United States Cabinets and Countertops 2022

SUMMARY OF MAJOR FINDINGS

U.S. cabinet and countertop sales could increase by some 7.0% during 2022. This is down from a 2021 gain of 16.3%, as demand recovered from the 2020 pandemic-induced recession. Sales gains are weakening as the Federal Reserve increases interest rates to fight inflationary trends moving through the economy. Mortgage rates have already topped 5.0% and based on current trends could end the year above 6.0%. Rising interest rates have already caused home sales and remodelling spending to turn sluggish. 

Dollar sales, however, have received a boost from rising prices as manufacturers pass through rising material, labor, and transportation costs. Rising prices, however, is reducing unit demand. Based on analysis, the author estimates stock and custom products could perform the best. Rising costs are causing middle- and lower-income households to trade down to lower priced cabinets and countertops, while demand for higher-end products could remain strong since higher income households are less likely to be affected by the inflation. 

Mortgage interest rates are projected to increase again in 2023, making for another challenging year. Demand could begin to stabilize in 2024 as interest rates moderate and households regain confidence to purchase a new home and undertake remodeling projects. Growth, however, could drop to a 5.2% compound annual growth rate between 2022 and 2027 due to the sluggishness over the next few years. Cabinet sales could climb 4.7% annually and countertop material sales 5.9% per year over this period.

CABINET AND COUNTERTOP SALES TRENDS

The publisher has uncovered these trends in our in-depth report on the U.S. cabinet and countertop industry. Report sections cover the U.S. market for kitchen cabinets and bathroom vanities, and countertop materials. Cabinet shipments are further segmented by stock line, semi-custom, and custom types.  Countertop materials shipments are provided for natural and engineered stone; and plastic laminated, solid surface, and other countertop materials. Price trends are provided for all types of cabinet-work.

SOURCE OF SUPPLY

The author analyzed U.S shipments and imports for cabinets and quartz countertops. Catalina calculated share of the leading countries of origin. For quartz countertops, the report also provides competitive pricing by country. U.S. cabinet shipments are segmented by stock line, semi-custom, and custom types, as well as shipments by wholesale and retail manufacturers.

END-USE MARKETS AND DISTRIBUTION CHANNELS

Cabinetwork purchases are provided for new residential construction, residential remodeling, manufactured housing, and non-residential construction markets. The analysis includes data on purchases per new home constructed and manufactured housing unit shipped. Home center and other retail channels are analyzed as well. Home Depot and Lowe’s kitchen and bath revenues are tracked as well. In addition, U.S export shipments are analyzed.

FACTORS AFFECTING DEMAND 

The publisher analyzes the role of new and remodeled residential kitchens and bathrooms as a determinant of demand. The number of new kitchens and bathrooms installed per new housing and remodeling projects are tracked. Homeowner kitchen and bathroom remodeling spending is investigated for professional and do-it-yourself installations, as well as by demographic characteristic. Cabinetwork and countertop demand is correlated with U.S. housing demand, non-residential construction spending, mortgage interest rates, and other economic and demographic indicators. This provides insights into the direction of domestic demand into 2022 and beyond.