The US Outdoor Grill and Furniture Industry is a balking $6.2 Billion market. By 2017, the outdoor furniture and grill market will generate $7.5 Billion in revenue. After a rough economic downturn during the 2006 recession, the US economy has begun show signs of recovery.
Of these rebounding markets, the US Outdoor furniture Industry is expected to increase 4% per year through 2017. Patio heating products are projected to be the fastest growing market as a result of growing consumer demands in residential and commercial sectors.
Data in this post stems from an industry report published by Freedonia Group, a leading international business research company based in Cleveland, Ohio. Each year, Freedonia publishes over 100 industry research studies to provide a detailed outlook on market forecasts an industry trends.
Projections for US Outdoor Grill Market
In July 2006, a dwindling housing market lead to what is now known as The Great Recession. As a result, purchases on outdoor grills and patio heaters plummeted followed years of consistent increases. The tides have finally begun to turn. Homeowners and commercial managers are creating a growing demand for outdoor grills and patio heaters.
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Forecast for the Residential Outdoor Grill Market
Demand for outdoor grills and grilling accessories will increase by 3.5% on a year by year basis. Why is this the case? For one, the furnishing industry correlates strongly with the housing market. A positive trend in the housing market will lead to more homeowners purchasing outdoor décor to furnish new and remodeled homes.
Another reason for increased demand is the cost-comparison between outdoor kitchens and high-end grills. Many consumers have found fully-functional outdoor kitchens to be out of their price range and in turn, have opted for high tech grills. This allows for a compromise that facilitates outdoor dining occasions without overspending. As you may know, added home value is contingent upon property values in the surrounding community. In some cases, an outdoor kitchen may make sense from a financial standpoint.
Homeowners are not just buying outdoor grills, they are buying multiple models. Residential consumers desire multiple preparation techniques including frying and smoking. Along with options, residential consumers are creating demand for small portable grills that offer flexibility. These portable grills can be easily transporting during outings, tailgating parties, and camping.
Forecast for the Residential Patio Heater Market
Patio heaters allow homeowners to enjoy their outdoor living spaces in cooler weather. This sector is expected to see the largest gains and spur growth in the related outdoor furnishing industry as well. With more disposable income, Americans plan to return back to a relaxed lifestyle, lounging on patio decks and enjoying backyard barbecues this summer.
Homeowners are treating outdoor spaces as if they were indoor rooms. With expansive seating collections, outdoor kitchens, and ornate décor, outdoor heating elements fill the role of traditional fireplaces. In this light, homeowners are now more willing to purchase higher-valued products to mirror the quality of interior décor.
“Sales will also grow with demand for products such as fire pits and patio heaters which enable consumers to extend the outdoor season.”
-Melissa Pantel-Ku, Freedonia Market Research Analyst
Patio heaters come in many forms including free-standing patio heaters, hanging heaters, tabletop fireplaces, infrared heaters, outdoor fire pits, outdoor fireplaces, and outdoor lanterns. Adding warmth and light to the backyard, patio heaters can meet the budget of any homeowner.
Commercial Forecast
Patio heaters have become an essential element at upscale restaurants, hotels, and other outdoor venues. Although the residential market composes a majority of the grill industry, restaurateurs have discovered that adding patio heaters leads patrons to stick around longer and spend more money.
After consuming a meal, patio heaters encourage patrons to order desserts, chat with friends, and order a drink (or two, or three). Outdoor heating comes in the free-standing form and can also be found as small table-top heaters. These commercial heaters can increase revenue and lead to a comfortable outdoor dining experience for restaurant goers.
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The commercial market for outdoor grills is expected to increase steadily for the next 3 years as store owners seek to improve overall customer satisfaction. Filling a small yet sizable share, state, local, and national parks consist of another chunk of the commercial patio heater market. Campgrounds, beaches, and other recreational facilities provide outdoor heating solutions to keep visitors warm while reconnecting with nature.
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References:
Freedonia Market Research. “Outdoor Furniture & Grills” Nov 27, 2013. Freedonia Group Report. ISBN 702347.