Joe Derochowski, Circana home industry advisor, had an upbeat message in a keynote session at The Inspired Home Show 2025 last week.
Joe told attendees that the housewares industry is poised for steady growth both in units and dollars through 2030 because “there’s no place like home.”
Hosted by the International Housewares Association (IHA), the show was held 2-4 March at Chicago’s McCormick Place. Buyers from more than 100 countries joined 1,600 home and housewares companies to explore new products, new insights and countless opportunities to strengthen partnerships and drive growth.
In his session, ‘Thinking outside the box: Growth opportunities for the housewares industry’, Joe shared his insights and those of fellow Circana analysts across various industries, including beauty, toys, sports equipment, food, apparel, tech and books and how trends in those industries, including the role of AI, have impacted – and will continue to impact – the housewares industry.
Big themes fuelling short-term growth included consumers replacing high-frequency items purchased during the pandemic, such as small appliances and electronics; more people eating and entertaining at home, aka “turtling” because of the inflationary environment; weather/climate emergency-related home goods purchases; and economical home improvements, such as décor changes.
The Circana experts said long-term growth is being impacted by trends including the return to office, including new ways to think about wardrobes and what and when we eat; the home bubble with people delaying the purchase of their first home; path to purchase innovation that can use AI to bring consumers more personalisation and value; and favourable demographics, such as 20-somethings living in their first place off-campus; 30-somethings in their first homes; women going through menopause; new retirees with more time on their hands; and home-bound seniors.
In the short-term, Joe said we are in a “needs-based purchasing cycle.” He explained that given the inflationary environment, people are prioritising their needs over discretionary purchases.
Circana president Don Unser shared that despite inflation, “Consumers are still spending and they are spending at a good clip.” He also noted that suppliers could take advantage of disruption in the e-commerce space with marketplaces like Temu and TikTok, which allow small brands to scale very fast.
The role of AI
The role of AI will only accelerate in 2025. Paul Gagnon, vice president, industry advisor, consumer technology at Circana said that AI will be as revolutionary as the internet in the 1990s. But before rushing to build AI into a product, he advised suppliers to determine if it will help consumers save money or make the product more efficient.
Joe cautioned suppliers not to position AI as a benefit, but to instead use it as a tool to help solve a consumer pain point. It could also help determine what products are a good fit for consumers – both online and in-store.
The turtling trend
The inflationary environment is causing people to stay home more. “It’s four times more expensive to go out and eat,” stated David Portalatin, Circana senior vice president, industry advisor, food and foodservice. He said people desire easy solutions like heat and eat, or opening a bag or box to get to a quick meal—a snackification of sorts throughout the day.
People are also turtling by entertaining at home more, finding escape in fiction books and turning to nostalgic video games, according to the Circana experts.
Growth opportunities
Joe and his colleagues also shared some additional considerations for suppliers looking for growth opportunities, including:
- What are you doing to tap into joy? Joe said there is a greater desire for more joy in all aspects of a consumer’s life … from entertaining, to eating, to beauty, to organising. People may treat themselves with these items when they are feeling good, but also when they aren’t, to feel better.
- How do you make consumers feel safe? People are also looking for proof that others have found a product they’re considering to be helpful. What are you doing to make consumers feel confident that they made the right choice? Securing customer reviews is a good way to do this.
- How can you be agile enough to help consumers in emergencies? Emergency preparedness is a growing category, from portable power to heaters to freeze dried food. How can the industry get needed items to flash flood zones, snow storms in typically warm climates, or to areas affected by fires, hurricanes or tornadoes?
- What are you doing with licensing? Licensing is another opportunity for growth, according to Juli Lennet, Circana vice president, industry advisor for toys. She explained the Star Wars franchise continues to be a top 10 property in the toy industry and that the adult market is the industry’s largest growth market since the pandemic. She also shared how Lego made in-roads with women by creating Lego flower bouquets that have exploded in popularity.
- How are you addressing the needs of growing demographic categories? Hispanics and Asians are growing in population, as are menopausal women and those on GLP-1 weight loss medications. It’s important for suppliers to consider how their specific needs for food and lifestyle are being met.
