Modular Home Organization Products

Report Overview

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This study analyzes the US market for modular home organization units (e.g., closet and garage organization kits or systems) and various components (e.g., cubes, drawers, bins, open racks, shelves, and rods). This includes purchases made by consumers, including those intended for use in self-storage facilities. Garage cabinets are included only if they are part of a garage modular system.

Sales of products to self-storage facility operators and any other nonresidential end users are not included. Also excluded are:

• conventional cabinets, including kitchen cabinets with open shelving
• food storage products
• furniture, including outdoor furniture and bookcases
• laundry baskets
• office products
• preinstalled accessories
• tool storage
• waste baskets and recycle bins

Office products are also excluded from this study, as it is difficult to know the final end use for these items. However, products that turn non-office rooms into multifunctional spaces would fall into the scope.

Sales of modular home organization products are examined by product and market in US dollars at the manufacturers’ level, unless noted otherwise. Historical data for 2010, 2015, and 2020 and forecasts for 2025 and 2030 are presented in current dollars (which are not adjusted to account for inflation).

Sales data are presented by material, room, and installation type.

Material segments include:

• metal and wire, including plastic coated wire
• plastic
• wood and laminate, including solid wood and laminate-covered engineered wood
• wicker, rattan, and other natural weaves, such as hyacinth, seagrass, and bamboo
• textiles and other materials (e.g., canvas, vinyl, glass)

Rooms are segmented by:

• closets (e.g., master, bedroom, hall, linen, coat)
• garages
• family rooms (e.g., formal living rooms, media centers, dens, playrooms, recreation rooms)
• pantries and kitchens
• bedrooms
• utility rooms, basements, and attics (e.g., laundry rooms, mudrooms, craft rooms)
• outdoor areas (e.g., decks, porches, outdoor kitchens, patios, barns, hobby greenhouses, sheds)
• bathrooms

Installation segments are do-it-yourself (DIY) and professional.

Installation Trends (DIY vs. Professional Installation)

In 2020, DIY sales of modular systems accounted for 60% of sales. While DIY modular systems outpaced professionally installed modular systems from 2015 to 2020, this is largely due to the spike in DIY home improvement activity that resulted from the COVID-19 pandemic. Looking forward to 2025, professionally installed modular systems are expected to grow more rapidly than DIY modular sales.

Through 2025, professionally installed modular systems will account for 68% of gains for modular systems, despite representing a smaller share of sales overall. Gains will be supported by strong outlooks for residential construction and home improvement activity. These systems also benefit from the fact that a number of franchises specialize in installing modular systems, including California Closets and Closet Factory.

Materials Trends

Sales of modular home organization units are expected to increase 2.9% annually through 2025 to $3.4 billion. Modular units composed primarily of metal and wire or laminate accounted for the majority of sales in 2020, and will continue to do so through 2025:

• Sales of metal modular units will be supported by growing sales of garage systems, where this material is preferred for its durability and strength.
• Modular units composed of laminate will benefit from growing consumer interest in higher-end products, supporting value gains.

Although modular units can have many configurations, the materials used to make these products tend to fall into a few different sectors on the cost and aesthetic scale. In general, materials such as plastic-coated wire and plastic are valued for their low cost and durability. These items generally have little aesthetic value and are instead focused on providing high functionality.

In contrast, higher value products made from solid wood, glass, wicker, and other less common materials typically have a much higher aesthetic value in addition to their functionality.

Mid-range products made from materials such as laminate provide a middle ground, offering some aesthetic value at a much lower cost than materials such as solid wood. Higher-end laminates are increasingly popular, and growing sales of these will support value gains.

Sales by Room

Modular units are intended to maximize organizational efficiency in relatively small areas and, as a result, closets dominate applications for modular units. In 2020, closets accounted for 58% of all modular sales and that share is expected to continue to rise due to growing consumer interest in higher-end versions with customized options and features.

Sales of modular units in other areas of the home also continue to grow, particularly as consumers with at least one modular unit decide to implement them throughout their homes.

Garages, which were the second largest outlet for modular units in 2020, continue to see the fastest sales gains of any room. Growing use of modular units in garages will result as consumers:

• use garages as additional living spaces (e.g., “man caves”) and choose modular systems to increase storage
• opt for full garage renovations and install modular systems as part of the renovation package
• who lack a basement install modular units in the garage to decrease clutter

Other areas where modular units have seen increased sales in recent years and are expected to continue to show gains going forward include:

• pantries
• bedrooms, benefiting from the expansion of “dressing areas” that encompass both closets and a section of the attached bedroom
• utility areas, such as mud, laundry, and craft rooms

Kitchens & Pantries

Demand for modular units for kitchens and pantries is projected to rise 1.9% per year to $186 million in 2025. Growth will decelerate from the 2015-2020 period, when the COVID-19 pandemic drove a surge in grocery sales and, in some cases, stockpiling, boosting demand for pantry storage products. Additionally, a rise in home cooking during the pandemic pushed more consumers to utilize their spaces and make efforts to adapt them to better fit their needs. However, some of these pandemic trends are expected to remain factors going forward, causing sales of kitchen and pantry modular organization units to experience some gains.

US demand for modular home organization units is forecast to rise 2.9% per year to $3.4 billion in 2025. Although the pace of growth will moderate from that of the 2015-2020 period (as sales were elevated in 2020 following a jump during the COVID-19 pandemic), the market will remain healthy. Through 2025, gains will result from:

• continued interest in the customizability of modular units, which allows consumers to adapt a unit to their specific needs or space limitations
• increasing awareness among both for consumers and professionals that custom modular products can increase a home’s value
• a growing preference for customized storage in utility areas (e.g., mudrooms, laundry rooms) that can utilize modular units
• growth in the construction of new homes, which often have larger closets (including master suite closets) and garages than older homes, and thus have room for modular unit installation in these spaces

COVID-19 Pandemic Drives Spike in DIY Modular Unit Sales in 2020

Modular unit sales spiked 10% in 2020, boosted by a surge in DIY home renovations during the COVID-19 pandemic, including home organization projects:

• Modular kitchen and pantry storage units benefited from the surge in at-home grocery sales and, in some cases, stockpiling, increasing storage requirements.
• Closets and garages – the two rooms that account for the largest share of modular home organization product sales – also saw strong gains as homeowners used their increased time spent at home to expand or improve their storage capabilities in these spaces.

Following the Pandemic, Professional Sales Will Outpace DIY Sales

As consumers resume lifestyles more similar to those they engaged in before the pandemic, professional installations will outpace DIY installations. Through 2025, professionally installed modular systems will account for 68% of market value gains, supported by:

• a rebound in professional projects, which experienced greater disruption in 2020
• the convenience and generally higher value of comprehensive installations offered by a number of franchises, including California Closets and Closet Factory, which specialize in installing modular systems for consumers

Closets & Garages Continue to be Leading Locations for Modular Organizational Products

Because modular units are intended to maximize organizational efficiency in relatively small areas, closets dominate modular home organization product sales. This application will expand its lead through 2025 due to growing consumer interest in higher-end versions with customized options and features. Increasingly considered to be seen as larger closets or additional living areas, garages also offer good opportunities, as consumers increasingly:

• use garages as additional living spaces (e.g., “man caves”) and choose modular systems to increase storage
• opt for full garage renovations and install modular systems as part of the renovation package