News Release
December 20, 2004
New AKTRIN Report on :
UK UPHOLSTERED FURNITURE & BED MARKET, 2004
The AKTRIN
Furniture Information Center in collaboration with AMA Research of the United
Kingdom have published a new study of the UK Upholstered Furniture and Bed Market.
The upholstered furniture and beds
market was estimated to be worth around ?.1bn msp in 2003. The market has experienced
modest growth in recent years and is expected to continue to grow at a similar rate.
Underlying annual growth rates are forecast at around 2% in 2004, following lower levels
of consumer confidence and an unstable economic environment, in addition to high levels of
price competition in both the beds and upholstered furniture market. Price competition is
restricting the growth of both upholstered furniture and beds due to the high level of
imports in certain sectors of the market. These trends are expected to continue in the
medium term.
In recent years, growth rates have
been supported by the buoyant housing market and high levels of consumer spending. Between
2000 and 2002 consumer confidence remained fairly high and mortgage equity withdrawal has
been increasing year on year to record levels. The wide range of products now available,
in addition to consumers becoming more discerning, has also supported growth.
Upholstered Furniture
In 2003, the Upholstered Furniture
Market was worth an estimated ?.5bn MSP, with the domestic market accounting for around
90%. The majority of the remaining 10% is accounted for by the hotel and leisure sector. Sustained low interest rates and the
growing influence of home improvement TV programs and magazines also supported growth.
In 2003, the increasing level of imports and the high level of price competition have
restricted value growth. Certain sectors of the market have contributed to the overall
value growth particularly the growth of leather, sofas and motion furniture. In contrast,
some sectors have experienced higher levels of price competition including suites and sofa
beds, while others such as three-piece suites have declined.
In spite of the declining market
share for 3 piece suites, they account for around 47% of the market by value. Sofas
account for approximately 17% of the market, with demand having grown significantly at the
expense of 3 piece suites. Action furniture has also increased and now accounts for 18% of
the market compared to 16% in 2002. Sofa beds and other furniture account for around 9% of
the market by value. This area has remained fairly static with some sectors declining,
e.g. footstools etc, which is probably due to the popularity of recliners.
Growth in demand for leather has far
exceeded growth for the overall upholstery sector, although the cost of raw materials has
fallen recently, which may affect value share gain in the medium term. Key factors behind
increasing demand levels include fashion trends, a wider range of styles and designs,
which appeal to a wider target market, including younger consumers and increasing price
competition.
Imports continue to increase in this sector accounting for 38% of the market in 2003 at
?70m. The majority of these products are imported from countries within the EC, with Italy
and Belgium as key suppliers. Other major countries of export to the UK of wooden framed
upholstered furniture are the Benelux countries, Poland and Russia . In 2003 exports were worth around
?4m, accounting for approximately 4% of total
UK output, a figure which has remained static during the last two years.
Irish
Republic , the
Netherlands and
Germany are key export destinations.
Beds
The beds market increased by 2% to
?16m in 2003. In addition to underlying macro-economic factors, a key strength for the bed
industry is that consumers typically regard beds as essential and not discretionary
purchases. However, the high level of price competition in certain sectors of the beds
market has affected value growth during the last two years.
In terms
of product mix, divans account for around 48% of the market by value, but market share has
slowly been eroded by strong growth in demand for bedsteads. Overall bedsteads account for
around 26% of the market by value. Imports of metal bedsteads accounted for 66% of bed
imports by value in 2003, with overall imports increasing from ££83m in 2002 to ?3m in 2003. Imports of bed bases declined in
2003, while mattresses increased significantly by 32%. However, overall exports declined,
albeit marginally in 2003 from ?6m to ?5.1m.
By value, mattresses account for
around 18% of the market. Steady growth in the market has been underpinned by growth in
the higher value pocket sprung sector. Overall, spring interiors continue to dominate,
accounting for 90% of the market. During the last 5 years, there has been a marked trend
away from single to double beds, in particular king sized beds have gained share.
The beds sector is more concentrated
in terms of suppliers than the upholstered furniture market with major suppliers including
Silentnight, Sleepeezee Holdings and Airsprung. Other key suppliers include Relyon,
Slumberland and Horatio Myers. The main role of the Internet
remains a marketing tool, with manufacturers and retailer web sites acting as the first
point of contact for customers.
For more Information click http://furniture-info.com/159.htm
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