Table of Contents
Executive Summary
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- The issues
- Patio and outdoor living market experiences steady growth
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- Figure 1: Total US sales of outdoor furniture, at current prices, 2012-15
- Space limits engagment for some
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- Figure 2: Types of outdoor space at primary residence, February 2016
- Older adults lack interest in added to outdoor space
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- Figure 3: Select outdoor furniture purchases, haven’t purchased but interested, by age, February 2016
- The opportunities
- Entertaining, design motivate furniture and décor purchases
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- Figure 4: Purchase motivations, February 2016
- In-store displays offer inspiration, better product visibility
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- Figure 5: Sources of inspiration, February 2016
- Hispanics, young adults, parents express most enthusiasm for category
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- 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
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- 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
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- Patio and outdoor living market approximately $4.4 billion
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- Figure 7: Total US sales of patio and outdoor furniture, at current prices, 2012-15
Market Breakdown
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- Dining sets dominate category
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- Figure 8: Total US sales of patio and outdoor living market, by segment share, 2015
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- 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
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- Figure 10: Total US retail sales and market share of outdoor furniture, by retail channel, at current prices, 2014 and 2015
Market Perspective
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- Increase in spend on indoor and outdoor DIY home improvement
- Housing market benefits category
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- Figure 11: Housing starts: total: new privately owned housing units started, thousands of units, monthly, seasonally adjusted annual rate, 2005-15
Market Factors
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- Shaken consumer confidence
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- Figure 12: Consumer Sentiment Index, January 2007-May 2016
- Declining homeownership rates slow, renters rates increase
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- Figure 13: Households, by homeownership status, 2004-15
- Lot size decreases while median home size increases
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- 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
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- 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
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- Lowes
- Home Depot
- Target
- Wayfair
- Overstock.com
What’s In
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- 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
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- Outdoor living trends on the way out
- “Matchy-matchy” color schemes
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- Figure 15: Qualitative responses: Likes and dislikes of patio and outdoor living décor and furniture
What’s Next?
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- Enclosed outdoor spaces
- Move over man caves
- Sheds are no longer just for equipment and tools
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- Figure 16: Select outdoor living space additions, February 2016
- Smart home spreads to the outdoors
The Consumer – What You Need to Know
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- 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
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- Majority of Americans have yard space with grass
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- Figure 17: Outdoor living spaces at the primary residence, February 2016
- Those aged 45+ more likely to have yard space
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- 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
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- Figure 19: Outdoor living spaces at the primary residence, by race, February 2016
Outdoor Furniture Purchases
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- Patio furniture a must have for outdoor space
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- Figure 20: Outdoor furniture purchases, February 2016
- Younger adults show most interest in new purchases
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- Figure 21: Select outdoor furniture purchases, haven’t purchased but interested, by age, February 2016
- Hispanic, Asian consumers express interest in range of purchases
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- 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
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- Figure 23: Outdoor furniture purchased, by household income, February 2016
Outdoor Furniture Purchase Drivers
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- Entertaining drives purchases, yet design and updating important
- In their words
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- Figure 24: Outdoor furniture purchase drivers, February 2016
- Eye-catching displays, promotions could appeal to younger consumers
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- Figure 25: Outdoor furniture purchase drivers, by age, February 2016
- High-household-income shoppers more prone to furniture replacement
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- Figure 26: Outdoor furniture purchase drivers, by household income, February 2016
Sources of Outdoor Inspiration
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- In-store displays provide inspiration
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- Figure 27: Sources of inspiration, February 2016
- Millennials look to media for inspiration
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- Figure 28: Select sources of inspiration, by generation, February 2016
- Hispanics seek out guidance, trust friends and family
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- Figure 29: Select sources of inspiration, by race and Hispanic origin, February 2016
Aspirational Purchases
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- Patio furniture tops aspirational wish list
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- Figure 30: Aspirational purchases, any rank, February 2016
- Highlight experiences to appeal to Millennials
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- Figure 31: Select aspirational purchases, any rank, by generation, February 2016
- Hispanics want amenities of the kitchen but outdoors
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- Figure 32: Select apirational purchases, by race and Hispanic origin, February 2016
Attitudes toward the Outdoors
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- Outdoors ideal for relaxing and activities
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- Figure 33: Attitudes toward the outdoors, any agree, February 2016
- Many find value in updated space, some look for family focus
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- 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
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- 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
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