Multiple brands are going public! The outdoor barbecue business in the United States is booming

A new track is quietly becoming popular.

As outdoor cooking took off during the pandemic, U.S. consumers have purchased more than 21 million grills and smokers since July 2020, according to NPD data. Revenue in the outdoor cooking industry grew to $6.1 billion in 2021, up 14% year-over-year.

An estimated 70% of U.S. households now own at least one grill or smoker, according to consumer research from the Hearth, Patio & Grill Association (HPBA), the highest level the industry has ever seen, according to its CEO and president, Jack Goldman.

Nearly every type of grill has seen sales growth, from traditional charcoal and gas grills from companies like Weber and Char-Griller to pellet grills and smokers from companies like Traeger and Masterbuilt. The popularity of outdoor cooking has also boosted sales of products like the Ooni outdoor pizza oven and the Blackstone gas griddle.

The hot outdoor grilling market has even sparked a mini IPO boom, with Traeger and Weber both going public last year, and several SPAC deals announced by companies ranging from frying pan maker Blackstone to BBQGuys, an e-commerce platform for grilling and outdoor living.

But it also leads to a saturated market, with new grill buyers less likely to upgrade or replace anytime soon. About 38% of grill owners bought a new grill in the past two years, according to HPBA data.

Additionally, grilling company sales have been sluggish in recent quarters as factors such as inflation, freight rates, increased raw material costs and supply chain disruptions are hampering grilling supplies sales.

Weber reported that its second-quarter 2022 sales fell 7% year-over-year to $607 million. During a May 15 earnings call with analysts, CEO Chris Scherzinger said the industry had seen "significant year-over-year declines in point-of-sale data and significant reductions in shopper traffic" since March.

Scherzinger added that while many people who bought grills in 2020 have held off on replacing their old grills given the surrounding environment, the 2022 story is more about all the macro pressures consumers are facing, inflationary pressures on gas and grocery prices.

Traeger's sales have been similarly weak, reporting a 5% year-over-year decline in the first quarter of 2022. As a result, both companies' stocks have struggled, with Traeger down more than 60% and Weber down more than 40% year to date, while the S&P 500 is down about 20%.

BBQ Guys canceled its $963 million SPAC in November, while the SPAC that Blackstone Products was expected to merge with has postponed its plans three times since announcing the deal in December.

But the outdoor grilling industry is still promising. Traeger CEO Jeremy Andrus said he is still optimistic about the industry, and the biggest question now is whether Americans will continue to accept outdoor cooking after getting rid of the epidemic.

Andrus cited a study that showed that 35% of Americans said they discovered a passion for cooking during the pandemic, and 75% said they planned to cook at home as much as possible after the pandemic. This also ties in with several other trends, including an increased desire to gather with friends and family, so the outdoor grilling industry is expected to continue to be hot.

Editor✎ Ashley/

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