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Normalizing Trends for the Current Boating Market

Normalizing Trends for the Current Boating Market

Looking back on the boating industry’s progress in 2022, it’s clear that some notable shifts have taken place. According to Boat Group’s market index data, the industry underwent a phase of expansion and volatility, which has now settled into a current state of equilibrium in the boating market.

Boating Market Graphic by Boats Group

Rising Inventory Levels

people viewing a cruisers yachtThe year 2022 saw a significant increase in inventory levels, with a remarkable growth rate of 27% from 2021 compared to 2019. By the end of the year, inventory was only 4.5% below the pre-pandemic levels. Despite a slight dip in global boat sales, with a decrease of 4.3% compared to 2019 and 11.8% and 15.9% compared to 2021 and 2020 respectively, the overall value of boats was still higher than pre-pandemic levels, reaching over $11 billion in sales. While the 2022 values dropped by roughly 16% compared to 2021, they still remained higher than those seen before the pandemic boating boom. Additionally, the average boat price was comparable to that of 2021, 29.5% higher than 2019, indicating a move towards a more normalized market.

Strong Consumer Demand For Current Boating Market

The signs of normalization continue in the current boating market as consumer demand remains strong, surpassing pre-pandemic levels. However, there has been a slight decrease in buyer demand as evidenced by a drop in Google searches for boat purchases in the U.S. by December 2022. This is the first significant change in three years. Despite this, boats are selling faster year over year and spending fewer days on the market, with a global average of 68 fewer days and 25 fewer days domestically compared to 2021, supporting the shift in the boating market.

“For the first time in three years, we’re seeing consumer demand soften. However, our marketplaces’ share of voice is the highest it’s ever been, which is a very positive sign for the health of the industry,” stated Courtney Chalmers, vice president of marketing at Boats Group. “The effects of the demand and supply chain disruption during the pandemic are also still very apparent. Boats continue to move off the market faster and sales remain higher than before the surge.”

Normalization of the Boating Market

people viewing a luxury yachtThis normalization is a welcome change, as it provides stability and predictability for boaters, manufacturers, and dealers alike. It also allows for a more balanced distribution of supply and demand, which should prevent the boom-and-bust cycles that have plagued the industry in the past.

It will be interesting to see how this trend continues to evolve and shape the industry as we move forward into Q2 2023 and beyond. One thing is for sure – the boating market remains a dynamic and exciting industry to be a part of.

If you’re looking for a comprehensive analysis of the boating industry, download the 2022 Annual Market Index from Boats Group. It’s a must-read for anyone interested in staying up-to-date on the latest trends and developments in the market.

Message from Darren Plymale – Executive Vice President & CFO/COO of Galati

quotation marksWhen comparing fluctuations in the markets, year over year, or over a period of time, what made this time unique? In the recent covid trends, we had a strong demand for boating that was accompanied with people moving from state to state. In our case, CA, NY, and other high metro markets relocating to FL.

Along with our new neighbors, they brought wealth with them, which has allowed most to enjoy boating on their new and/or pre-owned yachts. Those that wanted to boat today purchased used because that was available at the time — however, many have decided they enjoy boating and have now placed orders for new builds. This new yacht demand has continued to keep the market for quality pre-owned healthy; due to the fact that we are out until 2025 and 2026 with some builders and models that are in strong demand.

We are blessed to have customers that can forecast out that far to enjoy more time on the water with the yacht they built and specified with options they chose. This scenario is daily in our business, and we are still experiencing strong demand for our brands and pre-owned brokerage products.

Galati Yacht Sales has continued to grow through good and bad times with our customer-first philosophies. We do all possible to field the best players on our team in every different area. quotation marksOur average tenure in customer support is far greater than the competition — this has proven to provide a greater customer experience on the water since 1970. Yes, we are nimble and move with the markets, nevertheless, we are steadfast in our ways of providing the best customer support on the water today.

About Galati Yacht Sales

With a team of over 200 yachting professionals, Galati Yacht Sales has earned a well-deserved reputation for being a trusted source of knowledge and expertise in the industry. For more than five decades, they have been dedicated to providing their clients with unparalleled integrity and excellence throughout the buying and selling process. Whether you’re looking to purchase a new or used yacht or sell your current boat, Galati’s extensive product knowledge, vast experience, and steadfast commitment make them the go-to name for all your yachting needs. Contact us today!

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Resources: Boats Group | Market Index

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