Outdoor Decor Market Expected to Reach $117.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Outdoor Decor Market," The outdoor decor market size was valued at $83 billion in 2022, and is estimated to reach $117.7 billion by 2032, growing at a CAGR of 3.5% from 2023 to 2032.

The outdoor decor is an aesthetic and functional approach to enhance the appearance and atmosphere of outdoor spaces of both residential and non-residential areas. The outdoor decor items vary from each other in terms of style and purpose but eventually serve to personalize outdoor spaces, by making them inviting and comfortable. It includes items such as outdoor furniture, lightings, pot, planters and rugs along with others. Moreover, many outdoor decor items are designed to withstand the elements, which makes it low-maintenance, comfortable and enjoyable. Thus, the outdoor decor increases the overall well being and value of a property.

As per the outdoor decor market analysis, the outdoor decor market is analyzed on the basis of product, end user, distribution channel and region. On the basis of product, the market is divided into furniture, flower pots & planters, rugs & cushions, lighting, patio umbrellas and shade structures, water features, and others. The furniture segment dominated the outdoor decor market in 2022 and is anticipated to maintain its dominance throughout the forecast period.

Consumers are using furniture frequently owing to increased disposable income and the influence of western society. Moreover, consumers are able to spend more on outdoor furniture items according to their increased purchasing power. Market players have launched outdoor furniture with fresh designs and styles in response to consumer need and desire. In addition, purchasers have prioritized criteria such as durability, style, and design in the selection of furniture. According to studies, aluminum, wicker, plastic, and wood are the best materials to use for constructing outdoor furniture.

As the aforementioned materials are able withstand tough environments, end customers have increasingly drawn to them. In addition, the real estate sector's growth is anticipated to present a profitable chance for the outdoor decor market's furniture demand to increase.

As per the outdoor decor market forecast, on the basis of end user, the market is fragmented into residential and non-residential. The residential segment dominated the outdoor decor market in 2022 and is anticipated to maintain its dominance throughout the forecast period. The products of outdoor decor are the most demanded product if the decor items are considered. Consumers are able to furnish their homes in accordance with their tastes. This is possible due to abundance of decor objects in all shapes, sizes, and designs.

As per the outdoor decor market trends, one of the biggest driving factors in the outdoor decor industry is the construction of outdoor rooms, which include outdoor kitchens, eating areas, lounges, and entertainment areas. In addition, the air quality index has been declining annually, which has contributed to a number of human difficulties such as asthma, emphysema, chronic obstructive pulmonary disease (COPD), and other respiratory illnesses. Owing to this, there is a demand for outdoor decor items to build vertical gardens. Vertical gardening entails hanging or arranging flower pots vertically on walls and railings to improve visual appeal, enhance beauty, and purify the air. Furthermore, the ability for homeowners to customize designs to suit their unique requirements and aesthetic choices has also contributed to the expansion of the outdoor decor business.

On the basis of distribution channel, the market is categorized into supermarket & hypermarket, specialty stores, e-commerce and others. The specialty store segment dominated the outdoor decor market in 2022 and is anticipated to maintain its dominance throughout the forecast period. The outdoor decor specialty store outlet offers a large selection of merchandise along with a variety of related items.

The specialist shop provides residential apartment complexes and other corporate clients with tailored solutions. Moreover, the retail sales of outdoor decor products through specialist stores have increased as consumers want to research and assess products before making a purchase. Customers are also involved in examination of the store’s quality, durability, and color selections, as well as the kinds of accessories that fit them. The surge in residential and commercial building is fueling the demand for outdoor décor products, which has driven the rise of the specialty store market. Furthermore, the rise in income levels and improved customer lifestyles are anticipated to fuel market expansion. Specialty stores are therefore expected to witness an increase in demand in the near future.

Asia-Pacific dominated the outdoor decor market in 2022 and is anticipated to remain dominant during the forecast period. The Asia-Pacific market has witnessed expansion due to the rise in disposable income and fast urbanization in Asian nations like China, Vietnam, and India. China is the market leader in terms of revenue for outdoor decor owing to the rise in the middle-class population. Moreover, consumer purchasing trends have been influenced by the shift in lives of individuals in Asia. Young families primarily spend money on furniture and floor coverings.

The region's customers choose to purchase outdoor decor items from department stores and specialty shops. An increase in trend in the region is online shopping, which is a major factor in the market's growth. In addition, as the versatile furniture helps save space, it has become very popular among consumers in the area. Furthermore, the fast development of the Asia-Pacific region as a result of industrialization and growth in consumer spending on outdoor decor items are anticipated to drive market expansion.

Although, the outbreak of the pandemic has disrupted the global supply chains. As a result, this has caused shortages of some ingredients and delays in production and distribution. In addition, the pandemic has led to changes in consumer behavior and these changes in consumer behavior have had both positive and negative impacts on the outdoor decor market growth. The major players analyzed for the outdoor décor market are Elho B.V., Net Retailers, LLC, Frontgate, The Home Depot, Inc., Inter IKEA Holding B.V., Renson, Kimball International Inc., Walmart Inc, Ashley Furniture Industries, LLC, and Wayfair Inc. These market players are constantly engaged in various developmental strategies to strengthen their foothold and exploit the prevailing outdoor decor market opportunities.

KEY FINDINGS OF STUDY

• On the basis of product, the furniture segment held the major outdoor decor market share in 2022.
• On the basis of end user, the residential segment held the major share in 2022.
• On the basis of distribution channel, the specialty stores held the major share in 2022.
• On the basis of region, Asia-Pacific held the major share in 2022.