From Home Furnishing Business
FastFact: Population Changes to Impact Furniture Buying
Population shifts over the next five to 10 years will have a significant impact on consumer buying trends within the home furnishings industry.
Over the next three weeks, Home Furnishings Business will publish a series of FastFacts that detail the impact of projected shifts in the population on the industry’s target consumers.
Millennials, children of Baby Boomers, will begin to enter their 30s through the next 10 years. The progression of this group’s aging will gradually fuel the industry for the next 20 years. Incidentally, the Baby Boomers will be increasing the population in the 65-plus age group. The growth in this group with increase to 37.8 percent—with an annual growth rate of 3.3 percent until 2025.
The 25-to-44-year-olds will increase by 10.4 percent by 2025. In that demographic lies the consumers who tend to spend the most on home furnishings, ages 35 to 44.
The younger portion of the Baby Boomers, 45-to-54-year-olds, will soon represent the majority of the Baby Bust generation, calling for an estimated 5.7 percent decrease by 2025. This group of consumers has been known to spend on upper-end and premium furniture. The final Baby Boom numbers are projected to drop 3 percent in the next 10 years.
The youngest recorded segment, 15 to 24, will likely remain flat over the next five years, with a slight decline of 1.2 percent by 2020.
The complete FastFact is available online.