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Factoids

Factoids offer brief snapshots of current topics pertinent to the Furniture industry based on our on-going research. Increase your grasp of current trends, consumer attitudes, and shifts within the industry through solid statistics and concise insight.

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Factoids

Prime Furniture Purchasing Income Groups Average Annual Furniture Expenditures (Households) by Income Groups in Selected Years 2003 to 2012


 

All of the income segments were affected by the recession that peaked in 2009. As the data shows, spending levels for the higher income groups declined the most, but are now bouncing back at a higher rate.

Households making $150,000 and over spent 44% less from 2007 to 2009 but increased 26% from 2009 to 2013Q2 with an average annual expenditure of $1,311. After spending 35% less from 2007 to 2009, those making $100,000 to $149,999 upped their annual spending by 25% in 2013Q2.

Median household income has dropped from $56,080 in 1999 to $51,017 in 2013. Average annual spending for the income group closest to the national average ($50,000 to $69,999) has shown the same trend -decreasing since 2003 (with a flat growth of 2% from 2009 to 2013Q2).

Spending for those making $20,000 to $49,999 stayed relatively static from 2003 to 2013Q2 (down slightly by 3%). While households making $20,000 and under dropped by (-18% ) over the same period –averaging just $103.

Source: U.S. Department of Labor, “Consumer Expenditure Survey” and Impact Consulting model.

 

 

Prime Furniture Purchasing Income Groups Average Annual Furniture Expenditures (Households)by Income Group: 2013Q2


When it comes to average annual furniture purchases, households making $150,000 and over are spending exponentially more than lower income households. With an average annual expenditure of $1,311 in 2013Q2, the $150,000 and over group (just 9.5% of the total furniture buying population) is spending almost double those households making between $100,000 to $149,000.

Source:  U.S. Department of Labor, “Consumer Expenditure Survey” and Impact Consulting model. 

 

 

Prime Furniture Purchasing Income Groups: Growth in Furniture Buying Population (Households) by Income Group: 2000 to 2012



Looking at growth patterns for Prime Furniture Purchasing Income Groups between 2000 and 2012, the trends are pretty clear.  Household growth lies squarely in the higher end. The number of households with incomes over $75,000 is up 62%, while the number of households making under $75,000 has a flat growth of 0.3%.

Households making over $150,000 saw by far the highest jump in overall population (a cumulative growth rate of 133%).  Households making between $75,000 and $150,000 also saw double-digit population growth - rising more than 26%. 

The remaining lower income groups all declined from 2000 to 2012.  These households dropped from 75% of the total furniture buying population in 2000 to 67% in 2012.

Source:  U.S. Census Bureau, Current Population Survey.

 

Industry Sales by Quarter 2008 Q1 to 2013 Q4 Bedding Industry


 

 

 

 

 

 

 

 

While the third quarter of 2013 experienced its traditional jump in sales, likewise the fourth quarter experienced its traditional – down -14.8%.  Although the Bedding Industry did decline over last quarter, it is up 4.7% over 2012Q4.  Year-to-date, sales are up 2.42%.

 

Industry Sales 2007 to 2013 (YTD) Furniture & Bedding


 

 

 

 

 

 

 

 

 

Combined Furniture and Bedding sales for 2013 (YTD) are up 2.4% over the same period last year. Furniture (excluding Bedding) is up 2.36% and bedding is up 2.42%.

 

 

Industry Growth Quarter to Quarter: 2011 to 2013 Q4


 

 

 

 

 

 

 

 

The chart above shows the performance quarter to quarter for 2011 through the fourth quarter of 2013.

While Industry Sales continued to increase slowly quarter by quarter in 2013, combined Furniture and Bedding showed good growth over the poor performance of Q4 last year.  Q4 to Q4 sales rose 8.3% .

Furniture (excluding Bedding) increased 8.8%, while Bedding grew 4.7% quarter to quarter (2012Q4 to 2013Q4). 

 

Industry Growth : Bedding Industry - 2011 to 2013 Q4

Industry Growth : Bedding Industry - 2011 to 2013 Q4
















The chart above shows the performance quarter-to-quarter for 2011 through the fourth quarter of 2013. While the Bedding Industry declined (-14.8)% over the third quarter in 2013, sales are up 4.7% over the fourth quarter of 2012.  Overall, the Bedding Industry has shown positive growth in 2013 – up 2.42% from the previous year. 


Industry Sales by Quarter (2008 Q1 – 2013 Q4)

Industry Sales by Quarter 2008 Q1 to 2013 Q4


 

 

 

 

 

 

 

 

 

 



The Industry is at its highest one-quarter level since 2007 with overall Furniture and Bedding sales totaling $19.42 Billion.  Fourth quarter sales were essentially flat compared to the preceding quarter 3 showing a slight increase of 0.2%. Combined Furniture and Bedding jumped 8.3% over the same 4th quarter of last year. 

Furniture (excluding Bedding) increased 8.8% over 2012Q4 and 2.8% over quarter 3 of this year.  Although Bedding did have a sharp decline of (-14.8)% growth compared to 2013Q3, it is up 4.7% from quarter 4 of 2012.  Year-to-date, both Furniture and Bedding sales are up 2.4%.

 

 

Prime Furniture Purchasing Age Groups: Growth in Furniture Buying Population (Households) by Age Segment: 2000 to projected 2020

Source:  U.S. Department of Commerce, “Current Population Report Projections” and Impact Consulting Services model.

 

Based on current population projections, Households in the Age Segment 55 to 64 will continue to increase at a staggering rate.  With an estimated rise of 77% from 2000 to 2020, Ages 55 to 64 will make up the vast majority of the furniture buying population.  While Ages 25 to 34 are projected to rise 15% over the 20 year span,  Ages 35 to 44 (considered the prime furniture purchasers) are estimated to fall (-7.5%) with Age Group 45 to 54 finishing flat at a 0% growth in 2020.  In 2020,  Age Segment 55 to 64 is projected to make up 19% of the furniture buying population, while the three younger generations will each be responsible for roughly 16%.

 

Prime Furniture Purchasing Age Groups Average Annual Furniture Expenditures (Households) by Age Segment in Selected Years 2002 to 2013 Q2

Prime Furniture Purchasing Age Groups Average Annual Furniture Expenditures (Households) by Age Segment in Selected Years 2002 to 2013 Q2

 

Source:  U.S. Department of Labor, Bureau of Labor Statistics, “Current Expenditure Survey”


After the recession bottomed out in 2009, expenditures in most age segments have been steadily rising to meet or surpass the average annual furniture purchases of 2002.  However, only one age group in 2012 has surpassed spending levels in 2005, the 45 to 54 age group.

 Ages 25 to 34:  This young group is the smallest of the furniture buying population (as shown in Factoid 1 of this series), but still spent on average $431 per household in 2012.  This group was the least sensitive in its spending habits during the recession compared to the older households.

Ages 35 to 44:  Although in a population decline (as shown in Factoid 1 of this series), this group has traditionally spent the most per household on furniture and continues to do so with an increase of 35% from 2009.  In 2012 the average household in this age group spent $527 annually.

Ages 45 to 54:  Now the most populated of the segments (as shown in Factoid 1 of this series) these middle-aged households spent the second highest amount per household on furniture at $423 and is the only group to surpass 2005 spending levels.

Ages 55 to 64:  While leading the growth in the furniture buying population, these Baby Boomers have been less inclined to spend money on furniture, increasing only 15% in average dollars spent from 2009.  Average expenditures are still down (-22%) from 2002 at $378 per household.  This fast-growing group spent 28% less per household on furniture than the 35 to 44 group in 2012.

 

 

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