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News Release
October 12, 2004
New Report available from AKTRIN on
:
UK DINING ROOM & OCCASIONAL FURNITURE MARKET

The AKTRIN Furniture Information Center in collaboration with AMA Research of the United Kingdom have published a new study of the UK Dining Room & Occasional Furniture Market.
 

The Dining and Occasional Furniture sector forms part of the overall UK Furniture market consists of Upholstered Furniture and Beds, Bedroom Furniture, Kitchen Furniture, Bathroom Furniture and Home Office Furniture. 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.

 

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UK Dining and Occasional Furniture Market Value

2000 ?2004 (in ?million MSP)    

 

Source : AMA Research

 

 

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 ?22 million. Forecasts to 2006 estimate annual increases of around 1-2% to reach a value of ?49 million by 2006.

 

The overall Dining and Occasional Furniture market was worth an estimated ? billion in 2002. It is dominated by Upholstered Furniture and Beds with a 45% value share, followed by Kitchen furniture with a 23% share.

 

As a well established and 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 ?89 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.

 

AKTRIN is a report writing and international consulting firm fully dedicated to the furniture industry. The company has been in existence since 1985 and maintains offices in the United States and Canada . Representatives and affiliates are located throughout the world.

Submitted by :

 

Stefan Wille

AKTRIN Furniture Information Center

Tel.: +(905) 845 3474 ( Canada )

E-mail: aktrin@aktrin.com

Web: http://furniture-info.com/149.htm




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