Even if housing slows, home organization product sales should continue to grow
Two-thirds of American adults claim they could use more home organization products in their home, according to Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 4th Edition, a report by market research firm Packaged Facts.
Sales of home organization products will grow to just below $20 billion by 2021. Leading the project growth will be products for garages and sheds. Closet and pantry/kitchen product sales are projected to increase as well, driven by a continuing desire for bigger closets in master and other bedrooms, as well as closets throughout the house for pantry items, linens, and other supplies.
The reality is, America has reached “peak stuff”, with too many consumers owning too many things. The effect of this overconsumption has created a strong trend advocating for simplicity, minimalism, and—above all else—control of clutter, the report states.
“If America’s annual spring cleaning ritual has taught us anything, it’s that home organization is not just about getting rid of things, but also recognizing that everything you own needs a place to store,” says David Sprinkle, research director for Packaged Facts. “Without dedicated and appropriate storage spots in and outside the home, chaos kicks in and is followed by stress.”
Packaged Facts projects sales of home organization products approached $17 billion in 2017 and will grow to just below $20 billion by 2021. The sales figures include projects such as bins, baskets, and totes; shelving; modular units; hanging storage; outdoor storage sheds; and various related accessories.
Garage, shed products lead growth
Leading the project growth will be products for garages and sheds to satisfy pent up demand. The DIY segment will grow at a faster pace than the installed segment on a unit basis, due to the lower product cost as well as financing often required for bigger-ticket installed items.
Growth of sheds reflects continued demand for storing outdoor equipment as well as possessions that overflow from garages, basements and other parts of the home. Garage product sales will be driven by many of the same factors impacting shed products. Many homeowners continue to want a more organized garage to allow space for cars and to create a more aesthetic space that is often used as the entryway into the house, according to Packaged Facts.
Desire for bigger closets
Not to be forgotten, closet and pantry/kitchen product sales are projected to increase as well. Growth in closet sales will be driven by a continuing desire for bigger closets in master and other bedrooms, as well as closets throughout the house for pantry items, linens and other supplies.
The market research firm also notes that kids’ storage will continue to grow as distribution and awareness expands, and parents look for organizers that are fun, decorative and functional. Specialty products for under-used spaces and those targeting the storage and accessibility needs of aging Baby Boomers and seniors should also continue to outperform.
Won’t stagnate, even as people downsize
As often is the case with the housing market, there remains looming anxiety over a potential crash in real estate at some point in the future. But even such a development wouldn’t substantially affect home organization product sales, Sprinkle notes.
“Even if housing slows, home organization product sales should continue to grow since consumers in existing homes still have a lot of stuff that needs organizing,” he says. “The need to organize and maximize space won’t stagnate even as people downsize.”
In the face of economic and other challenges, the home organization market should perform better than many other household product categories, because real consumer demand exists and continues to grow for the products, he says.