Home Products Poised For Growth
The continued need for consumers to seek money-saving options could be a boost to the home products segment in the coming years, according to new research from Circana.
Following 2024, when sales of home goods increased 1%, additional sales growth is expected through 2027, according to Circana’s Future of Home report. The forecast calls for a 1.4% bump in home product sales in 2025, followed by increases of 2.4% and 2.8% in 2026 and 2027, respectively.
“Home products are one of the few discretionary industries that have sustained demand levels above pre-pandemic performance, as consumers continue to spend more time at home,” said Joe Derochowski, home industry advisor, Circana. “Today’s consumer remains resilient amid economic challenges, and home-centric spending can often offer cost-saving alternatives to many aspects of living.”
To save money, consumers will want to eat at home, which will open new selling opportunities for kitchen electrics and housewares products. According to Derochowski, the consumer’s focus will not only be on saving money, but also on maintaining connections and entertaining at home. Small appliances that enhance convenience and efficiency in the kitchen, and tools that enhance at-home experiences, will benefit from these evolving consumer priorities.
High-frequency countertop appliances could be in high demand in the coming years. Derochowski notes that small appliances purchased during the peak of the COVID pandemic in 2020 are reaching the end of their lifespan. The replacement of these products is expected to be a key demand driver in the coming year.
Weather is also having a significant impact on consumer needs, particularly related to home comfort. Coupled with the general home-centric focus of consumers, this will sustain demand for functionality and maintenance when it comes to home environment and cleaning appliances.
Additionally, evolution and innovation will be the focal point of personal care appliance performance in the coming years. As consumer spending on experiences and return to office trends evolve, so will personal care routines, making the industry’s innovations around time-savings and health and wellness needs will shape future demand.
“While home-related needs remain a constant for consumers, it is still necessary to infuse innovation into product, marketing, and merchandising that inspires the consumer,” Dwerochoski said. That inspiration is what will grow the home products industry at a more accelerated pace.”
