Barbecue and Grill Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

During the past five years, growth in the Barbecue and Grill Manufacturing industry has been hampered by the recession and the offshoring of production to low labor-cost countries; however, domestically produced high-end units are expected to contribute to future growth. For these reasons, industry research firm IBISWorld has added a report on the Barbecue and Grill Manufacturing industry to its growing industry report collection.

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Although import competition will increase, high-end products will maintain industry growth

Los Angeles, CA (PRWEB) June 20, 2013

In the five years to 2013, IBISWorld estimates that revenue for the Barbecue and Grill Manufacturing industry will decline at an annualized rate of 3.9% to $2.2 billion, in spite of growth of 1.4% in 2013. According to IBISWorld Industry analyst Kevin Culbert, “During the past five years, industry growth has been hampered by the recession and the offshoring of production to low labor-cost countries.” The recession's impact on per capita disposable income diminished housing starts and private spending on home improvements, which ultimately caused industry revenue to fall. Strong declines, followed by slow economic growth and continued offshoring, have caused the industry to experience an overall decline over the past five years. Prior to the recession, the industry benefitted from a strong housing market, which caused many consumers to spend money on outdoor kitchens. The recession, however, significantly slowed demand for high-end grills in favor of cheaper products. Furthermore, many consumers who were forced to downsize houses switched to more compact grills. Unfortunately for domestic manufacturers, an increase in the amount of inexpensive imports has eaten into the domestic market over the past decade. This rise has diminished the domestic industry's profitability, which has contributed to industry consolidation.

In the five years to 2018, IBISWorld estimates that industry revenue will increase. “Although imports will continue to represent an increasing proportion of domestic demand, domestically produced high-end units are expected to contribute to industry growth over the next five years,” says Culbert. As consumer income rises, industry operators will benefit from an increase in private spending on home improvements. Furthermore, growth in housing starts will also contribute to industry growth.

The Barbecue and Grill Manufacturing industry has a moderate level of market share concentration. Market share concentration within the industry is estimated to have increased during the past five years as some operators were pushed out of the industry or moved their manufacturing operations overseas. For example, WC Bradley, the producer of Char-Broil, a popular barbecue and grill brand among consumers, moved the last of its operations to China in 2006. This reduced the total size of the industry and allowed for other operators, such as Weber-Stephen and AB Electrolux to capture a larger size of the remaining market. During the next five years, IBISWorld estimates that concentration within the industry will rise as the number of domestic producers continues to decline. The three largest players in the industry are Weber-Stephen Products, AB Electrolux, and Middleby.

For more information, visit IBISWorld’s Barbecue and Grill Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes firms that manufacture barbecues and outdoor grills.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


Contact

  • Gavin Smith
    IBISWorld
    310 866 5042
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