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The North American Kitchen and Bath Market: Opportunities and challenges for Spanish manufacturers
Dec 02 24

The North American Kitchen and Bath Market: Opportunities and challenges for Spanish manufacturers

The North American kitchen and bath market, valued at approximately $175.4 billion in 2024, is experiencing a slight contraction of -1.9% compared to the previous year. Nevertheless, it remains a resilient sector with strong potential for medium-term recovery. Below, we analyze the main characteristics of this market in 2024 and the opportunities it offers to Spanish companies in the sector.

Insights from the webinar “Kitchen & Bath Sector in the U.S. and KBIS 2025”

During the webinar organized by amec ascon and the National Kitchen and Bath Association (NKBA) on November 26, key challenges and opportunities for Spanish companies looking to access the North American market were discussed. The event highlighted several critical market insights:

  1. Steeper decline in the new construction market
    Approximately 61.8% of kitchen and bath spending is concentrated in new construction, representing $108.4 billion in 2024. This segment has contracted by -2.1% and is marked by the trend toward smaller homes. This reflects a preference for more affordable, energy-efficient, and environmentally friendly housing, tailored to the needs of individual buyers, who now make up 30% of the market.
  2. Stronger performance in the remodeling market
    The remodeling market, which accounts for 38.2% of kitchen and bath spending ($67 billion in 2024), has experienced a contraction of -1.7% this year. Growth in this segment is expected to be driven by future remodeling in new homes, fueled by an increase in entry-level homes with lower-end finishes, quick-move-in homes, and pre-curated designs. This will create pent-up demand for upgrades and remodeling.
  3. Demand for differentiated finishes
    U.S. consumers increasingly value products that combine aesthetic design, quality, functionality, and sustainability. Spanish companies, known for their innovative and high-quality finishes, have a competitive edge in providing solutions that promote energy efficiency, reduce maintenance costs, and minimize environmental impact.
  4. Impact of mortgage rates:
    High mortgage rates, which “lock” homeowners into their current residences, are driving the trend of investing in remodeling rather than moving. This behavior boosts demand for premium materials and durable solutions that enhance property value.

Outlook for 2025

The webinar also highlighted expectations for economic stabilization in 2025, with projections of moderating mortgage rates in the medium term and an increase in early remodels. Consumers are likely to continue prioritizing home upgrades, strengthening demand in the kitchen and bath segment.

Opportunities for 2025

  • Factors such as the growth in remodeling activity and the generational transfer of wealth, estimated at $68 trillion, position the sector as a fertile ground for growth.
  • Participation in International Events: Attending fairs such as KBIS 2025, where figures are expected to surpass those of 2024 (117,000 visitors and over 1,800 exhibitors during Design & Construction Week, and 56,000 visitors and over 670 exhibitors during KBIS), is a strategic tool. Additionally, the collaboration between amec ascon and NKBA helps Spanish companies gain visibility and establish key connections with designers, distributors, and retailers.
  • For 2025, amec ascon, as an ICEX-accredited collaborating entity, will once again offer support under its sectoral plan, providing companies with up to 40% assistance for space rental and decoration costs.

 

Challenges for 2025

  • Compliance with increasingly strict environmental regulations.
  • Overcoming tariff, logistical, and distribution barriers in a vast market like North America.
  • Differentiating in a competitive environment, where innovation and design will be essential.

Conclusions

The North American kitchen and bath market represents a significant opportunity for Spanish manufacturers. Success will depend on combining innovative design, sustainability, and active participation in international events, enabling greater penetration and consolidation in this highly competitive market.

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