
The UK domestic
kitchen furniture market experienced steady growth in the
2002-2007 period, reaching a market size of £1,390m by the end of
the period. The decline in the housebuilding sector, together with
a downturn in consumer spending and tighter financial conditions
resulted in a significant decline in the market in 2008 and an
even steeper fall in 2009, however, the market began to show some
stability in 2010.
Duriong this period
the level of price competition has remained high in most sectors
of the market, but particularly in the low and mid priced sectors.
The kitchen furniture
market comprises furniture, worktops and sinks, with furniture
accounting for 76% of the market in value terms, whilst worktops
account for 14% and sinks for 10%. Worktops have gradually gained
market share in recent years in line with the trend towards higher
value products in this sector.
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 televisions and coffee machines are increasing
in popularity.
At the upper end of
the market handle-free 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
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 all increased in popularity
in the mid 2000s, although their growth has been restricted during
the downturn in the market and the affordability of laminates
means that they are likely to continue to dominate the market in
the foreseeable future.
The popularity of
dishwashers has contributed towards changing 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, larger sinks, as
well as associated products such as pull out spray rinse taps. In
general, the focus on food preparation and overall design is
helping to promote the growth of the sinks market.
Imports of kitchen
furniture increased significantly in 2007 and to a lesser extent
in 2008, reaching £188m in 2008, compared to £162m in 2007, before
declining by almost 20% in 2009 and by a further 15% in 2010, to
reach £129m. Imports currently account for around 14% of the
kitchen furniture market. Italy (47%) and Germany (31%) are the
major sources of imports and Alno, the German based company, is a
major exporter to the UK.
The distribution
channel structure has experienced some changes in recent years,
with a sharp fall in the share held by the furniture multiple
sector, due to the closure of MFI and a shift towards builders’
merchants, with the sector benefiting from MFI’s demise.