2023 Survey Summary: Kitchen & Bath Industry Outlook

In 2023, the Kitchen and Bath China conducted a survey among business owners in the kitchen and bath industry. The collected data from 264 respondents across 57 countries and 5 continents: North America, Europe, Asia, Australia and Africa, sheds light on the current economic situation and challenges in the industry.

Respondent Demographics

The majority of responses, over 98%, came directly from our target audience - companies within the the kitchen and bath industry. Respondents represented a broad range of sectors, with a dominance of the manufacturing (54.5%), construction (25%), wholesale (22%), retail (19.7%), services (11%), and hospitality (3%). *

Economic Situation Assessment

In assessing the economic situation over the last 6 months, 43.9% of respondents considered it good, 26.9% satisfactory, and 29.2% bad.

Main Business Limitations

The survey revealed that businesses are currently facing several significant challenges. The primary factors limiting their operations include:

1. Economic Policy Uncertainty (approx. 46%): Many businesses expressed concerns about the uncertainty surrounding economic policies, which can affect their decision-making and long-term planning.
2. Insufficient Demand (29.2%): Some businesses reported a lack of demand for their products or services, which can result from various economic factors, including consumer behavior and market conditions.
3. Material and Equipment Shortages (26.5%): Shortages of essential materials and equipment have been a hindrance to smooth business operations, potentially leading to production delays and increased costs.
4. Financial Constraints (25%): Financial challenges, such as limited access to capital or high operational costs, have been a significant obstacle for businesses trying to expand or sustain their operations.
5. Labor Force Shortage (approx. 24%): A shortage of skilled labor has made it difficult for companies to find and retain qualified employees, impacting their ability to meet workforce demands.
6. Uncertainty about industry regulations & standards (11.4%): This factor reflects the challenges businesses face in adapting to evolving regulatory measures. This uncertainty can hinder strategic planning and investment decisions, impacting competitiveness and growth. *

Risk of Rising Raw Material Costs

Respondents' opinions on the risk of rising raw material costs in 2023 vary:

• 38.3% see it as "slightly negative," indicating minor concern.
• 37.1% are "neutral," suggesting a balanced outlook.
• 26.1% find it "significantly negative," indicating substantial concern.

These responses are shaped by various factors, including the predominant industry profile, for example manufacturers show a heavy reliance on raw materials. External elements like supply chain disruptions and inflation also play a role in how respondents perceive the impact of rising raw material costs in 2023.

Materials Procurement

The survey's findings on material procurement strategies reveal a strong preference for local sourcing, with almost 40% of respondents favoring this approach. Additionally, China emerges as a significant source for materials at approx. 27%, followed by Europe at 18.5%, North America at approx. 6% and South America approx. 3%.

This data underscores the diverse sourcing strategies within the kitchen and bath industry, highlighting the importance of local procurement for a majority of businesses. The reliance on China and Europe as key material sources further reflects the global nature of supply chains in the industry.

Trade Show Attendance Plans

The survey data reveals a significant interest in major events like ISH in Germany (20.8%), Cersaie in Italy (approx.13%), KBC, (approx. 12%), KBIS USA ( approx. 10%) and CEVISAMA Valencia, Spain (0.8%).

Attending trade shows is essential for businesses aiming to grow. They offer a platform to discover market trends, engage with customers, and understand their needs. These events are particularly vital in the kitchen and bath industry for learning and networking. Strengthening your market position and capturing global opportunities often begins with participation in these events.

Kitchen & Bath China, chosen as the third most popular by our survey respondents, is a standout trade show, giving everyone the chance to meet industry leaders and start new partnerships that can help grow their business. It's a great chance for both people showing off their products and those coming to see what's new to dive into the latest innovations.

We're inviting both exhibitors and visitors to join us, underlining the show's importance in making industry connections and finding opportunities for growth.

EXHIBIT AT?KBC 2024??https://kitchenbathchina.co/participation/

FREE VISITOR TICKET??https://kitchenbathchina.co/registration/

Conclusion

The survey findings demonstrate that despite economic challenges, the kitchen and bath industry remains resilient, with a strong emphasis on local purchasing and adaptation to changing market conditions. The Kitchen & Bath China trade show continues its role as a key meeting place for professionals worldwide, offering a platform for showcasing innovations and forging business connections.

The Kitchen & Bath China team sincerely thanks all survey participants for their valuable insights and time. Your support has been crucial to our research!

??What's your outlook on the kitchen & bath industry for 2024? Let us know!

*The survey question was open-ended, allowing respondents to choose from multiple-choice answers.