Sunday 28 February 2021

Increases to be growth in developing regions

Cabinets demand to hit $64bn, up 5.5pc per year

DUBAI, March 4, 2015

The demand for cabinets worldwide is set to reach $64 billion in 2018, on advances of 5.5 per cent per year, according to a new study.

‘World Cabinets,’ the study from the Cleveland-based industry market research firm The Freedonia Group, said that increases will be driven primarily by robust growth in developing regions, as cabinets increase their market penetration in residential markets at the expense of other storage options such as freestanding furniture and shelves.  

An additional boost to global expenditures on cabinets will come from a recovery in demand in developed countries, where building construction was depressed as many countries faced economic downturns, it said.

The cabinet sales in the Asia/Pacific region, the largest regional consumer, are expected to reach $20 billion in 2018, nearly one-third of the global total.  

The region will also see the fastest regional growth, at 7.3 per cent per annum through 2018, fueled by rapid demand growth in developing countries, primarily China and India.  

China is expected to continue to see the fastest increases in cabinet demand of any country, surpassing Japan to become the second largest global cabinet market.  Rapid growth in installations of cabinets in new and existing homes, as well as in nonresidential buildings, will support the robust demand growth in China.  

The United States, the world’s largest market for cabinets, will see strong increases in demand through the forecast period.  In addition to stronger construction activity, interest in more expansive kitchen and bathroom designs will boost unit demand for cabinets in the US, while rising interest in premium features and finishes will support value growth.  

Meanwhile, Western Europe, the largest regional market for cabinets in 2013, is expected to recover from the declines suffered during the economic recession, with cabinet sales reaching $17.5 billion in 2018.  

However, by that year it will be surpassed by both the Asia/Pacific region and North America, which can expect more rapid growth, said the report.

Western Europe’s intensive cabinet use and continued interest in high-end features will support the recovery in demand in spite of expected stagnating housing completions in some countries, it added. - TradeArabia News Service

Tags: Cabinet | increase | demand | world | boost | advance |

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