Yachting Industry Market Trends & 2023 Predictions
With 2022 officially in the rear-view mirror, we can now take a glimpse into everything this year has to offer the yachting industry, as well as the $170 billion U.S. recreational boating industry. With COVID formally behind us, the year 2022 saw the industry reviving quite well. While the pandemic situation was a mix of positive and negative experiences, the yachting industry is looking at some encouraging developments in 2023. For example, reports state that the global yacht industry was estimated at $16.9 billVikinion in 2021 and it is expected to grow to $26.5 billion, approximately, by 2027. As for annual U.S. sales of boats, marine products and services totaled $56.7 billion in 2021, up 12.7 percent from 2020.
Expected Growth in the Yachting Industry
According to Yahoo, the Global Luxury Yacht Market is expected to grow by 366th units between 2023-2027, accelerating the compound annual growth rate (CAGR) to 11.26% during the forecast period. The market is driven by an increase in recreational tourism, digital marketing, increasing social media use, and an increase in the high-net-worth individual (HNWI) population. The Global Super Yachts market size was valued at USD 9452.5 million in 2021 and is expected to expand at a CAGR of 8.0% during the forecast period, reaching USD 15000.0 million by 2027.
With growth comes change. One of the areas that will reflect major changes is marketing. The pandemic introduced social and digital marketing tactics to the yachting industry for the sale of both used and new boats for sale. Social and digital marketing techniques are expected to continue to dominate the yachting industry. Some trends to look out for: social engagement with audiences, hyper-personalization, sustainability, and demand in yacht charters.
Identified as a key player in the yachting industry’s market is the use of advanced materials. This is noted as one of the prime reasons driving the luxury yacht market growth during the next few years. Furthermore, the focus of yacht makers on emerging markets and the emergence of alternative fuel in the marine industry will lead to sizable demand in the market. Leading the nation in the sales of new powerboat, engine, trailer, and accessories in 2021 was Florida – $5.4 billion, up 3.7% from 2020. Following Florida is Texas, at $2.4 billion.
Americans Continue Prioritizing Outdoor Recreation
According to the National Marine Manufacturers Association’s (NMMA) latest article, the recreational boating industry is preparing to welcome an estimated two million Americans to dozens of boat shows between January and March to shop the latest boats as they continue prioritizing outdoor recreation. Boat retailers and manufacturers have historically generated between 30-to-50 percent of their annual sales at boat shows.
New data from the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA), released in November, shows the outdoor recreation economy has seen record-breaking years, sustaining remarkable growth despite navigating a post-pandemic environment. This momentum comes as Americans demonstrate an ongoing prioritization of a life well-lived, spent enjoying outdoor experiences with family and friends and marine manufacturers continue strategically managing production and inventory pipelines following two years of supply chain bottlenecks.
“Last year was a healthy year for recreational boating with momentum coming off of record sales in 2021 due to continued demand and the fact that supply chain shortages prevented our industry from overproducing like we saw happen in other sectors over the past two years,” said Frank Hugelmeyer, NMMA president. “With boat shows fully returning following two years of limited events due to COVID, we’ve already seen encouraging sales reports within certain categories, coupled with consumers continuing to invest in the unique experiences that come from being on the water.”
Vendor Spotlight: Viking
ReportLinker’s Global Luxury Yacht Market 2023-2027 Report included a robust vendor section in which they analyzed 25 of the yachting industry’s leading vendors. This analysis was designed with the clients in mind, aiming to help improve their market position. Of the list of vendors, Viking made an appearance. 2023 is a big year for the Viking Yacht Company. In fact, coming up this February they will host their Viking VIP Preview at the Viking Service Center in Riviera Beach, FL. The event will showcase both the Viking Sportfish and Valhalla center console fleets for viewing and sea trials. Additionally, there will be formal public debuts of the all-new Viking 90 and 55 Valhalla. Guests will also have the opportunity to visit the vendor pavilion with displays and personnel from select Viking and Valhalla partnering businesses.
Healthy Demand for 2023
The marine industry is coming off a record year of high demand in 2021, new powerboat retail unit sales normalized in 2022, down an estimated 15-18%, to pre-pandemic growth years (2015-2019) with an estimated 250,000 new units sold, 25% above previous averages (2008-2014). Looking ahead to 2023, early indications point to continued healthy demand with new retail unit sales expected to remain on par with 2022.
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