Innovation and consumer inspiration will be critical to driving growth in the housewares industry, according to Joe Derochowski, Circana home industry advisor, who shared market insights and growth opportunities during a keynote presentation at The Inspired Home Show 2026.
Derochowski delivered the session, “Growth Through Change: Inspiring Consumers with Proactive Disruption,” offering data-driven insights on how companies can re-engage consumers and navigate a challenging economic environment.
During the presentation, Derochowski said fewer new products were introduced in 2025 compared with previous years, even as consumers remain focused on cost and basic needs.
“We need to lead the consumer and help get them out of the rut through inspiration and innovation in new products and marketing,” he said. “If we want to grow, we have to innovate. Not just for innovation’s sake, but to solve pain points. We have to listen and observe.”
Growth Drivers in 2025
Despite economic headwinds, consumers are still spending money, Derochowski said, noting that $3.4 trillion was spent in 2025, an increase of 2.8 percent.
While overall spending rose, units sold were relatively flat, although several categories saw growth. These included:
- Essentials: Food and beverages
- Casualization: Bottoms and outerwear
- Joy: Arts & crafts, building sets, exploratory toys and outdoor toys
- Health & Wellness: Performance footwear, cardio machines, weights, yoga and beauty
- Social Inspired: Fragrances, hair products and makeup
Derochowski said these areas present opportunities for companies willing to rethink how they engage consumers, including adding gamification to the purchase journey or using social media to increase awareness and drive new usage occasions.
He also noted that discretionary spending pressure is concentrated among lower-income and younger consumers, particularly those ages 18 to 24. He encouraged attendees to consider how the “K-shaped economy” affects their businesses and where opportunities may exist.
In addition to category growth, Derochowski outlined several drivers behind consumer spending in 2025:
- Replacement: Consumers began replacing home products purchased earlier in the pandemic cycle
- Eating at Home: Higher prices and tighter budgets pushed more consumers toward preparing meals at home
- Moments of Joy: Consumers turned to small kitchen appliances, such as ice cream makers and air fryers, as affordable ways to create enjoyment
- Health & Wellness: Physical wellness is influencing purchases, including foods and personal care products related to results from GLP-1 medications
- Weather: Extreme temperatures and natural disasters drove purchases of products for the home
One trend that surprised Derochowski most was the return of baking, particularly among younger consumers.
Since 1980, purchases of store-bought ready-to-eat or partially prepared baked goods have steadily increased — until recently.
“It’s shocking for me to see this, but that’s very good news for us,” he said.
A recent example brought the trend closer to home for him. Derochowski said his high school–aged son told him that he and his friends spent a Friday night baking cookies. One of the teenagers said that baking videos and recipes had repeatedly appeared in his social media feeds while he was eating breakfast, eventually prompting him to try it.
According to Circana, social media now dominates as a source of recipes across all age groups.
“It’s a simple reminder that inspiration drives behavior—and that our industry has a real opportunity to spark that inspiration,” he said.
Growth Opportunities for 2026 and Beyond
Looking ahead, Derochowski said industry sales and unit volumes may decline slightly in 2026 but are expected to rebound in 2027 and beyond.
Several long-term drivers could support future growth, including:
- Population aging: Over the next decade, major life milestones among retirees could create opportunities as consumers upsize, downsize, travel or spend more time at home.
- Smart home adoption: Currently, 14 percent of consumers own a smart kitchen device, and 34 percent express interest in them.
- Major sporting events: Events such as the World Cup and the Olympics increasingly allow consumers to move from inspiration to purchase while watching.
- Return to office: As more people return to workplaces outside the home, demand for products that support meal transport and convenient cooking solutions could grow.
