and housing market benefit category
Consumer confidence create challenges

The Patio and Outdoor Living Market

Patio and outdoor living market approximately $4.4 billion
Figure 7: Total US sales of patio and outdoor furniture, at current prices, 2012-15

Market Breakdown

Dining sets dominate category
Figure 8: Total US sales of patio and outdoor living market, by segment share, 2015
Figure 9: Total US retail sales of patio and outdoor living, by segment, at current prices, 2014 and 2015
Direct to consumer, furniture store retail channels garner sales
Figure 10: Total US retail sales and market share of outdoor furniture, by retail channel, at current prices, 2014 and 2015

Market Perspective

Increase in spend on indoor and outdoor DIY home improvement
Housing market benefits category
Figure 11: Housing starts: total: new privately owned housing units started, thousands of units, monthly, seasonally adjusted annual rate, 2005-15

Market Factors

Shaken consumer confidence
Figure 12: Consumer Sentiment Index, January 2007-May 2016
Declining homeownership rates slow, renters rates increase
Figure 13: Households, by homeownership status, 2004-15
Lot size decreases while median home size increases
Figure 14: Change in median home and lot size, 2009-14
Postrecession renovations boost market
Social media inspires creative solutions

Key Trends – What You Need to Know

Shopping experience differentiates retailers
Millennials, indoor-to-outdoor expansion trend benefits market
Less-functional features, over-coordinated designs less appealing
Enclosed spaces, smart technology create new growth opportunities

Key Retailers

Lowes
Home Depot
Target
Wayfair
Overstock.com

What’s In

Millennials enjoy the outdoors and elements of it
The blurring of outdoor and indoor spaces
Furniture innovates to survive the outdoors
Versatile and cross-functional rugs
Urban farming and agrarians

What’s Fading Out

Outdoor living trends on the way out
“Matchy-matchy” color schemes
Figure 15: Qualitative responses: Likes and dislikes of patio and outdoor living décor and furniture

What’s Next?

Enclosed outdoor spaces
Move over man caves
Sheds are no longer just for equipment and tools
Figure 16: Select outdoor living space additions, February 2016
Smart home spreads to the outdoors

The Consumer – What You Need to Know

Yard space more prevelant among adults 45+
Age, race, and income dictate outdoor furniture purchases
Entertaining, replacement, and design drive category purchases
In-store displays, media provide outdoor design inspiration
Most aspire to purchase staples
Outdoors is relaxing and an extension of home for most

Outdoor Living Spaces

Majority of Americans have yard space with grass
Figure 17: Outdoor living spaces at the primary residence, February 2016
Those aged 45+ more likely to have yard space
Figure 18: Outdoor living spaces at the primary residence (backyard with grass), by age, February 2016
Black consumers least likely to have outdoor space at residence
Figure 19: Outdoor living spaces at the primary residence, by race, February 2016

Outdoor Furniture Purchases

Patio furniture a must have for outdoor space
Figure 20: Outdoor furniture purchases, February 2016
Younger adults show most interest in new purchases
Figure 21: Select outdoor furniture purchases, haven’t purchased but interested, by age, February 2016
Hispanic, Asian consumers express interest in range of purchases
Figure 22: Outdoor furniture purchases, haven’t purchased but interested in, by race and Hispanic origin, February 2016
High-income consumers buying wider array of outdoor items
Figure 23: Outdoor furniture purchased, by household income, February 2016

Outdoor Furniture Purchase Drivers

Entertaining drives purchases, yet design and updating important
In their words
Figure 24: Outdoor furniture purchase drivers, February 2016
Eye-catching displays, promotions could appeal to younger consumers
Figure 25: Outdoor furniture purchase drivers, by age, February 2016
High-household-income shoppers more prone to furniture replacement
Figure 26: Outdoor furniture purchase drivers, by household income, February 2016

Sources of Outdoor Inspiration

In-store displays provide inspiration
Figure 27: Sources of inspiration, February 2016
Millennials look to media for inspiration
Figure 28: Select sources of inspiration, by generation, February 2016
Hispanics seek out guidance, trust friends and family
Figure 29: Select sources of inspiration, by race and Hispanic origin, February 2016

Aspirational Purchases

Patio furniture tops aspirational wish list
Figure 30: Aspirational purchases, any rank, February 2016
Highlight experiences to appeal to Millennials
Figure 31: Select aspirational purchases, any rank, by generation, February 2016
Hispanics want amenities of the kitchen but outdoors
Figure 32: Select apirational purchases, by race and Hispanic origin, February 2016

Attitudes toward the Outdoors

Outdoors ideal for relaxing and activities
Figure 33: Attitudes toward the outdoors, any agree, February 2016
Many find value in updated space, some look for family focus
Figure 34: Lowe’s Hypermade video – DIY Globe String Lights, May 2015
Looking to improve outdoor space yet don’t want to invest time
In their own words
Outdoorgoals: An oasis for relaxation and enjoyment

Appendix – Data Sources and Abbreviations

Data sources
Sales data
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations

Appendix – Market

Figure 35: Total US sales of patio and outdoor living market, at inflation-adjusted prices, 2012-15
Figure 36: Total US sales of outdoor furniture, by segment, at current prices, 2014 and 2015

List of Table

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