| AM20093 |
| AMA RESEARCH Market Report : Dining Room and Occasional Furniture : December 2003 |
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BRIEF DESCRIPTION
| AMA Research have published the third edition of "Dining Room & Occasional Furniture Market Report UK 2003". The report incorporates original research and provides a comprehensive and up-to-date review of the market - representing a worthwhile investment and giving excellent value for money. |
| Product areas covered in the report include: - |
| DINING ROOM FURNITURE |
| Tables |
| Chairs |
| Sideboards |
| OCCASIONAL FURNITURE |
| Wall Storage Units, Room Dividers and Display Cabinets |
| Occasional/Coffee Tables |
| Entertainment Units/cabinets |
| Bookcases, Shelving & bureaux |
| These well-established and mature markets have experienced many changes in the last few years. The continuing developments in consumer lifestyles, and in social trends coupled with a number of market forces have had an impact on the Dining room and Occasional Furniture Market. The growth of the public's interest in Home improvement and fashion awareness has fuelled a demand for new and innovative designs and experiments with new materials. In addition the market has also been effected by the rapid growth of imports, the strength of the Sterling, and Uncertainty related to the recent Iraq conflict. |
EXECUTIVE SUMMARY
| The Dining and Occasional Furniture sector forms part of the overall UK Furniture market which consists of Upholstered Furniture and Beds, Bedroom Furniture, Kitchen Furniture, Bathroom Furniture and Home Office Furniture and was worth an estimated £4 billion in 2002. The overall market was dominated by Upholstered Furniture and Beds with a 45% value share, followed by Kitchen furniture with a 23% share. |
| The Dining and Occasional Furniture sector has gradually decreased in terms of overall market share, accounting for around 13% of the overall furniture market with an approximate value in 2002 of £522 million. Forecasts to 2006 estimate annual increases of around 1-2% to reach a value of £549 million by 2006. |
| As a mature sector, the dining and occasional market has experienced gradual growth over the period. During 1997, the dining and occasional market experienced 7% growth, supported by building society de-mutualisation dividends, a buoyant housing market and high levels of consumer confidence. Between 1997 - 2001, the growth levels have slowed to 2-3%, affected by the general economic downturn and the slowing down of the house building and house moving sectors in 1998/early 1999. Since 2001, the growth levels have slowed down to 1-2%, due to the uncertainty of the economic climate, in respect of events such as September 11th and the Iraq conflict. |
| The outlook for dining and occasional furniture is relatively optimistic, owing largely to the growing demand for certain items of occasional furniture. However, the relatively weakened demand for dining furniture is likely to result in low to moderate growth in the medium term for the market as a whole. |
| Key characteristics of the dining market are its deferrable nature and low usage in comparison to other furniture items within the home. In addition to these factors, the increasing volume of single occupancy households and the trend towards smaller room sizes, have reduced the need for traditional dining suites. However, the demand for smaller items of occasional furniture has increased and, with greater levels of casual dining and technology in the home, the level of usage tends to be higher in the occasional sector. |
| Sectors of the occasional market experiencing growth include; wall units/ storage units, bookcases and shelves, and coffee and occasional tables. Wall units are becoming more popular, largely due to the increasing pressure on space, and the amount of storage they provide. In addition, the variety of add-on features now available, such as doors and drawers, and the emergence of modular furniture which can be used in a variety of areas throughout the home have contributed to their popularity. Coffee and occasional tables also remain strong as the trend towards casual dining and 'TV dinners' continues. |
| The Home Office Furniture market was worth an estimated £189 million during 2002 and the growth of this sector has significant implications for the future of both dining and occasional furniture. The growth in the number of people working from home has resulted in the increasing use of the dining room - the least used room - as a multi-purpose area. In addition to this, demand has been stimulated for occasional pieces of furniture, e.g. shelving and storage units such as bookcases. The entertainment unit sector has seen a decrease in market value largely due to changes in the design of technology. |
| The furniture market has become more fashion-oriented and fuelled consumers demand for more innovation in furniture, as well as more versatility and functionality to suit the changing socio-economic environment. Demand for furniture has become more subject to changing consumer tastes, while price has also become a major driver in the market. Consumer responsiveness to lower prices may depress the chance of any real growth with in the market. The growth of self-assembly furniture will also add further pressure on market growth rates in the dining and occasional sector - reasons for this include the low price, the immediacy and convenience of self-assembly furniture and the growth in demand for modular/flexible furniture items. |
| The leading types of furniture offered in self-assembly format tend to be foil and wood veneer finished, which are less expensive than solid wood. The light to medium colour finishes will continue in popularity. In terms of real wood furniture, the market will see a resurgence of popularity towards darker woods. |
| International trade in the dining and occasional market has been affected by consumer response to low prices and the strength of Sterling in recent years, which has led to greater import penetration of the UK market and an increasing, negative trade balance. In 2002, imports represented approximately 60% of the dining and occasional market, an increase of around 10% on the previous year. China has overtaken Malaysia as the largest import source of dining and occasional furniture to the UK. |
| Estimates indicate that there are approximately 4,100 companies within the dining and occasional sector. Major suppliers include Silentnight Holdings (Silentnight Cabinets, and branded ranges such as Nathan, Ducal and Stag), followed by Wade, Ercol and H. Morris & Co. (G-Plan, Morris Furniture and Beautility). |
| The furniture multiples take the largest share of the dining and occasional furniture market, largely due to their strength in national coverage. IKEA opened a new store in Cardiff, and MFI and Harvey's have undertaken vast refurbishment. Department stores and variety stores have increased their market share, as they increase their portfolios. Some companies have started to open stand-alone homewares stores. Key organisations include John Lewis, Allders and Marks & Spencer. |
| Grocery retailers have entered the homewares market, offering a range of home furnishings and furniture. The use of the Internet has seen marginal expansion, mainly from existing multiples, department and variety stores. The use of the Internet is still very much a marketing tool, but the number of e-commerce sites are increasing. |
| Major volume growth within the dining and occasional market seems unlikely in the foreseeable future. Stimulus to the future value growth of the sector is anticipated to come from consumers continuing to 'trade up' to better quality products, and the continuing trend to modular, versatile occasional furniture items to meet the increasing pressures on space. With an increase in interest rates, and more expected increases in 2004, in addition to consumer confidence currently under pressure, it seems likely that the market will be relatively flat in the short-term future. In addition, constant pressures on lower prices and the increasing number of cheap imports may depress any chance of real growth in the medium term. |
LIST OF CONTENTS
| 1 | INTRODUCTION |
| 2 | SUMMARY |
| 2.1 | OVERALL MARKET |
| 3 | ECONOMIC ENVIRONMENT |
| 3.1 | GDP |
| 3.2 | INFLATION & INTEREST RATES |
| 3.3 | UNEMPLOYMENT |
| 3.4 | HOUSEHOLD CONSUMPTION |
| 3.5 | HOUSING & CONSTRUCTION |
| 3.6 | STERLING |
| 3.7 | POPULATION PROFILE |
| 3.8 | CONCLUSIONS |
| 4 | THE UK FURNITURE MARKET |
| 4.1 | DEFINITION AND MARKET SIZE |
| 4.2 | CONSUMER CHARACTERISTICS |
| 4.3 | HOUSING TRENDS AND DEMOGRAPHICS |
| 4.4 | PRODUCT MIX - OVERALL FURNITURE MARKET |
| 5 | THE UK DINING AND OCCASIONAL FURNITURE MARKET |
| 5.1 | DEFINITIONS |
| 5.2 | MARKET SIZE AND BACKGROUND |
| 5.3 | CURRENT TRENDS |
| 5.4 | FUTURE PROSPECTS |
| 5.5 | HOME OFFICE FURNITURE |
| 5.6 | IMPORTS AND EXPORTS |
| 6 | THE PRODUCTS |
| 6.1 | PRODUCT MIX |
| 6.2 | DINING FURNITURE |
| 6.3 | OCCASIONAL FURNITURE |
| 6.3.1 | Wall Storage/Room Dividers/Display Cabinets |
| 6.3.2 | Coffee/Occasional Tables |
| 6.3.3 | Entertainment Cabinets And Units |
| 6.3.4 | Bookcases And Other Occasional Furniture |
| 6.4 | DINING AND OCCASIONAL FURNITURE MATERIALS |
| 6.4.1 | Material Mix |
| 6.4.2 | Metal |
| 6.4.3 | Plastic |
| 6.4.4 | Rattan and Cane |
| 6.4.5 | Solid Timber and Decorative Board |
| 6.4.6 | Others |
| 7 | SUPPLIERS |
| 7.1 | STRUCTURE |
| 7.2 | MARKET SHARE |
| 7.3 | MAJOR SUPPLIERS |
| 7.4 | OTHER SUPPLIERS. |
| 7.5 | IMPORTS |
| 8 | DISTRIBUTION |
| 8.1 | DEFINITION |
| 8.2 | DISTRIBUTION CHANNEL SHARES |
| 8.3 | FURNITURE MULTIPLES |
| 8.4 | FURNITURE INDEPENDENTS |
| 8.5 | DEPARTMENT STORES AND VARIETY STORES |
| 8.6 | MAIL ORDER |
| 8.7 | DIY |
| 8.8 | INTERNET |
| 8.9 | GROCERY MULTIPLES |
| 9 | KEY MARKET INFLUENCES |
| 9.1 | THE HOUSING MARKET |
| 9.2 | POPULATION PROFILE |
| 9.3 | EMPLOYMENT/UNEMPLOYMENT |
| 9.3.1 | Inflation & Interest Rates |
| 9.4 | CONSUMER DISPOSABLE INCOME LEVELS AND SAVINGS |
| 9.5 | EXCHANGE RATE FLUCTUATIONS |
| 10 | FUTURE PROSPECTS |
| 10.1 | DINING AND OCCASIONAL MARKET |
| 10.2 | DINING FURNITURE |
| 10.3 | OCCASIONAL FURNITURE |
| 10.4 | DISTRIBUTION |
Tables and Charts
| CHART 1 | UK DINING AND OCCASIONAL MARKET 1995-2006- £M MSP |
| TABLE 2 | THE UK MARKET FOR DOMESTIC FURNITURE 1995-2006 (£M MSP) |
| TABLE 3 | RETAIL SALES OF FURNITURE, LIGHTING ETC - 1995-2003 RSP £M. |
| TABLE 4 | AVERAGE WEEKLY EXPENDITURE ON HOUSEHOLD GOODS AND FURNITURE BY AGE OF HEAD OF HOUSEHOLD (£'S) 2001/2002 |
| TABLE 5 | SIZE OF HOUSEHOLDS - % OF TOTAL 1990 TO 1998 |
| CHART 6 | UK MIX OF FURNITURE 1997, 1999 AND 2002 |
| CHART 7 | FITTED AND NON-FITTED FURNITURE 2002 - % SHARE BY VALUE |
| TABLE 8 | UK DINING AND OCCASIONAL MARKET 1995-2006- £M MSP |
| CHART 9 | UK MARKET FOR DINING AND OCCASIONAL FURNITURE 1994-2006 AT CONSTANT 1994 PRICES £M MSP |
| TABLE 10 | UK MARKET FOR HOME OFFICE FURNITURE 1996 - 2006 £M MSP |
| TABLE 11 | UK TELEWORKERS AS A % OF WORKING POPULATION 1998-2002 |
| TABLE 12 | PENETRATION OF PERSONAL COMPUTERS IN UK 1996 - 2002 |
| TABLE 13 | IMPORTS AND EXPORTS OF WOODEN DINING, LIVING AND OCCASIONAL FURNITURE 1999-2003 BY VALUE - (£ MILLION) |
| TABLE 14 | COUNTRIES OF ORIGIN FOR IMPORTS OF WOODEN DINING, LIVING AND OCCASIONAL FURNITURE 2002 - MARKET SHARE BY VALUE (£ MILLION) |
| TABLE 15 | COUNTRIES OF DESTINATION FOR EXPORTS OF WOODEN DINING, LIVING AND OCCASIONAL FURNITURE 2002 - MARKET SHARE BY VALUE (£ MILLION) |
| CHART 16 | % MIX BY VALUE OF DINING & OCCASIONAL FURNITURE 2002 |
| TABLE 17 | UK DINING MARKET 1995-2006 - £M MSP |
| TABLE 18 | THE UK MARKET FOR DINING FURNITURE BY PRODUCT TYPE 1991/1999/2003 BY VALUE |
| TABLE 19 | UK OCCASIONAL MARKET 1995-2006 - £M MSP |
| TABLE 20 | THE UK MARKET FOR OCCASIONAL FURNITURE BY PRODUCT TYPE 1991/1999/2003 BY VALUE |
| CHART 21 | THE UK MARKET FOR DINING & OCCASIONAL FURNITURE BY TYPE OF MATERIAL % VALUE 2002 |
| CHART 22 | UK MARKET FOR DINING & OCCASIONAL FURNITURE BY TYPE OF WOOD - BY VALUE 2002 |
| TABLE 23 | NUMBER OF FURNITURE MANUFACTURERS AND TURNOVER SIZE 1995-2001 |
| TABLE 24 | MAJOR SUPPLIERS TO THE DINING AND OCCASIONAL FURNITURE MARKET - SHARE BY VALUE 2002 |
| TABLE 25 | DISTRIBUTION OF DINING & OCCASIONAL FURNITURE - VALUE SHARE 2002 |
| TABLE 26 | HOUSEBUILDING COMPLETIONS 1995-2004 GREAT BRITAIN ('000) |
| TABLE 27 | NUMBER OF PROPERTY TRANSACTIONS IN ENGLAND AND WALES 1995-2002 |
| TABLE 28 | STOCK OF DWELLINGS GREAT BRITAIN - 1985-2002 |
| TABLE 29 | AVERAGE HOUSEHOLD SIZE FOR GREAT BRITAIN 1971 - 2001 |
| CHART 30 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 ('000) |
| CHART 31 | NUMBER OF EMPLOYEES IN EMPLOYMENT GB - JUNE 1982-02 (MILLIONS) |
| CHART 32 | INTEREST RATES AND INFLATION (RPI) FROM 1990-2005 |
| CHART 33 | PDI & SAVINGS RATIO 1980-2005 |
| TABLE 34 | RETAIL SPENDING - PREDOMINANTLY NON-FOOD STORES 1995-2002 |
| TABLE 35 | EXCHANGE RATE FLUCTUATIONS 1997-2003 - DOLLARS, AND THE ECU TO THE POUND STERLING, SPOT RATES |
Text © 2003 AMA Research
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Last updated by Amanda Porteous 2003
