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The Kitchen Furniture market
has experienced good levels of growth in 2002 and 2003, with slower
levels of growth in 2004.Steady growth has been witnessed in the Kitchen
furniture market since 2000, although higher performance levels were
seen in 2002 and 2003, and early 2004 with low interest rates and the
buoyant housing market driving growth in the market.
However, rises in interest
rates and a slow down in the housing market from mid-late 2004 has
resulted in lower growth rates, which is likely to continue into the
short to medium term future.
In terms of product mix, the
kitchen furniture market is comprised of furniture, sinks and worktops.
Kitchen furniture is by far the largest sector accounting for over 75%
of the market in value terms, while sinks and worktops each account for
over 10%. Sinks and worktops have both continued to benefit 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 now heavily reliant
on replacement purchases. In 2004, replacement purchases were estimated
to account for almost 60% of the overall market with the sector
benefiting from consumer focus on product designs and styles, as well as
consumers trading up to higher value products. An increased level of
new housebuilding has prompted some growth in the kitchens sector more
recently and is likely to continue to provide growth opportunities in
the longer term, with a significant level of new homes required to
address the shortfall of completions in recent years. The Barker
Review, published in Spring 2004 indicated a need for an additional
50,000+ homes a year, though there are major restrictions on achieving
these higher completion figures.
Trading up has also boosted the
sinks and worktops sector with a wider range of materials and
accessories as well as product designs such as work centre and
multifunctional sinks trickling down into the mass market. Granite
worktops, for example, have grown in popularity despite their premium
price.
The flat-pack sector dominates
sales of kitchen furniture in the UK market, accounting for over 70%.
The rigid sector has benefited slightly from the trend towards higher
quality products, although suppliers in the flat pack sector have
responded with improved quality and service levels aimed at targeting
more affluent customers.
The trend towards minimalist,
continental designs are still apparent although traditional style
kitchens are also popular. A wide range of light and dark wood products
are now widely available in the market with popular lightwoods including
maple and birch, and popular dark woods such as cherry, alder and light
oak. Other materials are also being specified, such as metallic effect
doors, in line with the wider use of stainless steel and other metallic
products, including both appliances and accessories.
The trend of using kitchens
more as a living space and not just for food preparation has lead to an
increased need for storage facilities. This has prompted a wider range
of cabinet sizes, some of which are suited for very small spaces in
otherwise wasted areas in the kitchen, e.g. narrow and tall pull-out
units etc. In addition, pressure on available space in the new
housebuilding sector, is impacting on kitchen space and is likely to
support a wide choice of cabinet sizes in the longer term.
Within the worktops sector,
higher value materials such as solid surfaces and granite are gradually
increasing in popularity, driving some growth in the overall market,
although the low price of laminates compared with these materials and
the relative ease of supply of laminate products should mean that they
remain the most popular work surface finish for the foreseeable
future. Developments in laminate technology, which enhances their
ability to replicate other surfaces, such as photo and textured
finishing, would also support this.
Stainless steel retains its
position as the dominant material within the sinks market, accounting
for over 60% of the sector, whilst composites account for 35%, and
ceramics and other materials account for the remainder of the market.
Stainless steel remains fashionable due to hygiene and the popularity of
other stainless steel products in the kitchen, such as appliances.
Solid surface and natural stone
worktops are driving some demand within the under-mounted sinks sector,
which could increase should solid surfaces etc, become more affordable
within the mass market sector.
Key suppliers to the market
include MFI with Hygena/Schreiber, Magnet, Symphony, Moores, PJH, MKD,
BGH and Gower, whilst the distribution mix has remained fairly stable in
recent years, though Howdens have expanded their position in the trade
sector.
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