Outdoor furniture such as deck chairs, tables, chairs, loungers, and grills have become increasingly popular in both commercial and residential settings. They allow people to comfortably spend time outdoors and enjoy meals with friends and family. With rising disposable income, consumers are now willing to invest in high-quality and durable outdoor furniture made from materials like teak, aluminium, and wicker that can withstand all weather conditions.
The global Outdoor Furniture and Grill Market is estimated to be valued at US$80 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising disposable income is one of the key opportunities driving the growth of the outdoor furniture and grill market. As incomes rise globally, consumers are able to spend more on luxury and premium products that enhance their lifestyle. Durable and high-quality outdoor furniture allows people to relax, dine and entertain in style in their backyard or patio. This has boosted the sales of luxury outdoor furniture sets, chairs, loungers, umbrellas and grills. Manufacturers are innovating with new designs, ergonomic features and using premium materials to cater to the demands of the rising affluent population globally. The growing desire of consumers to invest their disposable incomes into comfortable and aesthetically pleasing outdoor living experiences will continue driving market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the outdoor furniture and grill market is moderate. High start-up costs associated with manufacturing equipment and establishing distribution channels pose barriers to entry. However, proximity to consumers in local markets decreases barriers to some extent.
Bargaining power of buyers: Buyers have moderate bargaining power in this market. The availability of substitute products offers consumers options. However, brands have strong customer loyalty and buyers tend to prefer quality and durable outdoor furniture and grills.
Bargaining power of suppliers: Furniture and raw material suppliers enjoy moderate to high bargaining power. Supply of raw materials like wood, metals is concentrated among a few players. Supplier switching costs are also relatively high in this industry.
Threat of new substitutes: Threat from substitutes is moderate. Alternatives include indoor furniture used outdoors and other cooking appliances like electric grills. However, outdoor furniture and grills specifically cater to outdoor use and leisure experience.
Competitive rivalry: The market is highly competitive due to the presence of several global and regional brands. Players compete on quality, design, durability, pricing and effective marketing.
SWOT Analysis
Strengths: Outdoor furniture and grill manufacturers offer high quality, innovative and stylish products. Many brands have strong brand recognition and loyal customer base.
Weaknesses: Overdependence on seasonal demand affects revenues. Fluctuations in raw material prices can squeeze margins. Supply chain disruptions post Covid-19 still impact some players.
Opportunities: Rising outdoor living trend in developed countries boosts market prospects. Popularity of al fresco dining and grilling drives demand. Emerging markets offer new growth avenues.
Threats: Economic slowdowns lower discretionary spending thereby hurting sales. Strict environmental regulations increase compliance costs.Volatility in currency exchange rates impacts international players.
Key Takeaways
The global outdoor furniture and grill market is expected to witness high growth led by rising consumer affluence and preference for outdoor activities. The global Outdoor Furniture and Grill Market is estimated to be valued at US$52.53 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030.
North America currently dominates the market owing to robust economic growth and outdoor lifestyle trend. The U.S. accounts for over 40% value share led by high backyard usage. Europe is another major regional market driven by growing foodservice sector and popularity of patio dining. Germany, France and Italy generate over 30% combined demand in the region. Asia Pacific is poised to be the fastest growing regional market during the forecast period with nations like India, China, Japan and Australia reporting double digit annual growth. Rapid urbanization and rising living standards are key factors favoring outdoor furniture adoption.
Key players: Key players operating in the outdoor furniture and grill market are Home Depot, Lowe’s, Walmart, Costco, Ace Hardware, Keter Plastic, Century Furniture, Tropitone Furniture Co Inc, Brown Jordan International Inc, Barbeques Galore, Homewerks Worldwide, Y O Home, Weber, Traeger Grill, Broil King, and Sub- Zero Group Inc.
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