Q2 2025 NKBA/ John Burns Kitchen & Bath Market Index (KBMI)

Q2 2025 NKBA/John Burns Kitchen & Bath Market Index (KBMI) Overview

The NKBA/John Burns Kitchen & Bath Market Index (KBMI) delivers a comprehensive quarterly snapshot of current business conditions and future expectations within the kitchen and bath industry. The Q2 2025 report is based on insights from 575 industry professionals across four core segments: Design (24%), Building & Remodeling (24%), Retail (22%), and Manufacturing (30%).

This quarter’s findings highlight evolving market conditions, identify emerging trends, and offer a closer look at the challenges and opportunities shaping business decisions across the industry.

Industry Snapshot:
In Q2 2025, the overall KBMI score declined to 53 out of 100—indicating flat industry activity and marking the lowest reading since Q3 2024. Rising input costs, tariff uncertainty, and cautious consumer behavior continue to weigh on market momentum. Expectations for full-year 2025 sales growth dropped from +3.1% in Q1 to -0.1% in Q2, underscoring ongoing sluggishness.

This softness is particularly pronounced among middle-income households, where project postponements and scope downgrades remain common. Instead of full-scale renovations, many consumers in this segment are prioritizing smaller updates and budget-conscious refreshes over larger remodels.

Key Findings:

• Sector Performance: Design and Retail segments reported declines, while Building & Remodeling and Manufacturing remained stable or saw modest improvement.
• Pricing Pressure: K&B firms reported average price inflation of 4.6% year-over-year—consistent with rising input costs.
• Profitability Challenges: More than half of manufacturers in categories like tile, appliances, faucets, and cabinetry reported margin compression.
• Policy Impacts: The report explores how recent policy shifts are affecting each sector differently.
• Regional Insights: Includes a geographic breakdown of shifting trends and challenges across U.S. markets.

As the industry navigates an uncertain macroeconomic climate, this quarter’s KBMI provides critical context and strategic guidance to help businesses stay informed and resilient.