Craft Industry Reflections on 2024 and Predictions for 2025

Reflection: Retailers are working to find the new balance of both online and instore sales. Finally starting to see some stabilization since Covid, with more predictable and repeatable consumer behavior.

Prediction: Video is going to continue to be a game changer for retailers that want to see growth in their business. And, the use of AI is going to become a part of our everyday business tools.

Reflection: We’re seeing crafters craving natural fibers, breed-specific yarns, and personal connections with the sources of their materials. We’re searching for a term for “non-superwash” that affirms the material rather than saying what it’s not. Interest in handspinning is building again!

Prediction: I think crafters are going to start incorporating AI elements in a playful way (mittens with 3 thumbs, anyone?), and at the same time many will double down on what’s tangible: texture, natural color, and in-person small-group community.

Reflection: I have been thinking a lot about the changes that have happened, I am a firm believer that everyone has to change or their companies will go under. This industry changes all the time: every fabric drop, every new pattern, every new idea. There is always change. I have been keeping an eye on Riley Blake, Andover, Northcott, and Michael Miller. They seem to be changing quickly and I’m excited to see what is next.

Prediction: For 2025, I believe that you will see more shops go under and even manufactures going under due to not moving with the industry. I truly believe that there is a lot of growth potential for everyone but they will all have to go after it. So I think you will see lots of new products, new designers, and many people changing up who they work with. I over all think you are going to see a season of changes which will be a breath of fresh air of the consumer!

Reflection: We have seen more values-based shopping recently, which took off during the pandemic and seems to increase with every divisive election. When customers feel like they can’t control what’s happening around them, where they spend their dollars and who they support can be a comfort.

Prediction: We are expecting to see more personal shopping experiences doing well in 2025. For instance, creating interactive quizzes to help customers shop and using this data to customize messaging to that customer. We’ve seen more live shopping this year using video events. We’ve also seen an increase in video apps where the founder can share a personal message on the site for visitors.

Reflection: The rise in digital shopping has been one of the more significant trends in recent years. This was very noticeable in 2024. Our customers’ willingness to shop our website, tune in to our live shows, or join a Zoom class has gone from uncomfortable to a normal everyday experience.

Prediction: The craft industry will look to combine the emotional and sensory experience of in-person brick-and-mortar shopping with the convenience, reach, and personalization of online retail. Consumers still crave the connections that come with visiting a local shop. I predict the most successful craft businesses will likely be those that embrace both worlds—offering the ease of online shopping while creating opportunities for meaningful in-person interactions.

Reflection: It’s been a difficult and tumultuous year in more ways that one, and what stands out to me is the many ways our industry has tried to respond and adapt to decreased sales after the boom in pandemic era craft spending. Many businesses have had to shift course, and we’ve sadly lost many to these challenging economic conditions.

Prediction: In my eyes, craft has never been more important than it is today. In times of socio-economic uncertainty, people need a safe space to rest and recharge, and I believe that creative hobbies are extremely important for mental health and well being. The craft industry brings real value to people’s lives, and bringing that sense of purpose – along with coming up with innovative ideas and products that inspire people to create – can help our industry weather larger economic trends, while having a deeply positive impact on the world. As part of that mission, I believe an increased focus on sustainability in sourcing and supply chains is critical; we need to be good actors in the world and leaders in our field by making sustainability a core value of our production processes and businesses if we are going to adapt to the changes climate change is having on our planet.

Reflection: 2024 was filled with reminders of the importance of relationships in this industry. For those of us who make our living as freelancers, relationship building and maintenance is a key to success. h+h Americas has become an true gathering of the tribe, a place to reconnect with old friends and meet new ones. As such, it is an essential annual event.

Prediction: I predict an increasing demand for American-made natural fiber yarns. The promise of new tariffs on imported products combined with a growing awareness of the environmental impact of our crafts will drive consumers to buy less, but buy better. Those who sell yarn will become more transparent about where and how their yarns are produced. Those who can tell an honest story of ethical and sustainable production methods with short supply chains will begin to reap the rewards of their investments.

Reflection: In the past year, there has been a significant push to eliminate DEI initiatives in businesses, education, non-profits, and across America. This has led to a diminishing of the contributions and impact of people of color and women in all industries. In the craft industry, marginalized groups have always been underrepresented. Many Black small business owners, including myself, have seen a decline in invitations, opportunities, collaborations, and sales over the past year.

Following the George Floyd protests, there was a strong anti-racist effort to create equity where none existed. Building a diverse community with a range of voices, perspectives, and skills was a priority. However, there has been a reversal of those efforts in the past year. With the new political administration, I anticipate this downward trend will continue.

Prediction: I predict the craft industry will become more insular and segregated in the next year. Many people of color, particularly Black women, feel unsafe and uncertain in the current political climate. Since the election, there has been a rise in race and gender hate crimes and white nationalist terrorism. When people are afraid, they gravitate towards communities and activities that provide comfort and safety. These communities are typically pre-established, and inviting new people in poses a risk that many will be weighing.

Reflection: It’s the sewalongs. Whether a new pattern or a new fabric line (or both!) the depth and breadth of sewalongs being led by designers seems stronger than ever! Then there are the ones that are samplers, often hosted but with shared designers. Sewalongs aren’t new – I’ve been doing an annual one for a few years now and I was late to it – but it feels like they are gaining ground and followers at an increasing rate.

Prediction: I think people are going to embrace their scraps more. Between budget issues, burnout with the churn of new fabric and supplies, a desire to be more sustainable, and, frankly, being overwhelmed with our stuff, we are going to turn to the things we already have. There is so much potential and beauty waiting to come out from the things are already own.

Reflection: The sale of the Lovecrafts businesses. Lovecrafts was a big player in the craft industry (mainly knitting/crochet but also needlework) and notably was an online platform for indie designers to sell patterns. It also owned WEBS, the largest bricks-and-mortar yarn shop in the US and a major player in online yarn sales. Apparently it was financed by private equity and debt financing, and its investors were unwilling to put more into the business. In a fascinating turn, a US quilt and fabric company, Missouri Star, purchased the business and plans to continue operating Lovecrafts and WEBS as usual. Another example of the continuing trend for consolidation we’ve been seeing and very interesting that a company without an existing yarn business decided to branch out.

Prediction: If the next administration is successful in imposing tariffs on imports from Canada, China, Mexico and other countries, we will see a sharp spike in prices for everything from yarn to sewing machines to books and more. That means consumer purchasing power is going to decrease. It also will affect the bottom line of big and small craft businesses, but of course it’s going to hit smaller businesses hardest. Since tariffs will also raise prices in nearly every other consumer sector, crafters are going to have less money to spend on leisure activity. My big fear is that we will lose more craft businesses, particularly small ones.

Reflection: I think of 2024 as a year of change. In the quilting industry, we had some big changes. Jenny Doan, the original face of MSQC, left for a 2 year mission trip. Daniela Stout, the founder of the “Strip Club” and inventor of the Strip Tube ruler passed away after a tenacious fight with ovarian cancer. And Creative Retailer Magazine, one of our two quilting industry publications, published their last issue.

But we also had a lot of new – new fabric designers being announced, new books and tools coming out into the world, and new opportunities. Moda Fabrics had a very successful “ModaVation” event for shop owners, I’ve seen several new retreats and retreat spaces pop up, and we’re even seeing innovations in fabric such as SewYeah’s pre-cut fabric shapes the “Vegas Strips,” and Art Gallery Fabric’s 2.5″ edition binding fabric that coordinates with their fabric lines.

Prediction: We’ll continue to see innovations, but it is going to be continually difficult to rise above the “noise” in social media. I think that leaning in to video is going to be increasingly important. And I think that collaborations are going to be even more powerful. Connecting with others in the industry to collectively be seen and heard is going to be vital as we continue to battle for mindshare among our customers.

Reflection: Looking back at a challenging year, we seemed to be most excited about products that are unique to our store: items that we have designed ourselves, kits we put together, curated boxes, and pop-ups that we edited for our customers. Our collaborations were what brought us the most joy, with a local seamstress, local dyers, and other yarn shops: String Theory Yarn Co. and Knot Another Hat. We found much more inspiration in our collaborations and what our customers responded to in our specific aesthetic and mission than what we found at market. 

Prediction:  I anticipate working to keep our inventory lean so that I can keep cash flow manageable. We’ll be looking for vendors that we can order from and have filled relatively quickly as inventory gets low, rather than “stocking up.” This will be a challenge, but important to balance the inventory flow from the indie-makers we work with. Taking a cue from what we found fulfilling last year we’ll be looking for more opportunities for us to lean into our mission of supporting diversity and inclusion.