US demand for cabinets is forecast to rise 8.2 percent annually to $15.3 billion in 2016. Growth will be driven by a rebound in housing completions from a depressed 2011 base. Although housing completions will remain below the level reached at their cyclical peak in 2006, the expected recovery will fuel gains in the residential market. These and other trends, including market share and product segmentation, are presented in US Cabinets, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
The residential market accounts for the largest share of cabinet demand, so the turnaround in residential building construction spending will drive gains. The new housing segment will see the most rapid advances, although growth will also be supported by the improvement and repair market. Through 2016, demand for cabinets in the nonresidential market is anticipated to advance 6.5 percent annually to $2.8 billion, driven by a rebound in construction spending. The office and commercial market will spur growth, as construction of retail sites will promote store display cabinet demand.
Kitchen cabinets, which accounted for over four-fifths of 2011 demand, will see the fastest growth. Demand will also be boosted by design trends that call for homes with more and larger cabinets to store food products and cookware. Growing demand for cabinets with value-added amenities, such as pull-out drawers and shelves, wine racks, and other features that improve kitchen convenience, will also boost gains.
Demand for bathroom cabinets is forecast to grow 6.5 percent per year to $1.8 billion in 2016. Design trends that call for homes with multiple bathrooms will support demand, as these rooms frequently include medicine chests or vanities. Demand for other cabinets, such as those found in home theaters, laundry rooms, home offices, and other areas, is expected to reach $950 million. Homeowners will opt for cabinets that provide secure and attractive storage options compared to open shelving and free-standing furnishings.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.