The Home Improvement Research Institute Predicts Overall Home Improvement Product Sales to Continue Growth into 2025, with Uptick in Professional Market Growth

Data from the recent­ly released mar­ket update pro­vides insight to home and build­ing mar­ket­ing pro­fes­sion­als as the indus­try con­tin­ues to shift in the wake of COVID-19

The Home Improve­ment Research Insti­tute, the nation’s lead­ing resource for mar­ket research con­cern­ing the home and build­ing prod­ucts indus­try, has fore­cast­ed the total U.S. build­ing prod­ucts mar­ket to con­tin­ue build­ing on expo­nen­tial growth seen in 2020 and 2021. The total mar­ket will grow by an addi­tion­al 2.9% from 2023 through 2025, with the con­sumer mar­ket grow­ing by 2.3% and the pro­fes­sion­al mar­ket grow­ing by 4.6%. This research was con­duct­ed in part­ner­ship with IHS Mark­it and released to HIRI mem­bers at the end of Q3 in the bian­nu­al Home Improve­ment Prod­ucts Mar­ket Forecast. 

The home improve­ment indus­try had explo­sive growth dur­ing the Coro­n­avirus pan­dem­ic due pri­mar­i­ly to DIY projects, but that may now be dri­ven by pros,” said HIRI Research Direc­tor Matthew Craig. We are glad to now pro­vide the home and build­ing indus­try some insight into what they can expect as we con­tin­ue to nav­i­gate a post-Pan­dem­ic world.”

In the short term, the Fore­cast pre­dicts the total build­ing prod­ucts mar­ket to grow by 13.0% in 2021, with the con­sumer mar­ket grow­ing by 10.8% and the pro­fes­sion­al mar­ket grow­ing by 18.2%. In 2022, the total build­ing prod­ucts mar­ket is fore­cast­ed to grow by an addi­tion­al 2.3%, with the con­sumer mar­ket grow­ing by 0.2% and the pro­fes­sion­al mar­ket grow­ing by 7.1%.

These find­ings indi­cate a cur­tail­ment of DIY growth as an over­all share of home improve­ment prod­uct sales in 2022, as many home­own­ers com­plet­ed planned projects through­out this year and the last. How­ev­er, growth will con­tin­ue fur­ther in the pro­fes­sion­al prod­ucts mar­ket as COVID-19 restric­tions ease and projects once on hold resume. This means demand for cer­tain prod­ucts will con­tin­ue to increase in areas where con­trac­tor-led projects are high. 

The strong home improve­ment out­look pro­vid­ed by pan­dem­ic behav­ior has been giv­en new life by this year’s improved employ­ment gains, increased access to vac­ci­na­tions, and addi­tion­al stim­u­lus mea­sures. All have boost­ed con­sumer con­fi­dence and the hous­ing mar­ket in par­tic­u­lar,” said IHS Mark­it Man­ag­ing Direc­tor Scott Hazel­ton. While the boom can­not last 

for­ev­er, a con­tin­u­ing strong econ­o­my sug­gests spend­ing by con­trac­tors will actu­al­ly improve year-over-year as house­holds feel more com­fort­able with con­trac­tors in their home.”

HIRI’s Home Improve­ment Prod­ucts Mar­ket Fore­cast fur­ther breaks down this growth by seg­ment­ed mer­chan­dise line and location.

Since 1992, the Home Improve­ment Prod­ucts Mar­ket Fore­cast has pro­vid­ed the home improve­ment industry’s only prod­uct focused size of mar­ket study with five‑year fore­casts for the con­sumer and pro­fes­sion­al mar­kets. Prod­uct cat­e­go­ry lev­el detail is pro­vid­ed for the con­sumer mar­ket and, since 2018, for the pro­fes­sion­al mar­ket. Geo­graph­ic detail is also pro­vid­ed for the nine Cen­sus divi­sions with annu­al esti­mates to the state lev­el. The Home Improve­ment Prod­ucts Mar­ket Fore­cast is released bian­nu­al­ly, in the spring (Q2) and Fall (Q3) exclu­sive­ly to HIRI members.

HIRI mem­bers receive unlim­it­ed access to Home Improve­ment Prod­ucts Mar­ket Fore­casts and $1 mil­lion worth of addi­tion­al indus­try research. For indus­try pro­fes­sion­als, pub­lish­ers, mar­ket­ing exec­u­tives and more, HIRI is the top source of data to help guide busi­ness decisions. 

Learn more and join as a mem­ber.

About the Home Improve­ment Research Institute

HIRI is the lead­ing non-prof­it busi­ness orga­ni­za­tion for more than 100 of the biggest names in the home improve­ment indus­try. Our goal has always been to pro­vide com­pa­nies of all sizes with action­able resources rang­ing from raw data to digestible exec­u­tive sum­maries to shape busi­ness deci­sions. Join as a mem­ber for unlim­it­ed access to $1 mil­lion worth of indus­try research. 

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