Demand for cabinets nationwide will rise 7.4% per year through 2014 to become a $15.2 billion business, The Freedonia Group forecast today. That's a turnaround from the 2004-2009 period, when demand shrank by 4.8% annually. The recent fall and expected rise in housing completions will be a key factor affecting demand throughout those years, the Cleveland-based industry market research firm said.
"The residential market will account for over 90% of the approximately $4.5 billion increase in overall total cabinet demand through 2014," Freedonia said in a statement. "The new housing segment will boast the most rapid increases in cabinet demand through 2014. While the new housing market will experience solid growth, the improvement and repair segment will continue to account for the majority of residential demand."
Demand for kitchen cabinets, which figure in 80% of total cabinet output, is expect to increase by 7.8% per year between 2009 and 2014 to reach $12.4 billion. That follows a period in which demand shrank 5.5% annually, going from $11.3 billion in 2004 to $8.5 billion in 2009. "Growth will also be supported by design trends that call for homes with more and larger-sized cabinets to store food products and kitchen equipment," Freedonia said.
Meanwhile, demand for bathroom cabinets--which has been falling 2.2% annually, from $1.45 billion in 2004 to $1.29 billion in 2009--should recover and grow 6.9% per year to hit $1.8 billion in 2014. Design trends that call for homes with larger cabinets to store personal items and medications will also promote gains," Freedonia said.
Cabinet demand elsewhere in the home bucked the recent trend by growing 0.9% annually, from $755 million in 2004 to $790 million in 2009. Going forward, the rise in annual demand should increase to 3.8% and total $950 million in 2014. Freedonia said this is mainly because homeowners are increasingly using cabinets rather than shelving.
Freedonia's forecasts are part of a new report it is issuing today. The 332-page report costs $4,900.