NKBA: Kitchen and Bath Industry Valued at $130.8 Billion

The residential kitchen and bath industry is valued at $130.8 billion, according to the modified 2020 Kitchen & Bath Market Outlook from the National Kitchen & Bath Association (NKBA). The updated report takes into account the changes to the industry resulting from the coronavirus (COVID-19) pandemic.

"Our initial 2020 Kitchen & Bath Market Outlook was conducted in late 2019, before the pandemic hit our members and homeowners in the U.S. and Canada," Bill Darcy, NKBA CEO said in a news release. "Kitchen and bath spending had been increasing steadily prior to the pandemic at 9% in 2018 and 4% in 2019. As such, the original report projected a strong 2020, bolstered by an especially bright Q1. While the COVID-19 crisis, unsurprisingly, led to a double-digit decline in spending across all major categories, we are already seeing signs of positive growth as shelter-in-place orders are lifted, and we’re optimistic about the industry’s long-term health.”

The study, conducted by John Burns Real Estate Consulting, found 81% of kitchen and bath remodeling projects were postponed or canceled as of mid-April, but homeowners said they plan to reschedule 70% of those projects in 2020. Kitchen spending declined by 25% during the COVID-19 pandemic, while master bathroom spending declined by 18% and secondary bath spending decreased by 14%, according to the report. According to the NKBA, spending on medium and large projects were more impacted than spending on smaller projects, and for projects that continued through the pandemic, designers were less likely to be used than before the pandemic.