At a Glance:
- Joe Derochowski, Circana home industry advisor, presented growth strategies at The Inspired Home Show 2026.
- Consumers spent $3.4 trillion in 2025, with growth in essentials, casualization, joy, health & wellness, and social-inspired categories.
- Key growth drivers include replacement purchases, eating at home, moments of joy, health trends, and weather impacts.
The companies that find ways to innovate, inspire and re-engage with consumers should find paths to growth in 2026 and beyond, said Joe Derochowski, Circana home industry advisor, in a keynote session titled “Growth Through Change: Inspiring Consumers with Proactive Disruption” this week at The Inspired Home Show 2026.
Despite the challenging economic environment, consumers are still looking for ways to improve their daily lives at home – and are also looking for ways to inject connection, joy and wellness, he said. But growth in 2026 may require changes in the way the home industry thinks about growth.
“We need to lead the consumer….with 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.”
2025 Growth in Spending
Consumers are still spending money despite economic headwinds, with $3.4 trillion spending overall in 2025 – an increase of 2.8 percent, according to Derochowski.
The categories that experienced the most growth in units in 2025 – and are expected to continue to drive growth in 2026 – include:
- Essentials: Food and Beverages
- Casualization: Outerwear, Bottoms
- Joy: Arts & Crafts, Building Sets, Exploratory, Outdoor Toys
- Health & Wellness: Performance Footwear, Cardio Machines, Weights, Yoga, Beauty
- Social-Inspired: Fragrances, Hair Products, Makeup
These are the categories in which Derochowski said there was even more opportunity, and issued some challenges in each, asking attendees to think about how they could add gamification to the consumer purchase journey, or use social media to increase awareness and usage occasions to drive demand.
He noted that discretionary spend pressure is concentrated among lower-income and younger consumers, especially those ages 18-24, and asked attendees to reflect on how the K-shaped economy impacted their business, and where the opportunities might be.
In addition to growth categories, Derochowski highlighted the key growth drivers last year:
- Replacement: People started to replace home item purchases during the pandemic.
- Eating at Home: Less income and higher prices meant more people ate at home.
- Moments of Joy: Less income meant people sought out small kitchen appliances, like ice cream makers and air fryers, to bring joy.
- Health & Wellness: Physical wellness especially played a role in what people bought, including foods and personal care items related to results from GLP-1 medications.
- Weather: An increase in cooler or hotter than normal temperature, and natural disasters caused people to buy things for their homes accordingly.
According to Derochowski, the growth trend that surprised him the most in 2025 was how people – especially younger ones – are embracing baking. Since 1980, purchases of store-bought, ready-to-eat or partially-prepared baked goods have steadily grown – until 2025. “It’s shocking for me to see this, but that’s very good news for us,” he said.
According to Circana, social media now dominates as a recipe source 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.
Opportunities for 2026 and Beyond
While Circana is predicting that home and housewares spending and units sold will be slightly down in 2026, Derochowski said he sees growth in 2027 and beyond.
Some of the drivers of this growth include:
- Population aging in the next 10 years, and the corresponding life milestones. One of the largest areas for opportunity is among retirees, who have more disposable income and will be upsizing, downsizing, traveling or staying home more, depending on their income and health.
- More smart home devices. Currently, 14 percent of consumers own a smart kitchen device, and 34 percent are interested in them.
- Purchases during major sporting events. With events like the World Cup and Olympics, consumers move from inspiration to purchase without leaving the experience while watching, so sponsorships and advertising during these events can matter.
- Return to office. As more people return to work away from home, they will be looking for solutions to carry meals to and from work and more convenient ways to cook at home.
A video recording of Derochowski’s keynote will be posted on the show’s website at TheInspiredHomeShow.com/education/#keynotes in the coming weeks.
