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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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