Above Ground Pools Market Analysis

Above Ground Pools (Global, 2024)

Introduction

Above-ground swimming-pools are becoming a very popular means of amusement and recreation for the home. As the tendency of the public is to seek out the most convenient and the most easily accessible forms of amusement, above-ground pools have risen in favour, for they are easily installed, they require less attention, and they are able to be accommodated in any yard, however small or irregular. Hence they are of use to families, to young men and women, to retired people, and to any one who wishes to have the advantages of a private swimming-pool without the difficulties and expense of the in-ground variety. Also, the market is seeing the introduction of new materials and designs which enhance the experience and make these pools even more popular. In the long run, the tendency of the public to seek more and more outdoor activities and the demand for outdoor recreation are expected to increase the interest in this field, and to make it a prime target for further market research and strategic planning.

PESTLE Analysis

Political

The above-ground pool market will be influenced by a number of political factors in 2024, including local regulations on water consumption and safety standards. For example, the U.S. Environmental Protection Agency (EPA) has stipulated that pools must comply with new regulations, requiring a minimum of 30% of the water to be recirculated or treated before being discharged. The new regulation affects some 15,000 pool-fitting companies, and a compliance investment of up to $4,000 per company is required.

Economic

In 2024 the market for above-ground pools will be influenced by inflation and the purchasing power of consumers. The projected inflation rate in the United States is 3.2%. This will affect the disposable income of consumers and their spending habits. The average household income in the United States is projected to be $ 78,000. This will influence the affordability of luxury items such as above-ground pools. The market is changing in the direction of more affordable products. Entry-level above-ground pools are priced at around $ 1,200, which makes them accessible to a wider population.

Social

In 2024 the general tendency of the social life is towards a more homely leisure, especially after the pandemic. In the opinion polls, more than sixty-five per cent of families are putting home improvements, including the installation of above-ground swimming-pools, at the top of their list of priorities in the interests of improving the quality of their lives. In addition, the trend towards health and well-being is pushing the demand for homely leisure, with forty per cent of the population expressing a wish to buy a pool for their own use, for the purposes of exercise and relaxation.

Technological

Above Ground Pools Market is a crucial role in 2024. Above Ground Pools are durable and energy-efficient. They are lighter than the previous models, making them easier to install and maintain. Also, smart pool technology, such as automatic cleaning and water quality control, is becoming increasingly popular. About a quarter of new pools now have smart pool features.

Legal

In the year 2024, the above-ground pool market will be influenced by the laws relating to the safety of above-ground pools. In many states, the owner of the above-ground pool must obtain a permit and meet certain safety standards, such as the installation of barriers and alarms. For example, in California, the law requires that all residential pools have a safety cover or a fence of a certain height. In the state of California, this law has an impact on about 1.4 million pool owners. Fines of $500 to $2,000 for non-compliance with these laws will lead many consumers to seek legal advice and improve their pool safety.

Environmental

In 2024, the market for above-ground swimming pools will be influenced by a growing emphasis on the environment, especially with regard to the conservation of water and the promotion of sustainable development. In arid regions, where water is a scarce resource, a pool of this kind consumes 20,000 gallons of water. In response, manufacturers are developing eco-friendly pools with water-conserving filtration systems and rainwater catchment. In addition, a third of consumers now prefer products that are environmentally friendly. Their purchasing decisions influence the market and encourage innovation.

Porter's Five Forces

Threat of New Entrants

Above-ground pools have a medium barrier to entry, in that a large amount of capital is required to set up manufacturing and distribution. But the increasing popularity of above-ground pools and the growing demand for inexpensive entertainment are likely to encourage new entrants. There is also a strong customer loyalty to the established brands, which could make it difficult for new competitors to enter the market. However, new designs and marketing strategies could help new entrants to establish a foothold.

Bargaining Power of Suppliers

The bargaining power of suppliers in the above-ground pool market is relatively low. There are several suppliers for raw materials such as plastic, metal and PVC. When prices rise or quality declines, manufacturers can easily change suppliers. The many suppliers also ensures price competition, which reduces the power of suppliers.

Bargaining Power of Buyers

The buyers of above-ground swimming pools enjoy high bargaining power because of the large number of choices. Price is a key determinant. The presence of online platforms and the reviews of previous customers further strengthens the buyers’ position.

Threat of Substitutes

Threat of Substitutes—Moderate—The threat of substitutes for above-ground pools is moderate, because consumers can consider other alternatives such as in-ground pools, inflatable pools, or other forms of outdoor recreation. Above-ground pools are attractive because of their low cost and ease of installation, but in-ground pools and other recreation can divert customers from above-ground pools. This threat is somewhat mitigated by the advantages of above-ground pools, such as portability and lower maintenance costs.

Competitive Rivalry

The competition is strong in the market for aboveground swimming pools, with numerous established and new brands competing for market share. Price, quality, design and service are the key elements in the competition between the companies. This has led to the development of aggressive marketing strategies and frequent price cuts. The potential for growth has attracted substantial investment, which has increased competition even further. Brands are competing to stand out from the crowd and win consumers’ attention.

SWOT Analysis

Strengths

• Cost-effective alternative to in-ground pools, appealing to budget-conscious consumers.
• Easy installation and removal, providing flexibility for seasonal use.
• Variety of designs and sizes available, catering to diverse consumer preferences.
• Low maintenance requirements compared to traditional pools, enhancing user convenience.

Weaknesses

• Perceived lower quality and durability compared to in-ground pools.
• Limited aesthetic appeal for high-end consumers seeking luxury options.
• Potential safety concerns, especially for families with young children.
• Seasonal usage may limit year-round revenue potential for manufacturers.

Opportunities

• Growing trend of home improvement and outdoor living spaces, increasing demand for pools.
• Expansion into emerging markets with rising disposable incomes and interest in leisure activities.
• Innovations in materials and technology, leading to enhanced product features and durability.
• Partnerships with landscaping and home improvement companies to reach a broader customer base.

Threats

• Intense competition from both above ground and in-ground pool manufacturers.
• Economic downturns affecting consumer spending on non-essential home improvements.
• Regulatory changes regarding safety standards and environmental impact.
• Seasonal fluctuations in demand, leading to inconsistent sales throughout the year.

Summary

Above-ground pools have both their advantages and disadvantages, with the main advantages being the low cost and the ease of installation. But the challenges include a lower perceived quality and safety issues. Opportunities exist in the growing trend of outdoor living and the potential for market growth. Threats include competition and economic uncertainty. Strategic alliances and innovation will be key to gaining market share and meeting consumer needs.