Please select your home edition
Edition
Cyclops Marine 2023 November - LEADERBOARD

Denison Yachting Q3 market report shows 2022 is on track to be healthy year for the boating industry

by Denison Yachting 15 Dec 2022 07:40 PST
Denison Yachting Q3 2022 market report © Denison Yachting

As is Denison tradition, it's time to look back at how the yachting industry performed during the third quarter of 2022.

With uncertain economic conditions, supply chain constraints, and an overall reduction in global trade, Q3 has been a challenging quarter for the boating sector. Nevertheless, taking pre-pandemic numbers as a baseline, the industry demonstrated remarkable resilience.

Globally, customers bought 10% fewer boats than they purchased in the third quarter of 2021, a 30% drop from the record sales of the third quarter of 2020. However, overall numbers were just 9% below Q3 2019, indicating that the challenges the market has faced this year have yet to do much damage to demand. Therefore, it is not surprising that the National Marine Manufacturers Association maintains that 2022 is on track to be a very healthy year for the boating industry.

Global Yacht Market Performance in Q3 2022

Following a lackluster Q2, Q3 was a tumultuous quarter for the global boating market. Sales across all the major yacht markets dropped considerably from Q3 2021. North America, the world's largest boat market, recorded 9.5% lower sales than in the same quarter last year. In Europe, customers bought 11% fewer boats in the usual yachting hotbeds of France, Italy, Spain, and the Netherlands than in Q3 2021. The numbers were even bleaker in Asia, which saw a 19% drop in purchases from Q3 2021. Customers in China, Japan, and Singapore bought fewer boats in Q3 2022 than in any third quarter since 2015.

The silver lining in all of this is that the industry's performance was still strong, given the challenges it faced in the third quarter of this year. Despite pressures from inflation, persistent supply chain challenges, and an active 2022 Atlantic Hurricane Season, sales across some key boating destinations, including the U.S. Southeast region, remained on par with pre-pandemic numbers.

Q3 2022 Sales in U.S

In North America, the Southeast, Gulf Coast, Northeast, and Mid-Atlantic regions remained the most dominant yacht markets for the third consecutive Q3. Collectively, sales in these markets dropped by 10% from the third quarter of 2021, but still made up more than 70% of the total sales in the U.S.

Understandably, southern regions demonstrated greater resilience than the northern coastal markets because of an influx of boat lovers to the south for the summer. For instance, sales in the Northeast were 14% lower than in Q3 2021, while sales in the Southeast only dropped by 5%. Such a slight decline in the world's largest boating market indicates the industry's strength amid recent challenges.

Continuing its stellar growth rate after Covid, the Great Lakes was the only region with higher sales in the third quarter of 2022 than in the same period in 2021. Boat sales in the market accounted for 12% of the total U.S. sales, up from 9% in Q3 2021.

Q3 2022 Sales by Category

Sales of the top five boat categories in the U.S. - center consoles, motoryachts, sportfish, trawlers, and day sailboats - were, on average, 8% lower than in the third quarter of 2021. However, some categories performed much better than others.

Center consoles were the best-selling boats for the second Q3 in a row. They accounted for 42% of all boat sales in the U.S., up from 36% in the third quarter of 2021. Out of the top three categories, center consoles were the only boat type that recorded higher sales during the quarter than in the same period last year.

Comparatively, 5% more center console boats were sold in Q3 2022 than in Q3 2021, while sales of the number-two category, motoryachts, dropped by 32%. This shift can be partially attributed to a more cautious boat market, with some would-be motoryacht customers choosing smaller, more affordable options or waiting for more favorable economic times.

Having enjoyed commendable success during the 2020 boating boom, sportfish sales tumbled back to pre-pandemic levels, recording a 14% drop from Q3 2021. Trawler sales remained the same as last Q3, while day sailboat sales were down by 20%.

Strong performance of luxury yacht charters in Q3 2022

While new boat sales struggled to maintain the momentum of the last two years, yacht charters continued to boom in Q3 2022. Thanks to the economic uncertainty, many potential customers postponed their purchase decisions, opting instead for short-term rental options. More boat owners also put their vessels up for charter to offset the cost of ownership and earn additional income.

Chartering appeals to customers because it allows them to "test drive" a luxury lifestyle before making a multimillion-dollar purchase. Leading yacht brokers also provide comprehensive itineraries and services, so customers can relax and enjoy their vacation without worrying about logistics.

So far, market reports indicate that luxury yacht charters have increased by 20% in 2022 compared to 2021. Denison expects the number of people chartering yachts to grow in Q4 and beyond, driven by continued interest from first-time charterers and experienced boaters alike.

What does Q4 2022 have in store for yachting?

Fortunately, all signs still point to a bright future for the boating industry. For instance, growth in the U.S. Southeast region and solid performance in the center console boat category indicates that the demand for recreational boating is still high.

Furthermore, according to the U.S. Bureau of Economic Analysis, outdoor recreation activities have thrived since the lockdowns eased in 2021. This year, boating and fishing have increased their contribution to the outdoor recreation economy by 22%, indicating sustained interest in water-based activities from 2021.

Going into the fourth quarter of the year, Denison expects performance to mirror pre-pandemic levels for another quarter. Considering the challenges the industry has faced this year, being able to sustain pre-pandemic numbers gives us hope for more robust performance in 2023 and beyond.

Related Articles

Denison announces new exclusive partnerships
For Ocean King in North, Central, and South America and for Filippetti Yachts in North America Denison Yachting announced new exclusive partnerships at the 2025 Palm Beach Boat Show. The company will serve as the exclusive representative for Ocean King in North, Central, and South America, as well as for Filippetti Yachts in North America. Posted on 22 Mar
Denison Yachting partners with ISA Viper Line
Becoming exclusive dealers for line of superyachts in North America Denison has become exclusive dealers of ISA Yachts' (brand of Palumbo Superyachts) new ISA Viper line of superyachts in North America. Posted on 15 Jan
Denison Yachting partnership with Mazu Yachts
To represent their full line of carbon/sandwich SuperYacht Tenders for Europe and the Americas Denison is pleased to announce its collaboration with Mazu Yachts to represent their full line of carbon/sandwich SuperYacht Tenders 38' to 82' and their Steel/Aluminum Displacement Series 92DS, 112DS and 132DS. Posted on 3 Dec 2024
Denison announces ExtraYachts North American debut
Exclusive dealer for the Italian brand in the Americas Denison Yachting is pleased to announce that its partner EXTRA Yachts made its North American debut with Denison. Denison has been named the exclusive dealer for EXTRA Yachts, covering the territories of North & South America, Central America, and Mexico. Posted on 5 Apr 2024
Denison announces partnership with EXTRA Yachts
As its exclusive representative for North & South America, Central America and Mexico Denison is pleased to announce its partnership with EXTRA Yachts as its exclusive representative for North & South America, Central America and Mexico. Posted on 23 Dec 2023
Denison Yachting announces two major sales
Ahead of the Monaco Yacht Show 2022 Denison Yachting helped its clients conclude two more important deals ahead of the Monaco Yacht Show 2022. Posted on 20 Sep 2022
Denison Yachting evaluates euro to dollar value
Buyers' dollars can go much further now. Denison explains how... The Euro recently reached a 20-year low—and has dropped even lower since—currently being valued at just $1.0073. Posted on 23 Jul 2022
Denison Yachting Q1 Market Report
The long-term impact of the pandemic has begun taking shape Quarter 1 of 2022 in the yachting industry has been a positive one. Like 2020, 2021 was an impressive year for the yacht sector, and 2022 is following this upward trend. Posted on 2 Jun 2022
Silver Yachts appoints Denison Yachting
To be its dealer in the Americas and the Caribbean Denison is pleased to announce its partnership with Silver Yachts as its dealer for the SilverCat product line in the Americas and the Caribbean. Posted on 29 Mar 2022
Bob Denison talks about state of yachting industry
This article is a transcription of Denison's “Year in Review” for 2021 Hi, it's Bob Denison and today we're going to talk about the year 2021. Which as you probably know was a historic one for a lot of people, and a lot of places, and a lot of industries. Posted on 10 Mar 2022
RS Sailing 2021 - FOOTERMaritimo 2023 M600 FOOTERCyclops Marine 2023 November - FOOTER