SOURCE: Freedonia Group

September 29, 2005 12:34 ET

US Home Organization Products Demand to Reach $7.6 Billion in 2009

CLEVELAND, OH -- (MARKET WIRE) -- September 29, 2005 -- Sales of home organization products in the US are forecast to increase over 5 percent per year to $7.6 billion in 2009. Advances will be driven by consumer interest in organizing their homes to minimize the amount of time necessary for housekeeping chores, particularly as middle and upper class consumers place an increasing value on their free time. Demographic trends are another factor as baby boomers become empty-nesters and downsize to fit their accumulated possessions into smaller homes, and younger consumers in the baby boom echo organize their first dorm rooms and apartments. These and other trends are presented in "Home Organization Products," a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Sales of home organization products for use in closets are expected to post the strongest gains through 2009. Advances will be driven by a growing amount of space dedicated to closets, particularly in the master suites of new and newly remodeled homes. Gains will also be fueled by the increasing availability of closet organization products in a variety of retail outlets, with such systems prominently marketed in big box home improvement retailers and mass merchandisers. Sales of home organization products for use in the garage are also projected to achieve strong growth.

Home organization products made from metal and wire accounted for the largest share of sales by material type in 2004, with 31 percent. Sales of organization products made from these materials, benefitting from growth in modular units such as closet systems and cubes, are also expected to outpace all other types through 2009. Growth will be driven in part by interest in higher end, decorative chrome and wire mesh products. Other materials used to make home organization products include plastic; wood; wicker, rattan and other weaves; and canvas and other soft-sided materials.

Among the various types of products, bins, baskets and totes accounted for the largest share of sales with 40 percent in 2004. However, sales of modular units are forecast to post the strongest growth through 2009, benefitting from the adaptability of these systems to a homeowner's changing needs, with particular consumer interest in modular closet and garage systems.

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