
The value of the total
kitchen worktop market is estimated to have declined from £190m in
2007 to £160m in 2010, mainly as a result of the declining
economic environment, the deferral of high ticket purchases by
consumers, contraction in the housebuilding sector, a severe
reduction in the number of house purchases and the high level of
price competition.
The kitchen furniture
and worktops 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. Since awareness
is high, consumers are constantly looking to new ideas or
solutions to create different design statements in their homes,
hence the introduction of curved units and innovative storage
solutions.
The distribution
channel structure has experienced some changes in recent years,
with lower growth in the furniture multiples sector, due to the
decline of MFI, whilst the builders’ merchants sector has shown
solid growth, particularly with the growth achieved by the Howden
Joinery chain.
In the short term
margins are likely to be squeezed further by the increasing cost
of raw materials, particularly chipboard and metal components,
although kitchen worktop manufacturers have a good record in
absorbing cost increases generally, nevertheless, some of these
increases are bound to be passed on.
The worktop sector is
expected to achieve reasonably good growth in the medium term,
mainly because of the gradual shift to higher quality materials.
The market for kitchen worktops is forecast to return to growth in
the 2012-2015 period, reaching £195m by 2015, as the UK emerges
slowly from the recession. Worktops will account for around 14% of
the total kitchen furniture, worktops and sinks market by the end
of the period under review.
The bathroom worktop
market has shown growth, although it remains a small sector of the
overall sanitaryware and bathroom furniture market – accounting
for around 10% at the present time. It is also a small market when
compared to the kitchen worktop market – being the equivalent of
around 10-11% of that market.
As in the kitchen
sector, solid surfaces for worktops have increased in popularity,
partly because they can be worked into any shape and can create a
seamless joint between the basin, worktop and splashback.
In the housing market
there has been growth in the number of second bathrooms, the
installation of en-suite facilities and the number of properties
with additional cloakrooms. However, in recent years there has
been a trend towards more flats and apartments in the new housing
sector and this has limited the growth in bathroom furniture and
worktops.
Builders’ and
plumbers’ merchants are the major distributors for bathroom
worktops with around 34% of the market, followed by bathroom
equipment specialists with a 23% share and DIY multiples with 18%
of the market.
The value of the
bathroom worktops market is estimated to have reached £11m in
2010, having fallen from £13m in 2007, as the economic situation
deteriorated in the UK and consumer confidence declined. The
market for bathroom worktops is forecast to show modest growth in
2011 and to continue to 2015, when the market is expected to have
recovered to above its 2007 level.