The continued recovery of the U.S. housing market will drive demand for cabinets upward by 6.6% annually to $16.0 billion in 2018, according to a new study by the Freedonia Group in Cleveland.
The market research firm says kitchens and bathrooms remain the dominate share of new housing square footage, boosting demand for cabinets.
Builders will install more cabinets in kitchens and baths—adding cabinets in kitchen islands or his-and-her bathroom vanities—to provide aesthetically pleasing storage solutions. Further gains will be spurred by an growth in residential improvement and repair spending, as rising home values and a more favorable lending environment encourage consumers to refurbish kitchens and bathrooms.
According to analyst Matt Zielenski, “Kitchen cabinets, which accounted for 81% of demand in 2013, are expected to see the fastest growth of all cabinet types, rising 6.8% annually to $13.1 billion,” says analyst Matt Zienlenski.
In addition to the rebound in residential building construction, gains will be spurred by design trends that call for homes to have larger kitchens with such features as islands and breakfast bars. These kitchens are often equipped with more and larger cabinets to provide ample storage space. Many of these cabinets will feature value-added amenities that enhance convenience, such as light-emitting diode lighting, pull-out shelves, storage racks, and easy-to-open doors.
Demand for bathroom cabinets is forecast to rise to $1.9 billion in 2018. Advances will be spurred by design trends that call for multiple bathrooms. While smaller in size than kitchens, bathrooms feature cabinets, such as medicine chests or vanities, that provide storage space for personal items and cleaning supplies.
Demand for other cabinets, such as garage, home office, and home theater cabinets, will be supported by interest in them as attractive storage alternatives to open shelving and free-standing furnishings.
The report is available for $5,300 from the Freedonia Group.