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23rd June 2017
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Kitchen market boost from 'cooking culture' in 2016
A new report from MTW Research on the UK kitchen products market suggests kitchen sales will surpass £3 billion for the first time in 2017, with the market strengthening in 2016 as consumer confidence and the housing market remains buoyant.
Based on kitchen industry data, the research found that sales in 2016 are at an historic high, with the higher value sector boosting margins for the specialist kitchen retailers. Some 30% growth in housing transactions in four years, low unemployment and new kitchen design trends are some of the key issues identified as prompting growth across the kitchen market in 2016.
The 160 page report discusses how consumers are spending more time in the kitchen with a growing focus on 'cooking culture' stimulating significant change in terms of kitchen designs. Whilst increasingly adventurous consumers are demanding more space for a wider variety of food types, cookware and utensils, the growing need for kitchens to offer versatile living, working, dining and socialising space is also prompting clear growth opportunities for kitchen suppliers.
On trend kitchens in 2016 feature handleless designs, matt finishes and tertiary colours with clean, sleek lines also boosting value growth for the kitchen market.
"Whilst average UK kitchens are shrinking, demand for higher value kitchens with uncluttered, clean lines is strengthening," notes MTW's research executive James Taylor, who adds that these trends are translating into demand and margin growth for products such as wider pan drawers, wall hung base units, boiling water taps, integrated appliances and narrow profile solid surface worktops amongst others.
"There are clear opportunities for manufacturers to innovate in 2016, with clever furniture storage solutions and connected appliances which offer greater control set to drive healthy growth over the next few years," he suggests.
The IoT market (Internet of Things) is identified as offering significant growth opportunities across the kitchen sector in 2016 and beyond. MTW points to a number of IoT products already on the market such as smart refrigerators, washing machines and dishwashers offering value growth opportunities for the higher value kitchen market. The report forecasts sustained growth from IoT devices in 2016 and beyond as consumers increasingly demand more 'connected' kitchens.
However, the report also sounds a note of caution, pointing to challenging market conditions for some kitchen manufacturers and retailers, due in part to the rising dominance of Internet retailers sustaining pricing pressure in the mid-lower value end of the market. Consumer expectations are rising with customers demanding high quality, technologically advanced products at low prices, adding further strain on margins for kitchen product manufacturers.
MTW found that 55% of kitchen product manufacturers experienced sales growth in the last 12 months, illustrating a clear polarisation in the market between success and failure.
Nevertheless, credit ratings remain overwhelmingly healthy and the report illustrates an underlying market strength with over 90% of kitchen suppliers having a 'good' or 'excellent' rating in 2016.
The report identifies several product sectors which are performing well in 2016 and whilst some threats are identified, the future of the connected, integrated, well designed and featureful kitchen appears vibrant and healthy.
The report is available now for �595 via:
T: 08456 524324
17th June 2016