High Prices Not Hindering Kitchen, Bath Product Sales

Escalating prices have had little impact on consumer demand for core kitchen and bath improvement products through much of the pandemic, says an NPD Group survey. In 2021, the average selling price of products related to kitchen and bath home improvements increased five per cent and unit sales rose 15 per cent. The trend began to equalize toward the end of 2021, with an eight per cent fourth quarter increase in both average selling price and unit demand compared to the prior year. Early 2022 results illustrate a more traditional correlation between prices and demand, with an eight per cent increase in average prices and a two per cent decline in unit sales in February. Faucets and sinks, the most critical kitchen and bath items, appear to have been affected more by demand than by prices. Since the beginning of 2020, these products have been in high demand with no notable price influence through most of 2021. However, a new trend appeared in January and February 2022 as unit sales of both faucets and sinks took a downturn as prices continued to rise. The same demand dynamics did not exist for products like bathtubs, whirlpools, and garbage disposals. Demand for bathtubs and whirlpools was extremely low in 2020, despite a massive decline in prices. Things changed in 2021, when prices rose by double-digits, causing unit demand to decline further.