United States by far the world's largest 2023 market for Household Products: which States have the greatest potential?

The 2023 data at world trade level, available in the ExportPlanning Information System, allow to document the centrality of the US market for global exports of Household Products: with almost 165 billion euros (equal to 23.7 percent of the total), the last year the USA represented by far the main destination for world exports in the industry¹.

USA by far the 1st home system market in the world.
But which American States are most useful to focus on?

The application of the ExportPlanning Market Selection tool to trade data available at the level of American States (source: US Census Bureau) can allow to build a ranking of market potential for exports of Household Products.

In particular, for the purposes of this analysis, the following potential indicators were considered for all the American States and for the "E3-finished products for the home" item of the ExportPlanning classification:

• value of imports 2023: indicates the relevance of the market;
• change in imports in the period 2020-2023 in value: indicates the growth capacity (measured in absolute terms) of the market;
• change in imports in the period 2020-2023 as a percentage: indicates the growth capacity (measured in relative terms) of the market.

In the analysis process of the Market Selection model, the aforementioned indicators were normalized, on a scale of 0-100 (scores), in order to contribute to the calculation of a synthetic indicator of potential².

The application of the Market Selection model
to the foreign trade data of the American States highlights Illinois, California and Georgia at the top of the ranking of potential for the exports of Household Products

The table below highlights the top American States in terms of potential for Household Products' exporters, with the values recorded by each State for the different indicators considered in the Market Selection.

Export of finished products for the home:
ranking of potential at the level of American States

Household Products Exports: ranking of potential for American States

1. Illinois

The Illinois market, in fourth place overall in terms of the value of 2023 Household Products imports (with 11.2 billion dollars), was characterized by a very lively growth rate in the period 2020- 2023: overall +3 Bn dollars, for an average annual growth rate (CAGR: Compound Annual Growth Rate) of +8.1%.

China (2023 share of 45.9%) is by far the main partner country on the market, preceding Vietnam (14.8%), Mexico (8.3%) and Thailand (5.6%). The first European partner is Germany (in thirteenth position in the ranking), which precedes Italy.

2. California

The California market is positioned in first place overall in terms of the value of 2023 Household Products imports (with 45.8 Bn dollars). The period 2020-2023 was characterized by a positive but relatively less sustained growth rate: CAGR of +4.7%, for an overall increase of approximately 7.7 Bn dollars.

In the 2023 ranking of the main partner countries in the market, China stands out above all (with a share of 50.9 percent), ahead of Mexico (19.5%) and Vietnam (11.9%). The first European partner is Germany (in twelfth position in the ranking), which precedes Italy.

3. Georgia

The Georgia market, in third place overall in terms of the value of Household Products imports in 2023 (with 12.5 Bn dollars), was characterized by a 2020-2023 CAGR of +5.5%, for an overall increase of 2.4 Bn dollars.

The 2023 ranking of the main market partner countries sees China (with a share of 19.4 percent) and Mexico (17.9%) in the first two places, preceding - in order - Vietnam (8.3%), India (7.8%) and Thailand (3.9%). The first European partner is Turkey, in eighth place in the ranking.

4. Texas

The Texas market, in second place overall in terms of the value of Household Products imports in 2023 (with 17.8 Bn dollars), was characterized in the period 2020-2023 by an overall increase of approximately 2.9 Bn dollars (CAGR of +4.5%).

In the 2023 ranking of the main partner countries in the market, Mexico stands out above all (with a share of 44 percent), ahead of China (28%) and , further back, Vietnam (6.7%), South Korea (3%), Malaysia (2.5%) and India b> (2.3%). The first European partner is Italy, in 11th position.

5. Indiana

The Indiana market, only in ninth place in terms of value of 2023 Household Products imports (with 4.7 Bn dollars), was however characterized by a particularly lively growth rate in the 2020 period -2023: overall +2.6 Bn dollars, for a CAGR of +21.9%.

China (2023 share of 56.7%) is by far the main partner country on the market, ahead of Mexico (10.4%) and Malaysia (9.7%). The first European partner is Germany, in ninth place in the ranking.

6. Kentucky

The Kentucky market, just in twelfth place in terms of value of 2023 Household Products imports (with 3.6 Bn dollars), was also characterized by a 2020-2023 CAGR close to 22 percentage points, for an overall increase of approximately 2 Bn dollars.

The 2023 ranking of the main partner countries on the market sees China clearly in first place (with a share of 63.6 percent), preceding - in order - Mexico (11.3%) and Vietnam (9.8%). The first European partner is Germany, in sixth place in the ranking.

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1) In particular, the United States is the first destination for world exports in 2023 in the following sectors of finished products for the home:

• Furniture
• Lighting Fixtures
• Household Appliances
• Consumer Electronics
• Glasses and Tableware
• Cutlery
• Pots and Pans
• Home Texile
• Carpets, Tapestries and Wallpaper
• General items for the home.

2) The index of potential was calculated as the weighted average of the scores associated with the indicators considered, with the following weighting scheme:

• value of imports 2023: 50%;
• change in imports in the period 2020-2023 in value: 30%;
• change in imports in the period 2020-2023 in percentage: 20%.