Featuring in-depth data and insights backed by primary research – available in PDF, Excel and our interactive portal.
U.S. residential cabinets demand soared in 2021 with strong new construction demand and robust repair and remodeling (R&R) activity. Underlying market conditions have weakened in 2022 but remain poised for modest growth in the cabinets market through 2024.
Key factors that will support cabinets market demand through 2024 include:
- In light of the tight labor market and diminishing artisanal craftmanship skills, uniform cabinet designs continue to gain momentum due to affordability and product availability
- Homeowners increasingly interested in larger cabinets equipped with interior gadgets to optimize storage and functionality
- The kitchen is becoming a marquee living space, both aesthetically and for comfortability
- Buying and selling a home typically triggers kitchen and master bath remodeling and upgrades as they are the most important rooms to potential home buyers
- Cabinet manufacturers expanding upon mix of raw material sources to stay ahead of product shortages and cost inflation. This includes domestic suppliers, near-shore suppliers, and off-shore suppliers.
Residential cabinets demand is projected to grow over the next three years
R&R activity is expected to drive residential cabinets demand through 2024 (up 6% by volume), although the slowdown in new construction will impact annualized growth of cabinets volume growth over the same time. In 2021, stock grade cabinets (56%) dominated market share, followed distantly by ready-to-assemble (24%), semi-custom (15%), and custom (5%).
Robust R&R activity is driving cabinets demand
Two-thirds of cabinets demand is a direct result of R&R, which bodes well for this category, especially as new construction is expected to slow through 2024. More than four in five units adding or replacing cabinets are of the single-family variety.
Cabinets pricing increased 11% and U.S. dealers delivered the bills
Inflation in raw materials, transportation, and labor costs are to blame for the higher prices of cabinet materials, up $22 per unit from 2020 to 2021. Custom wood cabinets and related cabinetwork PPI were responsible for the biggest price hikes. Overall, U.S. dealers sold $22.6 billion of residential cabinets in 2021, this despite well-publicized supply-chain challenges.
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