Boat Sales: A Booming Market And Profitable Business

Boat sales have been on a downward trajectory since the surge in demand during the COVID-19 pandemic. In 2020, boat sales reached a 13-year high, but as of mid-2024, global sales have dropped by 9.1%. However, there is a contrast between new and used boat sales. While used boat sales are falling sharply, new boat sales are climbing, with an increase of 5.3% in the first half of 2024. This shift is attributed to increased new boat inventory, motivating buyers to opt for new boats, especially with the average prices of new boats being lower than those of used boats. The boating market is adjusting to post-pandemic realities and economic conditions, with high interest rates and inflation impacting consumer demand. Despite the overall decline in sales, the boating industry remains a significant contributor to the US economy, with an economic impact of $230 billion and support for 812,000 jobs.

Sales of new boats increased by 5.3% in the first half of 2024

The boating market has been adjusting to post-pandemic realities and changing economic conditions. High interest rates and inflation have caused a decline in consumer demand, with global searches related to boat purchasing dropping by 7.6% in the first half of 2024 compared to the same period in 2023. Despite this, sales of new boats increased by 5.3% in the first half of 2024, while used boat sales decreased by 12.4%. This trend is similar to that seen in 2023, when new boats also outperformed used boats in total unit sales.

The boating market reached full normalization in 2023, and this year has continued to show similar trends. The downward trend in year-over-year (YoY) boat sales has persisted, with global sales dropping by 9.1% in the first half of 2024. However, the increase in new boat sales has been accompanied by a longer time on the market, with new boats spending 53 days longer on average to sell compared to the same period last year. This is likely due to increased new boat inventory, giving buyers more options and longer consideration times.

The average sold price for new boats fell by 3.4% to $174,000, while the average price for used boats increased by 4.2% to $211,500. This price difference has contributed to the higher sales volume for new boats, as buyers are enticed by lower sticker prices and better financing options for new vessels. As a result, the total value of new boat sales increased by 0.6%, while the value of used boat sales dropped by 9%.

The primary market driver for global unit sales in the first half of 2024 was boats less than 26 feet in length, with total sales exceeding 12,000. The average vessel price for this segment dropped by 2.5% to $91,000, likely due to increased supply and normalized demand. In contrast, the 36-45 foot segment experienced a 12.3% drop in total sales but an 18% increase in the average sale price, rising to $327,000.

The boating market is currently characterized by contrasting trends, with new boat sales climbing while used boat sales are falling sharply. Inventory levels, pricing trends, and economic pressures continue to shape buyer behavior and market dynamics. Despite the overall decline in global sales, the increase in new boat sales indicates a positive direction for the industry, adapting to the post-pandemic and economic landscape.

Used boat sales fell by 12.4% in the first half of 2024

The boating market reached full normalization in 2023, and similar trends continued into 2024. High interest rates and inflation have led to waning consumer demand, with global searches related to boat purchasing dropping by 7.6% in the first half of 2024 compared to the same period in 2023. The downward trend in year-over-year (YoY) boat sales also continued in the first half of 2024, with global sales dropping by 9.1%.

However, a closer look at the data reveals contrasting trends between new and used boats. While sales of new boats saw an increase of 5.3%, used boat sales fell by 12.4%. This trend echoes that of 2023, when new boats outperformed used boats in total unit sales. Despite the increase in new boat sales, they are spending longer on the market, with boats just one-year-old taking the longest to sell. This is likely due to increased new boat inventory, motivating buyers to opt for new boats over pre-owned ones.

The total value of used boat sales dropped by 9%, while the value of new boat sales increased by 0.6%. This is despite the average sold price for new boats falling by 3.4% to $174,000, and the average price for used boats increasing by 4.2% to $211,500. With new boats selling for less than the previous year, along with better financing options for new vessels, this has contributed to driving higher sales volumes for new boats.

The boating market is currently characterised by contrasting trends and adjustments. While new boat sales are climbing, used boat sales are falling sharply, and inventory levels, pricing trends, and economic pressures continue to shape buyer behaviour and market dynamics.

The boating market reached full normalization in 2023

In 2020, boat sales reached a 13-year high, with data from the National Marine Manufacturers Association (NMMA) showing levels not seen since before the 2007-2009 Great Recession. This surge in sales was driven by an influx of first-time boat buyers, with about 420,000 new buyers entering the market in both 2020 and 2021—levels last seen in 2007. The pandemic saw Americans turn to boating as a recreational activity, with many buyers turning cancelled vacation budgets into down payments for boats.

However, the boating market has since stabilized, with sales in 2023 and the first half of 2024 showing a return to more typical demand. This normalization is evident in the dip in used boat sales, which were in high demand during the pandemic. In 2024, sales of new boats increased by 5.3%, while used boat sales decreased by 12.4%. This shift can be attributed to increased new boat inventory, motivating buyers to opt for new boats, especially with the average prices of new boats adjusting to be more competitive.

Despite the overall stabilization of the market, the boating industry continues to face challenges. High-interest rates and inflation have led to a decline in consumer demand, with global searches related to boat purchasing dropping by 7.6% in the first half of 2024 compared to the previous year. Additionally, the boating industry is still navigating the post-pandemic landscape and adapting to changing economic conditions.

As the market adjusts, there is a growing contrast between new and used boat sales. While new boat sales are on the rise, used boat sales are falling sharply, and boats just one year old are taking longer to sell. This trend is likely influenced by the increased inventory of new boats, as well as the appeal of better financing options for new vessels.

Demand for boats surged during the pandemic

The COVID-19 pandemic caused a surge in demand for boats, with almost 1 million people purchasing a boat for the first time. This surge in demand continued into 2021, with 1.15 million pre-owned boats sold—a 9.2% increase from the previous year.

The pandemic revived interest in outdoor recreational activities, and many people were able to save money while working from home. As a result, new boat sales surged. In 2020, jet ski sales were up 8%, wake boats up 20%, and freshwater fishing boats and pontoon boats up 12%, accounting for 50% of new powerboats sold.

The boating industry has been significantly impacted by this historic upward trend in sales, with local businesses experiencing a high demand for space on the water. Boat retailers and manufacturers were selling out due to new orders, and marinas and boat retailers were turning away customers as they struggled to keep up with the demand.

The surge in demand for boats during the pandemic also caused a delay in supply and repair materials. Boat builders faced challenges in acquiring the necessary equipment, subassemblies, materials, and parts, which resulted in longer times for boats to be sold and delivered.

Despite a recent decline in sales, the boating industry remains a large global industry, especially in the US, where it contributes $230 billion to the economy and supports 812,000 jobs. The global market for leisure boats was valued at $42.3 billion in 2022, and it is expected to reach $63.48 billion by 2030, driven by factors such as rising disposable income and expanding tourism.

Sales of pre-owned boats exceeded 1 million units in 2020

Outboard engine-powered boats dominated the pre-owned market in 2020, accounting for 60.9% of all sales. Additionally, in four boat categories—inboard cruisers, sterndrive boats, jet boats, and sailboats—fiberglass construction boats constituted the majority of sales, ranging from 91% to 97%.

The demand for boats, both new and pre-owned, has been influenced by various factors. During the COVID-19 pandemic, nearly 1 million people purchased a boat for the first time, contributing to the overall growth in the boating industry. Additionally, the boating industry in the U.S. is worth $230 billion and supports 812,000 jobs, making it a significant contributor to the economy.

While the market for new boats faced challenges in 2021 due to supply chain disruptions, the pre-owned boat market continued to thrive. In 2021, an estimated 1.1 million pre-owned boats were sold, marking a 9.2% increase compared to 2020. This trend highlights consumers' preference for pre-owned boats during periods of economic adjustment and changing market dynamics.

Despite the overall positive outlook for the boating industry, it is important to note that boat sales are not immune to economic fluctuations. In 2023 and 2024, sales experienced a decline due to rising interest rates, inflation, and shifts in consumer behaviour. However, the industry remains resilient, and with the easing of supply chain constraints, manufacturers are gearing up to meet the demand for new boats.

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