Consumer Products Rental
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,300 consumer products rental companies in the US provide rental services for a wide variety of household and personal goods and items used for special events. Major rental or leasing revenue categories include home entertainment equipment; special events equipment; household furniture and furnishings; and formal wear, costumes, and accessories. Companies may also rent recreational goods, such as boats, skis, and bikes. Firms may also sell goods or allow customers to purchase goods during the rental period.
High Risk Customers
Many customers of consumer products rental providers can be considered high risk, and may be more likely to default or miss payments than traditional retail customers.
Competition from Traditional Retailers
Consumer products rental providers face competition from traditional retailers, such as consumer electronics stores, furniture stores, department stores, and mass merchandisers.
Industry size & Structure
The average consumer products rental provider works out of 1-2 locations employs 15-16 workers and generates $3 million annually.
- The consumer products rental industry consists of about 8,300 firms that employ about 131,500 workers and generate about $24.2 billion annually.
- Industry concentration varies according to product category. In the consumer electronics and appliance and video rental categories, the top 8 companies account for 87-89% of segment revenue. In the formal wear and home health equipment categories, the top 8 companies account for 50-59% of segment revenue. Other categories, such as recreational goods rentals, are fragmented.
- Establishments that rent consumer electronics and appliances account for 35% of firms and 36% of industry revenue. Establishments that rent home health equipment account for 14% of firms and 20% of industry revenue.
- The industry includes national chains, franchises, and independent operators.
- Large companies include Aaron's, Upbound Group (formerly Rent-A-Center), and divisions of The Men's Wearhouse (tuxedo rentals).
Industry Forecast
Consumer Products Rental Industry Growth
Recent Developments
Mar 31, 2025 - Consumer Expectations Hit 12-Year Low
- The Conference Board’s Consumer Confidence Index decreased 7.2 points to 92.9 in March from February. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions— dropped 3.6 points to 134.5. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions— fell 9.6 points to 65.2, marking the lowest Expectation Index reading in 12 years. Expectations Index readings below 80 can signal a coming recession. Stephanie Guichard, Conference Board Senior Economist of Global Indicators, said, “Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low. Meanwhile, consumers’ optimism about future income—which had held up quite strongly in the past few months—largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.”
- The tariff-based trade policies of the Trump administration have the potential to increase the prices of several consumer product rental categories, including appliances, electronics, cell phones, and computers. On March 4, Trump placed 25% tariffs on imports from Canada and Mexico and increased the tariff on all Chinese imports to 20%. Two days later, the Mexico and Canada tariffs were postponed for 30 days for products that comply with the US-Mexico-Canada Agreement (USMCA). The Trump administration has also said widespread “reciprocal” tariffs would go into effect in early April. In 2024, Mexico accounted for 32% of US imports of computer equipment, 10% of communications equipment (including cell phones), 34% of audio and video equipment, and 24% of appliances. Over the same period, China accounted for 28% of US imports of computer equipment, 43% of communications equipment, 25% of audio and video equipment, and 43% of appliances.
- Spending patterns at dollar stores suggest that low-income consumers are tightening their belts, according to The Wall Street Journal. While inflation has slowed and wages have risen for many, some of the country’s lowest wage earners are feeling pinched. Many low-income families were able to build their savings in the years immediately following the pandemic amid stimulus checks, higher demand for blue-collar jobs, and pandemic-era food assistance and child tax credit benefits. However, many low-income workers have spent down their savings. Some dollar stores report that their customers are waiting until the last minute to make event-based purchases, such as holidays, and spending at the end of the month – when lower-income families’ budgets are depleted – has fallen.
- Americans are increasingly opting to rent products instead of buying, either to save money, enjoy greater variety, or have more flexible lifestyles, according to The Wall Street Journal. More than 25% of Americans said they rent or lease their clothing, furniture, car, or electronics, according to a recent survey commissioned by Credit Karma. Amid high inflation, some consumers – many of them Gen Zers - find it more economical to rent items rather than buy. A lack of affordability in the home-buying market has contributed to a stronger rent-first mindset among young Americans, some of whom feel homeownership will likely remain out of their reach. Industry observers say renting day-to-day items has gained popularity as more rental companies have entered the market.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.