The closets and organized storage industry is forecasting a strong 2026, with 63.6% of businesses anticipating “better” or “much better” revenue, according to the 2026 Closets & Organized Storage State of the Industry survey. This optimism comes despite a challenging 2025 marked by persistent inflation (cited as the top challenge by 68.1% of respondents), price increases (74.3% cited increased prices as a top challenge), and significant labor shortages (cited as a top challenge by 45.1%).

The 2026 State of the Industry survey collected responses from 163 industry professionals. The survey, conducted in September and October 2025, provides a comprehensive snapshot of market performance, business challenges, and emerging trends.

Moderate gains

The industry is emerging from a year of moderate growth. A combined 54.7% of respondents reported “better” or “much better” revenue in 2025 compared to 2024, while 18.7% saw revenue decline.

Projections for the coming year are more bullish. A combined 63.6% of businesses anticipate “better” or “much better” revenue in 2026, while only 12.4% expect a downturn.

This optimism persists even as businesses navigate significant headwinds. “Inflation / Economy” was cited as the top business challenge by 68.1% of respondents, followed by “Labor shortages / Recruitment” (45.1%). The economic pressures directly impacted pricing. In 2025, 74.3% of businesses increased their prices, while 23.0% stayed the same and 2.7% decreased.

Market of established independents

The survey data paints a picture of an industry dominated by established, independent businesses.

Business Model: The vast majority (75.7%) of respondents identify as independent businesses, compared to 9.3% who are part of a franchise.

Business Type: The largest segment is “Design (Closet Design, Interior Design or Architecture)” (34.5%), followed by “Manufacturing / Fabrication” (32.4%).

Gross sales in 2024 were diverse. While 35.4% of businesses reported sales of $499,000 or less, 23.1% were in the $1,000,000 - $2,999,999 bracket. The top end of the market included 6.2% of firms with sales from $5 million - $10 million, and 6.2% reporting sales of more than $10 million.

Single-family homes drive market

The core of the industry remains focused on closets and garages: 78.1% design, sell, or install closet products, and 52.9% are in the garage organization space. When asked about their top-selling projects in 2025, “Closet Systems” were the top-ranked category (79.3%), followed by “Kitchens & Baths” (45.7%) and “Pantries” (33.6%).

The single-family residential market remains the key driver of growth.

56.3% of respondents saw the most project growth in this segment in 2025.

43.8% anticipate it will again be the top growth area in 2026.

Projects in 2025 have been split between remodeling (57% average) and new construction (45% average).

Typical project costs reported by the industry fall largely within the same range. For garage projects, 88.0% are reported to cost the consumer between $1,000 and $15,000. Similarly, 81.3% of closet projects fall into that same $1,000 to $15,000 range.

Look for Closets & Organized Storage’s trends report early next year for the latest on colors, surfaces, accessories, and hardware driving the market.