LONDON, Oct. 29, 2014 /PRNewswire/ --
US demand to rise 6.6% annually through 2018
Demand for cabinets in the US is forecast to rise 6.6 percent annually to $16.0 billion in 2018, driven by a rebound in residential building construction expenditures. Rapid advances in new housing completions will fuel demand for cabinetry. Not only will more houses be constructed, but many of these houses will feature larger kitchens and multiple bathrooms, the two rooms where cabinets are most often installed. Further gains will be spurred by the residential improvement and repair market. Increasinghome values and a more favorable lending environment will encourage consumers to engage in home improvement projects, such as cabinet-intensive kitchen and bathroom renovations. Not only will homeowners install more cabinets, but these cabinets will often feature value-added amenities that enhance convenience, such as lightemitting diode lighting, pull-out shelves, storage racks, and easy-to-open doors.
Dominant kitchen cabinet segment to lead gains
Among cabinet types, kitchen cabinets, which accounted for 81 percent of cabinet demand in 2013, are expected to see the fastest growth through 2018, with demand totaling $13.1 billion. In addition to the rebound in residential building construction spending, gains will be spurred by design trends that call for homes to have larger kitchens with such features as islands and breakfast bars. These kitchens are often equipped with more and larger cabinets that provide ample storage space.Demand for bathroom cabinets is forecast to grow 6.1 percent per year to $1.9 billion in 2018. Advances will be spurred by design trends that call for houses to feature multiple bathrooms. While smaller in size than kitchens, bathrooms feature cabinetry -- such as medicine chests and vanities -- to provide storage space for personal items and cleaning supplies. Demand for other cabinets, such as garage, home office, and home theater cabinets, is expected to advance through 2018, supported by interest in cabinets that serve as attractive storage options compared to open shelving and freestanding furnishings.
Nonresidential market to benefit from solid growth
Through 2018, demand for cabinets in the nonresidential market is anticipated to advance 6.1 percent annually to $3.0 billion. Solid growth in office and commercial construction spending and institutional construction expenditures will boost demand. Hotels, office buildings, and healthcare facilities use cabinets to provide secure yet attractive storage solutions. Moreover, a more favorable economic outlook will support consumer demand, spurring demand for store fixture cabinets. Nonconstructiondemand for cabinets will be promoted by rebounding shipments of recreational boats, business jets, and recreational vehicles. Cabinets are installed in these craft to make them better resemble residences.
Domestic cabinet production to grow
The US cabinet industry is characterized by relatively low levels of foreign trade, with imports accounting for about six percent of demand in 2013 and exports only one percent of shipments. Going forward, domestic production of cabinets is forecast to grow, as manufacturers take advantage of low-cost natural gas to relocate production sites to the US and expand those facilities already here.
Study coverage
This upcoming industry study presents historical demand data for 2003, 2008 and 2013, plus forecasts for 2018 and 2023 by material, cabinet type, market and region. The study also considers key market environment factors, assesses US industry structure, evaluates company market share and profiles 36 industry participants.
Download the full report: https://www.reportbuyer.com/product/703262/
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