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The UK domestic
kitchen furniture market experienced steady growth in the early part of
this decade. However, the overall market value declined in 2005 for the
first time since 1999.
The market
experienced steady growth between 2000 and 2003. However, growth slowed
during 2003/4, following a series of interest rate increases, a slowdown
in the housing market and a high level of price competition. During
2005, new house building levels in the private sector remained
relatively static, which, along with a downturn in UK consumer spending
on RMI (repairs, maintenance and improvements), resulted in the weakest
market for some years.
More recently, the
poor performance of some companies, particularly those supplying and/or
operating in the retail sector, such as
MFI,
has impacted on overall market performance, particularly given MFI’s
significant market share.
The value growth
of the kitchen furniture market is forecast to remain relatively low
over the next two years as a result of the deferral of high ticket
purchases by consumers, slow progress in the house building sector and
the high level of price competition in the furniture sector.
Key issues
influencing the UK domestic kitchen furniture market in recent years
include:
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The blurring
of distinction between the kitchen and living room, with less
formality in the home and a move towards open plan living.
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An emphasis on
aesthetics and stylish designs.
-
The interest
in cooking as a hobby and the demand for professional-look kitchens
and appliances.
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The trend for
sleek, minimalist contemporary designs.
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Trading up to
higher value materials and products in the sink and worktop sectors.
Other trends include the cash-rich time-poor nature
of many consumers, which has encouraged the rapid growth of kitchens
purchased with the installation service included. The move away
from DIY to GSI “Get Someone In” has also been fuelled by the demand
for a high quality “professional” finish to the kitchen.
The kitchen furniture market comprises furniture,
worktops and sinks, with furniture accounting for 75% of the market
in value terms, while worktops accounted for 12% and sinks for 13%.
Worktops and sinks have gradually gained share in recent years in
line with the shift towards higher value products in these sectors.
The kitchen furniture market is at the mature stage
of its product lifecycle. Consumer awareness is high and purchasing
decisions tend to be based on design, colour and materials. Features
such as soft-closing doors and drawers, sophisticated lighting and
additional electrical appliances such as TVs and coffee machines are
increasing in popularity. At the upper end of the market, handleless
doors are offered by some manufacturers in line with sleek,
minimalist styles. High gloss finishes, stainless steel, frosted
glass, wood and metallic finishes are all popular, with combinations
of materials frequently used to add interest.
Demand for design-oriented features in the kitchen
has increased the importance of both worktops and sinks which can
create high visual impact. High gloss laminates, solid surfaces and
granite have all increased in popularity, although the affordability
of laminates means that they are likely to continue to dominate the
market in the foreseeable future.
The popularity
of dishwashers has altered the use of a sink from an area simply for
washing up to a multi-functional “work centre”, which incorporates
features for washing, food preparation and drainage.
Multi-functional sinks are widely available with a range of
different features, such as strainer and draining bowls in varying
depths, a variety of chopping boards, as well as associated products
such as pull out spray rinse taps. In general, the focus on food
preparation and overall design is driving the growth of the sinks
market.
Technological
developments in the tap sector such as pull-out spray taps and water
filtration systems have also added value to the market, along with
the growth of waste disposal units in the sink sector, in line with
the increasing emphasis on waste separation and recycling.
The kitchen furniture market is currently dominated
by
MFI
and Howden Joinery.
MFI
continue to lead the market despite the recent changes. Other key
suppliers include Magnet, PJH, MKD, Symphony,
Gower and
Moores.
The distribution channel structure has experienced
some changes, with lower growth in the furniture/discount warehouse
sector due the restructuring at MFI and a slight shift towards the
kitchen specialists during the last three years. In addition, the
builders’ merchants have performed reasonably well in line with
higher levels of new house building over the same period.
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