US Demand for Countertops to Reach 810 Million Square Feet in 2019

September 17, 2015 (Investorideas.com stocks newswire) Demand for countertops in the US is forecast to increase 4.2 percent per year to 810 million square feet in 2019, valued at $29.3 billion.

Growth will be propelled by a rebound in new building construction activity as well as increased spending on improvement and repair of existing structures. Value gains will also receive a boost due to a shift in the product mix from laminates to higher priced alternative materials. The health of the residential market is critical to the countertop industry as it typically accounts for about four-fifths of countertop demand. These and other trends are presented in Countertops, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Engineered stone, natural stone, and various niche materials are forecast to achieve above average gains through 2019.

A drop in the average price for granite (partially due to an increase in low-cost imports) over the past decade has made this material available to a larger portion of the mass market. A moderate pricing structure and consumer preference for the appearance of stone will promote granite demand as home remodeling and new home construction ramps up. “While the continued mainstreaming of the material bodes well for overall granite countertop sales,” notes analyst Pamela Safarek, “it also suggests that high-end homes, as well as businesses, are in the process of moving on to other, less commonly used surfaces. As a result, engineered stone, natural stones other than granite, and niche materials such as various metals, concrete, and recycled materials will benefit as high-end homeowners and business owners seek novel, higher-value materials to distinguish their countertops from the mass market.”
Laminates are the largest product type, although their share of the countertop market will continue to slide due to intense competitive pressure from alternative surfacing materials. Nevertheless, laminates will maintain a significant share of the countertop market and account for over one-third of additional sales through 2019. These materials remain popular, particularly for the budget-conscious. Product developments providing a more stone-like appearance, such as high-definition graphics and complex edges, will also help to limit the decline in market share.
Investorideas.com Newswire