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07 June 2010

MARKET ANALYSIS: Kitchen living space

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Peter Wilson, chief executive, Moores Furniture Group, examines how the trend for kitchens as a living space has impacted the market...

Our industry has been buzzing with talk of a quiet revolution in how we live our domestic lives. The key point is that the recognised blurring of boundaries between kitchen, dining room and living space has become one of the fundamental driving forces in the current kitchen furniture market. 


Effectively, these days we all have a more open approach to domestic room layout and subscribe to more relaxed lifestyles. This has been particularly noticeable in the mid to top end of the

market, notably in luxury urban apartments, giving open-plan living an aspirational quality that buyers at every price point covet. 


The trend has had a significant impact on product development, with manufacturers working to meet the increased interest in island units for example, and the need for stylish contemporary

low-slung furniture which not only provides subtle demarcations in a large, open-plan space but also serves a practical function by providing additional storage. 


AMA Research's latest report tells us that the total kitchen furniture market was worth £1 billion (MSP) in 2008, but following the economic crisis it fell by 12% in 2009 to an estimated £880m. The forecast for 2010 looks a little perkier, with a year-on-year increase of 3.6%. It may only be a marginal rise, but we should grab hold of this stat for all it's worth, and view it as the first tentative step in a gradual recovery, in which market value will reach its former levels before 2013. 


Furniture accounts for 76% of the total market and this looks set to continue for the foreseeable future. How the trend for open-plan living will impact on this percentage is unclear yet, but within

that bracket we can expect to see more multifunctional and adaptable furniture to meet the needs of layouts where kitchen blends into dining room and living space. 


The trend for open-plan is currently more appealing to the younger sector of the market, roughly speaking the under-40s, who are web-savvy and know how to surf around to find the best deals

to achieve the specific look they are after. This sector, however, tends to be affected more by price sensitivity. 


What interests us though, is the potential longevity of this trend. As the younger, budget-conscious generation grows older, we are predicting that they will take with them the continued

desire to live in homes without traditional boundaries - in the living area of the house at any rate. So for the mid-to long-term prospects of this sector, we are looking closely at the 40-59 age group. This demographic generally has a smaller mortgage, has a greater prospect of receiving inheritances, and women who have been out of the workforce to bring up families

are thinking about restarting their career. These factors all impact significantly on disposable income and increase a buyer's willingness to purchase. 


Research taken from AMA Research, "Domestic Kitchen Furniture Market - UK 2010-2014"