US demand for home organization products will increase 3.6 percent annually to $8.6 billion in 2015. Sales of home organization products weakened during the 2007-2009 recession, but the expected recovery -- particularly the rebound in residential construction and consumer spending -- will support demand going forward. Gains will be supported by the introduction of decorative and specialty home organization products as well as by the strong growth in larger, more expensive closet and garage systems. These and other trends are presented in Home Organization Products, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Bins, baskets and totes accounted for the largest share of home organization product sales in 2010, with 37 percent of the total market. Demand for modular units is expected to post the fastest annual gains among home organization products, rising 4.9 percent annually through 2015. The interest in organizing closets and garages also benefits demand for modular units since these two areas account for the majority of modular unit sales.
Sales of home organization products for use in garages are expected to post the fastest gains, rising 5.5 percent per year through 2015. In part, this reflects the relative immaturity of the garage storage market. However, advances will also be aided by increases both in the share of homes with garages and in the average size of garages, along with consumer desires to make the garage space suitable for hobbies or other activities.
Metal and wire home organization products accounted for the largest share of sales by material type, with just under one-third of the total in 2010. These products are also expected to post above-average gains through 2015, benefiting from strong growth in sales of modular units and cabinetry organization accessories. However, demand for wood- and laminate-based products is expected to post the fastest gains over the forecast period, driven by strong increases in modular units and shelving, including higher-end closet systems that resemble furniture and fine cabinetry.
Home Organization Products (published 06/2011, 265 pages) is available for $4900 from The Freedonia Group, Inc.
SOURCE: The Freedonia Group Inc.
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