Joe Derochowski, Circana home industry advisor, had an upbeat message in a keynote session today at The Inspired Home Show 2025, telling attendees that the small appliances and housewares industry is poised for steady growth both in units and dollars through 2030 because “there’s no place like home.”
Hosted by the International Housewares Association (IHA), the show is being held March 2-4 at Chicago’s McCormick Place. Buyers from more than 100 countries are joining 1,600 home and housewares companies to explore new products, new insights and countless opportunities to strengthen partnerships and drive growth.
In his session, “Thinking Outside the Box: Growth Opportunities for the Housewares Industry,” Derochowski shared his insights and those of fellow Circana analysts across various industries, including beauty, toys, sports equipment, food, apparel, tech and books, and how trends in those industries, including the role of AI, have impacted – and will continue to impact – the housewares industry.
Big themes fueling short-term growth included consumers replacing high-frequency items purchased during the pandemic, such as small appliances and electronics; more people eating and entertaining at home, also known as “turtling” because of the inflationary environment; weather/climate emergency-related home goods purchases; and economical home improvements, such as décor changes.
Derochowski said long-term growth is being impacted by the return to office, including new ways to think about wardrobes and what and when we eat; the home bubble with people delaying the purchase of their first home; the path to purchase innovation by incorporating AI to bring consumers more personalization and value; and favorable demographics, such as the 20-somethings living in their first place off-campus, 30-somethings in their first homes; women going through menopause; new retirees with more time on their hands and home-bound seniors 75+.
In the short term, Derochowski said we are in a “needs-based purchasing cycle.” He explained that, given the inflationary environment, people are prioritizing their needs over discretionary purchases.
Don Unser, president of Circana, shared via video that despite inflation, “Consumers are still spending, and they are spending at a good clip.” He also noted that suppliers could take advantage of the disruption in the e-commerce space with marketplaces like Temu and TikTok, which allows small brands to scale very fast. He also predicted that hyper-personalization is coming, and that AI will shine with loyalty databases helping to unlock more personalized interactions in 2025.
The Role of AI
The role of AI will only accelerate in 2025. Paul Gagnon, vice president, industry advisor, consumer technology, Circana, said via video that AI will be as revolutionary as the internet in the 1990s. However, the “AI-ness” of what suppliers are trying to sell is hard for many of them to answer. “Think carefully about what you mean when you say, ‘AI capability is built into this product.’ Is it saving you time? Is it saving you money? Is it making your product more efficient?” How suppliers answer that question makes an impact on whether consumers adopt it, he said.
Derochowski cautioned suppliers not to position AI as a benefit but instead to use it as a tool to help solve a consumer pain point. “It’s a reason to believe to solve a pain point, frustration or a wish,” he said. It could also help figure out what products are a good fit for consumers – both online and in-store – from apparel to appliances, and could be based on preferences and give recommendations based on life stage, such as a first-time homeowner or a couple creating a wedding registry.
Kristen Classi-Zummo, executive director, industry analyst, apparel, shared that one in four women ages 18-54 would shop online if they got more personalized recommendations based on their body type. She predicted we will see AI help more with the search for online apparel, with it allowing consumers to get more specific with material type and look beyond typical filters like size and color.
The Turtling Trend
The inflationary environment is causing people to stay home. David Portalatin, senior vice president, industry advisor, food and foodservice, Circana, said, “It’s four times more expensive to go out and eat, so people are looking for more ways to eat at home. People are looking for solutions.” He said people desire easy options like heat and eat, or opening a bag or box to get to a quick meal—a snackification of day parts. Since the pandemic, the rhythms of the day are different, with emerging moments to eat throughout the day. There’s not a consistent weekly routine of breakfast, lunch, and dinner.
Despite this “snackification” of eating, people still crave routine, said Derochowski, and challenged the audience: “How do we give consumers the routine they crave?”
People are also turtling by entertaining more at home, finding escape in fiction books and turning to nostalgic video games, according to the experts at Circana.
Questions to Ask to Find Growth Opportunities
Derochowski and his colleagues also shared some additional considerations for growth opportunities, including:
- What are you doing to tap into joy? Derochowski says there is a greater desire for more joy in all aspects of a consumer’s life… from entertaining to eating to beauty to organizing. People may treat themselves with these items when they are feeling good, but also when they aren’t, to make them feel better.
- How do you make consumers feel safe? Consumers are also looking for proof that others have found a product they’re considering helpful. What are you doing to make consumers feel confident that they made the right choice? Securing customer reviews is a good way to do this.
- How can you be agile enough to help consumers in emergencies? Emergency preparedness is a growing category, from portable power and heaters to freeze-dried food. How can the industry get needed items to flash flood zones, snow storms in typically warm climates, or to areas in the aftermath of fires, hurricanes, and tornadoes?
- What are you doing with licensing? Licensing is another opportunity for growth, according to Juli Lennet, vice president, industry advisor, toys, Circana. She said the Star Wars franchise continues to be a top 10 property in the toy industry and that the adult market is the industry’s largest growth market since the pandemic, with the collectibles market expanding. She shared how Lego made inroads with women by creating Lego flower bouquets that have exploded in popularity.
- How are you addressing the needs of growing demographic categories? Hispanics and Asians are two growth categories; how are you serving their dietary needs? Different groups, such as menopausal women and those on GLP-1 weight loss medications, are seeking more protein, how are their needs being met?
A video recording of the keynote will be posted on the Show’s website at TheInspiredHomeShow.com/education/#keynotes in the days ahead.
