Research shows that kitchen renovation is not only among the top three priorities of homeowners when it comes to home improvement, but it also commands a larger share of the overall expenditure within India’s home renovation market
India’s home renovation market is witnessing an upsurge in demand, which has received a further boost with the ongoing festive season in India. This trend is validated by a recent research report published by LocalCircles, which ranks home renovation and furnishing among the top three categories wherein consumers are likely to spend during this year’s festive time.
With evolving lifestyles, inclination towards aesthetics, growing aspirations and a spurt in the real estate market, home renovation according to Mordor Intelligence research has become a $30-billion industry in India and is forecast to grow at 7% over the next five years. The trends of preference for a Work-From-Home (WFH) culture, technological advancement, increase in consumers’ disposable income, and pent-up demand in real estate are driving this growth.
Renovation of the current home and purchase of a new house are the two prime situations that directly impact the home renovation or improvement industry. In this segment, functionality, home design, and look-and-feel are the high-priority aspects considered by consumers. Also, while the renovation process is underway, consumers leverage the opportunity to incorporate other aspects into the interiors, such as energy efficiency, smart technology, and green materials. With the changing times, we observe this trend getting implemented more frequently in the kitchen space.
The 2019 India Houzz & Home Renovation Trends study reveals that when it comes to home renovation, more than one-third of homeowners consider renovating the kitchen space over other rooms of the house. Let us explore these aspects and deep dive into the responsible factors.
Consumer preferences influencing kitchen renovation
The growing home renovation market is set to thrive, due to a shift in the approach adopted by companies as they respond to changing consumer preferences. Building material companies are behaving more like consumer durable marketers. This shift is triggered by shoppers becoming vocal about wanting a unique buying experience while sprucing up different areas of the house with new brands and design ideas.
The kitchen, being one of the most high-intensive areas of the house, tops the list when it comes to home improvement or renovation decisions. It is one area that offers maximum scope for innovation in terms of space organisation, integration of smart appliances and technology, unique designs, energy efficiency and much more. These are some factors that are increasing the frequency of kitchen renovation compared to other house areas.
High consumer spending on kitchen renovation
With a wide scope for renovation, the kitchen is an area where consumers do not hesitate in spending a major chunk of their money. The Houzz study says that in recent years, as far as annual renovation spending is concerned, millennials (ages 25 to 39) and baby boomers (ages 55-74) are spending more on home decoration, furnishing and renovation. Home interiors and remodelling is a big-ticket expense, hence one of the major funding sources for renovation becomes yearlong savings.
Among Indian households, the kitchen space is utilised for up to 8 to 10 hours per day on average. Such a high-octane space further boosts the need for constant upgradation and renovation.
Increased awareness and acceptability of modular kitchens
Industry observers say that with the largest share in the furniture and fittings industry, as much as 40%, the kitchen segment could be witnessing sales of over 10,000 modular kitchen units per month. Also, sales in this segment are predicted to scale over 10 times in the next four years.
In recent years, both in terms of enhancing functionality and décor, kitchens are gaining recognition in the home improvement category. With the elevated aspirations of homeowners, restructuring and remodelling the kitchen to make it more aesthetic has become a trend. Among Indian consumers, kitchen space is no longer used only for cooking purposes but has become a family gathering centre to enjoy meals together and socialise with friends.
With consumers showing an inclination to experiment with design, textures, and colour palettes, modular kitchen manufacturers are focusing on offering world-class products and services. Consumers are looking for kitchens replete with features such as magic corners, push-open drawers, and island concepts, signifying the acceptance and popularity of modularity. Modular designs are highly in demand, as they allow for saving on remodelling and replacement expenses.
Considering such sustained consumer trends, the Indian modular kitchen segment holds immense growth potential in the home renovation market and is expected to grow further.
ALSO READ: The Kitchen Industry: At Inflection Point?
About the author
Dhruv Trigunayat is CEO of modular kitchen start up Ultrafresh Modular Solutions, which has recently received investment from small kitchen appliances major TTK Prestige. Dhruv believes in creating an encouraging environment that brings out the best of people’s capabilities and enables them to grow along with the organisation. At Ultrafresh he leads the strategic planning, new product development, sales, and marketing verticals.
