U.S. Faucet Market Size, Share & Trends Analysis Report By End User (Residential, Commercial), By Application (Kitchen, Bathroom), By Distribution Channel (E-commerce, Multi-brand Retailers), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The U.S. faucet market size was valued at USD 3.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. The rapid growth of the bathroom fittings industry is presenting lucrative opportunities for faucets as a result of the rising demand for modernized bathrooms and kitchens. In addition, the increasing prominence of multi-functionality features on plumbing fixtures, with due importance given to aesthetic appeal is boosting demand for a variety of faucets. The need for water conservation measures is also resulting in the greater penetration of new and efficient faucets across applications.                                                           

With a nationwide shortage of housing and record-high home prices, more homeowners prefer to stay on their existing properties versus moving or upgrading to newer ones. Rapidly rising costs associated with home prices and mortgage rates are resulting in consumers increasingly investing in home improvement or home remodeling projects to revamp their traditional household structure. The growing home values have doubled the homeowner equity in the past five years since 2019. This indicates the trend of homeowners feeling richer, who are, therefore, more disposed toward spending on home improvement. According to the American Housing Survey studied by Harvard’s Joint Center for Housing Studies, the home improvement industry was estimated at USD 383.3 million in 2017.

The increasing growth rate of the industry across states is also indicating a surge in demand for home furnishings and fittings, which is expected to positively impact the growth of the market for faucets. According to the Leading Indicator for Remodeling Activity (LIRA), home improvement spending grew by 6.0% annually in 2019.

Faucets in the bathroom fittings segment have been undergoing a particularly modern transformation as an increasing number of U.S. consumers show an inclination for building luxurious bathroom settings to promote a spa-like experience at home. This ongoing demand for creating a modern and luxurious home is also the paving way for renovated kitchen settings, thereby fueling the demand for the product in kitchen applications. For instance, the Franke 3-in-1 faucet offered by Franke Kitchen Systems is designed to provide hot, cold, and distilled water to ensure the usage of pure and appropriate temperature water for various kitchen purposes.

Covid-19 has affected regions that are at the heart of many global supply chains. Wuhan is vital to many worldwide supply chains. While it has been a traditional base for manufacturing for decades, it has also become an area of advanced industrial change. Key industries comprise high technology (optoelectronic technology, pharmaceuticals, biology engineering, and environmental protection) and modern manufacturing (automotive, steel, and iron manufacturing). Concerns are growing over exhausting stock and companies worry that they will not convene contractual obligations on time. In the near time span, the cost of supplies from China is expected to surge, stemming from overtime and accelerated freight costs, along with paying premiums to buy up supply and hold capacity. Companies in the market are focusing on working via alternate sourcing approaches.

Nevertheless, most of the faucets manufactured by Kohler Co. that are marketed in the U.S. are manufactured in the U.S. at Kohler’s faucet manufacturing plant in Arkansas. The components and parts used in Kohler faucets were then manufactured mainly in the U.S. For the past few years, however, they have been manufactured in other countries, mainly in China and India. However, amidst the COVID-19 impact, the company is expected to resume its manufacturing facilities for faucet parts and components in the U.S. itself owing to logistics and supply chain disruptions.

Distribution Channel Insights

In terms of revenue, the multi-brand retailer segment dominated the market and accounted for the largest share of 58.5% in 2020. This high share is attributed to the fact that multi-brand retail stores are the most preferred distribution channel owing to their provision of detailed instructions about installation by product specialists. Furthermore, corporate firms, government organizations, and large builders prefer direct association with faucet manufacturers. For this purpose, annual contracts and tenders are released for a continuous supply of faucets. As these B2B sales require proper interaction for a better understanding of minute details, offline sales for commercial applications have been dominating the market.

The e-commerce segment is estimated to be the fastest-growing segment, ascending with a CAGR of 6.1% over the forecast period. The e-commerce distribution channel is witnessing momentum as the market players are focusing on the marketing of their products through various digital media platforms. The most commonly used digital mediums are social media accounts or pages, and brand websites. They enable manufacturers to reach out to a wider audience and are cost-effective, which is expected to fuel the growth of this segment.

E-commerce distribution channels are hosted by businesses that are involved in e-commerce as well as manufacturers who have realized the potential of the channel and thus hosted their shopping websites to better cater to customers’ needs. Wayfair LLC; Hausera; Faucet Depot; Overstock, Inc.; SUPPLY.com; and Amazon.com, Inc. are some of the major e-commerce sellers of faucets for kitchens, bathrooms, and other applications.

Application Insights

In terms of revenue, the bathroom segment dominated the market and accounted for the largest share of 48.5% in 2020. The demand for faucets for bathroom applications is driven by the growing hospitality industry along with the growing real estate sector in the country. The positive outlook toward the housing sector as a result of urbanization and the rising disposable income of the population is expected to drive the demand for bathroom accessories.

Renovating bathrooms and kitchens are growing in popularity in the U.S. According to iPropertyManagment, in 2018, most homeowners spent between USD 5,000 and USD 10,000 upgrading their homes, and those in densely populated areas and metropolitan areas spent close to USD 18,000. Increasing expenditure on bathroom fixtures is estimated to boost the demand for faucets in bathroom applications.

The kitchen segment is estimated to be the fastest-growing segment, ascending with a CAGR of 5.6% over the forecast period. The increasing adoption of high-tech faucets is supporting the growth of the segment. According to Houzz, 57.9% of the homeowners had updated kitchen faucets as part of a completed, current, or planned 2018-19 kitchen renovation. Out of these, 30.0% opted for water-efficient faucets, 24.0% opted for no fingerprint coatings faucets, and 22.0% preferred touch-only faucets. The growing adoption of pull-out and pull-down faucets in order to achieve maximum reach and increase flexibility drives the demand for kitchen faucets among millennials.

End-user Insights

In terms of revenue, the commercial segment dominated the U.S. faucet market and accounted for the largest revenue share of 67.1% in 2020. This high share is attributed to the prominent demand for top-notch restroom-related facilities in malls and shopping complexes to make customers feel pampered and special. Commercial places include hotels, restaurants, hospitals, public washrooms and toilets, malls and shopping complexes, airports, railway stations, and other recreational and utility areas. Significant expansion of the commercial sector is expected to drive the market demand in the near future.

Faucets enabled with touch technology are highly popular in commercial places such as shopping mall restrooms, high-end office spaces, and cinema halls. These faucets help in water conservation and also enhance the aesthetics of the washrooms or restrooms. Also, even if the sensor fails, it can easily be switched to manual mode.

The residential segment is estimated to witness a CAGR of 4.4% over the forecast period. High spending on household accessories by younger house owners is driving the residential segment. The demand for faucets in the residential sector is driven by growing urbanization and increased spending on home remodeling. The increasing number of households and rising consumer demand for premium kitchen and bathroom fixture products that serve the purpose as well as compliment the interior are driving the demand for faucets in the residential sector.

Modern urban lifestyle, along with smart, upgraded, and visually appealing product innovations by key industry participants, drives the adoption rate of premium and luxury faucets among consumers. The growing trend of home remodeling also drives the demand for faucets. According to the Joint Center for Housing Studies of Harvard University, the home remodeling market in the U.S. was valued at USD 425.0 billion in 2017.

Regional Insights

The western region of the U.S. dominated the market and accounted for the largest revenue share of 24.3% in 2020. The housing market in the U.S. is growing continuously. Most first-time homebuyers in the region and throughout the country prefer staying in rented houses. As house prices are skyrocketing, the rented housing market is witnessing considerable growth, giving rise to increased spending on residential renovations, repairs, and upgrades. This, in turn, is expected to catapult the demand for faucets in the western region of the U.S.

The northeast region is estimated to witness a CAGR of 5.3% over the forecast period. Rapid expansion in the commercial sector in the region is expected to contribute majorly to the demand for faucets in the market. Upcoming construction activities in the region are likely to include small and medium-sized projects and a limited number of large establishments. Moreover, in the residential market, homeowners are investing in their comfort and convenience. Hence, the demand for faucets will also be boosted by a high-level interest in bathroom and kitchen renovation projects.

Key Companies & Market Share Insights

The key players account for a significant market share and have a strong presence across the country. Moreover, the market comprises small to midsized players, who offer a selected range of faucets and mostly serve local customers. In order to bolster their brand visibility, gain new customers, and drive revenue growth, several faucet manufacturers in the U.S. are participating in national as well as international events. For instance, in January 2020, Delta Faucet Company launched its new collections and technologies at the 2020 Kitchen and Bath Industry Show (KBIS) in Las Vegas, United States. The company’s new products and technologies on display include Coranto Kitchen Collection, Emmeline Kitchen Collection, Delta Glass Rinser, Kayra Bath Collection, and Trillian Bath Collection. Some of the prominent players in the U.S. faucet market include:

• Kohler Co

• Kraus, USA

• American Standard Brands

• GROHE America Inc.

• Pfister

• Delta Faucet Company

• Moen Incorporated

• AquaSource Faucet

U.S. Faucet Market Report Scope

Segments Covered in the Report                                                                                                   

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the U.S. faucet market report on the basis of end-user, application, distribution channel, and region:

• End-user Outlook (Revenue, USD Million, 2016 - 2028)

  • Residential

  • Commercial

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Kitchen

  • Bathroom

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • E-commerce

  • Multi-brand Retailers

  • Local Plumbing Supply Stores

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • Northeast

  • Southwest

  • Midwest

  • West

  • Southeast