Home Organization Product Demand Set to Increase
The home organization market is expected to increase 3.6 percent annually to $8.6 billion in 2015, according to a Freedonia Group study in 2011, making it one of the best franchise opportunities available. Decorative and specialty products are expected to be a major part of that increase, as well as growth in more expensive closet and garage systems.
Although the market softened during the recession, a rebound in residential construction and consumer spending will support future demand in the home organization and storage industry. Sales of home organization products for use in garages are expected to post the fastest gains, rising 5.5 percent per year through 2015. In part, this reflects the relative immaturity of the garage storage market. However, advances will also be aided by increases in both the share of homes with garages and in the average size of garages, along with consumer desires to make the garage space suitable for hobbies and other activities.
Metal and wire home organization products accounted for the largest share of sales by material type, with just under one-third of the total in 2010. These products are also expected to post above average gains through 2015, benefiting from strong growth in sales of modular units and cabinetry organization accessories. However, demand for wood and laminate-based products is expected to post the fastest gains over the forecast period, driven by strong increases in modular units and shelving, including higher-end closet systems that resemble furniture and fine cabinetry.