The North American kitchens and bathrooms market is expected to remain robust over the next year or so, signaling a ripe environment for manufacturers, dealers, designers and remodelers.
The National Kitchen & Bath Association (NKBA), the premier North American trade association across all kitchen and bathroom disciplines and owner of the largest Kitchen & Bath Industry Show (KBIS) in North America, estimates the market will generate $179 billion in sales this year. While this is down 5% from pandemic-fueled spending in 2022, it reflects an upward revision from initial projections of a 14% year-over-year drop.
The rebound is attributed to a couple of factors, according to NKBA’s exclusive mid-year update of the 2023 Kitchen & Bath Market Outlook. Despite some economic headwinds — like rising mortgage rates and a low inventory of homes for sale — the U.S. economy remains healthy, with high employment, steady home purchase demand and inflation beginning to ease. Economists also say there is a lower likelihood of a recession in coming months, owing to the Federal Reserve’s aggressive interest rate hikes designed to tame inflation — which is positive for consumer confidence and spending.
Higher mortgage interest rates, hovering in the 6-7% range, mean that homeowners with lower rates are less likely to move and incur higher interest payments. Therefore, they are more likely to remodel their homes — and the primary spaces to remodel are the kitchen and bathroom. Additionally, there are currently 22.4 million homes in their prime remodeling years (20 to 39 years old) and that number will grow by an additional 2.2 million homes within the next five years.
Besides the economic data, the annual NKBA Design Trends survey has shown a steady trend over the past few years toward sleek, modern design themes overtaking traditional styles, which is a boon for many European manufacturers of contemporary-designed products looking to enter or expand in the North American market.
The NKBA Global Connect program, established in 2017, is designed to help international companies understand pathways to success in the North American marketplace and provide a clear understanding of its nuances, regulations, sales processes and consumers. Like all NKBA members, companies in the Global Connect program have access to NKBA’s insightful research, exclusive events, networking and discounted admission to KBIS. They also may connect with a team of business advisors, who are experts in myriad aspects of bringing a product or brand to market and how to build a thriving enterprise.
“At NKBA, we strive to help the international kitchen and bathroom community make connections among manufacturers, specifiers, designers, sales and trade organizations in North America and around the world. We are the catalyst for these connections, which help strengthen and grow the market the world over,” says Suzie Williford, EVP and CSO of NKBA.
For more information on how to join NKBA Global Connect and explore building a business in North America, visit NKBA Global Connect.
For more insights about the North American kitchen and bathroom industry, register for our upcoming webinar being held on September 28th, “Breaking into the North American kitchen and bathroom market”