The Kitchen Furniture market experienced relatively high growth rates during the late 1980s. However, this was followed by a sustained period of decline during the early 1990s which continued up to 1995, with performance below the level of the total furniture market.

The 1996-1998 period saw some recovery.

The kitchen furniture market has seen growth from 1996-1998. However, due to a combination of factors, it was 1997 when the highest increases in demand occurred. These included a steady growth in consumer confidence, a healthy house moving market encouraged by inflating house prices in some parts of the country, and £35bn worth of unexpected windfalls. These factors, combined with a greater proportion of higher value repeat purchases, have resulted in substantial growth in all sectors of the kitchen furniture market over the last 2 years.

In terms of mix, the kitchen furniture market is comprised of furniture, sinks and worktops. Kitchen furniture is by far the largest sector accounting for around 80 percent of the market in value terms, while sinks and worktops each take 10 percent.

1998 has seen more limited growth in sales of many consumer durables, with a mixed performance throughout the year. The first half of the year was relatively buoyant but was followed by dramatic decline. The economy is currently in a state of uncertainty, resulting in the poor performance of many consumer markets, including kitchen furniture.

Imports of kitchen furniture have also recovered since 1996, after experiencing a sustained period of decline since 1989. However, in historic terms, levels remain very low. In contrast, exports have deteriorated since 1996, mainly as a result of the strength of Sterling impairing the competitiveness of UK products in most overseas markets.

The kitchen furniture market is in the mature stage of its product lifecycle, resulting in replacement demand accounting for an increasing proportion of sales. A more experienced and knowledgeable customer base is looking for additional product benefits, resulting in sales of higher average values. Sinks and worktops are following a similar trend, although some are purchased as a less expensive alternative to replacing the whole kitchen. Interior decor television programmes are providing an additional inspiration to consumers to be more imaginative in their kitchen refurbishment plans.

In contrast to many continental European countries, flat-pack continues to dominate sales of kitchens in the UK market, accounting for around 75 percent of sales. Although there is a general trend to trading-up it is unlikely that this will benefit the rigid kitchen market to any significant extent, mainly due to the current quality of flat-pack products. It is anticipated that this mix will not change substantially in the longer term, however in times of recession, people may trade down to flat-pack ranges targeted at the bottom end of the market.

In terms of design, there is a strong trend to door fronts with square designs, in lighter woods and pastel colours, particularly blues and greens. Kitchens with ‘clean-lines’ are popular and are installed in combination with many accessories such as wicker baskets, pilasters and spice drawers. In general, the total kitchen is becoming more open in design terms, with some growth also in free standing and modular units.

There is also a general trading-up in worktops, as consumers increasingly see this as an element of the kitchen’s design as opposed to merely a functional product, nevertheless price remains an important factor when making the purchasing decision. There has been some growth in sectors other than laminates, including solid surfaces. These enable the installation of fully integrated sinks, although the substantial price difference between solid surfaces and laminates is resulting in some use of a combination of the two, as opposed to the sole use of solid surfaces. Other popular worktop materials include granite, which has grown substantially, stainless steel, wood and marble.

Sinks are made in a variety of materials, with stainless steel still leading the market in volume terms, accounting for 58 percent of the market. The other major sector is composites which take 38 percent, with others such as ceramic and clay accounting for 4 percent. Composites are experiencing long term growth, taking share from stainless steel. However, stainless steel has experienced a resurgence in demand, due to the popularity of the high-tech look in kitchens and demand for stainless steel kitchen appliances.

In terms of designs, under-mounted sinks are still a niche sector, although are a possible growth area of the future. There are a far greater range of shapes and sizes available now, with popular composite colours including granite effect finishes as opposed to solid colour.

The kitchen components industry is likely to benefit from the current and on-going growth in assembling retailers, selling own-brand component kitchens.

There have been substantial changes in the channel mix for the distribution of kitchen furniture, due to the relatively poor performance of MFI which is the largest manufacturer and retailer of kitchen furniture in the UK. However, share decline by the discount/furniture warehouses sector has been limited due to growth by other companies, including Magnet and IKEA. The DIY sector has also lost some share due to the integration of Texas stores into the Homebase format and the delisting of kitchens by Homebase in a substantial proportion of their outlets. Sectors gaining share include the kitchen specialists, builders merchants, direct sales operations and the assembling retailers.

There have also been some changes in shares held by the leading manufacturers in the kitchens’ market, with Hygena/Schreiber owned by MFI having lost some share. Spring Ram has also lost share, due to a combination of continuing company restructuring and changes instigated by some of their major customers. Companies which have been more buoyant include Magnet, MKD (through their Kitchens Direct operation), Symphony, some European importers and own-brand products from a variety of kitchen and bathroom distributors.

1999 is unlikely to see growth in any of the kitchen furniture sectors, although some recovery from these conditions is anticipated in 2000 and beyond. Due to a variety of factors, including demographic changes, the market for replacement purchases is likely to see continuing trading-up. However, new purchases, and to some extent installations in new build, are likely to deteriorate particularly in value, due to the majority of the remaining potential market being comprised of consumers unable and unwilling to invest in quality product.