As the U.S. recreational boating industry enters the winter boat show selling season this month, the National Marine Manufacturers Association (NMMA), which represents 85 percent of the country’s recreational boat, marine engine and accessory manufacturers, reported that new powerboat retail sales are estimated to be down in 2023, approximately 1 percent to 3 percent, to 258,000 units.
For the 2024 calendar year, recreational boating could see new unit sales on par with 2023 levels as the industry navigates interest rates and ongoing shifts in consumer confidence.
Looking ahead, recreational marine manufacturers are focused on delivering innovative new products and will showcase emerging technologies at dozens of upcoming boat shows nationwide, ranging from hydrogen-fueled marine engines to boats powered by sustainable marine fuels.
While most categories of new powerboats saw estimated unit declines in 2023, anywhere from 5 percent to 25 percent, the personal watercraft segment saw a significant increase and if forecasted to be up between 20 percent and 25 percent as final 2023 sales data is calculated.
Personal watercraft, which are small craft for one to three people and often a gateway to boating given entry-level pricing and ease of use, are expected to make up approximately 85,000 to 90,000 of the 258,000 estimated new units sold at retail in 2023.
“With jumps in interest rates and inflation in 2023, we saw more boating consumers being price sensitive and deciding to wait things out before buying their next boat and, in the meantime, picking up a personal watercraft to enrich their time spent on the water,” said Frank Hugelmeyer, president, NMMA. “The nearly one million people who purchased a boat for the first time during the height of the pandemic continued to spend record time on the water in 2023, helping drive an economic impact of $230 billion.
“As we enter 2024, we expect Americans’ desire to be near water to continue as more people seek ways to prioritize health and wellness and enhance their quality of life, which has the industry focused on continued innovation and ensuring greater access to our public waters,” concluded Hugelmeyer.
According to the NMMA’s 2023 Economic Impact Study on Recreational Boating, recreational boating remains a significant driver to the U.S. economy due to the estimated 85 million Americans who boat each year, spending on everything from food and marine accessories to marinas, storage, and insurance, driving an economic impact of “$230 billion, up 36 percent from 2018, while supporting 36,000 U.S. businesses and 812,000 American jobs.”
Winter is a traditionally strong selling season for the recreational boating industry, with dozens of boat shows around the U.S. in January and February in major markets, including New York, Miami and Chicago. Unlike auto shows, boat shows are not only a marketing venue but a major driver of retail sales for the year ahead, with manufacturers and dealers debuting new product innovations and technologies.
“Boating provides transformational experiences that offer relaxation, fun and freedom in our busy lives, which is why we’re committed to innovating and enhancing the boating experience for the generations to come,” said Hugelmeyer. “Supporting new innovations in a marine environment means adopting a technology-neutral decarbonization approach, accelerating the distribution of sustainable marine fuels, establishing marine electric technology standards, and expanding R&D investments in electric battery density and hydrogen propulsion systems.”
Image courtesy of Sea-Doo/BRP
