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Upholstered Furniture and Beds Market
2004-2009
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The
upholstered furniture and beds market was estimated to be worth
around £2.2bn at MSP in 2007. Over the past few years the market has
moved in a volatile pattern, with a decline in 2005 and modest
growth in 2004 and 2006. While the majority of 2007 was a more
positive year, the economic environment toward the end of the year
has deteriorated and the outlook for high value consumer durables is
perhaps less optimistic in the short term.
This report reviews the developments over the last few years, the
current situation and the likely developments over the next few
years, against the background of an uncertain economy. |
In 2007 the Upholstered
Furniture market was worth an estimated £1522m (at MSP), with the domestic
market accounting for around 89% in value terms and the contract sector
11%. The increasing level of imports and high level of price competition
have restricted value growth.
One key trend in recent
years has been the growth of leather furniture, against fabric upholstery,
whilst action or motion furniture has continued to make steady progress.
The growth of leather furniture has by far exceeded that of the overall
market, although price competition has increased in this sector and this
may restrict value growth. Other key factors supporting the leather sector
include a wider range of styles and designs and the wider use of leather
in other furniture sectors, home furnishings and accessories.
Imports continue to
increase in the upholstered furniture market, accounting for 54% of the
market in 2006 at £809m. Imports from China now account for the major
share, but Italy remains an important source despite declining exports to
the UK, reflecting the impact of the leather sector. However, preliminary
figures for 2007 indicate that imports may remain static or even decline
marginally.
The beds market
increased by 3.6% in 2007 to reach £668m, compared to £645m in 2006. A
key strength for the bed industry is that consumers typically regard beds
as essential rather than discretionary purchases. However, the high level
of price competition in certain sectors of the beds market has affected
value growth during the last two years.
The mattress sector is
one of interest to many suppliers and mattresses sold separately account
for around 22% of the market in value terms, an increase of 4% since 2004.
This growth has been underpinned by the growth in the higher value pocket
sprung sector and by the growing popularity of other materials such as
memory foam. Mattresses are one specific area of the beds market where
opportunities for value growth exist, with consumers trading up to higher
quality products. In addition, the growth of bedsteads has also supported
the demand for higher quality mattresses.
The impact
of the current ‘credit crunch’ is expected to lead to a decline in the
markets in 2008, followed by modest growth in 2009, then subsequently more
positive growth performance in 2010 and 2011, leading to a forecast of
£2420m by 2012.
AMA Research’s “Upholstered
Furniture and Beds Market UK 2008-2012” report is available in hard
copy or electronic format for £625 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450.
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