| KN26042 |
| KEY NOTE GLASSWARE : June 2002 |
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This report covers: glassware,soda lime glassware,crystal glassware,glass products,crockery,
Companies covered include: Dartington Crystal Group,Royal Doulton, Waterford Wedgewood,The Edinburgh Crystal Glass Company,Rayware,Royal Brierley Crystal,
EXECUTIVE SUMMARY
Executive Summary This Key Note Market Report examines the UK glassware market, which includes glass tableware and ornamentalware and has increased in value steadily but modestly over the past decade. The UK glassware manufacturing industry is renowned for its quality and has a number of prestigious traditional brands, so much so that their visitor centres are among leading tourist attractions. Although UK consumer spending is buoyant, the glassware market benefits less from increased consumer expenditure than other industries, because value growth fails to keep pace with volume growth.
Manufacturers' sales of hollow glass continues to decrease in value, falling by 5.1 percent between 1999 and 2000. The hand-made glassware variety has suffered as a result of improvements in the quality of competitively priced machine-made crystal and soda lime products, which are imported from Europe. The US is by far the single most important export market and the terrorist attacks on 11th September 2001 had an immediate and detrimental effect on trade for those companies, which are heavily reliant on the North American market.
Ravenhead and Demaglass, the last two beer glass manufacturers in Britain, have folded with the loss of 700 jobs. The companies were the only UK manufacturers of machine-made glass and their demise means that all such high-volume glassware for the retail and pub markets is now imported, and will probably herald the end of the traditional dimpled glass pint jugs with handles, once warehouse stocks are exhausted.
Household penetration of glass oven and tableware was high in 2001, 63.9 percent had heat-proof products made of glass and 74.9 percent had glassware/crystalware. Manufacturers have responded to changing tastes by introducing more simplistic and casual designs to augment the traditional fine crystal for which many are renowned. They have successfully developed an association with fashion, with the help of designers such as John Rocha, to encourage consumers to buy products for their intrinsic beauty, as well as to fulfil any functional use and to buy more frequently to reflect changing tastes.
Key Note anticipates that the value of retail sales of glass tableware and ornamentalware will acheive modest growth over the next few years, of around 2 percent per year. Volume growth is expected to outstrip that of value and UK-produced glassware is heavily biased towards the premium end of the market.
TABLE OF CONTENTS
| Executive Summary | |
| 1. Market Definition | |
| report coverage | 7 |
| Market Sectors | 7 |
| Market Position | 8 |
| The UK | 8 |
| Table 1: UK Household Expenditure on Glassware, Tableware and Household Utensils by Value at Current Prices (£m at rsp), 1997-2001 | 8 |
| Overseas | 8 |
| Table 2: Estimated Population Size of Selected European Countries (000 inhabitants), July 2001 | 9 |
| MARKET TRENDS | 9 |
| The Importance of Branding | 9 |
| Casual Dining | 10 |
| Changes in Drinking Habits | 10 |
| Giftware | 10 |
| Shapes of Glasses | 11 |
| 2. Market Size | |
| THE TOTAL MARKET | 12 |
| Manufacturers Sales | 12 |
| Table 3: The UK Glassware Market by Sector by Value (£m at msp), 1998-2000 | 12 |
| Retail Sales | 12 |
| Table 4: The UK Table-Top and Ornamental Glassware Market by Value at Current Prices (£m at rsp), 1997-2001 | 13 |
| By Market Sector | 13 |
| Table 5: The Total Table-Top and Ornamental Glassware Market by Sector by Value at Current Prices (£m at rsp and percent), 2001 | 13 |
| Soda Lime Glass | 14 |
| Crystal Glass | 14 |
| Heat-Proof Glass | 14 |
| Overseas TRade | 14 |
| Table 6: UK Imports and Exports of Glassware by Value (£m), 1999 and 2000 | 14 |
| Imports | 15 |
| Table 7: UK Imports of Glassware by Sector by Value (£m), 2000 | 15 |
| Table 8: UK Imports of Glassware by Selected Country of Origin by Value (£000), 2000 | 16 |
| Exports | 16 |
| Table 9: UK Exports of Glassware by Sector by Value (£m), 2000 | 17 |
| Table 10: UK Exports of Glassware by Selected Country of Destination by Value (£000), 2000 | 17 |
| 3. Industry Background | 19 |
| HISTORY | 19 |
| Number of Companies | 19 |
| Table 11: Number of VAT-Based Enterprises Engaged in the Manufacture and Processing of Hollow Glass and Other Glass Articles by Turnover Sizeband (£000), 2001 | 20 |
| Employment | 20 |
| Table 12: Number of VAT-Based Local Units Engaged in the Manufacture and Processing of Hol―low Glass and Other Glass Articles by Employment Sizeband (number of employees), 2001 | 21 |
| Regional Variations in the Marketplace | 21 |
| Distribution | 22 |
| Manufacturers | 22 |
| Traditional Retailers | 22 |
| Specialist Tableware and Gift Shops | 22 |
| Department Stores | 22 |
| Variety Stores | 22 |
| Supermarkets | 22 |
| Furniture and Home Interior Stores | 23 |
| Mail Order, Direct Selling and Catalogues | 23 |
| The Internet | 23 |
| HOW ROBUST IS THE MARKET? | 23 |
| LEGISLATION | 24 |
| Manufacturing Legislation | 24 |
| The Introduction of the Euro | 24 |
| The 2002 Budget | 24 |
| Registered Design Protection | 25 |
| Key TRADE ASSOCIATIONS | 25 |
| British Glass Manufacturers Confederation | 25 |
| The Giftware Association | 25 |
| The International Crystal Federation | 25 |
| Society of Glass Technology | 26 |
| 4. Competitor Analysis | |
| THE MARKETPLACE | 27 |
| MARKET LEADERS | 27 |
| Dartington Crystal Group Ltd | 27 |
| Company Structure | 27 |
| Current and Future Developments | 27 |
| Financial Results | 27 |
| Royal Doulton PLC | 28 |
| Company Structure | 28 |
| Current and Future Developments | 28 |
| Financial Results | 28 |
| Waterford Wedgwood plc | 29 |
| Company Structure | 29 |
| Current and Future Developments | 29 |
| Financial Results | 29 |
| Table 13: Turnover and Pre-Tax Profits of Waterford Wedgwood plc by Division (tm), Years Ending 31st December 2000 and 2001 | 30 |
| Other Companies | 30 |
| The Edinburgh Crystal Glass Company Ltd | 30 |
| Financial Results | 31 |
| Rayware Ltd | 31 |
| Financial Results | 31 |
| Royal Brierley Crystal Ltd | 31 |
| Financial Results | 31 |
| OUTSIDE SUPPLIERS | 32 |
| Raw Materials | 32 |
| Processing | 32 |
| Advertising and Promotion | 32 |
| Table 14: Main Media Advertising Expenditure on Tableware (£000), Years Ending December 2000 and 2001 | 33 |
| Exhibitions | 33 |
| The National Glass Centre | 34 |
| Publications | 34 |
| 5. Strengths, Weaknesses, Opportunities and Threats | |
| STRENGTHS | 36 |
| WEAKNESSES | 36 |
| OPPORTUNITIES | 37 |
| THREATS | 37 |
| 6. Buying Behaviour | |
| EXPENDITURE ON HOUSEHOLD GOODS | 38 |
| By Gross Income Decile Group | 38 |
| Table 15: Average Weekly Household Expenditure on Kitchen and Garden Equipment and Household Hardware by Gross Income Decile Group (£), 2000/2001 | 38 |
| By Age of Head of Household | 38 |
| Table 16: Average Weekly Household Expenditure on Kitchen/Garden Equipment and Household Hardware by Age of Head of Household (£), 2000/2001 | 39 |
| Household Ownership of Glassware | 39 |
| Table 17: Ownership of and Expenditure on Glassware/Crystalware and Heat-Proof Glass ( percent of adults), 2001 | 39 |
| Expenditure | 40 |
| By Age | 40 |
| Table 18: Ownership of Glassware/Crystalware and Heat-Proof Glass by Age ( percent of adults), 2001 | 40 |
| By Socio-Economic Group | 41 |
| Table 19: Ownership of Glassware/Crystalware and Heat-Proof Glass by Socio-Economic Group ( percent of adults), 2001 | 41 |
| By Region | 41 |
| By Size of Household | 41 |
| Table 20: Ownership of Glassware/Crystalware and Heat-Proof Glass by Size of Household ( percent of adults), 2001 | 42 |
| 7. Current Issues | |
| Corporate Activity | 43 |
| Caithness Glass | 43 |
| Waterford Wedgwood plc | 43 |
| The Ravenhead Company Ltd | 43 |
| Demaglass Ltd | 44 |
| Newell Rubbermaid Incorporated | 44 |
| NEW PRODUCTS | 44 |
| Golden Jubilee Merchandise | 44 |
| Commemorative Pieces for Queen Elizabeth, the Queen Mother | 45 |
| Concorde | 45 |
| Dartington Crystal Group Ltd | 45 |
| 8. The Global Market | |
| LEADING GLOBAL OPERATORS | 46 |
| Waterford Wedgwood plc | 46 |
| Table 21: Turnover and Operating Profit for Waterford Wedgwood PLC by Region of Operation (nm), Year Ending 31st December 2000 | 46 |
| Royal Doulton PLC | 46 |
| Villeroy & Boch AG | 47 |
| Oneida Ltd | 47 |
| Noritake Co. Ltd | 47 |
| Libbey Inc. | 47 |
| Calp SpA | 47 |
| Bormioli Rocco e Figlio SpA | 48 |
| Swarovski | 48 |
| Crystalex AS | 48 |
| Krosno | 48 |
| Arc International | 49 |
| 9. Forecasts | |
| Future TRends | 50 |
| Economic Climate | 50 |
| Demographics and Lifestyle | 50 |
| Tourism | 50 |
| Forecasts 2002 to 2006 | 51 |
| Table 22: The Forecast UK Table-Top and Ornamental Glassware Market by Value at Current Prices (£m at rsp), 2002-2006 | 51 |
| 10. Company Profiles | |
| Dartington Crystal Group Ltd | 53 |
| The Edinburgh Crystal Glass Company Ltd | 55 |
| Rayware Ltd | 57 |
| Royal Doulton PLC | 59 |
| Waterford Wedgwood UK PLC | 61 |
| 11. Further Sources | |
| Associations | 63 |
| Publications | 64 |
| Directories | 65 |
| General Sources | 66 |
| Bonnier Information Sources | 66 |
| Government Publications | 68 |
| Other Sources | 68 |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004