The household hand tools market is growing at an exponential rate as they provide ease of use for household repairs and maintenance. Debouching Do-It-Yourself (DIY) trends and rising social media influence drive the market growth. Household hand tools eliminate the need for external labor and also help in reducing the overall fixation costs. Developed regions such as North America and Europe are the largest consumers of hand tools due to the lack of skilled laborers in the region.
Consumer Inclination Towards Home Decorations to Drive the Demand for Household Hand Tools
Globally, there is a significant rise in consumer spending on household hand tools for accomplishing the desired aesthetic homes. In line with this, the leading players are designing household hand tools that are not exclusive only to the professionals. In 2018, there was an 18% decline in the labor workforce due to rapid urbanization and higher adoption of advanced tools. The advent of technology has enabled the manufacturing of easy and handy furniture or equipment for households, further propelling the market growth.
As per the statistics of China Customs, in 2018, the total exports of hardware from China reached USD 105 billion. Among the total exports, the DIY and home improvement hand tools registered the highest export sales for the year. The key participants are channelizing efforts to capitalize on the growing opportunity by offering customers a wide range of DIY household hand tool kits. The below-mentioned info-graph depicts the export and import rank of China’s diversified hardware products for the year 2018.
Convenience and Easy Use of the Household Hand Tools to Propel the Market Growth
Most of the household hand tools are consumed for house maintenance, repair, and operation (MRO) work. The prime factor driving the demand for hand tools is the convenience of these tools for self-assembling and dismantling of the furniture. In the U.S., most of the homes have basements and garages for maintenance and repair work, further driving the market growth. In 2019, Bosch unveiled a hand tool kit, GSB 500 RE, which includes a complete repair kit for household services. Large scale hiring of independent workers is building a platform for the growth of the hand tools market.
Price Volatility in Raw Materials to Hamper the Market Growth
The production of household hand tools is largely affected by the changing prices of raw materials. The players in the household hand tools market are continuously working to increase their profit margins by launching innovative products. Various raw materials are required while manufacturing hand tools, which include steel, wood, and plastic, among other components. The market is severely impacted by the U.S.-China trade war, which has spiked the the prices of steel, futher hampering the market growth.
Household Hand Tools Market: Segmentation
Increasing Internet Penetration and Growing E-commerce Websites Drives the Segment Growth
By distribution channel, the market is segregated into specialty retail stores, hypermarkets/supermarkets, and online retail stores. The online retail segment holds the highest market share. Online stores are gaining popularity across the globe, owing to higher internet penetration rates and growing e-commerce websites. They are attracting companies that are continuously striving to increase profit margins. Additionally, online stores are gaining traction due to their one-day delivery services and several discount offers.
The COVID-19 outbreak has compelled consumers to search for new distribution channels. The companies have established a D2C channel to deliver hand tools to customers at their doorsteps. Moreover, companies are building and maintaining strong relationships with various online websites to increase market sales during these unprecedented times. However, many consumers prefer to buy from retail chains or local hardware stores as it allows them to scan the product before the purchase. The below-mentioned info-graph depicts the estimated share of distribution channel segment in the global household hand tools market for the period 2020–2029.
North America: World’s Largest Consumer of Hand Tools
North America dominates the household hand tools market on account of debouching DIY trends, shifting consumer preference towards independent services, and shortage of skilled labor and high labor costs. The trend of nuclear families in the U.S. has created a sense of household ownership, which is further boosting the demand for hand tools.
The U.S. is the world’s largest consumer for hand tools on account of increasing home gardening activities. The relatively developed economy of the U.S. has resulted in higher ownership of private gardens and frequent home garden maintenance, further driving the regional market growth. The region is also backed by the presence of key market players that are actively working to develop and introduce innovative products.
China to Spearhead Asia-Pacific’s Household Hand Tools Market
Asia-Pacific’s household hand tools market is largely driven by the rising influence of the western culture and significant adoption of DIY trends. Increasing consumer income and surging consumer spending on compact furniture drives the demand for household hand tools. The presence of the household furniture giants, such as Ikea and other players, provides an impetus to the market growth. With the rapid growth in the domestic economy, China has become a frontrunner in the Asia-Pacific region as the country exports over 50% of the hand tools.
The Chinese household hand tool market presents ample opportunities for small enterprises to build a brand and high-quality hand tool products. Most commonly manufactured hand tools by the local producers include fastening tool products, such as hand drills, wrenches, and socket wrenches. The Chinese manufacturers are ramping up the production of the household hand tools to address international demands.
Household Hand Tools Market: Segmentation
By Product Type
By Distribution Channel
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