The global countertop market size was valued at USD 125 billion in 2022 and is expected to reach USD 163.37 billion by 2028, growing at a CAGR of 4.56%. The demand is driven by the growing preference for larger kitchens and multiple bathrooms, increasing food establishments, and rising global hotel room inventory. Notably, the countertop market experienced significant expansion even during the pandemic. This growth trajectory persists due to heightened personal investments in home upgrades and a consistent upswing in the worldwide residential construction sector.
Countertops are essential fixtures in kitchens, bathrooms, laboratories, and retail spaces, functioning as practical work surfaces or stations. The versatility in the countertop market is evident across various sectors, including laboratories, retail environments, workspaces, and bathrooms. These surfaces are crafted from diverse materials chosen based on their utility, durability, aesthetics, and specific requirements, such as accommodating built-in appliances for specialized applications. Countertops are a customary addition to new homes and kitchen remodels, exemplified by statistics from Urban Development, the U.S. Department of Housing, and the U.S. Census Bureau. Notably, in November 2022, annual housing completions surged by 10%, following a 6% annual increase in October 2022.
Additionally, the increased credit availability for home renovations through bank lending and mortgage refinancing propels the countertop market. A Discover survey in March 2022 shows that around 79% of homeowners prefer renovating their existing homes rather than relocating. This trend is anticipated to further bolster the home improvement market, especially with approximately 58% of millennial and Gen Z homeowners actively engaging in or planning home improvement projects.
The countertop market in North America is witnessing strong growth, majorly due to the increasing importance of utility spaces in the construction industry. Unlike in developing countries, countertops are widely used in kitchens and bathrooms in developed markets, such as North America. Vendors in the countertop market increasingly emphasize enhancing countertop quality and efficiency. Hence, these countertop applications are gaining momentum among residential and commercial end-users. Countries like the United States and Canada are currently observing a surge in construction activities and a rise in the completion of housing projects. This surge is expected to drive the demand for countertop products significantly.
The countertop market growth is spurred by the swift progress of emerging economies such as China, India, and Brazil, generating an increased desire for countertop products. Leading players in the industry are also adeptly utilizing customer-focused marketing strategies to drive expansion. As an illustration, Caesarstone has innovatively unveiled novel concrete materials as part of its Metropolitan Countertop Collection, including Cloudburst Concrete 4011 and Airy Concrete 4044. Distinguished by their gentle edges and light visual patterns, these materials are tailored for application in kitchens, bathrooms, and office environments.
MARKET TRENDS & OPPORTUNITIES
Emerging Demand For Smart Materials
Smart materials possess both inherent and extrinsic qualities that demonstrate adaptability and ingenuity. Progress in material science has facilitated the expansion of this market, giving rise to smart materials such as photovoltaic-integrated electrochromic devices. These materials cater to intelligent applications with specific purposes that were previously challenging to achieve using conventional materials like polymers, plastics, metals, glass, and ceramics.
Given the rapid advancement of novel technologies, smart countertops are swiftly transitioning into commonplace household items. A significant avenue for innovation that natural stone countertops introduce is their potential for seamless integration with mobile devices. This concept aligns with the overarching notion of the "Internet of Things," where everyday objects are equipped with digital components to connect to the Internet and engage with end-users. This integration opens doors for enhanced interconnectivity and interaction.
Rising Demand For Durable Laminate Countertops
Laminate countertops are a type of countertop made from a combination of materials, usually a plastic surface with a paper or fabric backing. The top is then covered with an adhesive and pressed onto a substrate, such as particleboard or plywood. Laminate countertops are often chosen for their affordability and durability. Over the forecast period, the increasing demand for energy-efficient products will drive laminate countertop market demand in kitchen applications. Furthermore, rising consumer expenditure on remodeling their kitchens according to contemporary designs will likely fuel industry expansion over the next years.
INSIGHTS BY MATERIAL
The global countertop market by material types includes granite, solid surface, quartz, marble, and other materials. The granite material sector asserted its dominance in the industry, commanding a significant share of over 38% in 2022. This supremacy can be attributed to the growing demand for granite as a preferred choice for countertops. The material's inherent strength, abrasion resistance, and impressive durability against weathering have positioned it not only as an exterior cladding and paving option but also as a favored selection among contemporary architects. This trend is anticipated to drive the segment's growth throughout the forecasted period, solidifying granite's status as a reliable and favored material in architectural pursuits.
In contrast, the engineered quartz segment is poised to exhibit a steady and incremental compound annual growth rate (CAGR) from 2023 to 2028. The increasing favorability of quartz among consumers, particularly for kitchen and bathroom fixtures, is projected to play a pivotal role in propelling this segment forward. The rising demand for environmentally-conscious countertop materials further increases the interest in engineered quartz. The National Institute for Occupational Safety and Health (NIOSH) also conducted an in-depth study focusing on crystalline silica stone, known as quartz. This research has spurred the development of preventive measures to curtail its use due to its potential respiratory health implications.
INSIGHTS BY APPLICATION
The kitchen application segment held the largest global countertop market share in 2022. Projections indicate that this segment will remain prominent throughout the forecast period. The escalating demand for countertops in kitchen spaces is a pivotal factor driving the robust growth of the kitchen countertop market. Furthermore, an upward trend in the average proportion of living spaces dedicated to kitchens in new residential constructions is anticipated to amplify further the segment's expansion trajectory over the projected period.
Conversely, the bathroom application segment is poised to experience the most rapid CAGR over the forecast period. The increasing prevalence of bathroom-related activities in the residential sector and consumer willingness to opt for more upscale materials such as engineered stone and granite to elevate home standards is accelerating the segment's advancement. Additionally, the escalating pace of hotel construction and the remodeling of hotel rooms, including bathrooms, are key drivers propelling the growth of the bathroom countertop market throughout the anticipated period.
INSIGHTS BY END-USER
The residential end-user segment held the largest portion of the global countertop market in 2022 and is anticipated to experience consistent growth at a steady CAGR. The escalating preference for larger kitchens and multiple bathrooms in single-family dwellings within developed nations is a driving force behind the expansion of this segment. Additionally, as homeowners make greater investments in home renovations due to the appreciation of property values, the growth of this sector is being propelled.
Concurrently, the commercial sector is predicted to exhibit swifter growth. The burgeoning global count of hotels, restaurants, bars, and cafes hastened the demand for the product within the commercial realm. Moreover, the rising desire for upscale kitchen and bathroom designs, even within budget-oriented hotels, is exerting pressure on luxury and mid-tier hotel proprietors. These establishments enhance their finishes, countertops, and furnishings, introduce new features, and reimagine the guest experience. This concerted effort is poised to drive growth for the commercial countertop market throughout the projected timeframe.
The Asia Pacific region asserted dominance in the global countertop market, securing the largest portion of the overall revenue, exceeding 30% in 2022. This substantial share can be attributed to elevated living standards and ongoing initiatives to enhance residential and non-residential building structures. Furthermore, the persistent popularity of countertop replacement as a home improvement practice is set to act as a driving force propelling the countertop market forward. Additionally, heightened consumer interest in materials like porcelain slabs, engineered stone, and butcher-block countertops is expected to augment product demand. This interest stems from a desire to transition from laminates and solid surfaces to more aesthetically pleasing and naturally textured surface materials.
The MEA region is anticipated to experience the second-highest growth rate in the global countertop market. This expansion can be attributed to the thriving hospitality sector and a growing inventory of hotel rooms. Moreover, the region's accelerated growth is propelled by a surge in product demand from coffee shops, bars, restaurants, and other commercial settings. Further, other key regions, including Europe and North America, are anticipated to grow significantly during the forecast period. These regions are poised to witness substantial market expansion driven by various factors, thus contributing to the overall dynamic growth of the countertop market.
The global countertop market landscape analyzed showcases a considerable degree of fragmentation, characterized by the involvement of numerous manufacturers within this industry sector. Among these participants, notable entities in the global countertop market include Cosentino SA, Cambria, Wilsonart LLC, Caesarstone, Formica, and Masco Corporation. Notably, key players in this arena have proactively embraced strategic measures, encompassing mergers and acquisitions and introducing new products. These strategic maneuvers are orchestrated to bolster their market presence, optimize distribution networks, and capture an expanded global countertop market share.