Steady growth has been witnessed
in the Domestic Kitchen Appliance market since 2000, although higher
performance levels were seen in 2003, and early 2004 with low
interest rates and the buoyant housing market driving growth in the
market.
Following healthy performance in 2003/4, rises in
interest rates and a slow down in the
housing market from mid-late 2004
resulted in lower growth rates. With a generally slowing economy and
lower levels of consumer confidence in late 2005, lower growth is
likely in the short to medium term future, particularly in value
terms.
The kitchen
appliance 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 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.
The trend
towards “fashionable”, coloured, ‘modern design’ appliances is still
apparent although traditional ‘white’ appliances are still popular.
In particular, the trend toward metallic effect, in line with the
wider use of stainless steel and other metallic products, is also
continuing in 2005. Stainless steel remains popular due to hygiene
issues and the popularity of other stainless steel products in the
kitchen, providing a fully co-ordinated kitchen.
The trend of
using kitchens more as a living space and not just for food
preparation has led to an increased need for storage facilities.
This has prompted a wider range of appliance sizes, some of which
are suited for very small spaces in otherwise wasted areas in the
kitchen, e.g. narrow and tall units etc. In addition, pressure on
available space in the new housebuilding sector, is impacting on
kitchen space and is likely to support build-in appliances in the
longer term.
Trends
currently in the market are appliances that are designed to provide
greater convenience for users, this is particularly evident in the
laundry sector. The development of product features also plays an
important role in all sectors, with manufacturers achieving
differentiation by launching products with hi-tech product features
etc, a trend which is particularly noticeable in the refrigeration
sector.
