Fitted kitchens are projected to hit an all-time high in 2024 in terms of the total market value, according to researchers JKMR.
Despite the number of installations being the lowest it’s been in a decade, the UK kitchen market value is projected to be £5.3 billion (up 1.5% from 2023) by the end of 2024.
The latest JKMR 2024 Overview Report on the UK Fitted Kitchen Market shows that 1.06 million new kitchens are predicted to be installed during 2024, while just two years ago there were almost 1.28 million new projects in 2022.
The report also makes a qualitative review of developments in the retail sector. It says Ikea’s opening of small city centre stores indicates the Swedish homewares giant still has “a desire to increase its presence in product lines that require in-store design services.”
JKMR predicts that in the short-term it is unlikely Ikea’s full-scale kitchen refurb activity will return to pre-Covid levels, particularly given the economic constraints on younger householders; but it may “benefit from any long-term shift to a ‘piecemeal’ refurbishment model (ie replacing doors, changing handles, etc.)”
The brand has introduced a paid for design advice service and design charges, which JKMR believes could have a major impact on the market overall if it finally introduces the concept of kitchen design as a ‘product’ which should have a financial value put on it.
The report also highlights John Lewis’ recent struggle with ‘home’ product category sales. With Mereway, who made its cabinetry, ceasing to trade it was unable to offer fitted kitchens for much of 2023, and with the group increasingly focussed on its Waitrose side and online activity JKMR believes it is doubtful it will ever return to being a significant market presence.
JKMR’s report highlights the key market issues that will affect the year ahead: economic conditions and trading costs, changes in the rental market, skills shortages and increases to ‘fitter costs’, and the ‘top down’ imposition of ecological standards.
Commenting on the market conditions in the report, JKMR says “the many ‘problems’ facing the industry over the next 12-36 months are long-term issues: a new build sector whose on-going growth is mired in political issues relating to planning; the issue of EU tariffs; price competitiveness eroding margins; a housing market that ‘locks out’ many of the ‘next generation’ of kitchen buyers; dominance by a small number of giant retailers; lack of a new ‘must have’ to drive through kitchen sales; shortage of skilled fitters; changing retail landscapes; increased competition for household budgets.”
JKMR says all these factors will continue to challenge the industry and all will “require more than talking to fix”.
The report’s data is derived from a number of sources, including Lloyds Banking Group, BMF BMBI, government figures, Ibis, Statista, and JKMR’s own data.
The full report is available for purchase by contacting Jayne Barber from JKMR via email [email protected].
