Home Organization Products in the U.S.: Containers, Shelving, Cabinets, Drawers, Hanging Storage and Accessories

Home Organization Products in the U.S.: Containers, Shelving, Cabinets, Drawers, Hanging Storage and Accessories

The market for home organization products in the United States has grown at a rapid pace over the last five years, exceeding the growth rate of most other housewares categories. Driving this growth has been American consumers’ penchant for purchasing a great deal of “stuff,” which has led to clutter-filled houses. And consumer clutter has led to the need for organization and storage in nearly every room of homes, including the garage (garage organization products are not covered in this report.)

While demand has been robust, the greatest impact on the market has been higher costs for raw materials, which have influenced the market structure as well as marketer strategies. The cost of plastic in particular has soared, forcing some companies to cease operations or exit product categories, and others to introduce non-plastic items such as soft-sided totes and containers.

The Home Organization Market in the U.S.: Containers, Shelving, Cabinets, Drawers, Hanging Storage and Accessories contains comprehensive data on the U.S. market for home organization products, including historical (2003-2007) and forecast (2007-2012) retail sales data. It examines the trends impacting the market, including the growth of niche items for specialty storage needs, the influence of design and color, and the rise of the kitchen and laundry room as the areas most needed to be organized after closets and garages.

The report also analyzes consumers’ desire and need to organize their homes, and examines reasons why this need will continue despite housing and economic troubles. The report looks at the dynamics specific to mass and specialty retailing - which is growing - who is performing best, what is selling through each channel. The report also provides profiles of leading players in each channel including Newell Rubbermaid, Sterilite, Iris USA, California Closets, Closetmaid, Home Products International, Emerson Electric, and Elfa, which is owned by the Container Store. New and interesting marketers are also discussed, including Rev-A-Shelf, ITW Space Bag, Whitmor, Sauder Woodworking, Starone Plastic and Muji.

Report Methodology

The information contained in this report was obtained from both primary and secondary research. Primary research entailed consultation with industry participants and on-site examination of retail venues. Secondary research entailed gathering data from myriad business sources, including trade publications and newsletters; articles in consumer business newspapers and magazines; government data; information from industry and non-governmental associations, annual reports, 10Ks, and other financial releases from public companies; and other reports by Packaged Facts. Information on new product introductions is derived primarily from reports in the trade press and online. Analysis of consumer attitudes and demographics primarily derives from secondary research and the Simmons Market Research Bureau.

How You Will Benefit from this Report

If you are in the home organization market or looking to enter, or if you’re a supplier, retailer, or analyst this report is invaluable as it provides a comprehensive package of information and insight about market, product, consumer, and retail trends. You will gain a thorough understanding of the current market for home organization products, as well as projected markets and trends through 2012.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans.
  
  
• Research and development professionals stay on top of competitor initiatives and explore demand for home organization products.
  
  
• Advertising agencies to develop messages and images that compel consumers to purchase home organization products.
  
  
• Business development executives understand the dynamics of the market and identify possible partnerships.
  
  
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary

Scope of the Report

Methodology

Market Definition

Market Size and Growth

Historical sales trends

• Table 1-1: U.S. Sales of Home Organization Products, 2003-2007

Market composition by product category

• Figure 1-1: U.S. Retail Sales of Home Organization Products by Product Category, 2007

Factors Affecting Market Growth

Closets a Growth Driver

Design & Targeting Niches Help Drive Growth

The Multi-tasking Home

Crafting Drives Sales

Consumers Need Help Organizing

Increasing number of households

• Figure 1-2: Number of U.S. Households, 2000-2007

The Housing Boom

Larger homes require more products to organization

• Table 1-2: Median square feet of floor area, new one family houses 1985-2007
  
  
• Table 1-3: Rooms in New One-Family Homes

Investing in the Home

Big Spenders

Self Storage Booms Because of Clutter

Lower Prices Encouraged Big Spending

Bulk Buying Takes Up Space

Raw Material Prices Impact Manufacturers

Projected Market Growth

• Figure 1-3: Projected U.S. Sales of Home Organization Products, 2007-2012

The Marketers

Fragmented Market

• Table 1-5: Leading Marketers, U.S. Home Organization Products 2007

Private Label & Store Brands Are Factors

Mergers, Acquisitions, Divestitures

Marketing and New Product Trends

Marketing practices and trends

Advertising and promotion practices and trends

Rubbermaid Focusing on Consumer

California Closets Introduces New Campaign

Slide-Lok Does Seasonal Promotions

Professional Promotion

Retailer circulars offer deals

Sweepstakes Entice Consumers

Back to School Good for Business

Product Trends

The Emotional Side of Organization

Private Label Store Brands

Targeting Niches Spurring Growth

Modularity for Changing Lifestyles

Separate Lines to Keep Kids Organized

Green and Eco-Friendly Trend Emerging

From Industrial to Home Décor

Tie-Ins and Licensing Deals

Made in the USA

Distribution and Sales

Distribution Channels

Market composition by retail channel

• Figure 1-4: U.S. Retail Sales of Home Organization Products by Retail Channel, 2007
  
  
• Table 1-6: U.S. Sales of Home Organization Products, 2007

Discount Stores

Specialty Stores

Home Centers and Hardware Stores

Other Outlets

The Consumer

Consumers Want Quality, Performance and Closets

Consumers Value Quality and Performance Most

• Table 1-7: Most Important Factor When Purchasing Storage Products, 2008

Closet Storage Most In Demand

• Table 1-8: Home Area Where Consumers Will Most Likely Use New Storage Containers, 2008

Consumers Likely To Buy Organization Products Despite Economy

Manufacturers Increasing Consumer Research Efforts

Listening to Women

Enormous Purchasing Power

She Wants to Eliminate Clutter

Builders Take “Women-Centric” Approach

Do-It-Herself

Consumers Say They Want Green Products

Consumers Want But Don’t Often Buy Green

Organization Calms Consumers

Consumer Attitudes About Neatness

Agree a lot: I can't bear untidiness

Empty Nest Cluttered Nest

Boomerangers Crowd the Nest

Sandwich Generation Has a Fuller House

Chapter 2: Market Size and Growth

Scope of the Report

Methodology

Market Definition

Historical sales trends

• Table 2-1: U.S. Sales of Home Organization Products, 2003-2007

Home Organization Products About 7% of Housewares

• Table 2-2: U.S. Retail Sales of Housewares, 2007

U.S. is Global Home Organization Products Leader

Market composition by product category

• Figure 2-1: U.S. Retail Sales of Home Organization Products by Product Category, 2007

Containers

Shelving

Cabinets/Drawers/Modular Units

Hanging Storage

Accessories/other

Factors Affecting Market Growth

Closets a Growth Driver

Design & Targeting Niches Help Drive Growth

The Multi-tasking Home

Crafting Drives Sales

• Table 2-3: Michaels Stores Sales, 2003-2007

Consumers Need Help Organizing

Increasing number of households

• Figure 2-2: Number of U.S. Households, 2000-2007

The Housing Boom

• Table 2-4: Percent of Home Ownership, 1990-2008
  
  
• Table 2-5: Annual Existing Home Sales, 2002-2008
  
  
• Table 2-6: Annual New Home Sales/Median Annual Sales Price, 1995-2008
  
  
• Table 2-7: Annual Housing Starts - Single Family Homes, 2000-2008

Larger homes require more products to organization

• Table 2-8: Median square feet of floor area, new one family houses, 1985-2007
  
  
• Table 2-9: Rooms in New One-Family Homes, 2000 & 2007

Investing in the Home

• Table 2-10: U.S. Average Annual Consumer Expenditures, 2006
  
  
• Table 2-11: Annual Home Remodeling Expenditures, 1995-2008 ($ millions)
  
  
• Table 2-12: Home Improvement Products Sales, 2000 & 2007 ($ billions)

Big Spenders

• Table 2-13: Personal Income and Its Disposition, 2000-2008 ($ billions)
  
  
• Figure 2-3: U.S. Quarterly Personal Consumption Expenditures and Gross Domestic Product, 2005-2008 ($ billion)

Self Storage Booms Because of Clutter

Lower Prices Encouraged Big Spending

• Figure 2-4: Consumer Price Index (CPI) Department Store Durable Goods, Dec. 1998- Sept. 2008

Bulk Buying Takes Up Space

• Table 2-14: Costco Fiscal Year Sales and Membership, 2002-2007

Raw Material Prices Impact Manufacturers

• Figure 2-5: Producer Price Index (PPI) of Crude Petroleum, 2005-2008
  
  
• Figure 2-6: Producer Price Index (PPI) of Plastics Material & Resins Manufacturing, 2004-2008
  
  
• Figure 2-7: Producer Price Index (PPI) of Metals and Metal Products, 2005-2008

Projected Market Growth

• Figure 2-8: Projected U.S. Sales of Home Organization Products, 2007-2012
  
  
• Figure 2-9: Number of U.S. Households, 2007-2010

Chapter 3: The Marketers

Fragmented Market

• Table 3-1: Leading Marketers, U.S. Home Organization Products, 2007

Private Label & Store Brands Are Factors

Mergers, Acquisitions, Divestitures

Competitive Profiles - Key Players

Emerson Electric Co.

Company Profile

Performance

• Table 3-2: Emerson Electric Sales, 2005-2007 ($ billions)
  
  
• Table 3-3: Emerson Electric Sales Composition, 2007

Product portfolio

• Table 3-4: Emerson Electric Home Organization Products

Manufactures many of the same products as ClosetMaid

Strategy and Positioning

Distribution

Advertising and Promotion

Future Outlook

Sterilite

Company Profile

Performance

Product portfolio

• Table 3-5: Sterilite Home Organization Products

Strategy and Positioning

Distribution

Future Outlook

Newell Rubbermaid Inc.

Company Profile

Performance

• Table 3-6: Newell Rubbermaid’s Sales 2003-2007
  
  
• Table 3-7: Newell Rubbermaid Sales Composition, 2007

Product portfolio

• Table 3-8: Rubbermaid Home Organization Products

Strategy and Positioning

Distribution

Advertising and Promotion

Future Outlook

Home Products International

Company Profile

Performance

Product portfolio

• Table 3-9: Home Products International Home Organization Products

Strategy and Positioning

Distribution

Advertising and Promotion

Future Outlook

California Closets

Company Profile

Performance

Product portfolio

• Table 3-10: California Closets Home Organization Products

Strategy and Positioning

Distribution

Advertising and Promotion

Future Outlook

Elfa

Company Profile

Performance

Product portfolio

• Table 3-11: Elfa Home Organization Products

Strategy and Positioning

Distribution

Advertising and Promotion

Future Outlook

Iris USA

Company Profile

Performance

Product portfolio

• Table 3-12: Iris USA Home Organization Products

Strategy and Positioning

Distribution

Future Outlook

Gracious Living Industries

Company Profile

Product portfolio

• Table 3-13: Gracious Living Home Organization Products

Distribution

ITW Space Bag

Company Profile

Space Bag

Product portfolio

• Table 3-14: ITW Space Bag Home Organization Products

Distribution

Promotion

Schulte Corporation

Company Profile

Products

• Table 3-15: Schulte Products

Distribution

Promotion

Rev-A-Shelf LLC

Company Profile

Products

• Table 3-16: Rev-A-Shelf Products

Distribution

Myers Industries, Inc.

Company Profile

• Table 3-17: Myers Industries Sales By Business Segment, 2007

Products

• Table 3-18: Myers Industries Products

Whitmor

Company Profile

Products portfolio

• Table 3-19: Whitmor Home Organization Products

Closet Complete

Company Profile

• Table 3-20: Closet Complete Home Organization Products

John Louis Home

Company Profile

Products portfolio

• Table 3-21: John Louis Home Organization Products

Sauder Woodworking

Company Profile

Products

• Table 3-22: Sauder Woodworking Home Organization Products

Starone Plastic Corporation

Company Profile

• Table 3-23: Starone Home Organization Products

Various styles and sizes of decorative bins and boxes

Chapter 4: Marketing and New Product Trends

Marketing practices and trends

Advertising and promotion practices and trends

Rubbermaid Focusing on Consumer

California Closets Introduces New Campaign

Slide-Lok Does Seasonal Promotions

Professional Promotion

Retailer circulars offer deals

• Table 4-1: Feature Retail Circular Deals for Selected Home Organization Products

Sweepstakes Entice Consumers

Back to School Good for Business

The Emotional Side of Organization

Product Trends

Private Label Store Brands

Targeting Niches Spurring Growth

Modularity for Changing Lifestyles

Separate Lines to Keep Kids Organized

Green and Eco-Friendly Trend Emerging

From Industrial to Home Décor

Tie-Ins and Licensing Deals

Made in the USA

• Table 4-2: Selected Home Organization Product Introductions

Chapter 5: Distribution and Sales

Distribution Channels

Market composition by retail channel

• Figure 5-1: U.S. Retail Sales of Home Organization Products by Retail Channel, 2007
  
  
• Table 5-1: U.S. Sales of Home Organization Products, 2007

Discount Stores

Specialty Stores

Home Centers and Hardware Stores

Other Outlets

Key and Interesting Retailers

The Container Store

Ikea

Target

• Table 5-2: Target Sales Composition, 2007

Bed Bath & Beyond

Muji

Organize-It

Organize.com Inc.

Stacks and Stacks

Chapter 6: The Consumer

Consumers Want Quality, Performance and Closets

Consumers Value Quality and Performance Most

• Table 6-1: Most Important Factor When Purchasing Storage Products, 2008

Closet Storage Most In Demand

• Table 6-2: Home Area Where Consumers Will Most Likely Use New Storage Container, 2008

Consumers Likely To Buy Organization Products Despite Economy

Manufacturers Increasing Consumer Research Efforts

Rubbermaid’s “Consumer-Meaningful Brands”

Whitney Design Focusing on Consumer Needs

Snapware Listens to Consumers and Retailers

Listening to Women

Enormous Purchasing Power

She Wants to Eliminate Clutter

Builders Take “Women-Centric” Approach

Do-It-Herself

Consumers Say They Want Green Products

Consumers Want But Don’t Often Buy Green

Organization Calms Consumers

“Storage Crisis”

California Closets’ “Space To Be”

In Control

Consumer Attitudes About Neatness

Agree a lot: I can't bear untidiness

Agree a lot: I look for new ideas to improve home

• Table 6-3: Consumer Attitudes on Neatness and Desire to Improve Home, 2008

Empty Nest Cluttered Nest

Empty Nesters Look to Downsize

Boomerangers Crowd the Nest

Sandwich Generation Has a Fuller House

Appendix: Addresses to Selected Marketers