Q4 Market Report [Yacht Sales Analysis]

The State of Yachting: Looking Back at Q4 2021

As the advent of COVID-19 wreaked near-instant havoc on industries, economies, and everyday life, the yachting sector emerged as one of the few winners. With flexible work environments, people looking to get out of their houses rushed to boats as a safer, more private option for enjoying the outdoors. As a result, boat sales across the U.S. leaped to a 13-year high of $47 billion in 2020, registering a 9% growth from the previous year.

At the turn of 2021, the industry showed few signs of slowing. Many boat manufacturers and retailers were still fulfilling long backlogs, and new orders, coupled with the pandemic’s severe disruption on global supply chains, made it immensely challenging to maintain inventory.

Nevertheless, the increase in buyer wait-times did not do much to diminish demand. Even as the world gradually began to reopen and people resumed traveling by road and air, yachts remained popular, riding the wave of attention they had accrued the previous year.

According to the National Marine Manufacturers Association (NMMA), recreational boating was the leading outdoor recreation activity in the U.S., with 2021 powerboat sales exceeding 300,000 units for the second consecutive year. While total 2021 sales closed at an estimated 4-6% below the record highs of 2020, they were still 7% above the 5-year average.

Global Yacht Market Performance in Q4 2021

Q4 2021 was a remarkable quarter for yachting. Although the pandemic’s effect was beginning to wear off, the industry registered the second-best sales results in 14 years, only behind 2020.

Total yacht sales across all key markets decreased in Q4 2021 compared to Q4 2020. Asia led the slump with a 14% drop, followed by North America with 10%, and Europe with a 2% downturn. Nevertheless, the quarter’s sales were still 5% higher than the five-year average.

Q4 2021 Sales in the U.S.

The performance of the world’s largest yacht market, the United States, mirrored the global market. In key hot points – the Southeast, Gulf Coast, Northeast, and Mid-Atlantic regions – Q4 2021 was the second-best performing last quarter of the past 14 years. Collectively, these regions registered a 7.7% drop in sales relative to the same period in 2020 but performed above the five-year average by 9%.

Florida closed the year with 2,415 units sold in Q4, only a 4% dip from Q4 2020. Moreover, while used boats continued to drive the market, new yacht sales remained high, exceeding 120 units for the second year in a row.

Q4 2021 Sales by Category

Center-consoles continued their impressive 2021 dominance over other categories in Q4, slightly edging out motoryachts – Q4 2020’s best-selling segment. Additionally, center-consoles were among the few classes that registered higher sales in Q4 2021 than Q4 2020, recording a praiseworthy 3% growth.

However, the most exceptional results came from superyachts, which posted all-time-high Q4 sales this year. Superyacht sales were up by 29% side-by-side with Q4 2020 and an emphatic 76% increase compared to Q4 2019.

Superyacht sales have been on a commendable run since 2020, primarily fueled by the increased demand for safe, private, luxurious experiences and the growth in wealth for high-net-worth individuals.

Denison Ended 2021 With A Bang!

Denison outperformed expectations in yet another quarter in 2021, marking a resounding finish to a strong year. Although we moved 11% less boats in Q4 2021 than in Q4 2020, the quarter’s sales were still 27% higher than those of Q4 2019.

Furthermore, Denison continued to realize outstanding growth in our high-tier luxury segments. Sales of boats valued at over $1 million increased by 51%, those worth over $5 million went up by 150%, while those priced at over $10 million were higher by 500%. We also moved 58% more superyachts in Q4 2021 than in Q4 2020.

Interestingly, the average purchase price of units sold has increased dramatically since 2019, exceeding $1 million for the first time in Q4 2021. This trend indicates that the luxury yacht market is on a formidable uptrend that will persist in the years ahead.

The Crypto Effect

The spectacular growth of cryptocurrency in 2021 minted new high net-worth individuals and made existing ones even richer. As a result, cryptocurrency transactions in the yachting market increased exponentially.

Denison Yachting has been accepting bitcoin for select, high-end units since 2018. Our belief in cryptocurrency paid great dividends in 2021 when we collected $15 million in bitcoin payments, an unprecedented increase from $350,000 the year before.

With crypto and blockchain projects gaining steam, we expect even more cryptocurrency buyers in the years ahead.

“Cryptocurrency offers us a unique opportunity to break down the misconception that yachting is only a one-percenter activity.”

– Bob Denison, President and Founder

By opening up to crypto investors, the market can attract more novice buyers and bring yachting closer to the masses.

A Promising 2022

The pandemic has created a positive shift in how people prioritize their time. Consequently, boating has emerged as one of the most popular ways to spend time with family and friends and create fun and adventure, all while escaping from the stresses on land. Looking ahead, we expect 2022 to be another solid year for the boating sector as even more people look toward exploring the great outdoors and the unique joys of being on the water.

Denison is excited for the new year and the possibilities it holds!

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