USA (Washington Insider Magazine) – the peak barbecue season kicks off, and Americans are less interested in purchasing new grills. Rising meat prices, high interest rates, and economic uncertainty lead many to forgo upgrading their backyard cooking gear, even as July 4 approaches.
Pandemic Surge Fades
During the pandemic, the grill sector experienced a large sales increase. However, companies such as Traeger, known for its high-quality barbecues, have witnessed a considerable drop in sales. Traeger’s current quarterly sales fell to $76.8 million, a decline from $156.1 million in the second quarter of 2021. Similarly, Home Depot has experienced a demand decline for high-priced patio and garden tools, such as grills.
Retailers Feel the Pinch
Local stores are also experiencing a slump in grill sales. Brian Bushfield, general manager at West Coast BBQ Shop in San Diego, reported a slow start to June and a lackluster Memorial Day, traditionally a strong sales period for grills.
Continued Home Cooking Trend
Although grill purchases have witnessed a decline, outdoor cooking remains popular. According to the Hearth, Patio & Barbecue Association, 80% of American homeowners owned a grill or smoker in 2023, up from 64% in 2019. Many new grill owners attribute their purchase to increased cooking at home during the pandemic.
Impact on Consumables
Joe Downey, Senior Merchant of Grills at Home Depot, highlighted that sales of grill consumables such as charcoal pellets and propane tanks remain strong. These sales are driven by pandemic-era grill buyers returning for fuel.
Local Store Trends
At American Royal Hardware in Montclair, New Jersey, owner Roy Morchian noted a spike in grill sales during the pandemic, with numbers returning to pre-pandemic levels recently. However, he has observed new customers purchasing propane tanks for their grills.
Shifts in Consumer Demand\
Grill makers and retailers agree that the pandemic accelerated demand for grills and long-lasting home equipment. Currently, as many have already invested in grills, the market faces a period of lower demand. Downey mentioned that customers who started with basic models may gradually upgrade to more expensive grills over time.
Marketing and Promotions
Retailers are employing various strategies to boost sales. Ace Hardware is promoting free assembly and delivery for grills priced $399 and up for Ace Rewards members. Traeger is hosting cooking demonstrations at stores like Home Depot and Ace Hardware to attract customers.
Economic Challenges
According to CNN, Analysts like Simeon Siegel from BMO Capital Markets note that creating demand in a slow-growth industry is challenging. Even with marketing efforts and discounts, economic factors like rising food prices, particularly beef, have affected consumer behavior. Some, like Bloomfield resident Shikhiu Ing, have reduced their grill usage due to dietary changes.
Resilience of the Grill Industry
Despite current challenges, industry leaders remain optimistic. Traeger CEO Jeremy Andrus pointed to past recoveries, such as post-2008 recession sales, as evidence of the grill market’s resilience. He believes outdoor cooking will remain a beloved American tradition.
Family Traditions Continue
For many, grilling is a cherished tradition. Newark native Ayla Dunkley learned to grill from her grandfather and father and continues to replace her cooker every few years. Despite rising costs, Dunkley plans to celebrate July 4 with her family, maintaining their barbecue tradition.
Rising Costs for Celebrations
The American Farm Bureau Federation reports that the average cost for a July 4 cookout for ten guests has risen to $71.22, a 5% increase from last year and a 30% rise from 2019. Despite this increase, many Americans, like Dunkley, remain committed to their holiday grilling traditions.
