UK Household Textiles Market worth almost £1.4bn

UK household textiles market was worth an estimated £1.36 billion in 2013, according to a recent report by AMA Research, with further growth of 3-4% estimated for 2014.

This market is mature and demand is heavily influenced by external factors such as household income, consumer confidence and spending, underlying strength of the housing market and trends in home decor.

Sales of bed linen are valued at around £560m in 2013, with steady growth forecast for 2014. Duvet covers accounted for the largest sub-sector, followed by sheets, pillowcases, bedspreads/throws/bed runners and blankets. Sales of filled products increased by around 2% in 2012-13 but with good growth in 2014 as the economy slowly recovers. Sales of duvets are likely to remain positive with evidence of consumers trading up to higher value products likely to underpin the sub-sector. The market for bathroom textiles is valued at over £200m, with towels accounting for over 80% of the sector.

Supply and distribution of household textiles is extremely fragmented reflecting the wide product range and alternative routes to market. Many suppliers and retailers have reported increased footfall and stronger demand, while others have seen less of an upturn, and there have been a number of high profile closures in recent years. Some traditional retail outlets have also come under increasing pressure from online sales channels.

The rise in housing transactions and significant improvement in the number of first time buyers are key to ongoing growth in demand for household textiles. The market is likely to experience shorter replacement cycles in some sectors into the medium-term as consumer confidence and spending recovers, which should also help underpin steady growth.

The bed linen sector is set to remain the largest sector with share value remaining at around 40%, while a high demand for duvet covers, particularly for children’s character sets, is likely to underpin the sector into the medium-term. Duvets are likely to benefit from trading up to more natural materials and consumers owning different weights for summer/winter usage, whilst pillows and cushions are likely to show steady underlying growth.

“Polarisation of the market is set to continue into the medium-term with intense price pressure at the lower end of market likely to constrain future value growth” said Andrew Hartley, Director of AMA Research. “Continuation of the trend to ‘on-shoring’ may lead to some value growth in the mid-upper market sector, though this could be partially offset by low cost imports driving the lower market sector into the medium-term.”

The current positive trends in the housing market and underlying economy are likely to remain key drivers for growth in the short-medium term. However, more moderate annual rates of growth are expected towards the end of the forecast period in 2017-18, resulting in market value of around £1.6bn by 2018.

The ‘Household Textiles Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.