Hot tubs have always been considered a luxury item, and thus sales were drastically effected by the credit crunch.
Hampshire (PRWEB UK) 31 May 2013
Demand for hot tubs has been hit hard by the recent global economic meltdown. However, there are now signs of improvement despite the on-going economic turmoil in Europe. Emerging markets such as Brazil, India and China and numerous other nations in Asia are also witnessing significant rises in household incomes.
These improvements in the economy has started to increase the demand for luxury goods. Revenues for the Hot Tub industry is expected to increase by 7.1% in 2013 due to renewed economic growth and consumer confidence. Unfortunately, the increased revenues will be constrained escalating costs of production. Costs for raw materials required during hot tub production such as resin and plastic have increased slightly. However, earlier merging of hot tub manufacturers has enabled them to shoulder the increased costs and still make profits. These mergers have helped to breathe life back into the struggling industry.
The general increase in disposable incomes has enabled the housing market to recover, and with this, the demand for hot tubs and hot tub accessories is also increasing. It seems that people are now confident about the future, and are willing to spend on luxury goods. In the coming five years, the number of household earning over $100,000 annually is forecast to significantly increase. Those professional households are the prime market for hot tubs, the future for industrial players in this market is surely bright.
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