The kitchen furniture market has experienced erratic growth since the mid 1990's. Following the significant growth experienced in 1997, the market declined in 1999 largely due to the unfavourable economic conditions at the time, but recovered steadily in 2000 as consumer confidence and spending recovered.

The buoyant housing market and the high levels of consumer confidence have continued to influence the market during 2001 and 2002. Other key factors include low interest rates, which have continued to support the high levels of consumer confidence, in addition to the wide range of products available and the influence of the media.

However, the growth of house prices is unlikely to be sustained with the market already showing signs of slowing down in early 2003. The global political and economic situation at present is also likely to dampen consumer confidence during 2003 and affect the growth of a number of consumer durables. Consequently, the kitchen furniture market is likely to experience lower levels of growth in 2003 of around 2% - or around flat in real terms.

In terms of mix, the kitchen furniture market is comprised of furniture, sinks and worktops. Kitchen furniture is by far the largest sector accounting for around 80% of the market in value terms, while sinks and worktops each account for around 10%. Sinks and worktops have both benefited from product development in recent years, which has boosted average values.

The kitchen furniture market is in the mature stage of its product lifecycle and is increasingly reliant on replacement purchases. In 2002, replacement purchases were estimated to account for 58% of sales. This sector is benefiting from the increased importance of design and style encouraging a higher level of replacement, in addition to a more experienced and knowledgeable customer base trading up to higher quality products.

Sinks and worktops are following a similar trend. Trading up by consumers is boosting this sector, with manufacturers incorporating a wider choice of materials and accessories. The kitchen sink is now offered with a range of accessories by an increasing proportion of manufacturers, which enables the consumer to use the sink as a food preparation area. Interior decor television programmes and cooking programmes are providing an additional inspiration to consumers to be more imaginative in their kitchen refurbishment plans and demand a higher level of performance.

In contrast to many continental European countries, flat-pack continues to dominate sales of kitchens in the UK market, accounting for around 72% of sales. The rigid sector has benefited slightly from the trend towards higher quality products and some suppliers in the flat pack sector are responding with improved quality and service levels aimed at targeting more affluent customers. One particularly important factor concerns the rapid growth of IKEA. Although their sales of kitchens are relatively low, they are expanding in terms of outlets and the range of kitchens now offered. Further stores are planned in the UK and the growth of IKEA is likely to benefit the flat pack sector in the medium to longer term.

The trend towards minimalist, continental designs are still apparent. Door fronts are becoming increasingly plain with square designs and lighter woods are still dominating, particularly in the flat pack sector. Darker woods such as cherry are growing in popularity, particularly in the mid-upper sectors of the market. There is also a current trend towards the use of a wider range of materials combined with traditional wood, such as cream and metallic effect doors, in line with the popularity of stainless steel.

In addition, cabinets sizes are now more varied, to accommodate the wide range of kitchen sizes and styles and make maximum use of available space. Deeper drawers are now available in all sectors of the market, along with a range of corner solutions for restricted access areas and a variety of storage accessories. In general, function and ergonomics is playing a greater role in kitchen design.

In terms of worktops, growth looks set to continue especially at the top end of the market, in line with the trend towards higher quality products. However, current differences in price between laminate worktops and other work surfaces, combined with limited distribution, is likely to result in a slow increases in market share by solid surfaces and other more expensive products. Other popular worktop materials include granite, which has experienced growth, wood, marble and stainless steel.

Sinks are made in a variety of materials, with stainless steel still leading the market in volume terms, accounting for 61% of the market. The other major sector is composites, which take 37%, with others such as ceramic and clay accounting for 2%. Stainless steel remains fashionable due to the popularity of the high-tech look in kitchens and demand for stainless steel kitchen appliances.

In terms of designs, under-mounted sinks are increasing in popularity. However, growth is likely to be modest in the medium term due to the high cost of a solid surface worktop to which these sinks are ideally suited.

Key suppliers to the market include MFI with Hygena/Schreiber, Magnet, Bernstein, Symphony, Moores, PJH, MKD and Gower.

The distribution mix has remained fairly stable in recent years, with the kitchen specialists gaining share as a result of the trend towards higher quality products and service. Share by the discount/furniture warehouses sector has seen some growth due to positive performances from Magnet, MFI and IKEA, with this sector accounting for an estimated 37%.