According to CSIL (The Kitchen Furniture Market in the United States) The residential kitchen and bath industry spending in the United States was valued at USD 130.8 billion for the year 2020, to rise up to USD 188 billion in two years (2020- 2022, increasing by +44%). More specifically, the local market in 2022 is made by around 91 billion USD for kitchen rooms and 97 billion USD for bathroom spaces.

Over 200,000 housing and design professionals flocked to Las Vegas for the 10th annual Design & Construction Week (DCW), the colocation of the National Kitchen & Bath Association’s (NKBA) Kitchen & Bath Industry Show (KBIS), the National Association of Home Builders (NAHB) International Builders’ Show (IBS). DCW’s total attendance was comprised of 40,000 KBIS attendees and nearly 70,000 IBS attendees. 500 exhibitors, including 140 New Exhibitors and 148 International Exhibitors (many European players of ceramic slabs among them) were attending this year.

FORECASTS

The kitchen and bathroom market outlook from the National Kitchen & Bath Association (NKBA) for 2023 is evaluated at USD 162 billion, with an expected 14% decrease (-13% kitchen, -15% bathroom, after an increase of its share in recent years). The study, conducted by John Burns Real Estate Consulting, estimates a 17% decrease for new construction (USD 96 billion) and -10% for remodeling (67 billion USD). The decrease is mainly recorded for the professional sector (-15% from 138 billion USD), then for DIY (24 billion USD, -8%).

Projects in the mid-range (2200- 17000 USD) register a more severe slump (-18%), respectively -8% and -14% in the low and high end. Remodelling is approximately 60% for existing portfolio improvements and 40% for new properties. The huge sales growth during 2022 (+17%) has been mainly due to an increased value (and prices) of the average value of the quantities sold, and it has been equally shared among the different price segments (with a negligible further increase of the lower end market, in comparison with the upper end).

Perspectives are of a moderate decrease for the current year, especially on the East side and for the multifamily building construction.

MAIN PLAYERS

In line with the general trend sales from Masterbrand, for example, due to higher sales volume in both stock and make-to-order products. Cabinetworks Group, the second player, plans to expand its Mount Union facility in Huntingdon County, Pennsylvania, and add 300 jobs to its current roster of 1,694 quality manufacturing jobs. American Woodmark experienced growth in the home center, builder, and independent dealers and distributors channels. Net sales for the first half of fiscal year 2023 increased by USD 200 million, or 23%. After the huge growth of 2020-2021, kitchen furniture sales are reducing in real terms in the Home improvement channels (Lowe’s, Home Depot).
From Europe, Nobilia, Haecker, Scavolini, Aster, Aran are among the major players, usually focusing their commitment in selected areas of the country (New York, Miami, Los Angeles, but increasingly also Texas).

A higher share in the upper end is shown by the Canadian companies. And the upper end is a highly lucrative market in the United States, with kitchens also priced at 50-250 thousand dollars, including all annexed expenses, from the designer’s fee to lighting, flooring, appliances, and installation.

DUTIES OR NOT DUTIES?

The duty policy of the Administration on Chinese imports is lasting for at least 2- 3 years and has received different comments from most of the local manufacturers (enthusiastic) and the top three players in the market (CabinetWorks, Masterbrand, American Woodmark) whose supply chain is more connected internationally.

Nevertheless, a relevant share of the export from China moved to Vietnam, Malaysia, and to a lesser extent to Cambodia.

PRODUCT TRENDS

The US kitchen furniture market is dichotomized among a (by far) larger share for products that are traditional manufacturing (wood and plywood, shaker style, almost no standardization, most of the assembling of various components at the last mile of the distribution chain) and a smaller share (maybe 30% just in selected geographical areas) where also European products are available.
Step by step, the difference is reducing (will ceramics substitute the traditional role of quartz and granite?) but still the look remains “Transitional”.

Built-in appliances are a quite small share and sizes, at least in the upper end of the market (where a complete set costs 20- 30 thousand USD) are even upgrading. White covers always keep a huge share of the market but mix matching with grey, blue navy, and Scandinavian green. Gradually, also in the USA matt is becoming predominant.

The Italian Bocchi has been awarded for its Baveno Kitchen Sink System. Lighting fixtures and electricals weigh an average of 4% on a complete kitchen remodelling (around 800 USD on a kitchen priced at 20,000 USD). Around 400 USD in the lower end (6-7 downlights per kitchen, at Home Depot, priced 56 USD each). Dimmable. Halo (Signify) is always among the market leaders, with its Wiz Pro app (16 million colors), WiFi- Bluetooth connected.