MARKET REPORT
CONTINUED GROWTH IN RESIDENTIAL KITCHEN FURNITURE MARKET
AMA Research director Keith Taylor talks through the latest figures and key growth areas identified in the UK domestic kitchen furniture market, based on findings in AMA’s latest report.
T
he UK domestic kitchen furniture market including worktops and sinks, has grown steadily in recent years with value growth in the
past two years reaching 5% per annum. There is also evidence of volume growth during this period. The kitchen furniture market is at the mature stage of its product lifecycle with replacement sales accounting for almost 80% of sales, a share which had increased steadily in the past but remained stable in recent years.
The kitchen furniture market comprises furniture, worktops and sinks and it is estimated that furniture accounts for almost 80% of the market in value terms. The shares have been static in recent years, although worktops had gained market share before the recession affected the market, driven by the trend towards higher value products in this sector. Rigid kitchens are now more common and increasing their share of the market.
Growth areas
The blurring of the distinction between the kitchen and dining room is a major factor affecting this market, with less formality in the home and a move towards open- plan living, facilitating socialising, entertaining and relaxing, as well as the normal cooking and washing up activities. This move away from a functional form has meant that accessory suppliers have had to develop added-value, innovative storage solutions. In terms of trends, curved cabinetry, soft-closing drawers, handle-less doors, open display shelving, sophisticated lighting and additional electrical appliances are increasing in popularity. High gloss
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finishes, stainless steel, frosted glass, wood and metallic finishes are all still popular with combinations of materials frequently used to add interest, however, there are signs that softer, more tactile finishes are growing in popularity.
In the sinks sector the trend
towards larger, workstation style sinks is expected to resume after a quiet period while composite sinks and those designed for solid surface and natural stone worktops such as under-mounted and flush-mounted sinks, are likely to gain share. In the taps sector, filter, hot water and sparkling water taps are potential growth products as consumer awareness increases. An increasing number of manufacturers are offering units to suit the needs of elderly or infirm customers and this trend is likely to continue as the proportion of the UK population in older age groups increases. 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 and larger sinks, helping to underpin the value of the sinks market. Furthermore, technological developments in the tap sector such as pull-out spray taps and water filtration systems, have added value to the market, along with the growth in popularity of waste disposal units.
The multiple market Home improvement multiples focus mainly on the supply of flat pack or self-assembly furniture. Traditionally this has been aimed at the DIY installation sector, although in recent years most companies have introduced a more comprehensive service including kitchen design and the option of an installation service. The trend towards higher-quality,
design-oriented kitchens had led to wider product ranges being offered by DIY multiples including higher-value products such as composite worktops and designer sinks. However, the DIY sector has lost some market share in recent years due to over-capacity, strong competition from other sectors and a general decline in DIY activity among householders.
Looking ahead Forecasts for the next two-to-three years have been downgraded as a result of the ‘Brexit’ vote which is likely to lead to slower growth in the UK economy, price increases for imported raw materials and less confidence among consumers. The domestic kitchen furniture market is forecast to show more moderate annual growth in the next few years of around 3% before returning to stronger growth in 2020 and 2021. In the short term, margins are likely to be squeezed further, particularly by the increasing cost of imported raw materials such as chipboard, as well as metal
components including aluminium and steel, while energy costs have also started to rise again – although they have been subject to some volatility in recent years.
Higher levels of new build in both the private and public housing sectors are expected to support growth in the kitchen market, however, the high proportion of flats and smaller houses may impact on the average value of kitchen furniture installed in this sector. The sale of kitchens with installation included is likely to continue to increase since IKEA, B&Q, Wickes and Homebase, among others, are now promoting this service strongly.
The ‘Domestic Kitchen Furniture Market Report – UK 2017-2021 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets.
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