The Closets State of the Industry 2025 report reveals the industry is experiencing growth and evolving to meet modern demands and experimenting with the latest technology. This survey by Closets & Organized Storage magazine captures the pulse of this multi-billion-dollar market and gives insight into where it’s headed. Following is a summary of predictions for 2025, from project types to sales forecasts and tech upgrades to the most-wanted features.

About the survey participants

153 participants completed the Closets State of the Industry 2025 report. Three-quarters of the respondents (75%) design, sell, install, or manufacture closet or organized storage products; 54% garage or garage organization products; 41% kitchen, bath, or custom cabinets; 14% residential furniture, casegoods; and 13% commercial store fixtures. Approximately 41% classify their business as manufacturing/fabrication, 26% as design (closet design, interior design, or architecture; and 20% as retailer/wholesaler/distributor.

An overwhelming majority (73%) have an independent business model, while 16% are franchises and 11% are dealers.

46% manufacture storage components, 30% manufacture some storage components and 24% manufacture no storage components.

Approximately 74% are primary decision-makers and 22% recommend, influence or specify products and services within their businesses.

Sales and projections

Approximately 29% of respondents have sales of $499,000 or less; 20% have sales of $1-$2,999,999, and 19% have sales of $500,000 to $999,999. Approximately 28% have sales over $3,000,000, and 4% preferred not to disclose.

When asked about revenue, 36% said sales would be better in 2024 versus 2023, 27% the same, 19% said much better, 18% said sales would be worse, and 0.8% said sales would be much worse.

A near majority predicted sales for 2025 versus 2024 would be better (48%), 23% said they would be the same, 19% said revenue would be much better, 9% anticipated worse sales, and 1% said much worse. 

Top projects sold in 2024 (%s are more than 100):

Specialty rooms and mudrooms        75%

Home offices  73%

Pantries               70%

Laundry rooms               71%

Which top 3 projects that saw the most growth in 2024?

Outdoor Spaces            53%

Kitchen & Bath                40%

Closet Systems              39%

Prices and project costs

Most respondents, 54%, said prices increased in 2024 compared to 2023. Approximately 33% said prices stayed the same, and 12% said prices decreased. The primary cause of the price increases was attributed to inflation/economy by 77% of the respondents and supply chain issues were listed by 28%.

Following is a look at the typical costs of closet and garage projects:

Average cost of a garage organization project            $8,443

Highest cost of a garage organization project            $26,721

Lowest cost of a garage organization project              $3,548

Average cost of a closet system project        $12,873

Highest cost of a closet system project         $84,653

Lowest cost of a closet system project          $3,344

Project types

When asked what percentage of their projects in 2024 are new construction versus remodeling, an average of 57% said remodeling, and an average of 45% said new construction. (Percentages do not add up to 100%).

The market segment that saw the most project growth for closets and home organization professionals in 2024 was single-family residential at 57%, followed by multi-family residential at 16% and office space at 12%.

Anticipated market segment growth for 2025: Most respondents still said single-family residential at 54%, but multi-family increased to 20%, with office space moving down to 6% and healthcare up to 8%.

Interestingly, when asked about expansion opportunities for their businesses in 2025, 68% anticipate market expansions in public buildings, 61% see opportunities in retail and 56% in multi-family residential.

Popular upgrades for closets or organized storage projects

Survey participants were asked to rank their top five requested closet and storage project upgrades in 2024. Accent lighting, decorative hardware, and glass doors were popular, while items like chairs, wood doors, and Murphy beds were less prioritized. 

The following accessories were the most requested upgrades across the five ranked positions:

Accent lighting: Most popular, especially in the #1 position (31%).

Decorative hardware: High preference in the #1 (11%) and #2 (9%) positions.

Glass doors: Popular in the #2 position (13%) and with consistent interest across other ranks.

Hampers/Sliding baskets: Highest popularity at the #3 position (12%).

Jewelry tray inserts: Moderate popularity, especially in the #4 position (11%).

Popular upgrades for garage organization projects

In 2024, the most popular upgrade requested by customers for garage organization projects is cabinetry, with 53% of respondents choosing this option as their top priority. Following cabinets, countertops were the second most requested upgrade, selected by 10% of respondents as their first choice. Epoxy-coated flooring ranks third, with 9% listing it as their preferred upgrade. Shelves and workbenches are equally popular, each chosen by 8% of respondents as their top upgrade. 

Materials

Melamine and/or laminates continue to the most popular material of choice for survey respondents, with an average of 64% used in projects for 2024, followed by solid wood/veneer at 39%, specialty finishes and accents (mirrors, leather, glass, metal, etc.) at 17% and wire at 14%.

White still ranks as the top requested component finish, followed by light woodgrain, solid colors, dark woodgrain, textured/patterns, and leather.

Technology upgrades

When survey respondents were asked about integrating various technologies, in 2024, tools like 3D design software (69%) and project management solutions (50%) were widely embraced, focusing on established workflows. However, the data points towards a significant shift in 2025. AI-driven design tools are poised for a dramatic surge in popularity, with planned integration jumping from 25% in 2024 to 75% in 2025.