Why it matters:
- Seventy-one percent of Americans identify as crafters, driving a $17.8 billion market, and younger consumers are starting to embrace crafting — especially projects with inexpensive initial investments.
- Nearly half of U.S. adults reported experiencing stress in the past year and seek leisure activities like arts and crafts, such as knitting, scrapbooking, and needlepoint, to unwind.
- While translating a relaxing pursuit into a lucrative business or side hustle presents challenges, hobbyists often underestimate the operating costs. The shuttering of mass merchants like Joann is creating opportunities for independents. In turn, craft merchants are highlighting personalized service and high-quality materials, positioning their stores as communal spaces, and partnering with local food and drink establishments with events like Stitch Night and Knit and a Movie to drive buzz and business.
Wellness is more than a buzzy trend. It’s a concept that’s gaining importance as more people prioritize products and habits that contribute to their overall physical, mental, and emotional health and well-being. And it’s leading to a surge in some decidedly old-school hobbies.
Crafts — knitting, crocheting, quilting, scrapbooking, needlepoint, and the like —are growing steadily as stressed-out consumers seek creative expression as a form of escapism. In its US Arts and Crafts Consumer Report 2025, market researcher Mintel revealed that 71% of consumers identify as crafters. Further Mintel research reveals that nearly half of U.S. adults reported experiencing stress in the past year and seek leisure activities like arts and crafts to unwind.
Materials for craft activities drive big sales. The global arts and crafts market — comprising sewing and fabric, arts and crafts tools, painting and drawing, paper crafts, kids’ crafts, and other handicrafts — hit $44.6 billion last year and is projected to reach $106.6 billion by 2034, market researcher market.us reported. North America holds the largest market share at 40.1%, valued at $17.8 billion. The U.S. knitting yarn retail market alone is projected to hit $1.7 million by 2030, according to Grand View Research.
Wellness benefits: ‘That [crafting] zone is an escape from stress and is good for the brain.’
Reduced stress, increased relaxation, enhanced cognitive function, improved social connections — the benefits of creative projects are impressive. Healthcare facilities have even begun recommending them for patients.
Healthcare nonprofit Spectrum Health & Human Services holds a weekly Community of Caring guided craft activity. Meanwhile, the Cancer Wellness at Piedmont healthcare system has promoted crafts to distract from worries and build community.
“Crafting projects can help the brain send signals to the body that all is well,” said Gayle Torres, a board-certified art therapist, in a blog post. “Blood pressure and tension are reduced, resulting in a sense of well-being.”
While the average quilter, for example, is 60+, a younger cohort between ages 25 and 44 is increasingly drawn to crafting. 'They have less discretionary income [than older crafters] but are spending on materials and projects,' said Craft Industry Alliance’s Glassenberg.
“There is a huge connection with [crafting and alleviating] stress,” agreed Abby Glassenberg, President and Co-Founder of the Craft Industry Alliance, a trade association and community for the craft industry. “You get a sense of calm and satisfaction; you’re absorbed and don’t realize how much time has passed. That zone is an escape from stress and is good for the brain.”
“There’s an old joke that quilting is cheaper than therapy. Everyone has to have a release,” added Heidi Kaisand, Owner of Hen & Chicks Studio, which carries quilting, sewing, and craft supplies and has a retreat center where people can create, and Publisher of Creative Retailer. “It keeps the hands moving and the brain sharp.”
A shift toward younger consumers seeking accomplishment and satisfaction via crafting
Renewed craft interest was piqued during pandemic-era stay-at-home mandates when anxiety was high and activity choices were limited. But a sense of accomplishment helps solidify crafting among the uninitiated, sources told CO—.
That’s becoming more apparent among younger adults, a consumer segment often engrossed in work and screens all day who are increasingly finding satisfaction in creativity. While the average quilter, for example, is 60+, a younger cohort between ages 25 and 44 is increasingly drawn to crafting. “They have less discretionary income [than older crafters] but are spending on materials and projects,” said Craft Industry Alliance’s Glassenberg.
Kaisand agreed: “Young people don’t have the resources or time, so they are dabbling in smaller projects. But the quilting audience has stayed steady over [the] years, so you have older people going out while younger people are coming in.”
Among subcategories that are drawing a younger consumer, knitting and crocheting are less expensive material-wise, providing a cheaper entry point, Kaisand noted. "You can buy yarn but don’t need a sewing machine like you do for quilting, where even an inexpensive model could be $500,” she added.
Scrapbooking is another segment that brings in consumers in their 30s and 40s. “They have families and want to capture memories,” Kaisand said.
[Read more: Authentic Messaging and Independent Makers Drive Greeting Cards' Next-Gen Relevance]
Independent retail opportunities open amid mass-merchant struggles
The sense of connection crafting fosters is an opportunity for retailers. Many are leaning into their stores as communal spaces, offering events like Stitch Night.
Coffee shops, cafes, bars, even movie theaters, are following suit. “Craft retailers are partnering with local food and drink establishments to create communitywide events like Knitting Nights or Knit and a Movie,” said Glassenberg.
Finding ways to differentiate themselves as community fixtures can help smaller independents pick up the slack in the face of shifting market conditions. Fabric and craft supplies retail chain Joann, for example, closed all 800 stores earlier this year following a bankruptcy filing. Michaels, another national craft-store chain, has acquired Joann’s intellectual property and private-label brands, which will add several new brands and products to its assortment.
Still, industry watchers see an opening for independents who highlight personalized service and high-quality materials. They also expect big-box chains to be harder hit with tariffs as they often rely more on international sourcing.
“Independents have been struggling because of mass merchants, but now opportunities are opening,” Glassenberg said.
Diversification by bringing in new craft lines is one route to capitalize on a narrower retail landscape, but shop owners should take care to have some expertise in and enthusiasm about new lines.
“Whatever you bring in, you need to be authentic and credible as the seller of that product. You’re not a chain store,” she said.
But if you’re able to do that, diversification is fantastic,” said Lucy McDermott, Owner of Stash Charlotte, in a State of the Industry 2025 episode of the “Craft Industry Alliance Podcast.”
McDermott plans to try to attract more chain shoppers like former Joann customers but doesn’t intend to cater to them.
"Joann’s customers [were] price sensitive and trained to look for discounts. I’m a higher-end store that doesn’t do a lot of sales,” she said, adding that she still has success with “gateway drug” products like less-expensive yarns that serve as a draw.
Still, on the maker side, business opportunities in selling handmade crafts can be challenging. Lured in by Instagram or Etsy, the latter of which offers a nominal entry fee for setting up a shop, many crafters underestimate the difficulty in turning their stress-reducing hobby into a side hustle.
“The amount you spend on materials and the amount of time that goes into a project — people often underprice themselves. It can be quite challenging to make a product that is a fit for a viable market,” said Glassenberg.
And as competition remains fierce between mass merchants and online platforms, drawing in new customers is a must with all the tools small businesses have at their disposal, advised Kaisand. Events, social media, email, video are all critical.
“As an independent quilt shop, I have my own look,” she said. “I may compete with 2,000 other stores, but a lot of my fabric is unique. I need to promote [what I am and what I do] to stand out.”
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