Editor’s note: This story was updated on Feb. 29, 2024, with new data released today from Circana.
CHICAGO — Consumers have grown more cautious in their kitchen and bathroom spending as they allocate their money elsewhere, according to a new report from the market research firm Circana. But there was slight growth in bathroom-related products, and many are taking on home improvement projects themselves.
In 2023, kitchen and bath purchases accounted for 13% of U.S. home improvement retail spending. Year-over-year retail unit sales and revenue from kitchen and bath products grew 5%. Spending on many kitchen-related segments declined. There was slight growth in categories like vanities, bathtubs, whirlpools and tub and shower surrounds last year, but core consumer segments allocated more of their spending elsewhere, according to Circana.
“Amid economic challenges and following a bathroom boom during the pandemic, consumers have scaled down their home improvement efforts,” said Joe Derochowski, Circana’s home industry advisor. “Major home renovation projects are on hold as consumers watch their finances, but they still have an appetite for lower-cost improvements they can do themselves.”
Circana highlighted two other key findings:
Price remains a concern. Overall, home improvement retail spending increased 2% in 2023 compared to the prior year but was 6% above 2020. When compared to 2020, unit sales in the retail kitchen and bath home improvement segment this past year were 6% lower, with an 18% increase in retail sales revenue.
The core consumer for major home improvement projects has been spending differently. In 2023, 35- to 54-year-old home improvement buyers spent 1% less on the industry than in 2022, while the average for all other age groups grew 3%. Additionally, 35- to 45-year-old home improvement buyers allocated less of their overall home improvement spending to things like lumber, power tools, drywall/gypsum board and toilets. Kitchen and bath consumers in this age group spent a larger percentage of their money on lawn and garden and hardware products, Circana said.
“There is pent-up demand that will bring opportunity for spending on larger home improvement projects over the coming year as the economy improves,” Derochowski said.
“In the meantime, the kitchen and bath industry can leverage education around cost-effective approaches to inspire the consumer to engage in DIY activity that makes them feel good about the space.”
See also:
Growing from adversity: Home industry pros predict 2024 rebound