20% Decline for the Worktops Market down to Covid-19 induced Lockdown
2020 had seen positive prospects for the kitchen & bathroom worktops market, with growth projected over the next 4-5 years. This was driven by what was a secure and growing housebuilding sector. With the arrival of the Covid-19 Pandemic things took a drastic turn and currently holds a very different outlook, for the short term at least.
The first quarter of 2020 saw sales of kitchen and bathroom furniture unfavourably impacted and is noted as being intrinsically linked with the worktops market. It was noticed most between April to June when a vast majority of retail outlets were closed due to the governments Covid-19 restrictions on what was considered “nonessential” trade.
A reoccurring feature of a growing market is customers moving and upgrading to better quality products; however, this will be very unlikely in the short term where consumer confidence is low, and they are still wary of spending. Longer term however this sector should certainly benefit from this trend, with products such as with engineered stone quartz for example, and solid surface materials increasing their share of the market. Wider availability and more discerning and knowledgeable consumers will also support the growth of these higher value materials.
We are expecting major companies in these markets should soon be able to gear their operating facilities back towards their previous levels with relative ease, for smaller companies the crisis may prove fatal. This is particularly the case for some specialist retailers, fabrication companies and so on, who were already under pressures in overcrowded markets and are less likely to have access to sufficient financial resources to tide them over the lean period to come.
The short-term is likely to see market value decline by around 20% in 2020, followed by a partial rebound in 2021 and then annual growth rates of 4-6% to 2024. In the longer term these markets should continue to grow strongly, although it is likely to be towards the end of 2024 before they reach the peak levels attained in 2019, with growth inhibited by a lack of consumer confidence and a deterioration in household finances, caused by the impact of the restrictions imposed to try to control the spread of the virus.