| KN28034 |
| KEY NOTE Market Report : Kitchenware : May 2004 |
 |
CLICK
 TO BUY |
| Executive Summary 1 |
| 1. Market Definition 8 |
| Report Coverage 8 |
| MARKET SECTORS 8 |
| Cookware 8 |
| Ovenware 9 |
| Utensils 9 |
| Cleaning and Storage 10 |
| MARKET TRENDS 10 |
| Licensing 10 |
| Household Size 10 |
| Table 1: Average UK Household Size |
| (% of total number of households), 1961 and 2001 11 |
| Eating Out 11 |
| Table 2: UK Household Expenditure on Eating Outside the Home (£m), 1998-2002 12 |
| Economic Trends 12 |
| Gross Domestic Product 12 |
| Table 3: UK Gross Domestic Product at Current Prices |
| (£m), 1999-2003 12 |
| Inflation 13 |
| Table 4: UK Rate of Inflation (%), 1999-2003 13 |
| Unemployment 13 |
| Table 5: Actual Number of Unemployed |
| Persons (million), 1999-2003 13 |
| Household Disposable Income 14 |
| Table 6: Household Disposable Income (£), 1998-2002 14 |
| Population 14 |
| Table 7: UK Resident Population Estimates by Sex |
| (000), Mid-Years 1999-2003 15 |
| MARKET POSITION 15 |
| The UK 15 |
| Table 8: UK Household Expenditure on Glassware/Tableware/ Household Utensils and Furnishings/Household Goods |
| by Value at Current Prices (£m at rsp and %), 1998-2002 16 |
| Overseas 16 |
| 2. Market Size 17 |
| THE TOTAL MARKET 17 |
| Table 9: The UK Kitchenware Market by Value |
| at Current Prices (£m at rsp), 1999-2003 17 |
| Table 10: Estimated UK Retail Sales of Kitchenware |
| by Sector by Value at Current Prices (£m at rsp), 1999-2003 18 |
| By Market Sector 18 |
| Cookware 18 |
| Table 11: The Estimated UK Cookware Market by Value |
| at Current Prices (£m at rsp and %), 1999-2003 19 |
| Ovenware 19 |
| Table 12: The Estimated UK Ovenware Market by Value |
| at Current Prices (£m at rsp and %), 1999-2003 20 |
| Utensils 20 |
| Table 13: The Estimated UK Utensils Market by Value |
| at Current Prices (£m at rsp and %), 1999-2003 21 |
| Cleaning and Storage 21 |
| Table 14: The Estimated UK Cleaning and Storage Market by Value at Current Prices (£m at rsp and %), 1999-2003 21 |
| 3. Industry Background 22 |
| RECENT HISTORY 22 |
| Number of Companies 22 |
| Manufacturers of Ceramic Household Articles and Cutlery 22 |
| Table 15: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Ceramic Household Articles and Cutlery |
| by Turnover Sizeband (£000), 2003 23 |
| Manufacturers of Brooms and Brushes 23 |
| Table 16: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Brooms and Brushes by Turnover |
| Sizeband (£000), 2003 24 |
| EMPLOYMENT 24 |
| Manufacturers of Ceramic Household Articles and Cutlery 24 |
| Table 17: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Ceramic Household Articles and Cutlery by Employment Sizeband (number of employees), 2003 25 |
| Manufacturers of Brooms and Brushes 25 |
| Table 18: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Brooms and Brushes by Employment Sizeband (number of employees), 2003 26 |
| REGIONAL VARIATIONS IN THE MARKETPLACE 26 |
| DISTRIBUTION 27 |
| Wholesale Distribution of Kitchenware 27 |
| A J Boulton Ltd 27 |
| Dexam International Ltd 27 |
| ECM Housewares Ltd 27 |
| George East (Housewares) Ltd 27 |
| Horwood Homewares Ltd 27 |
| Premier Housewares LLP 27 |
| Retail Distribution of Kitchenware 28 |
| Cookshops and Hardware Shops 28 |
| Department Stores and Multiples 28 |
| Discount Stores 28 |
| Furniture and Home Interior Stores 28 |
| Grocery Multiples 28 |
| Home Shopping 29 |
| HOW ROBUST IS THE MARKET? 29 |
| LEGISLATION 29 |
| Key TRADE ASSOCIATIONS 30 |
| British Cookware Manufacturers Association 30 |
| British Hardware Federation 30 |
| British Hardware & Housewares Manufacturers Association 30 |
| 4. Competitor Analysis 31 |
| THE MARKETPLACE 31 |
| MARKET LEADERS 31 |
| Addis Group Ltd 31 |
| Company Structure 31 |
| Recent Developments 31 |
| Financial Results 31 |
| Brabantia S & L (UK) Ltd 31 |
| Company Structure 31 |
| Current and Future Developments 32 |
| Financial Results 32 |
| Le Creuset UK Ltd 32 |
| Company Structure 32 |
| Current and Future Developments 32 |
| Financial Results 32 |
| Metalrax Group PLC 33 |
| Company Structure 33 |
| Recent Developments 33 |
| Financial Results 33 |
| Meyer Prestige Ltd 33 |
| Company Structure 33 |
| Current and Future Developments 34 |
| Financial Results 34 |
| Newell Cookware Europe Ltd 34 |
| Company Structure 34 |
| Current and Future Developments 34 |
| Financial Results 34 |
| Oneida International Ltd 34 |
| Company Structure 34 |
| Current and Future Developments 35 |
| Financial Results 35 |
| Richardson Sheffield Ltd 35 |
| Company Structure 35 |
| Current and Future Developments 35 |
| Financial Results 35 |
| Outside Suppliers 36 |
| Raw Materials 36 |
| Steel 36 |
| Chemicals and Coatings 36 |
| Handles and Lids 37 |
| MARKETING ACTIVITY 37 |
| Main Media Advertising Expenditure 37 |
| Table 19: Main Media Advertising Expenditure on Kitchenware |
| by Sector (£000), Years Ending December 2002 and 2003 38 |
| Cookware 38 |
| Table 20: Main Media Advertising Expenditure on Cookware |
| by Brand (£000), Years Ending December 2002 and 2003 38 |
| Kitchen Utensils 39 |
| Other Housewares 39 |
| Table 21: Main Media Advertising Expenditure on |
| Other Housewares by Brand (£000), |
| Years Ending December 2002 and 2003 39 |
| Methods of Advertising 39 |
| Newspapers and Magazines 39 |
| Endorsement by Celebrities 40 |
| Point-of-Sale 40 |
| Online Sites 40 |
| Miscellaneous Promotions 40 |
| UK Exhibitions 41 |
| Exclusively Housewares 41 |
| Spring and Autumn Fairs 41 |
| The Housewares Show 41 |
| BBC Good Food Show 41 |
| Overseas Exhibitions 41 |
| The International Home & Housewares Show 41 |
| Ambiente 41 |
| New York Gourmet Housewares Show 41 |
| 5. Strengths, Weaknesses, Opportunities and Threats 43 |
| STRENGTHS 43 |
| WEAKNESSES 43 |
| OPPORTUNITIES 44 |
| THREATS 44 |
| 6. Buying Behaviour 46 |
| HOUSEHOLD EXPENDITURE 46 |
| Expenditure by Gross Income Decile Group 46 |
| Table 22: UK Weekly Household Expenditure on Glassware, Tableware and Household Utensils by Gross Income Decile Group (£), 2001/2002 46 |
| Expenditure by Age 47 |
| Table 23: UK Weekly Household Expenditure on Glassware, Tableware and Household Utensils |
| by Age of Head of Household (£), 2001/2002 47 |
| HOUSEHOLD PENETRATION 47 |
| Table 24: Penetration of Kitchenware by Product |
| (% of households), 2000 and 2003 48 |
| Purchasing Patterns 48 |
| Table 25: Items of Kitchenware Bought New |
| in Preceding 12 Months (% of households), 2003 48 |
| 7. Current Issues 50 |
| CLOSURES, MERGERS AND ACQUISITIONS 50 |
| Metalrax Group PLC 50 |
| Debenhams PLC 50 |
| BOARD AND SENIOR MANAGEMENT CHANGES 50 |
| Metalrax Group PLC 50 |
| Fiskars Brands Inc. 50 |
| New Products 50 |
| 8. The Global Market 52 |
| THE US MARKET 52 |
| THE GLOBAL MARKET 52 |
| PRINCIPAL GLOBAL COMPETITORS 52 |
| Groupe SEB 52 |
| Meyer International Holdings Ltd 52 |
| Nampak Plastics Europe 53 |
| Newell Rubbermaid Inc. 53 |
| Williams-Sonoma Inc. 53 |
| 9. Forecasts 54 |
| Introduction 54 |
| Forecast Economic Trends 54 |
| Population 54 |
| Table 26: Forecast UK Resident Population |
| by Sex (000), 2004-2008 54 |
| Gross Domestic Product 54 |
| Table 27: Forecast UK Gross Domestic Product |
| in Real Terms (%), 2004-2008 55 |
| Inflation 55 |
| Table 28: Forecast UK Rate of Inflation (%), 2004-2008 55 |
| Unemployment 55 |
| Table 29: Forecast Actual Number of Unemployed |
| Persons (million), 2004-2008 56 |
| Forecasts 2004 to 2008 56 |
| Table 30: The Forecast UK Kitchenware Market |
| by Sector by Value (£m), 2004-2008 56 |
| 10. Company Profiles 58 |
| Addis Group LTd 59 |
| Brabantia S & L (uk) LTd 61 |
| Metalrax Group Plc 63 |
| Meyer Prestige LTd 65 |
| Oneida International LTd 67 |
| Richardson Sheffield LTd 69 |
| 11. Further Sources 71 |
| Associations 71 |
| Publications 72 |
| General Sources 72 |
| Government Publications 72 |
| Other Sources 73 |
| Bonnier Information Sources 73 |
The total UK retail market for kitchenware was valued at £732.5m in 2003. This value remained virtually unchanged from the previous year, rising by just 1.2% on 2002. Growth was limited by a high level of discounting, particularly in the case of grocery multiples, and by an increase in the volume and quality of reasonably-priced imports.
The UK's favourable trade balance has shrunk in recent years as the volume of imports has increased while exports have decreased. The manufacture of ceramics, a traditional UK industry, is struggling to survive competition from the Far East and Eastern Europe. The entry of eight Eastern European countries with low production costs to the allied free-trade zone of the EU in May 2004 can only put more pressure on an already competitive market for ceramics, glassware and other kitchenware. For the purposes of this report, the UK market for kitchenware is simplistically divided into the four sectors of cookware, ovenware, utensils, and cleaning and storage, although there is considerable overlap between the cookware and ovenware sectors.
The most valuable sector in 2003 was cookware, sales of which accounted for 41.6% of the total kitchenware market. Changes in lifestyle have brought about major changes in eating habits. The traditional housewife baking cakes and bread, and preparing meals from scratch is now a rarity. There are also now more single households than ever thanks to longevity, an increasing divorce rate and the trend towards staying single, if only until an older age. This can lead to duplication in demand for kitchenware products. Conversely, consumers value their leisure time highly and many have disposable incomes high enough to afford to regularly eat out or purchase ready meals and take-aways, which require little or no use of kitchenware. On the positive side, kitchenware is becoming more fashion-led and discerning consumers are prepared to pay for quality and style.
Television programmes featuring `celebrity' chefs have never been so popular and using their names to endorse kitchenware can encourage purchase. Jamie Oliver, for example, has designed china ovenware for Royal Worcester and a Professional Series of cookware for Tefal. The term 'Delia effect' even found its way into the Collins Dictionary to describe the public reaction to a famous cook's use of a product.
Consumers have continued to spend enthusiastically in 2003 and, contrary to predictions, Christmas trading was good. However, having been at a record low for some time, interest rates have risen twice since November 2003 and are likely to increase again in May 2004, adversely affecting disposable income levels. Moving house frequently triggers the purchase of new household goods, including kitchenware, but 2003 saw the lowest number of property sales since 1998.
These factors, along with continued pressure on prices from cheap imports, are likely to contribute to limited growth in the total sales of kitchenware in the near future.
Text © 2004Key Note
| Can't find what you
need? Try our "Research on Request" market report service and define your own report research! Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days |
| Click here for full details |
Ariadne - working together with our customers
to enhance productivity and increase knowledge
© 2003
www.the-list.co.uk Ariadne
Last updated by Amanda Porteous June
2004
