Cabinets & Countertops

EXECUTIVE SUMMARY CONTENTS

Executive Summary and Outlook

Current Market Situation
U.S. Cabinet Market Trends
U.S. Countertop Market Trends
Source of Supply
End-Use Markets and Distribution Channels
U.S. Cabinet Maker Profitability
Competitive Environment
Market Outlook

Cabinet Market Trends (Section 1)

U.S. Cabinet Sales Trends
Stock Line Versus Semi-Custom and Custom Cabinet Sales

Countertop Market Trends (Section 2)

U.S. Countertop Material Sales Trends
Countertop Material Sales Mix
Engineered Stone Countertop Market
Dimension Stone Countertop Market
Plastic Laminated Countertop Market
Solid Surface Materials
Other Countertop Materials

Source of Supply (Section 3)

U.S. Cabinet Shipments
Cabinet Tariff Situation
Cabinet Source by Country
Quartz Countertop Source by Country

End-Use Markets (Sections 4)

End-Use Market Trends
Residential Remodeling and Replacement Market
Builder Market
Commercial Markets
U.S. Cabinet Export Shipments

Distribution Channels (Sections 5)

Retail Cabinet and Countertop Sales
Independent Dealer Channel
Home Center Channel

U.S. Installations and Homeowner Remodeling Spending (Sections 6 and 7)

Kitchen Installations
Bathroom Installations
Homeowner Kitchen and Bathroom Remodeling Spending

Cabinet Maker Cost Structure and Profitability (Section 8)

Number of U.S. Cabinetry Plants
Cabinet Maker Profit Margins
Cabinet Door Shipments
Capital Expenditures

U.S. Cabinet and Countertop Competitive Environment (Section 9)

Cabinetry Competitive Environment
Leading Cabinetry Company Market Shares
Countertop Competitive Environment

Scope and Methodology

Section Tables and Data Analysis

Section 1: U.S. Cabinetry Market Trends, 1997-2027

Table 1-1: Value of Total U.S. Cabinetry Market
Table 1-2: Value of U.S. Stock, Semi-Custom, and Custom Cabinetry Sales
Table 1-3: Percent Total Cabinetry Sales by Cabinet Type
Table 1-4: Cabinetry Producer Price Index
Table 1-5: Real U.S. Cabinetry Sales

 Section 2: U.S. Countertop Market Trends, 1997-2027

Table 2-1: Value of Total U.S. Countertop Supply
Table 2-2: Value of U.S. Countertop Supply by Material
Table 2-3: Percent Total U.S. Countertop Supply by Material

Section 3: U.S. Source of Supply: Domestic Shipments and Imports, 1997-2022

Table 3-1: Value of Total U.S. Cabinetry Shipments
Table 3-2: Value of U.S. Stock, Semi-Custom, and Custom Cabinetry Shipments
Table 3-3: Percent of U.S. Cabinetry Shipments by Wholesale and Retail Producers
Table 3-4: Value of Total U.S. Cabinetry Imports and Share of U.S. Sales
Table 3-5: U.S. Cabinetry Supply by Major Country of Origin
Table 3-6: Share of U.S. Cabinetry Supply by Major Country of Origin
Table 3-7: Producer Price Index by Product
Table 3-8: U.S. Quartz Countertop Imports
Table 3-9: U.S. Quartz Countertop Supply by Major Country of Origin

Section 4: End-Use Markets, 2017-2022

Table 4-1: Value of Cabinet and Countertop Purchases by End-Market
Table 4-2: Percent Total Cabinet and Countertop Purchases by End-Use Market
Table 4-3: Cabinet and Countertop Purchases Per New Housing Unit
Table 4-4: Percent Total Cabinet Shipments for Kitchen Cabinets and Bathroom Vanities
Table 4-5: Value of U.S. Cabinetry Exports
Table 4-6: Value of U.S. Cabinetry Exports by Major Country of Destination

Section 5: U.S. Retail Distribution Channels, 2002-2022

Table 5-1: Cabinet and Countertop Retail Sales
Table 5-2: Retail Sales by Type of Outlet
Table 5-3: Percent Total Retail Sales by Type of Outlet
Table 5-4: Number of Retailers Selling Cabinet and Countertops
Table 5-5: Average Cabinet and Countertops Sales Per Outlet
Table 5-6: Home Depot Kitchen and Bath Revenues
Table 5-7: Lowe’s Kitchen and Bath Revenues

 Section 6: U.S. Kitchen and Bathroom Installations, 2007-2022

Table 6-1: U.S. Residential Kitchen and Bathroom Installations
Table 6-2: Homeowner Kitchen and Bathroom Remodeling Spending
Table 6-3: Professional Versus Do-It-Yourself Remodeling Jobs
Table 6-4: Percent of Total Kitchen and Bathroom Remodeling Spending by Income, Region, and Age of Householder

Section 7: Factors Driving Demand, 1997-2022

Table 7-1: U.S. Building Construction Spending
Table 7-2: U.S. Housing Construction Trends
Table 7-3: Percent Total New U.S. Single-Family Houses Sold by Sales Price
Table 7-4: U.S. Existing Home Sales
Table 7-5: Other Factors Driving Residential Demand
Table 7-6: U.S. Non-residential Building Construction Spending by Building Type

Section 8: U.S. Cabinetwork Industry Cost Structure and Profitability, 1997-2022

Table 8-1: Number and Revenues of U.S. Cabinet Plants
Table 8-2: U.S. Cabinetwork Plant Operating Ratios and Profit Margins
Table 8-3: Producer Price Trends For Major Material Inputs
Table 8-4: Value of U.S. Cabinet Door Shipments
Table 8-5: Cabinetwork Plant Employment and Wage Trends
Table 8-6: U.S. Cabinetwork Plant Capital Spending

Section 9: U.S. Competitive Environment, 1997-2022

Table 9-1: Share of U.S. Cabinetry Shipments For the Top Companies
Table 9-2: Share of U.S. Cabinetry Market Supply by Leading Competitors
Table 9-3: Public Company Financial Trends

ABSTRACT FOR THE CATALINA REPORT ON CABINETS AND COUNTERTOPS

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 remodeling 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 our analysis, Catalina 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

Catalina Research 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

Catalina analyzed U.S shipments and imports for cabinets and quartz countertops. Catalina calculated share of the leading countries of origin. For quartz countertops, Catalina 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

Catalina 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.

PROFIT MARGINS AND THE COMPETITIVE ENVIRONMENT

Catalina Research examined the cost structure and profitability of U.S. cabinetwork plants. Data trends are compiled for labor, material, and capital inputs. As part of this analysis, Catalina Research uncovered the manufacturing and marketing strategies for the leading competitors. Sales data was compiled in order to calculate leading cabinet maker market shares. The countertop competitive environment is also evaluated.

Report Number: KB114                                        Published: May 2022