SOURCE: Freedonia Group, Inc.

October 23, 2007 12:08 ET

Home Organization Product Sales to Reach $8.6 Billion in 2011

CLEVELAND, OH--(Marketwire - October 23, 2007) - Sales of home organization products in the US are forecast to increase 4.5 percent per year to $8.6 billion in 2011. Value gains will be driven by the ongoing introduction of products with a decorative look or specialty features. Empty-nest families will seek to organize their accumulated possessions in smaller homes. Children of these baby boomers will move into small dorm rooms and first apartments that require organization for comfortable living. Further advances will be restrained by the rising commoditization of many types of home organization products, and pricing pressure both from retailers and a growing number of importers. These and other trends are presented in "Home Organization Products," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Sales of home organization products for use in garages are expected to post the strongest gains through 2011. Advances will be boosted by the growing number of homes that feature three-car or larger garages and by consumers' desire to better organize this large storage space. Sales of home organization products for use in closets are also projected to achieve strong growth as these products become increasingly available in a variety of retail outlets and as the number of more affordable and more user-friendly versions grows.

In 2006, metal and wire home organization products accounted for the largest share of sales by material type with 35 percent of the total. These products are also expected to post the strongest gains through 2011, benefiting from strong growth in sales of modular units for closets, pantries and garages, and cabinetry organization accessories, as well as interest in higher-end, chrome and wire mesh products.

Among the various types of products, bins, baskets and totes accounted for the largest share of sales with 37 percent in 2006. These products, which can be decorative or purely functional, are widely used in most households to store and organize belongings of all sizes. However, sales of modular units are forecast to post the strongest growth through 2011, benefiting from the adaptability of these systems to a homeowner's changing needs; in particular, consumers will continue to show interest in modular closet, garage and pantry systems.

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