U.S. Cabinet Demand to Reach $15.2 Billion in 2014

by bkrigbaum@solagroup.com


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CLEVELAND, OHIO – August
12, 2010 –
U.S. demand for cabinets is forecast
to expand 7.4 percent per year to $15.2 billion in 2014. Gains will be spurred
by a rebound in housing completions from the depressed levels of 2009. Although
housing completions will remain below the level reached at their cyclical peak
in 2006, the expected recovery will fuel gains in the residential cabinet market
through 2014. These and other trends are presented in Cabinets, a new study from
The Freedonia Group, Inc., a Cleveland-based industry market research firm.

 

The residential market will
account for over 90 percent of the approximately $4.5 billion increase in
overall total cabinet demand through 2014. 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.

 

The expected recovery of
residential building construction will support demand gains for all cabinet
types through 2014. Kitchen cabinets, which represented 80 percent of cabinet
demand in 2009, are expected to lead advances through 2014, rising 7.8 percent
per annum. 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. Demand for bathroom cabinets is forecast to grow 6.9 percent per year
through 2014. Design trends that call for homes with larger cabinets to store
personal items and medications will also promote gains. Demand for other
cabinets, such as those found in offices, home entertainment centers, laundry
and mudrooms, garages, and other areas, is expected to rise 3.8 percent annually
through 2014. Advances will be promoted by increasing use of cabinets in these
areas instead of shelving.

 

Through 2014, demand for cabinets
in the nonresidential building market is anticipated to rise 2.8 percent
annually. Concerns about price and performance play a larger role in cabinet
selection than do aesthetics in most nonresidential structures. Thus, cabinets
are replaced much less frequently. Growth will be led by institutional
construction spending and a rebound in office and commercial construction
spending. Rising boat and recreational vehicle shipments from a low 2009 base
will boost nonconstruction demand.

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