Infant furniture sales to reach $1.52 billion by 2011

Consumer spending for infant furniture will reach $1.52 billion by 2011, according to statisticians at Easy Analytic Software Inc., based in New York. That represents a 28% increase in sales from an estimated $1.18 billion in 2006.

Contrary to consumer worries, the U.S. economy keeps chugging along. The stock market continues to soar and the unemployment rate is at what is generally considered "full employment." The Iraq war and the wider "war on terror," however, seem to have no end in sight and the housing market, while still at historic highs, has slowed.

Even so, U.S. demographics point to steady growth in retail sales of infant furniture. First and foremost, 4.1 million babies are born each year. Secondly, two generations — the Baby Boomers and Generation Y — continue to drive the economy. Baby Boomers (between the ages 43 to 61) keep on buying, buying, buying and their children, Gen Y (ages 13 to 31), are matching their huge spending habits.

By 2011, all 76 million Gen Y'ers will be college-age or older — prime age for having children. According to preliminary 2005 data from the National Center for Health Statistics, three-fourths of all births are to women between the ages of 20 and 34 and 71% of first-time moms fall into these age categories. And, over the next five years, the oldest of the 78 million Boomers will enter retirement.

This all boils down to good news for the infant market — Gen Y will be the prime group having children and Boomers will be the doting grandparents with disposable income to spend.

The West is the fastest-growing region in the U.S. for infant furniture. Sales in Western states totaled an estimated $267.4 million in 2006 and are projected to increase 32% to $352.4 million by 2011. Eleven of the West's 13 states are predicted to grow faster than the national average of 28%, with Nevada and Arizona leading the charge. Of the 169 metros in the West, more than half are expected to have sales increases exceeding the national average.

The South, the nation's largest in terms of population and geographical area, accounts for the largest share of infant furniture sales — an estimated 36%. Sales in Southern states are expected to grow 30% by 2011 to $548.5 million. Florida is predicted to have the fastest sales growth at 34%, followed by Georgia and Texas, each with projected increases of 33%. More than two-fifths of the 147 major metros in the South are expected to grow faster than the nation as a whole.

Infant furniture sales in the Midwest region totaled an estimated $263.8 million in 2006 and are projected to increase 26% to $332.6 million by 2011. No state in the Midwest is expected to grow sales as fast as the nation. Illinois will grow the fastest though, with predicted growth of 28%, followed by Minnesota, Indiana, Wisconsin and Michigan, each with growth rates of 27%.

Sales in the Northeast totaled $231.9 million in 2006. By 2011, infant furniture sales in the Northeast are projected to grow 24% to an estimated $288.5 million, the slowest of any U.S. region. Only Delaware, with expected growth of 31%, will grow its infant furniture sales faster than the national average of 28%.

New York is the biggest market for infant furniture. The New York metro, spreading into three states, recorded 2006 sales of $79.1 million and is projected to grow 25% to $98.5 million by 2011. New York alone accounted for 7% of the nation's 2006 infant furniture sales.

New Orleans-Metairie-Kenner, La., is expected to be the fastest-growing major metro market between 2006 and 2011. EASI projects the area will rebound from catastrophic Hurricane Katrina damage and will grow its infant furniture sales 55% from an estimated $3.3 million in 2006 to $5.2 million by 2011. New Orleans saw its infant sales plunge 36% from 2005 to 2006.

Other fast-growing major metros include Las Vegas-Paradise, Nev., with predicted growth in infant sales of 48%; St. George, Utah, with growth of 47%; and Greeley, Colo., with expected growth of 45%.

Some of the hottest markets for infant furniture are small metros, with core populations between 10,000 and 50,000. Their populations are growing and so is their potential for sales. The fastest-growing small markets are Palm Coast, Fla., with projected growth of 60%; Heber, Utah, with growth of 45%; and Pahrump, Nev., with expected growth of 43%.