CAGR: 6.2%Current Market Size: USD 21 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The global modular kitchen market is expected to grow from USD 21 billion in 2021 to USD 33 billion by 2029, at a CAGR of 6.2% during the Projection period 2022-2029. The growth of this market is mainly driven by the rising middle-class population and an increase in the number of housing units.
A modern kitchen with furniture built in modules or units is known as a modular kitchen. The concept of the module is where the term "modular kitchen" comes from. They are made of tiny pieces or modules assembled to create a full kitchen. They are made out of standard-sized cabinets or storage units that have been altered to fit the size and layout of the kitchen. To accommodate diverse consumer needs, modular kitchen designs disassemble complex systems into component pieces, mimicking flexibility and agility. They often consist of a mix of base units and wall units. Compared to traditional kitchens, modular kitchens are more cost-effective, easy to maintain, and hygienic. Modular kitchens' ability to be assembled and disassembled is the main benefit. They make it possible to work effectively, even in small settings. Modern modular kitchens are well-liked due to their clean and refined finishes. Since they are made with smooth and refined edges, they are easy on the eyes. Different designs, hues, and patterns are available for the cabinets and other accessories. The market expansion in developing nations like India, Brazil, and China is being driven by rising concerns about sanitation and the use of numerous appliances. Additionally, the expansion of organized retail chains in these nations boosts brand recognition. Due to its uncluttered and subdued colour scheme, European-style products are increasingly in demand in India.
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Market Dynamics:
Drivers:
The residential sector is building more modular kitchens, which is a growing demand for modular kitchens. These kitchens are more space-efficient and operate well. Many businesses specialize in creating attractive and stylish modular kitchens. Additionally, consumers who are renovating older homes and moving into new ones favour modular kitchen options, which may support the modular kitchen market. Consequently, it is anticipated that increasing residential construction and remodelling activities will impact the worldwide modular kitchen market.
Restraints:
The availability of raw materials of varied quality and at various prices makes it very challenging for producers to produce modular kitchen goods. A manufacturer's position in the market can be significantly impacted by highly variable raw material costs and inefficient price management. The manufacturers lose money since they cannot stabilize the cost of the product due to the fluctuating price of raw materials. Various raw materials, including plastic, metal, and wood, are utilized to make the components of modular kitchens. Therefore, more raw material price volatility will result in losses for the manufacturers rather than the capacity to increase market investments.
Opportunities:
The number of individuals travelling and dining out has increased due to the expanding hospitality and food service sectors. To spur next-level growth, the top international hoteliers are growing their enterprises. The market is seeing an increase in demand for food services such as restaurants, cafes, and fast-food outlets. Additionally, expanding the number of fast-food restaurants and food markets. The demand for modular kitchens is directly impacted by how the players in the food service sector are examining ways to maximize their facilities in terms of space and efficiency while upholding proper hygiene. Living and dining areas and modular kitchens have been combined into one large area where friends and family may gather and have a good time.
Challenges:
The durability, upkeep, and lifespan of the modular kitchen are all greatly influenced by the materials utilized in the kitchen. It is crucial to choose a material that is appropriate in terms of usability, toughness, and beauty. Therefore, whether remodeling an outdated kitchen or creating a brand-new one from scratch, it is imperative to understand various materials. The longevity of the kitchen is greatly influenced by the choice of the proper base materials. Many clients prefer to choose low-maintenance materials, particularly for kitchens. Customers may choose color schemes that are less likely to discolor and require little maintenance. However, consulting an expert about suitable material and color consultations for the kitchen again would cost you more money.
Segmentation Analysis:
The global modular kitchen market has been segmented based on design, product, distribution channel, and regions.
By Design
The design segment is L Shape, U Shape, Parallel, Straight, Island, and Other. The L shape segment led the largest share of the modular kitchen market with a market share of around 7.35% in 2021. Kitchens with little space work nicely with this style. As a result of their effective floor usage and adaptable work zones, these items have significantly increased in favour of rising nuclear families with limited space. These goods typically feature distinct sections for the cooking and cleanup areas. Additionally, they are simple to incorporate into open-concept floor layouts because they maximize storage. Globally, the middle-class population is growing and is quickly embracing this economic model.
By Product
The product segment includes Floor cabinets, Wall cabinets, and Tall Storage Cabinets. The floor cabinets segment led the modular kitchen market with a market share of around 8.82% in 2021. These items' solid and strong surfaces make them a necessary component of a kitchen. Floor product also provides storage and organization for daily necessities.
By Distribution Channel
The distribution channel segment includes Online and Offline. The offline segment led the modular kitchen market with a market share of around 13.02% in 2021. Manufacturers mostly use brick-and-mortar retail, wholesale, and direct sales as their offline distribution methods. One of the key elements luring more customers to offline retailers will continue to be the large selection of goods offered in these places. Producers have been developing a hybrid business model in recent years that combines offline and internet retail.
Global Modular Kitchen Market- Sales Analysis.
The sale of modular kitchen market design, product, and distribution channels expanded at a CAGR of 3.2% from 2015 to 2021.
A growing middle-class population, an increase in the number of housing units, a decline in household size, a rise in the demand for premiumization, a shift in consumer preferences, and an increase in partnerships between contractors and developers of real estate projects are all factors driving the modular kitchen market. The market for modular kitchens is expanding as the number of nuclear families increases along with preferences for compact homes and other space-saving strategies. Customers can choose from a variety of personalized characteristics, including versatility, easy assembly, and detachability, with the modular kitchen. For instance, Indian makers of modular kitchens provide kitchens with grain and spice storage areas.
Kitchens that are modular can be made in a variety of styles and pricing points to suit a customer's needs. Modular kitchens can be customized to order based on the customer's spending limit, personal preferences, and available space. Customers can match their kitchens' colors or choose a design that runs counter to the style of their home. This helps consumers stay within their budgetary constraints while yet allowing them to customize their kitchens.
For simple use of the stove, oven, and utensils, modular kitchens offer the user comfort and convenience. They also offer plenty of room for organizing appliances. The design of modular kitchens makes them simple to maintain and clean.
Thus, owing to the aforementioned factors, the global modular kitchen market is expected to grow at a CAGR of 6.2% during the Projection period from 2022 to 2029.
Global Modular kitchen market- By Regional Analysis:
The regions analyzed for the modular kitchen market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Europe region dominated the modular kitchen market and held a 35.99% share of the market revenue in 2021.
Global Modular Kitchen Market- Country Analysis:
Germany's modular kitchen market size was valued at USD 0.4 billion in 2021 and is expected to reach USD 0.6 billion by 2029, at a CAGR of 5.9% from 2022 to 2029. Due to the market rise in both consumption and production terms. Furthermore, rising demand for modular kitchens is expected to drive the region's modular kitchen market.
China’s modular kitchen market size was valued at USD 0.28 billion in 2021 and is expected to reach USD 0.39 billion by 2029, at a CAGR of 4.5% from 2022 to 2029. Rapid urbanization along with the fast growth of the construction industry in the region.
India's modular kitchen market size was valued at USD 0.023 billion in 2021 and is expected to reach USD 0.03 billion by 2029, at a CAGR of 3.8% from 2022 to 2029. Global brands are expanding their business in this region to cater to the rising regional product demand.
Key Industry Players Analysis:
To increase their market position in the global modular kitchen business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
6.2% |
Market Size |
21 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Design, By Product, By Distribution Channel And By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Hafele, Nobia, Pedini, Lineadecor, Snaidero, Boston Cabinets, Inc., SieMatic, The Hettich Group among others. |
By Design |
|
By Product |
|
By Distribution Channel |
|
Regional scope |
|
Scope of the Report
Global Modular Kitchen Market By Design:
Global Modular Kitchen Market By Product:
Global Modular Kitchen Market By Distribution Channel:
Global Modular Kitchen Market By Region:
Global modular kitchen market is expected to reach USD 33 billion by 2029, at a CAGR of 6.2% from 2022 to 2029.
The modular kitchen market is projected to have a CAGR of 6.2%.
On the basis of distribution channels, the modular kitchen market is segmented into online and offline.
The market for modular kitchens is anticipated to be driven by consumers' rising purchasing power in both developed and developing countries like the United States, China, Brazil, and India. With more people using the internet worldwide, the majority of people are switching to online channels.
Based on product, the global modular kitchen market has been segmented into floor cabinets, wall cabinets and tall storage cabinets.
Leading market players active in the global modular kitchen market are Hafele, Nobia, Pedini, Lineadecor, Snaidero, Boston Cabinets, Inc., SieMatic, The Hettich Group.
Political Factors- The administration complies with the guidelines set forth by the World Trade Organization. Both the creation and application of policies are consistent. The country's judiciary is mostly independent regarding economic and business matters. There are several government agencies, which lowers the possibility of one agency exerting excessive pressure. On the other hand, it does lengthen the process of conducting business and raising the price of approvals and certifications. The administration is running deficit budgets at both the national and local levels, boosting the economy in the near term but could cause an increase in inflation in the medium term. Investment grade is the bond rating for the federal government.
Economical Factors- The prices of modular kitchen goods have stayed stable in the US market when compared to the amount of quantitative easing in the previous ten years. The modular kitchen should take into account the possibility of uncontrolled inflation and significant currency devaluation due to the United States deficit levels in a developing economy. Additionally, credit binge consumption was a result of rising consumption and stagnant household income in the United States. As a result of this, people no longer have enough money to save. Developing a marketing plan for modular kitchens that depends on "Purchase on Credit" consumer behaviour requires caution.
Social Factor- The society's educational level has an impact on both the standard of living and the quality of jobs. Higher incomes, better jobs, and increased spending on complicated and aspirational goods are frequent outcomes of higher education. Varied societies and cultures around the world have different views on authority. While in the west it is something to rebel against, authority is valued in Asia. Before beginning a marketing campaign for its goods and services, modular kitchens consumers should carefully assess their attitude toward authority. Understanding the nature of the social compact between the government and society is necessary before joining the modular kitchen market.
Technological Factors- The modular kitchen sector needs to examine how technology may help supply chain participants. This can benefit customers by increasing supply chain flexibility and transparency. Prior to joining the modular kitchen industry, one should pay attention to the legal framework surrounding intellectual property rights. Additionally, it is important to carefully understand the laws and cultural norms surrounding the licensing of IPR and other digital assets so that consumers can develop strategies to prevent shakedowns and IPR thefts.
Environmental Factors- Modular kitchen Consumer action in support of environmental issues must be disclosed to consumers. Customers will benefit by creating environmentally friendly products and avoiding PR stumbling blocks. National and local environmental policies can frequently diverge. This can assist the market in making a variety of decisions, including those relating to facility location, product development, and pricing strategy. This will make it easier to Amino Acid Market the nation's environmental policy.
Legal Factors- The country's data regulations must be examined by the modular kitchen market players to see what must be done to comply with them. For instance, the majority of EU nations currently only want their citizens' data to be saved there. Additionally, it's important to understand the country's securities laws and the requirements for listing a company on a national or regional stock exchange. The strength and legitimacy of the nation's institutions are frequently reflected in the judiciary's independence. Even if a nation has the best laws, they won't mean anything if they can't be applied promptly. Given the potential legal issues, Kitchen Ideas should conduct in-depth research to determine how long it typically takes to resolve a case in the nation.
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