Consumer needs related to hybrid living, pets, entertaining, and creating experiences will endure

CHICAGO, Apr. 14, 2025 – The U.S. home products industry closed out 2024 with a 1% increase in sales, and growth is expected to continue through 2027. The forecast is for the overall demand for home products in the U.S. to be up 1.4%, followed by growth of 2.4% in 2026, and 2.8% in 2027, according to the latest Future of Home report from Circana, LLC. The consumer needs that have been at the forefront since 2023 will continue for the foreseeable future, including those related to hybrid life, pets, home entertaining, and the enhancement of at-home experiences.

“Home products is one of few discretionary industries that has sustained demand levels above pre-pandemic performance, as consumers continue to spend more time at home,” said Joe Derochowski, home industry advisor, Circana. “Today’s consumer remains resilient amid economic challenges, and home-centric spending can often offer cost-saving alternatives to many aspects of living.”

In an effort to save money, consumers will want to eat at home, so kitchen electrics and housewares will be top of mind. The consumer’s focus will not only be on saving money, but also maintaining connections and entertaining at home will continue to be a big part of their focus. The small appliances that enhance convenience and efficiency in the kitchen, and tools that enhance at-home experiences will benefit from these evolving consumer priorities.

Amid financial concerns and personal desires, everyday needs remain. In particular, high-frequency use small kitchen appliances purchased during the purchasing peak in 2020 are now reaching the end of their lifespan. The replacement of these products will be a key demand driver in the coming year. 

Weather is having a significant impact on consumer need, particularly related to home comfort. Coupled with the general home-centric focus of consumers, this will sustain demand for functionality and maintenance when it comes to home environment and cleaning appliances. 

Evolution and innovation will be at the center of personal care appliance performance in the coming years. As consumer spending on experiences, and return to office trends evolve, so will personal care routines, making the industry’s innovations around time-savings and health and wellness needs, will shape future demand.

Derochowski adds, “While home-related needs remain a constant for consumers, it is still necessary to infuse innovation into product, marketing, and merchandising that inspires the consumer. That inspiration is what will grow the home products industry at a more accelerated pace.”