A rebound in housing completions will push an 8.2% annual growth in U.S. demand for cabinets to $15.3 billion in 2016, according to a new report by Cleveland-based market research house The Freedonia Group. That’s a 48.5% percent increase from 2011’s $10.3 billion and surpasses 2006’s $14.9 billion mark.
The kitchen cabinets segment will see the fastest growth, having accounted for more than 80% of 2011’s $8.3 billion in market value. Architects and designers specing larger accessible spaces will be reflected in more and bigger cabinets, particularly those with value-added amenities including pull-out drawers and shelves, and wine racks, Freedonia says. The segment is expected to grow 8.6% annually through 2016 to value $12.6 billion.
Bathroom cabinet demand will grow by 6.5% annually to be worth $1.7 billion in 2016, as an increasing number of homes include more bathrooms and homeowners seek out cabinets that look good but offer secure storage options, Freedonia says. Compared with demand for kitchen cabinets, which dropped 7.7% each year from 2006 to 2011, bathroom cabinet demand fell only 4.8% annually during that period. Overall cabinet demand shrank 7.2% annually during that period.