Outdoor Furniture Market
This report contains information on the US outdoor furniture retail market size; growth rate; segmentation by end-user, material, and product type; demographics; the competitive landscape of key players; detailed customer journey; and consumer insights.
SIZE AND GROWTH RATE
- The outdoor furniture retail sales in the US:
- 2020 saw a contraction of 7.26% ($4.96B-$4.6B/$4.96B) in retail sales of outdoor furniture.
- Ibis World had forecasted (in Oct 2020) a contraction of 8.1% in the "Retail Market for Outdoor Furniture Industry in the US" for 2020. This forecast is comparable to the actual contraction.
- The retail sales of residential outdoor furniture witnessed a contraction in 2020 because of a decline in consumer spending, consumer confidence, housing starts, and existing home sales.
- "While restaurants and other venues increased their demand for outdoor furniture to establish outdoor dining spaces, the remainder of the commercial sector cut as many discretionary costs as possible," resulting in an overall decline of commercial outdoor furniture sales.
- According to Ibis World, the size of the "Retail Market for Outdoor Furniture in the US" in 2021 is $6.5 billion.
- According to the "2019 State of the Industry, by Home Furnishings News" report, the residential outdoor furniture market grew by 4.8% to $5.09 billion in 2018.
Pre-Covid, Covid, and Current Growth Rate
- 2020: -7.26%
- According to Ibis World, the annualized growth rate of the industry in the period 2016-2021 was 1.4%.
- 2021: 4.6%
Forecasted Growth Rate
- Technavio (per report published in May 2020) expects the outdoor furniture market in the US to grow at a 4% CAGR over the period 2020-2024.
- According to Grand View Research, the North American outdoor furniture market is expected to grow at 5.4% CAGR over the period 2019-2025. However, this is a pre-Covid estimate.
Multiple statistics have been provided to corroborate findings.
COMMERCIAL VS. RESIDENTIAL
- According to Grand View Research, the "commercial outdoor furniture market in the United States was worth approximately $1.93 billion" in 2019.
- According to Grand View Research, the "residential outdoor furniture market in the United States was worth approximately $1.81 billion" in 2019.
- Therefore, the commercial segment accounts for 51.6% ($1.93B/ ($1.93B+$1.81B)) of the outdoor furniture market, and the residential segment accounts for 48.4% (100%-51.6%).
Home Depot B2B Sales
- B2B customers--"remodelers and builders, as well as maintenance, repair, and operating supply workers"--account for 45% of Home Depot's revenue. The company has built a dedicated website for its nearly 1 million Pro (B2B) customers.
- The major share of Home Depot's revenue comes from building materials and home improvement tools; only a small portion comes from outdoor furniture.
- Wayfair launched its "first-ever commercial-use office line of product" in Feb 2020, even though the company has been around for nearly two decades.
- Commercial furniture is often custom-made. Therefore, it is likely that the share of the commercial segment in retail sales is significantly lesser than the share of the commercial segment in the outdoor furniture market as a whole.
Commercial Outdoor Furniture
- Commercial outdoor furniture like chairs at restaurants are "moved, shifted, and handled a lot", and therefore, need to be sturdier and more robust than residential outdoor furniture.
- Commercial outdoor furniture is typically costlier and more durable than residential outdoor furniture.
- The residential outdoor furniture market grew at 8.63% in the period 2015-2019 (calculated using the Omni CAGR calculator).
- The commercial outdoor furniture market grew at 8.55% in the period 2015-2019.
- According to Goldstein Market Intelligence, the residential segment accounted for 85% of the US outdoor furniture and accessories market.
- Segments of the US outdoor furniture market by material type:
- Other (Wicker, fabric, leather, etc.)
- "Wood is one of the popular material choices in garden furniture due to its superior comfort, eco-friendliness, strong build, and aesthetic appeal."
- Wood-based furniture is lightweight, long-lasting, and offers natural and rich appeal, thereby fueling industry growth."
- The wood segment (global) is expected to grow at 4.5% CAGR up to 2024.
- Plastic is "highly preferred by the economic budget consumer group, as they are lightweight material with minimal maintenance at a lower price.
- High-density Polyethylene (HDPE), Polystyrene (PS), Polyethylene (PE) and other polymer materials are widely utilized materials in" the outdoor furniture industry.
- "The market for plastic outdoor furniture is projected to grow at the highest CAGR (among other material types) in the 2019-27 period.
- "The future growth of the market for the plastics segment is primarily attributed to the favorable properties of plastics; these are broad-range synthetic or semi-synthetic organic compounds that are malleable and so can also be molded into solid objects."
- "Metal-based products accounted for the majority of outdoor furniture sales" in the US in 2019 and is forecasted to account for "76% of new sales through 2024."
- "Metal dominates the market not only due to the sheer volume of low-cost aluminum products sold each year but also because it competes in high-end markets and sees continued appeal in various applications."
- "USA, Canada, Japan, China, and Europe will drive 3.2% CAGR (global) estimated for this segment."
Other (Wicker, leather, fabric)
- "Wicker/rattan accounted for 5% of outdoor furniture sales in the US in 2019.
- Wicker is used "in increasingly popular products — which are themselves driven by their use in outdoor living spaces — such as deep seating chairs and chat groups, which typically include several seats, often wicker deep seating chairs, love seats, and sofas. It is the most popular material for outdoor living rooms.
- Wicker is more popular in the South than other parts of the US and is growing at a higher-than-average rate in the region.
- All-weather wicker, which requires less maintenance, "maintains the look of true wicker," and a relatively upscale material for outdoor furniture is increasingly available in the US market.
- It was predicted that 65% of outdoor cushions and slings would have solid pattern fabrics in 2020.
(every research report segments differently; we have done the segmentation based on multiple reports):
- Dining sets
- Conversation sets
- Loungers and daybeds
- Umbrellas & shades
- Other outdoor furniture
- "Patio bars are on the rise with a large assortment of finishing materials and resources now available to homeowners. The Pinterest category of 'outdoor bar' is one of the fastest-growing and searched type of Pins."
- "An outdoor fireplace is something of a dream for most homeowners."
- The fire pit chat set is the no. 1 outdoor product millennials want to buy," regardless of income, region, and life-stage.
- Overstock saw rising demand for "outdoor sectionals, fire pits and chaise lounges, and furniture pieces designed for compact spaces" during the pandemic.
- Frontgate saw "demand shoot up for items like chaises, fire pits, umbrellas, and outdoor storage and organizational items" during the pandemic. The demand for pool floats doubled too.
- 49% of consumers buying outdoor dining sets purchase 5-piece dining sets.
Category Demand and Supply
- All responding furniture stores in a Casual Living survey indicated that they carry outdoor dining sets, 86% said that they carry both chat groups and fire pits, and 71% carry chaise lounges and umbrellas. An additional 43% carry outdoor lighting options, and just 21% of furniture stores said they carry grills.
The outdoor furniture consumer is more likely to be 18-44 years old, married, and a parent. The demographic data has been derived from the 2018 National Gardening Survey.
- Percentage of individuals who purchased outdoor furniture in 2017 by age group:
- Overall: 21.1%
- Overall: 20.1%
- Overall: 20.9%
- Based on the aforementioned data, the key demographic is 18-44 years old as this cohort is most likely to purchase outdoor furniture.
- 23.6% of men (across ages) and 21.2% of women in the US purchased outdoor furniture in 2017.
- Therefore, men are slightly more likely to purchase outdoor furniture than women.
- <$50k: 29.6% of individuals with income under $50k purchased outdoor furniture in 2017
- $50-$74k: 23.6%
- $75-$99.9k: 28.3%
- $100k+: 25.8%
- The propensity to purchase outdoor furniture is not correlated to income. However, individuals with higher incomes have greater spending power.
- By Household Size:
- 1 person: 19.4% of 1-person households purchased outdoor furniture in 2017
- 2 people: 21.2%
- 3-4 people: 22.5%
- 5+ people: 27.5%
- By Children:
- By Marital Status:
- Therefore, married individuals who have children are more likely to make outdoor furniture purchases. The larger the family, the more likely they are to purchase outdoor furniture.
TOP 10 RETAILERS
The top 10 retailers of outdoor furniture in the US are Walmart; Amazon; Target; Wayfair; Ashley HomeStore; Bed, Bath & Beyond; Costco; Ikea; William Sonoma; and Home Depot (populated in the attached spreadsheet).
- According to Statista, the leading furniture stores in the US by sales are
- According to the Home Furnishings News (HFN), the leading retailers for home furnishings in the US by sales are
- According to Ibis, the top companies in the "Retail Market for Outdoor Furniture industry in the US" are Walmart, Amazon, Target, Ikea, and Wayfair. These retailers also feature in the top 13 home furnishings retailers, all of whom sell outdoor furniture.
- According to Technavio, the top vendors in the US outdoor furniture market (includes manufacturers) are Ashley Furniture Industries Inc., Barbeques Galore, Berkshire Hathaway Inc., Brown Jordan Inc., Century Furniture LLC, Herman Miller Inc., Home Depot Product Authority LLC, Inter IKEA Systems B.V., and Williams-Sonoma Inc.
- We have included all five key outdoor furniture retailers from the Ibis World Report:
- The additional five key players:
- Ashley HomeStore: it is the top furniture retailer in the US (Statista) and also one of the key vendors in the US market (Technavio). The home furnishings' revenue $5.67 billion) of the company is comparable to William Sonoma ($5.78 billion), Lowe's ($5.7 billion), and Home Depot ($5.77 billion). It is also one of the fastest-growing chains.
- Bed, Bath & Beyond: the retailer's home furnishing revenue was $10.71 billion in 2019 -- nearly twice that of Ashley HomeStore ($5.67 billion).
- Costco: the retailer's home furnishing revenue was $7.32 billion -- substantially more than Ashley HomeStore's revenue ($5.67 billion).
- William Sonoma: it is the third-largest furniture retailer in the US (Statista) and also features among the top 10 retailers selling home furnishings (HFN). The revenue of the retailer ($5.78 billion) is comparable to Ashley HomeStore's ($5.67 billion).
- Home Depot: The home furnishings' revenue of Home Depot ($5.77 billion) is comparable to both William Sonoma ($5.78 billion) and Ashley HomeStore ($5.67 billion) and it features as one of the key outdoor furniture vendors in Technovia's report.
- HomeGoods and Lowe's were not included as they do not find mention in any report other than the HFN report. Bed, Bath & Beyond and Costco also do not find mention in any other report; however, their revenues are higher than that of HomeGoods and Lowe's (we could include both HomeGoods and Lowe's as the 11th and 12th key players).
- We have not considered TJ Maxx/ Marshalls as TJ Maxx and Marshalls are two different retail chains.
- The competitive landscape of Walmart, Amazon, Target, Wayfair, Ashley HomeStore, and Bed, Bath & Beyond can be found in the attached spreadsheet.
Triggers to Purchase
- According to a 2018 study by Casual Living,
- "52% of consumers purchased outdoor furniture to replace their existing furniture when it became worn or broken."
- "51% of consumers purchased new outdoor furniture to fill space in their outdoor living areas."
- 42% of consumers purchased outdoor furniture to "update their outdoor living area."
- "17% of consumers purchased outdoor furniture for a party or celebration."
- "Demand for industry products generally moves in line with the real estate market, which determines consumers' need to furnish new spaces; and per capita disposable income, which determines the discretionary budgets available to do so."
- "Other demand drivers for outdoor furniture include fashions and trends in home-decorating and housing sector, and lifestyle trends such as outdoor rooms i.e., expanding outdoor space by using items such as grills and furniture and cocooning."
- For commercial businesses, such as a restaurant, there is "no specific season for purchasing the product — designers plan all year long for various projects and furniture is purchased when the product is needed, regardless if it will be used right away."
Outdoor Space Needs (Bundles Vs. Separate Pieces)
- "Most purchased items in 2016-2017 (2 years):"
- "Millennials comprise 37% of households buying dining sets and 44% of those buying chat groups." (2016)
- "29% of millennials own a chat set, 28% have a standalone fire pit, and 22% own a seven-piece dining set." (2016)
- "Research from Deloitte found that nearly 70% of consumers (all, not just outdoor furniture) go online before they shop in stores, and 36% connect to the web while in stores.
- At least 90% of outdoor furniture consumers researched pricing online before making a purchase in 2018, irrespective of income.
- At least 50% of outdoor furniture consumers researched "where to buy online" before making a purchase, irrespective of income.
- Online browsing for outdoor furniture increased 260% in March 2020, when the pandemic began and people were confined to their homes." Outdoor and home office categories of several e-commerce companies witnessed the most growth during the pandemic.
- A survey by Casual Living found that 37% of outdoor furniture consumers "would do things differently" for their future purchases. "The most frequently mentioned theme was the desire to conduct more in-depth research. One respondent said, 'I want to do more research and look around more so I have more options this time. I want to look at more stores and try to find better deals, as well as furniture that is closer to my ideal'."
Online Discovery and Research Touchpoints
- According to "Scott Hill, CEO of Perq, a software solution and marketing company, more and more dealers are looking at the website as the place where the consumer’s journey is going to begin and using it to take a more active role in influencing a consumer’s decision."
- "Companies use their website as a way to reach out and educate consumers by getting the sales team involved in digital sales and evaluating website leads." While the automobile industry has been doing so for over a decade, the home furnishings industry has only recently adopted this approach. "Tech providers agree that it’s imperative to provide website visitors with a variety of convenient ways to communicate with appropriate team members using online forms, via email and even text."
- "Google found that one out of every two furniture searches happened on mobile devices. According to Wolfgang Digital, 67% of all retail browsing happens on a mobile device or tablet. Yet, many furniture brands and retailers still consider desktop shopping first when designing web pages."
- Pinterest, Instagram, and other social media platforms are turning furniture into a lifestyle good. The discovery process of the consumer can therefore be aided by "creating interesting content with a frequently updated blog, along with compelling social media content."
- According to "Jeff Hunt, CEO of Snap36, a tech company specializing in high volume 3D product photography," social media channels are the first contact many make with a furniture brand. Retailers can get ahead of the trend by offering in-platform coupons and integrating with a checkout function directly in an app like Instagram Checkout."
Time Spent Researching
- According to a Casual Living survey, "the research process for outdoor furniture purchases is not particularly drawn out."
- 32% outdoor furniture consumers say they spend less than one week researching before they purchased."
- "37% say they spend one to two weeks researching"
- And, "10% say they spend one month or more researching outdoor furniture before they ultimately purchase. "
- Consumers spend lesser time researching when shopping in-store:
Main Factors in Decision-Making
- According to a survey by Casual Living, "on arriving at a store, consumers hadn’t necessarily decided on precisely what they wanted:"
- "84% did not know exactly what pieces of furniture and what brand they wanted to buy"
- "37% had a general idea of the look they wanted, but not a specific brand or pieces'
- "24% knew what pieces they wanted, but did not know the brand"
- "This opens the door for sales staff to aid in the shopping experience; 55% of those who shop in-store for outdoor furniture consider it extremely or very important for the sales staff to have the ability to answer questions."
- "After in-store consumers have had a chance to try out their furniture and narrow down the outdoor furniture pieces and brand they want, 53% expect to take the furniture home the same day. 21% are willing to wait between two to three days for delivery."
- According to a study by Casual Living, "consumers are less concerned with what brand of outdoor furniture they purchase and more concerned with quality and value:"
- quality is important to 93% of outdoor furniture consumers
- value: 92%
- availability: 79%
- warranty: 76%
- brand: 37% (very important or extremely important)
- "When asked to name outdoor furniture brands, as much as 40% of consumers were unable to name at least one brand. One consumer explained, 'I don’t think about brands. I look at the size, quality and color.' Another added, 'Whatever is on sale. All brands seem cheaply made anyway and come from China'."
- Consumers decide on which brand to purchase based on
- high in quality: 94%
- good value: 93%
- durability: 93%
- price: 92%
- weather-proof: 89%
- status symbol: 26%
- "Outdoor furniture shoppers have an overwhelming affinity for American-made products, according to a 2019 consumer survey by Casual Living;" 84% of consumers "prefer American-made outdoor furniture:"
- "Consumers prefer American-made outdoor furniture for a variety of reasons:"
- 69% simply like to buy American when they can
- "Six out of 10 consumers cited helping the economy as a motivating reason for their American-made preference," especially baby boomers. Millennials are "motivated by tangible benefits, such as higher quality and better styles."
- 39% perceive the products as higher quality (47% millennials; 32% baby boomers)
- 22% find the style more to their taste
- "Outdoor furniture retailers believe U.S.-made is an important part of the sales floor. One casual furniture specialist said, '90% of its products are made in the USA. This is the foundation of their business.'"
- In the case of commercial furniture purchases, the "designer’s support staff often does the research and purchasing, rather than the designer themselves."
Style Preferences by Generation, Region
- Traditional style preference by generation:
- 65% of baby boomers
- traditional is the top style for Gen Xers.
- 51% of millennials describe their outdoor furniture style as traditional
- Traditional style preference by region:
- Modern or Contemporary style by generation:
- Tropical style by generation:
- Tropical style by region:
- Other styles:
Price Vs. Style and Design by Generation, Region
- "An enhancing outer appearance to signify matching architectural themes & style of living spaces and backyards of houses plays a major role in the purchase decision. Outdoor furniture is used in backyards, lawns, balconies, and rooftop gardens for enhancing the overall household appeal and facilitating seating purposes."
- "When shopping for outdoor furniture, three-fourths of respondents say that they consider style and design, which is tied with price as the No. 1 consumer concern in outdoor furniture shopping."
- Importance of price vs. style by generation:
- Baby boomer: 74% price vs. 74% style/ design
- Gen Xers: 72% price vs. 73% style/ design
- Millennials: 81% price vs. 78% style/ design
- Importance of price vs. style by region:
Seasonal Considerations and Buying Trends
- "Choice of furniture is highly dependent upon the external climatic conditions. Excellent weather resistance, crack proofing, insect resistance, pest & fungus repulsion, and superior tensile strength are among the key factors making it an ideal choice for outdoor furniture."
- According to a study by Casual Living, "79% of full-line furniture stores carry outdoor furniture year-round, while 21% carry it seasonally. Stores that carry outdoor furniture seasonally typically do so during the spring and summer months between March and August."
- "Increasing demand for environment-friendly outdoor furniture will be the primary factor driving the growth of the outdoor furniture market in the US over the next few years. There is a growing demand for "materials such as recycled plastic lumber popularly known as EnviroWood. The material finds application in the complete range of outdoor furniture from Shell-Back chaise to Adirondack chairs."
- Also, the "availability of multi-functional outdoor furniture" and a better online shopping experience are expected to drive demand.
- "Consumer demand for product customization is continuing to grow, so many start-up companies that have furniture configurators are coming online to take advantage of this opportunity."
Where Consumers Purchase
- According to a 2018 study by Casual Living, "71% of consumers who purchased or plan to purchase outdoor furniture were shopping in store for their items instead of online. When asked why they purchased or plan to purchase in-store, the most common theme was the ability to try furniture in person before making a commitment."
- "One respondent answered, 'I prefer seeing the product in person and knowing for a fact what it looks like, as I cannot be sure if the online product will show up exactly as it appears.' Another agreed, responding, 'Because I like to experience a product before I purchase it. I want to feel it, sit in it, and experience it before I make a final decision. Design can look good, but functionality is better'."
- In 2019, 71% of consumers who bought an outdoor dining set purchased the set in-store. 34% purchased outdoor dining sets at a big box retailer; 33% at a home-improvement store; and 33% through other channels.
- Distribution of home furnishing retail sales in 2018:
- Furniture stores: $51.16 billion (25.02% share)
- Discount department stores: $47.08 billion (23.03%)
- Specialty stores: $28.99 billion (14.17%)
- Online: $27.86 billion (13.63%)
- Other: $19.28 billion (9.43%)
- Warehouse clubs: $10.29 billion (5.03%)
- Department stores: $6.00 billion (2.93%)
- Designers: $7.46 billion (3.64%)
- Home improvement centers: $6.34 billion (3.1%)
- It may be assumed that the distribution-by-channel of outdoor furniture sales will be similar to the distribution-by-channel of the home furnishing category as a whole (which includes outdoor furniture).
- The sale of home furnishings via department stores contracted by 9.3%, while the sale of home furnishings via e-commerce grew 9.8% in 2018. "According to Furniture Today, 8 out of 10 consumers have purchased home furnishings online."
- The sale of home furnishings via discount department stores, specialty stores, and furniture stores grew by 4%, 2.8%, and 2.5%, respectively.
- "Research from Qubit, a provider of mobile product discovery solutions, shows that 48% of consumers feel the process of product discovery using mobile websites is frustrating-- building out rich product context for the customer can help alleviate those frustrations."
- "Mobile screens have much less real estate, which means brands need to be able to immediately communicate much more information with much less space. One way of achieving this is using 360-degree product images so that users can see and inspect every angle of a sofa or a dresser during their first few seconds on a product page rather than taking the time to scroll through a photo reel. "
- "The home furnishing industry is transitioning from a 2D to a 3D era." 3D technology not only improves visualization but strengthens brand equity and enables better product promotion.
- Also, "visual search algorithms rely on a high volume of photos to work well, so if a customer takes a picture of a certain sofa hoping to find it online, but the angle doesn’t match up with how it’s presented in photos, the results could potentially lead that customer toward a competitor instead."
- "Customers want to easily find what they want, when they want it. According to Chris Benner, Oracle NetSuite product manager and master industry principal, "the only way to achieve this customer experience is to make sure your data is accurate."
- "The defining theme of 2020 was how to integrate brick-and-mortar and digital shopping to offer a seamless process for consumers."
- The hybrid experience — with the brick-and-mortar store augmenting the digital store and artificial intelligence assistants supplementing sales reps — is now ushering in a new age of commerce."
- According to "Etienne Merineau, co-founder of Heyday, an AI-powered customer chat platform for retailers, connecting online leads to in-store experts is a great way to create the omnichannel experience every consumer loves."
- "The most important technology initiatives are those that make the customers’ process of discovering product as seamless, convenient and enjoyable as possible. Experts caution that "brands not providing this ease-of-use in working with their retailers electronically will fall behind and be forgotten."
- The reasons some consumers "do not prefer outdoor furniture made in the US" are
Key Features Promoted by Stores
- A survey of full-line furniture stores by Casual Living found that "durability and fabrics that are resistant to stains, water, and fading" is the most common outdoor furniture promoted by stores:
- 86% of responding stores said that their sales associates discuss "durability and fabrics that are resistant to stains, water, and fading" with consumers.
- "Comfort and style are promoted by 71% of full-line stores"
- "benefits of the outdoor room by 64%"
- made in the USA by 50%
- luxury offerings by 43%
- and eco-friendly materials by 14%
- "In full-line furniture stores, the median percentage of outdoor furniture sales as a portion of total sales is 4%, and outdoor furniture makes up approximately 6% of floor space."
- "64% of responding stores place their outdoor furniture in a full-time patio gallery, 22% rotate the placement based on the season, and 14% scatter outdoor furniture throughout their store."