UK kitchen furniture market

After the poor performance of the national furniture industry in 1999, the results of the following years until 2004 showed healthy improvements. Total sales increased by almost 5% (or £210m) in 2002, and producer prices were fairly stable or even declining in certain sectors. Sales in 2003 grew by 4.1% (or £190m) and by around 3.0% in 2004, before falling 2.6% in 2005, the first market decline for many years. Estimates show that sales reached £4.99 billion in 2006, an increase of £120 million or 2.5%.

When it comes to kitchen furniture, there have been modest increases in both volume and value terms in the period since 1999, even increasing sales in 2005 against the general trend for household furniture. However, competition has remained fierce throughout the industry and several companies have gone into receivership.

Total kitchen furniture sales reached £1.155 billion in 2006, compared to £1.1 billion in 2005 and £1.07 billion in 2004; this group of products currently represents 23% of the total domestic furniture market.

In terms of volume, the total number of built-in kitchen cabinets has increased slowly in recent years, reaching 1,050,000 units in 2006, up from 1,023,000 units in 2005 and 974,000 units in 2004. Furniture sales Built-ins, mainly base units and sinks, moved from £520m in 2004 to £560m in 2006, while sales of storage furniture, mainly wall units, rose from £465m to £505m. million pounds sterling in the same period.

The emphasis within the furniture industry has steadily shifted from manufacturing to retail over the last decade, although within the kitchen furniture sector, companies such as MFI (Hygena and Schreiber), Magnet, Moben, Smallbone, etc. . They have combined both functions.

The leading established kitchen furniture manufacturers represent a growing share of the market. Despite this, there have been new manufacturers and retail groups eager to enter the market, a fact that only serves to fuel the competitive nature of the market.

Kitchen specialty stores account for 19% of the total market in volume terms, but 42% of the market in value terms, with independent specialists claiming 14% in volume terms and 35% in value terms. The masons and plumbers merchants have a 23% share in terms of volume, but a reduction of 16% in terms of value. DIY outlets account for 22% of sales volume but 13% of sales value, while the direct contract sector accounts for 17% of sales volume and 13% of sales value.

The private sector of the market represents the majority of kitchen furniture sales with 92% of the total market in terms of value. Existing housing in the private sector continues to be the main source of demand with 73% of the total market, with the new construction sector representing 19% of the total.

Imports of kitchen furniture amounted to £115.1 million in 2006, compared to £106.3 million in 2005 and £92.8 million in 2004. The penetration rate of these products in the UK market is currently 10.0% in value terms. Alno (UK) Ltd dominates this sector of the market.

Total kitchen furniture sales are expected to reach £1,175 million in 2007 and £1,215 million in 2008, compared to the level of £1,155 million achieved in 2006. This product group will account for around 23% of the total national furniture market in terms of value during the period under review. Total kitchen furniture installations are expected to reach 1,055,000 units in 2007 and 1,075,000 units in 2008; this compares to the level of 1,050,000 units reached in 2006.