Whether your role lies in informing targeted marketing campaigns, driving product development or analyzing consumer insights, staying ahead of market trends and economic shifts is crucial for making strategic decisions. To aid your efforts, analysts for the Home Improvement Research Institute recently released its latest iteration of the U.S. Home Improvement Products Market Forecast, offering valuable insights into the state of the industry and the broader economic landscape.
Here’s what we know:
The June 2023 update to the U.S. Home Improvement Products Market Forecast reveals a nuanced picture of the industry’s performance. While the overall outlook for growth has been adjusted slightly since the last iteration of the report, it’s essential to understand the factors contributing to these changes.
HIRI Members will have access to the September 2023 update to the size of market forecast in September.
In nominal dollars, home improvement products growth projections for 2023 have been adjusted from 1.3% in the March report to a negative 0.9%.
Consumer market sales are expected to decrease by 0.1% compared to the previous five-year period.
Professional market sales are also projected to decrease by 2.6% compared to the previous five-year period.
Remember that growth in the home improvement market peaked in 2021, so today’s negative growth rates are nothing to be alarmed about and there are key market drivers enabling a resilient outlook for home improvement. Although spending may be easing slightly, the market is still performing quite well, especially compared to historical figures.
Real disposable income is anticipated to grow by 3.6% in 2023, surpassing the 2.6% that was projected in the previous report. This growth in disposable income can potentially drive consumer spending on future home improvement projects.
Looking ahead, the total home improvement products market is forecasted to grow in coming years.
Overall market growth is expected to accelerate to 2.1% in 2024.
The consumer market is forecasted to grow by 0.8%.
The professional market is forecasted to grow by 5.0%.
This growth trajectory is expected to continue into the following years as well.
Consumer market growth is expected, on average, to be about 3.6% from 2025 through 2027.
Professional market growth is expected to average 4.1% over the same period.
These growth rates suggest a promising rebound after the short-term setbacks experienced in 2023. Furthermore, they point to an exciting potential for home improvement professionals targeting consumers or professionals.
One noteworthy trend highlighted in the U.S. Home Improvement Products Market Forecast is the expectation that professionals will be the primary influencers of home improvement market growth over the next five years. As mentioned previously, the professional market is forecasted to grow by 5.0% in 2024 alone and an additional 4.1% on average from 2025 through 2027.
This projection stems from several factors and is bolstered by a positive sentiment among contractor firms and a focus on sound sales practices found in HIRI’s Contractor Topic Study.
The data suggests that more firms are experiencing positive outcomes compared to a year ago, with a higher number believing they will do even better in the coming months. This confidence is more pronounced among larger firms. Additionally, professionals, particularly at smaller firms, are adapting to shifts in the economy by honing their sales strategies to address weakening demand.
The U.S. Home Improvement Products Market Forecast identifies the top 10 fastest-growing merchandise lines for both consumers and professionals. These insights can help you align your product offerings with current market demand.
Soft-surface floor coverings
Electrical supplies
Hard-surface floor coverings
Lawn and garden equipment and supplies
Nursery stock and soil treatments
Paint sundries and other supplies
Other building materials
Roofing and supplies
Paint and preservatives
Tools
Electrical supplies
Hard-surface floor coverings
Roofing and supplies
Lawn and garden equipment and supplies
Paint sundries and other supplies
Gypsum and specialty boards
Nursery stock and soil treatments
Soft-surface floor coverings
Paint and preservatives
Other supplies
HIRI members receive access to the full U.S. Home Improvement Products Market Forecast:
The study includes:
Product category – level information for both the consumer and professional market, including the dollar amount of sales for each product category and a corresponding year-over-year comparison
Geographic detail for the nine census divisions, showing, for example, economic growth and slowdown rates as well as future forecasts by region
Economic information such as consumer spending, saving, investment, mortgage rates and employment information
For full access to the report and other proprietary research, join HIRI today.
The housing and home improvement market continues to change rapidly.
If your brand is to stay relevant to Pros and DIYers while maintaining and gaining market share, you and your team must keep your minds sharp to current industry trends and customer behaviors.
HIRI’s Home Improvement Insights Summit is the premier event delivering the latest insights into consumer and pro customers attitudes, distribution channel shares, and housing macroeconomics.
You’ll be hearing from experts in the industry who will be bringing to you research-based guidance for understanding market drivers, foreseeing changes, and driving product and service strategy and innovation.
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