Series Factoid #3: The 2020 Consumer: Estimated Furniture Industry Sales Based Solely on Household Formations and Current Consumer Spending Years 2015, 2020 and 2025
This is a third in a series detailing how the projected shifts in population will determine which age segments will have the highest numbers and who the Furniture industry should look to as it’s target customers.
The growth of the 25 to 44 year olds coupled with the decline of ages 45 to 54 (as shown in Factoids #1 and #2 of this series) should still result in moderate growth as the Millennials start to spend. This is based solely on demographic trends --projected population growth (Department of Commerce, Census Bureau), current headship rates, and most recent average consumer expenditures by age group (Consumer Expenditure Survey).
Demographic trends alone should grow the industry by $7.7 billion dollars over the next 10 years to $97 billion. Because of their sheer numbers, in ten years the over 65 Baby Boomers will still spend $17.8 billion and have the highest volume increase of $3.1 billion. The 35 to 44 year olds, although smaller in number, will spend $21.7 billion with the highest average per household and grow by more than $2.5 billion in industry sales.
Couple these demographically driven increases with the Department of Labor’s projected increases in consumer spending over the next ten years and the outlook significantly improves. In addition, increased housing demand by the Millennials will also fuel the furniture industry.
*Estimates are based on current demographically driven trends projected by the Census Bureau and do not reflect any changes in economic conditions. The Bureau of Labor Statistics is projecting increases in consumer spending over the next ten years that would significantly improve this outlook.