A sailing yacht in the sunset

Consumer demand is waning, says Boats Group. It’s just released its mid-year market index report for 2024. The report has tracked data across its boat sales platforms. And one of the key takeaways? Searches relating to boat purchasing dropping by 7.6 per cent in the first half of 2024, compared to the same period last year.

Consumer interest in boat buying across international market

The company runs global sites such YachtWorld, Boat Trader, and boats.com (which features a boat finder to aid consumer choice) which it says means its scale and amount of data is unmatched.

Consumer interest in boat buying from North American market

The downward trend in year on year boat sales continued in the first half of 2024, as overall global sales dropped by 9.1 per cent.

“The global decline in boat sales can be attributed to two key factors,” says Courtney Chalmers, VP of marketing at Boats Group. “Firstly, the pandemic-induced boating boom created an unprecedented surge in demand, which is now naturally tapering off as other leisure activities have resumed. Additionally, economic pressures such as high inflation, rising interest rates, and overall economic uncertainty have made some consumers more cautious about discretionary spending.”

Boats less than 26ft driving market

The report posits that boats less than 26ft are the primary market driver for global unit sales in the first half of 2024. Sales in the first half of the year total over 12,000 for this category.

But, according to data, the average vessel price for this segment has dropped by 2.5 per cent to $91,000 – likely driven by increased supply and normalised demand, pushing the average sold price down. However, it is worth noting that for the 36-45ft segment, while total sales dropped by 12.3 per cent, there has been an 18 per cent increase in the average sale price, rising to $327,000.

New boat sales increase in 2024

Data also reveal that sales of new boats saw an increase of 5.3 per cent, while used boat sales were down by 12.4 per cent. This echoes what Boats Group saw in 2023, when new boats outperformed used boats in total unit sales.

“While new boat sales are climbing, used boat sales are experiencing a sharper decline,” says Chalmers.

“It is important to consider the industry perspective – as new boat inventory has accumulated over recent seasons, we are now seeing new boat prices drop as dealers look to turn over floorplan inventory.

“Manufacturers and dealers also offer attractive financing options for new boats, making them more accessible to buyers. Used boat prices are holding steady at averages above 2023, which further pushes consumers into new boat purchases.

“This divergence is indicative of shifting consumer preferences and adverse market conditions – such as growing inventory levels, downward price trends, and economic pressures. The real takeaway is that new boats are selling for less than they did a year ago, and better financing options for new vessels contribute to driving higher sales volumes, while used boat prices have yet to adjust to demand headwinds.”

Earlier this year, Boats Group pointed out that having a solid digital marketing strategy has never been more important for boat dealers and brokers. As buyer demand wanes and supply continues to grow, boats no longer sell themselves especially as 47 per cent of all boating demand in Europe is cross-border.

Average new boat price drops, used boat price increases

The first half of 2024 saw a positive trend in average sold boat prices, rising globally by 2.4 per cent to $203,000 – in contrast to the flattening prices seen in 2023. However, there is again a notable difference based on the boat’s condition; the average sold price for new boats fell by 3.4 per cent to $174,000, while for used boats, it increased by 4.2 per cent to $211,500.

The total value of used boat sales dropped by 9 per cent, whereas the value of new boat sales increased by 0.6 per cent.

Sailboat sales experience sharper decline

The report suggests that the value of sailboats sold internationally has decreased 18.94 per cent, and the number of units sold decreased 22.59 per cent between 2023 and 2024. With power boats the decrease in value over the same time period is 7.51 per cent, and the number of units sold decreased by 12.18 per cent. In North America the value of power boats sold decreased 4.77 per cent. And the number of power units sold also decreased by 5.83 per cent in comparable periods in 2023/2024. The value of sail decreased by 13.06 per cent, and the number of sail boats sold by dropped by 15.76 per cent in the same time period.

“While sailing remains a beloved pastime for many, the data presented suggests a sharper decline in sailboat sales compared to powerboats. Interestingly, the total number [1,665] and value of sailing boats sold [$368m] internationally outstrip the totals for North America [1,368 and $174m], suggesting different drivers for these trends across different global markets. Globally, power boats saw a huge rise in popularity during the pandemic, especially among first time buyers as they require less training to operate and get out onto the water. Sailing continues to be seen as more of a skill and lifestyle that requires a high level of commitment, experience, and access.”

She’s confident in the figures (read the full report online). “While there may be regional trends specific to boat types, the overall patterns are consistent globally,” says Chalmers. “The data presented in the market index report is sourced from Boats Group’s soldboats.com, the largest and most comprehensive database of sold inventory reported by professional boat sellers.

“Our data is global, timely, and reflective of real market conditions. Industry stakeholders can leverage this data and our wider offering of advanced digital solutions to make informed decisions related to inventory management, pricing, and marketing strategies.”

Boats Group operates several global platforms for boat buying, including YachtWorld, Boat Trader and boats.com. It also offers a network of 14 local portals for boat buyers and sellers in Europe, including Cosas de Barcos (Spain), iNautia (Italy), Annonces de Bateau (France), Botentekoop (Netherlands), Boot24 (Germany), and Boats & Outboards (UK), among others. In North America, it also offers marine financing and closing solutions through Trident Funding.

Main image is a Jeanneau, via Boats Group website.

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