2004 Reference & Directory 20 Pool & Spa Marketing

MARKET REPORT
Reflecting business activity up to and including the calendar year of 2002
In the absence of any definitive numbers that might have been presented over the past few years, we have endeavoured to develop some
market statistics. This report has been completed by using the last official report from the National Spa & Pool Institute (1993) and factoring in
the industrys growth trends and market trends for the years since the report. The report was also established by contacting pool manufacturers
in the industry and utilizing the publishers 30 years of experience in the market. These estimates are expected to be conservative, but they do
provide an indication of the market size in the United States as perceived by Pool & Spa Marketing magazine.
Market Region 1996 1997 1998 1999 2000 2001 2002 Market
Per cent
Northeast 23,000 23,900 24,700 26,000 25,600 23,300 25,800 15%
Southeast 45,000 44,000 45,900 48,500 47,600 43,500 45,100 28%
East Central 9,000 9,500 9,900 10,400 10,200 9,500 10,000 6%
West Central 7,000 6,700 7,100 7,500 7,300 6,500 6,600 4%
South Central 30,000 31,400 32,800 34,400 34,000 32,200 34,000 20%
Southwest 34,000 37,400 39,800 42,700 43,800 41,800 42,200 25%
Northwest 2,000 2,100 2,100 2,300 2,200 3,200 3,300 2%
Total Units 150,000 155,000 162,300 171,800 170,700 160,000 167,000 100%
(Unit sales rounded to nearest 100s)
Sales Year 1996 1997 1998 1999 2000 2001 2002
Units Sold 348,000 305,000 330,000 365,000 345,000 325,00 320,000
For the purpose of this report, we have limited the above-ground swimming pool numbers to pools that are
4.6 m (15 ft.) in diameter or larger. Using previous NSPI reports and factoring in the trends over the past
three years, we developed the above numbers.
Prior to 1996 figures provided by NSPI Market & Statistics Committee.
Regional Markets
This report has been broken down into regional mar-
kets with the following divisions by states:
Market 1 Northeast
Connecticut, Delaware, District of Columbia, Maine, Mary-
land, Massachusetts, New Hampshire, New Jersey, New
York, Pennsylvania, Rhode Island and Vermont.
Market 2 Southeast
Alabama, Florida, Georgia, North Carolina, South Carolina,
Tennessee and Virginia.
Market 3 East Central
Kentucky, Michigan, Ohio and West Virginia.
Market 4 West Central
Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri,
Nebraska, North Dakota, South Dakota, Wisconsin and
Wyoming.
Market 5 South Central
Arkansas, Colorado, Louisiana, Mississippi, New Mexico,
Oklahoma and Texas.
Market 6 Southwest
Arizona, California, Nevada and Utah.
Market 7 Northwest
Idaho, Montana, Oregon and Washington.
Pool & Spa Marketing 21
2004 Reference & Directory
Inground Pool Sales
Looking back at the past reports supplied by NSPIs
Market Research and Statistical Committee (1993), and
considering the trends and market changes in the last six
years, we were able to produce a historical sales chart for
the market (See Chart A).
The annual dollar sales of inground swimming pools is
estimated at $3.5 billion.
Existing Inground Pools
It was estimated in 1993 that there were 3,362,000
inground swimming pools in operation in the United
States. In the year 2002, using the sales numbers indicated
in our report and factoring a percentage of swimming
pools that go out of service each year, the current existing
inground swimming pool population is estimated at 4.6
million units.
Above-Ground Pool Sales
Again, examining the past reports supplied by NSPIs
Market Research and Statistical Committee, and considering
the trends and market changes in the past six years, we were
able to produce a historical sales chart for the market (See
Chart B).
The annual dollar sales of above-ground swimming
pools is estimated at $850 million.
Existing Above-Ground Pools
It was estimated in 1996 that there were 3,074,000
above-ground swimming pool units currently in operation in
the United States.
In the year 2002, using the sales numbers offered in
our report and factoring a percentage of swimming pools
that go out of service each year, the current existing
above-ground swimming pool market population is
estimated at 3.5 million units.
2002 Inground Pool Sales ................... 167,000 units
2002 Above-ground Pool Sales ........... 320,000 units
Existing Inground Pools .......................... 4.6 million
Existing Above-ground Pools ................. 3.5 million
2002 $US Sales for New Pools ............ $4.35 billion
MARKET REPORT
Year U.S. Canada Export Sales
Outside N.A.
1997 231,000 16,000 5,000
1998 265,000 18,500 11,000
1999 302,000 20,000 16,000
2000 337,000 21,000 18,000
2001 288,000 20,600 19,000
2002 345,000 24,300 20,000
As more information is made available through acrylic sheet
manufacturers, and acrylic spa manufacturers become more
available to discuss sales levels in North America, Pool & Spa
Marketing magazine is able to provide a more accurate picture
of the domestic and export sales. This information was achieved
through a series of research projects that involved Canadian and
U.S. manufacturers of acrylic spas and related equipment and
interviews with contacts throughout the European industry.
From this information, we were able to develop a pattern of sales
for the domestic markets in Canada, the U.S. and product
exported to European markets.
Annual Unit Sales ....................................... 345,000 units
Retail Dollar Sales ................................... $2.1 billion US
Existing Units in use .................... 6.0 million (estimated)
A
fter showing little growth in the early to mid-90s,
1998 through 2000 witnessed some positive
growth for spas/hot tubs in North America. Fears
that the industry had reached maturity have been
set aside and the lack of market increase between 1994 and
1997 was attributed to the slow economy that developed in
the early 90s that reflected on those years. During the early
to mid-90s, the market in the United States remained at
about 260,000 units annually. In 1997, domestic sales
dropped, but a growth pattern began in export to Europe.
By 1999 and 2000, significant increases were made in U.S.
domestic sales, and exports gained slightly. In 2002, the
U.S. domestic market experienced a 15 per cent sales
increase over 2001 and export numbers also went up.
Canada, in the meantime, has seen steady growth where
domestic acrylic spa sales are now averaging in the 24,000-
25,000 unit range. These numbers are still below the expected
numbers of 30,000 to 35,000 units when based on a 10 per cent
ratio of U.S. sales. However, as markets in Eastern Canada,
particularly Ontario and Quebec, open up, sales will continue to
rise. In 2002, Canadian manufacturers saw 50 per cent of their
production going to export markets in the U.S. and Europe.
The following chart compares U.S. and Canadian
domestic, acrylic spa sales. It also indicates the current export
market for North American acrylic spa manufacturers. These
figures are based on information developed by Pool & Spa
Marketing magazine.