From Home Furnishing Business
FastFact: Population Shifts Predicted through 2025
Over the next five years, the Millennial generation—15-to-24 year olds—will age beyond the youngest group of future furniture purchasers.
According to the U.S. Census Bureau, this segment will likely decline 1.7 percent by 2020. In the five years following 2020, there will be a relatively flat growth rate of 0.4 percent.
The advancement of Millennials into the young adult group will spark a 6.3 percent increase in population by 2020, an important increase for the furniture industry.
Consumers ages 35 through 44 tend to be the biggest spenders when it comes to home furnishings. This age group can expect to see the highest increase in numbers. By 2020, there is a projected 5.2 percent increase, followed by a 7.7 percent climb by 2025. Over the next decade, the population of those aged 25 to 44 will increase from 84.7 million to 93.4 million, a 10.4 percent growth. This population will fuel the industry.
The 45-to-54-year-old population has been diagnosed with a projected decrease of 5.3 percent by 2020. The group, whose population is 43.1 million in 2015, is expected to reach 40.7 million in 2025. Upper and premium price points can expect to take a hit from the decrease in population of this high earning age group.
Baby Boomers will also begin to migrate out of the 55 to 54 age group, causing a slight growth of 1.6 percent between 2015 and 2025.
The aging of the Baby Boomer generation will feed into the 65 and older age group, resulting in a significant increase of 18 percent by 2020. This puts the total increase at 37.8 percent between 2015 and 2025.
The complete FastFact is available online.