The Size of the Kitchen & Bath Market Surpasses $147 Billion
The National Kitchen & Bath Association (NKBA) released the results of its extensive Size of Market Study and Outlook, revealing a value of $147.3 billion in sales of products and materials aimed at the residential kitchen and bath market in 2016.
This builds upon the NKBA’s groundbreaking survey last year, the first major research study of its kind, which sought to define the size of the American residential kitchen and bath market. That report determined 2015 market size of $134.1 billion. It’s important to note that this represents product only and excludes design services and costs of labor and installation.
“This dramatic double-digit spike in just one year is a testament to the health of this key industry,” said Bill Darcy, NKBA’s CEO. “It’s a vibrant and growing segment of the economy, and based on our research, our projections indicate that it will continue to thrive. NKBA has devoted significant funding and resources to market research and analysis, which is a critical part of our mission to serve our membership and provide the industry with vital data that will help in developing business strategies and plans.”
In addition, the study projected growth in this sector would continue for 2017 and 2018, with the size of the market expected to rise more than 10 percent to $163 billion in 2017, and another 9.3 percent in 2018 to reach $178 billion.
The U.S. residential construction market was estimated at $600.4 billion in 2016, up nearly 9 percent over 2015. This total includes $303.4 billion from the construction of new homes and $297 billion from residential remodeling and replacement projects. The overall kitchen and bath segment accounts for about 25 percent of overall residential construction.
The NKBA’s study examines eight kitchen products categories and 11 bathroom product categories, such as cabinetry, appliances, fixtures and countertops. It determines values for each segment, in new construction as well as remodeling. The study was developed relying on various sources, including secondary published market information as well as interviews conducted among key professional segments. Data from the 2016 report and that collected in the 2017 survey were combined to generate the projections for 2017 and forecast for 2018.
The new housing projections were calibrated with actual housing construction data and changes in the value of new housing construction, while projections for the remodeling segment were calibrated based on Harvard’s Joint Center for Housing Studies of Harvard University’s remodeling spending estimates.