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Why Closets Are a $63 Billion Market (and Growing!)

The business of clothing storage is booming. A recent Fortune Business Insights study of trends in the wardrobe, closet, and cabinet industry looked at the market’s forecast through 2030.

Currently, the size of this market is $62.97 billion. It’s expected to reach $94.59 billion by 2030, exhibiting a strong compound annual growth rate (CAGR) of 5.98% each year.

If you work in the closet industry, this is welcome news. It’s exciting to see the closet industry rebounding so strongly after the supply chain struggles and economic uncertainties of the recent past. The future looks bright!

Why Are Closets in High Demand?

Residential storage space is currently in high demand for many reasons. As a closet designer, you probably hear a wide variety of reasons why your clients need more storage space. Here are some of the biggest trends impacting the closet market right now.

Increases in Household Size

One of the lasting impacts of the pandemic has been an increase in multi-generational households where more family members are living together. In a crowded household, everyone clamors to find enough storage space.

Plus, real estate costs and rental costs jumped in 2020 and remained high, preventing people from simply moving to larger houses. Now, when houses do go up for sale, details like the number and quality of closets can make or break the sale of the home, according to Forbes.

Globalization of Closet and Storage Companies

One of the driving factors in closet industry growth is globalization combined with urbanization. People in previously rural zones around the world are moving to cities and contributing to new economic growth, especially in sectors like housing and manufacturing. New manufacturers in countries like India and the Asia Pacific zone are contributing to the growth in the closet market.

At the same time, many U.S.-based closet companies are re-evaluating their offerings, scaling up or down, and pursuing mergers and acquisitions. You may have heard about how independent closet suppliers have been coming to the rescue when major brand mergers create chaos for their customers.

Improvements in Closet Technology

Technology is another force of change in the closet industry. Smarter technology leads to smarter closets. 

What is a smart closet? It uses similar technology to a smartphone or the point-of-sale system in a clothing retail store. Each item of clothing is individually identifiable, plus the system keeps track of human preferences to deliver helpful information at just the right moment.

Advances in artificial intelligence (AI) and automation technology are making their way into our bedroom closets. A smart closet can use RFID technology to track what types of clothing someone owns, where their laundry is, or even make recommendations for old and worn garment options.

Design Creativity and Flexibility

Another reason the closet industry is growing so quickly is the level of flexibility and creativity possible today. A custom closet designer can develop the perfect closet for any floor plan, room, lifestyle, or desire.

As someone who works in the closet industry, you’re a force of positive change. Keep the trends above in mind as you work with your clients and help them understand why closets are a new frontier in technology, progress, and possibilities!

ClosetParts is Your Partner in Growing Your Closet Business

At ClosetParts, we’re here to work as your closet design partner and supplier. Turn to us for closet parts, including bulk orders and the custom parts you need to create outstanding closet designs.
Start Your Order Online or call 1-877-C-Parts1 (1-877-272-7871) today.