U.S. manufacturers' sales of home organization products approached $9 billion by the end of 2014 in a market that grew at an estimated compound annual growth rate (CAGR) of almost 4% in the past 4 years. Sales recovered during the period after growing at less than a 1% CAGR between 2006 and 2010 when the recession and housing crash negatively affected the industry, according to Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 3rd Edition, a recent report by market research publisher Packaged Facts.
Economic recovery, while slow and uneven, has propelled sales growth, which had been increasing at a rapid pace prior to the recession. Pent up demand for garage and closet organization products as well as sheds and general storage products has further helped drive sales increases over the last several years, comments Packaged Facts research director David Sprinkle.
In addition, sales have been aided by shrewd marketing efforts. Marketers of storage and organization products have enlisted tried and true tactics such as deals, sales, sweepstakes, and circular promotions to induce consumers to buy. TV and prints ads have been used to a limited extent, as have special events and product placement on home improvement television shows.
Most manufacturers have embraced the Internet and social media as ways to connect and promote to consumers with websites becoming more interactive and filled with information, tips delivered from experts and bloggers, photos, videos, and design tools. Company and brand pages on Facebook, Twitter, You Tube, Pinterest and others have become standard for most industry players. As in many other competitive industries, marketers of storage and organization products have embraced the need for a multi-dimensional approach to marketing, using various and complimentary tools to connect with consumers.
AudienceSCAN data shows that at least 31% of U.S. adults have promised themselves to be more organized this year. Women make up 62% of this audience, and they are likely to achieve this personal goal with the help of products like garage and closet organizers. Over 38% of these audience members enjoy crafts or scrapbooking. These are both leisure activities which often require storage products to help crafters organize their materials. About 28% of consumers who want to get more organized also enjoy aerobics/Pilates/yoga and may purchase unique products to hold their workout gear.
Marketers may want to reach these consumers via magazine ads. 21% of these audience members have started an online search after seeing a magazine ad.
AudienceSCAN data is available as part of a subscription to AdMall for Agencies. Media companies can access AudienceSCAN data through the Audience Intelligence Reports in AdMall.