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 demand value 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 demand value at $8.3 billion. 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. 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 value $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. 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 fell 7.2% annually during that period.
Demand for other cabinets such as those in home theaters, home offices, and laundry rooms should reach $950 million by 2016, the report found. That growth represents a 6.8% annual increase from 2011’s $685 million in demand. Demand in this miscellaneous category fell 4.7% annually from 2006 to 2011.
The numbers are part of a 374-page report called “Cabinets” that Freedonia is selling for $5,100.