01/07/2021

Sara Rovai and Miles Agbanrin

Forced to rapidly convert living space into combinations of office, fitness centre and schoolhouse, home seclusion drove consumers to seek improvements in both the appearance and function of their homes in 2020. Consumers across Western Europe, North America and Australasia showed a preference for light DIY products, like home paint and hardware, that did not require professional installation or significant consultation. These categories allowed consumers to quickly improve their homes with relatively low per unit costs and little DIY experience. These developed markets saw a notable increase in demand from newer DIY enthusiasts, particularly coming from the millennial and Generation Z demographics. Indicative of this, Western Europe, which led absolute growth among regions, saw per household sales of home paint rise by 12% in 2020, this following a 3% decline the previous year.

However, with global industry sales increasingly driven by developing markets, the EUR10,404 million absolute value decline in sales recorded in Asia Pacific, with further declines in Latin America and Middle East and Africa, have markedly offset growth from developed markets.

Over the forecast period, these market conditions are expected to largely be reversed: Western Europe, which recorded the largest absolute value growth in home improvement and gardening at in 2020 is expected to decline by EUR314 million over the 2020-2025 period, as interest from newer consumers falters. Asia Pacific on the other hand is likely to recover rapidly, as economic activity returns to pre-pandemic levels and rising numbers of consumers are lifted into the middle class and out of the informal retail markets for many products within home improvement.  Absolute sales growth between 2020 and 2025 in Asia Pacific is set to total EUR17,195 million, outpacing the EUR10,548 million expected from North America over the same period.

Though the events of 2020 are expected to provide a long-term lift to demand for home improvement, the industry’s tepid response to the organic trends that underpin this, are likely to see a substantial proportion of growth potential go unmet.

Find more on the website of Euromonitor International https://bit.ly/361Z4no