Craft industry tops $10 billion in 1995, new HIA size of the craft industry study unveiled.

ELMWOOD PARK, N.J.--(BUSINESS WIRE)--Jan. 10, 1996--"The craft and hobby industry has enjoyed a decade of unprecedented growth," stated Pat Koziol, executive director of HIA (Hobby Industry Association), announcing the results of the HIA sponsored 1994/1995 Size of the Craft Industry Study.

Koziol revealed that in 1995, for the first time, sales of craft/hobby products are anticipated to top $10 billion.

The size of the craft and hobby market was $9.8 billion in 1994 and is projected to reach $10.9 billion by the end of 1995, indicating a 11% increase over the $9.63 billion actual craft industry sales volume in 1993.

"To offer you a comparison to how big this industry is, according to the Official Guide to Household Spending, the video rental market -- and what could be more of a consumer leisure-time draw than that -- is projected to reach $9.6 billion in 1995. Crafts are bigger than that," stated Donna Wilder, vice-president of Fairfield Processing Co. and chair of HIA's marketing committee.

According to the HIA, the total market size is estimated by calculating the average sales among three key audiences -- manufacturers, retailers and consumers. All three audiences reported growth.

Conducted by Fitch Inc. an Ohio-based full-service business and design consultancy, on behalf of HIA, the study surveyed 1,793 manufacturers and 3,617 retailers. A mail sample of 3,000 households was used for consumers.

Among the highlights of the HIA study are the more than $11.4 billion in total sales reported by manufacturers during 1994. This figure, which is expected to increase to $12.6 billion in 1995, compares to $8 billion in 1992.

Retailers reported sales of $10.2 billion in 1994, up from $9.9 billion in 1992. It is anticipated that retailer sales will increase 15% to $11.8 billion by the close of 1995. Sales increases are reported in each major craft category, including general crafts which represents the largest product category with more than 31% of consumer sales, $2.4 billion, in 1994.

Consumer expenditures for all crafts and hobbies in 1994 were $7.8 billion in 1994 and are expected to increase to $8.2 billion in 1995. Consumer sales were based on what they recalled spending in 1994 and what they anticipated spending in 1995.

"HIA's research studies--the Size of Industry Study as well as the Nationwide Consumer Study--impact the industry," noted Susan Brandt, HIA's assistant executive director/director of communications. "We take that dependence on our research and our responsibility to the market very seriously."

HIA is a trade association consisting of 4,100 member companies engaged in the manufacturing and merchandising of craft and hobby products. The HIA represents every segment of the craft and hobby industry.

CONTACT: Judith O'Brien/Mary Zelazny

Craft & Hobby Information Bureau

800/645-7651 or 201/299-0070

[e-mail] or the [e-mail]