Market research and analytics company Circana reported U.S. sales revenue for the home durables industry declined 5% in 2023, and unit sales fell 8%, but home durables remain one of few discretionary industries for which unit demand has remained above pre-pandemic levels.
While Circana expects headwinds to continue through this year and early 2025, bright spots from the past year will endure, with signs of broader industry growth on the horizon, according to the latest Future of Home report from Circana.
“Home products continue to be challenged by a lack of innovation and the pull-forward effects of pandemic-driven growth, but there are opportunities to leverage the lifestyle changes that have stuck with the consumer since then,” said Joe Derochowski, home industry adviser for Circana. “Needs related to hybrid living, pet ownership, expanded entertaining and the desire to create experiences will continue for the foreseeable future and can fuel an undercurrent of growth.”
Derochowski will spotlight his data-backed outlook on the housewares business in a keynote presentation during The Inspired Home Show 2024, Monday, March 18, 10-11 a.m. in room s102 of the South Building of McCormick Place in Chicago.
Top growing home categories and behaviors from 2023, according to the Circana report:
- Cleaning, convenience, pets and creating calm spaces led home environment growth in 2023, with increased demand for products such as deep carpet cleaners, stick vacuums and electric diffusers.
- Entertaining, carb acceptance and specialty coffee spurred growth in demand for slow cookers, rice cookers and espresso makers.
- Social media, portability and entertaining led the revenue growth in non-electric housewares, with particularly strong gains in portable beverageware this past year, as well as baking-related items such as decorating tools and mix-and-measure products.
- Increases in beverage and frozen food consumption, as well as entertaining at home, made products such as ice makers and freezers growth areas within major home appliances.
- Interest in innovative ways to prepare food outside increased demand for horizontal smokers, portable grills and outdoor cooking.
- Oral care, innovation, hair removal and travel fueled top-performing personal care categories.
- After many bathroom remodels in the prior two years, 2023 brought a focus on fill-in solutions such as bath towels and shower curtains.
- Ambiance and décor to accent in-home entertaining supported gains in categories such as candles, vases and decorative shelving.
- Increased demand related to lawn and garden and storage needs indicated a move outdoors when it came to home improvement projects.
