Kitchens are a popular space for homeowners to focus their attention, even during market contraction, when they are looking to refresh their residence.
These rooms get plenty of daily use from a variety of family members, in addition to serving a number of important purposes. Not to mention, they include several major appliances; plumbing and electrical components; and other fixtures and features.
They must be well-maintained and occasionally touched up to ensure optimal functionality and appearance. Additionally, kitchen remodeling can improve both the value and livability of a home. Consequently, there is a healthy market for building products and supplies used in these types of home improvement activities.
Kitchen remodeling projects involve the purchase of multiple product categories, including plumbing components and supplies; cabinets and countertops; appliances; light fixtures; paint; flooring; and building materials.
They also cover a wide range of activities, from small touch ups and repairs to major remodels and expansions. Both professional contractors and DIY homeowners are actively involved in the market for relevant products and materials.
When it comes to consumers, the markets for several of the major product categories involved in kitchen remodels are expected to decline in 2023 and 2024, and then rebound from 2025 to 2027. This includes paint and preservatives; plumbing fixtures and supplies; kitchen cabinets and countertops; and doors and molding. On the other hand, the market for hard-surface floor coverings is projected to continue growing among homeowners and DIYers from roughly $7.6 billion in 2023 to $21.6 billion in 2027.
The pro market for kitchen remodeling products is a bit more optimistic. Many of the main categories — after experiencing a negative change in 2023 — will experience rebounding growth beginning in 2024 and through 2027. Additionally, professional remodeling activity will contribute to ongoing growth in the plumbing supplies market, as demand for repairs and replacements remains steady.
The median spending for dining rooms and breakfast nook improvements was about $500 in the second quarter of 2023; median spending for kitchen projects was approximately $1,200. Major household appliances—including refrigerators, ovens, and dishwashers — tend to be linked to the highest average annual spending among relevant product categories.
Many homeowners see their kitchen as the heart of their home. It is a hub for gathering, eating, cleaning, and socializing. Remodeling enables them to maintain this space and ensure it continues to be a reflection of their current lifestyle.
As the housing market becomes tighter, homeowners may choose to stay in their existing residence for longer — while they wait for a new residence to become available. Repairs and renovations, particularly in a kitchen space, make that doable. Homeowners can extend the lifespan of their property, or at least its suitability for their needs, by updating various features for convenience, comfort, and functionality.
In a similar vein, new and first-time homeowners have less selection among housing inventory in the current market. As a result, they may choose a property that doesn’t quite check off every box, and then do home improvements, like kitchen remodels, to make it a better fit.
When it comes to kitchen remodeling and repairs, a majority of projects are DIY. We’re seeing more homeowners tackling DIY projects for their dining rooms and kitchen nooks, or about 46 percent in the second quarter of 2023 compared to 39 percent in the same quarter in 2022. Meanwhile, for kitchen remodeling, the rate for DIY projects has remained somewhat consistent — or 43 percent in 2023 compared to 42 percent in 2022.
About 30 percent of homeowners hired a professional for their dining room or breakfast nook project in the second quarter of 2023, and approximately 34 percent hired a professional for their kitchen remodel. There’s also a significant portion of kitchen and dining room projects — or about a quarter — that involve some DIY work and some professional contributions.
Painting tends to be the most popular task involved in kitchen remodeling, as well as dining room/breakfast nook projects. It is included in about 48 percent of projects, which heightens the demand and purchase incidences for paint and sundries. Installing, replacing, or repairing flooring is also common.
Notably, for dining room and kitchen nooks, several tasks saw significant increases in the second quarter of 2023 compared to the second quarter of 2022, including: installing, repairing, or replacing molding or baseboards; installing, repairing or replacing windows; and installing, repairing, or replacing closet doors.
For manufacturers of kitchen remodeling products and materials, it’s crucial to keep track of market and consumer trends and projections, and then respond accordingly.
For example, despite the proliferation of online options and digital shopping, people still tend to prefer in-store visits to pick out materials and products for many of their home improvements. In fact, a majority of both plumbing and kitchen product purchases are made in store, or 72 percent and 67 percent, respectively. Another 19 percent of plumbing products are purchased online and 9 percent through a home improvement professional. About 22 percent of kitchen products are purchased online and another 11 percent through a professional.
About 69 percent of in-store purchases for plumbing products take place at home centers; the rest are split somewhat evenly between department/discount stores and warehouses. It’s a similar story for kitchen products, with 76 percent of in-store purchases taking place at home centers; 6 percent at lumber yards and building supply stores; and 5 percent through warehouse memberships.
These sales channels must continue to be cultivated and supported to ensure you are reaching your target audience with your kitchen remodeling products and materials.
Another trend for manufacturers to be aware of is the average timeline from project conception to completion, as that may influence your marketing, advertising and business development strategies for a successful 2024. Typically, the idea to do a kitchen remodeling project arises during the first quarter of the year, following the winter holidays. About 39 percent of homeowners decide to pursue a project in the first quarter and about 30 percent make the decision in the second quarter of the year.
Kitchen projects typically begin from March toJuly, and they take an average of five to seven months to complete. That means a majority are completed in July and August.
This gives building product manufacturers insight for strategizing marketing and advertising activities, as well as when demand for products is likely to be highest, according to the average project cycle.
As a building product manufacturer, it’s important to know what trends and consumer behaviors are affecting the market for home improvement activities, such as kitchen remodeling. This includes insights into the size of the market, where and how industry professionals and consumers are shopping for materials, and what projects are started when and why. The Home Improvement Research Institute provides it’s members access to a wide range of data and insights about customer behaviors, channel preferences, and product selections to help inform your business strategies and key decision-making.
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