The boating industry saw a surge in consumer demand during the pandemic, as people sought outdoor recreational activities that allowed for social distancing. According to the NMMA, new boat sales in the US reached a 13-year high in 2020, with 318,000 units sold, and remained strong in 2021, with 307,000 units sold. This increased the number of boat owners in the US, which reached a record of 12.7 million households in 2021.
However, consumer demand may moderate in 2023, as the pandemic subsides and other recreational options become available. Moreover, consumer demand may be affected by the economic uncertainty, the high inflation, and the rising interest rates, which could reduce the income and confidence of potential buyers. Still, consumer demand may remain relatively high, as new boat owners enter the market and existing boat owners upgrade or trade their boats.
Oil Prices
Oil prices are another factor that affects yacht prices, as they impact the production costs and the operating costs of boats. Oil is a key component in fiberglass, which is the most common material used to build boats. Oil is also the main fuel used to power boats, especially yachts. Therefore, when oil prices are high, boat production costs and boat operating costs increase, which reduces the profitability and the affordability of boats. When oil prices are low, boat production costs and boat operating costs decrease, which increases the profitability and the affordability of boats.
Oil prices fluctuated significantly in the past two years, due to the pandemic, the supply and demand dynamics, and the geopolitical tensions. Oil prices collapsed in 2020, reaching a negative value in April, as the pandemic reduced the global demand for oil and created a glut in the market. Oil prices recovered in 2021, reaching a seven-year high of $85 per barrel in October, as the global demand for oil rebounded and the supply was constrained by the OPEC+ alliance and the US shale industry. Oil prices remained high in 2022, averaging $75 per barrel for the year, as the demand for oil continued to grow and the supply was disrupted by the war between Russia and Ukraine.
