CHICAGO, Feb. 29, 2024 (GLOBE NEWSWIRE) -- CHICAGO — Feb. 29, 2024 — In 2023, kitchen and bath purchases accounted for 13% of U.S. home improvement retail spending. Year-over-year retail sales revenue from kitchen and bath products grew 5%. As core consumer segments allocated their spending elsewhere, spending on many kitchen-related segments declined, but there was slight growth in categories like vanities, bathtubs, whirlpools, and tub and shower surrounds last year, according to Circana™, the leading advisor on the complexity of consumer behavior.
“Amid economic challenges and following a bathroom boom during the pandemic, consumers have scaled down their home improvement efforts,” said Joe Derochowski, home industry advisor at Circana. “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.”
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 a 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.
“There is pent-up demand that will bring opportunity for spending on larger home improvement projects over the coming year as the economy improves,” added Derochowski. “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.”
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About Circana
Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand and outpace the competition. Learn more at www.circana.com.
