Home-Products Industry Cooking Up Continued Growth
The NPD Group reveals that the small home appliances and housewares markets will continue on the growth path they returned to in 2015. Covering more than 100 small kitchen electrics, personal care appliance, home environment appliance, and housewares categories, NPD is forecasting a nearly three percent combined dollar sales increase for these industry segments in 2017 versus 2016.
“We are excited to present our first-ever 24-month home industry forecast, providing manufacturers and retailers with valuable insight to help them identify emerging trends and optimize their strategies for 2017 and beyond,” said Lora Morsovillo, president, Home, The NPD Group. “Our forecast, which used a model that incorporates point-of-sale data, macroeconomic data, and NPD’s industry expertise, suggests that 2017 will be another year of growth for the home industry.”
Home cooks will be a prime target audience for retailers growing their home departments. The latest AudienceSCAN survey found 31% of adults love trying new recipes out at home.
Home environment appliances, which include floor care, will have the strongest growth this year, increasing dollar sales nearly four percent, followed by personal care appliances with three percent growth compared to 2016 results. Small kitchen electrics and housewares (non-electrics) are each forecast to grow two percent in 2017.
Retailers can appeal to Recipe Experimenters through TV spots. The AudienceSCAN study revealed 62% of these home cooks took action after seeing commercials in the past year.
“The home-products industry has entered a five to ten-year window in which it has the potential to see consistent annual growth in the U.S., based on the changes occurring in the demographics of the population,” said Joe Derochowski, executive director and home industry analyst at NPD. “While the environment is supportive of growth for the home industry, manufacturers and retailers will need to deliver innovative new approaches addressing consumer needs and wants, not just bells and whistles, in order to compete and capture consumer dollars.”