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.
UK is the 9th largest pharmaceutical market in the world,
and the sector makes a greater contribution to the UK economy than any other
industrial sector – and also generates an annual trade surplus of almost £3bn.
The industry is
particularly important in terms of its R&D contribution and the pharmaceutical sector alone
accounts for more UK-based business R&D than any other manufacturing sector
– around £4.2bn is spent on pharmaceutical R&D in the UK,
almost 25% of the total industrial R&D spend.
The top 10 global
pharmaceutical companies account for around £24bn or almost half of total UK sector
turnover. Many
of the top global pharmaceutical companies have a considerable manufacturing and
research presence in the UK, with 12 out of the top 20 global pharmaceutical companies
accounting for a total of 55 UK sites.
Known as ‘The Golden Triangle’ the centres of
London, Cambridge, Oxford and Stevenage house the UK’s largest biomedical cluster in the UK. Clusters of pharmaceutical companies are also
found in areas close to universities. The North West, in
particular, is home to ‘Big Pharma’, with several global pharmaceutical
companies operating a facility in the region.
Capital expenditure by pharmaceutical companies in the UK
has been in decline, with R&D capital expenditure falling from £496m in
2002 to just £137m in 2012, and manufacturing capital expenditure declining
from a peak of nearly £1bn in 2001 to just £422m in 2012.
However, the Government has announced a forward pipeline
of over £200m worth of capital projects in the pharmaceutical and biotechnology
sectors between now and 2018. In addition to these confirmed capital projects,
a number of expansion plans have been announced by leading pharmaceutical
companies, which are reviewed in AMA’s report and should be of interest to
construction companies and their supply chains operating in the pharmaceutical
sector and to suppliers of laboratory and allied products. Increasing specialisation
within the pharmaceutical industry has also brought about varied opportunities
for construction engineers and contractors, and also broadening into other
niche construction sectors in advanced manufacturing, food processing etc.
“Current design and
construction trends are moving away from ‘bespoke’ buildings to flexible and
mobile laboratories and cleanrooms requiring less time to design and build, and
incorporating modern methods of construction. The demand
for mobile or modular cleanrooms is increasing driven by industry cutbacks
which have forced many pharmaceutical companies to rethink their business and
manufacturing operations” said Andrew Hartley, Director of AMA Research.
The ‘Pharmaceutical
and Biotechnology Construction Sector Report – UK 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.
The electrical accessories market is
estimated to be valued at just under £1.5bn in 2014, according to a new report
from AMA Research. The market has seen growth of 16% since it bottomed out in
2009 and is now only 7% below its peak in 2007.
Although the difficult economic situation
impacted negatively on market value between 2008 and 2010, a substantial rise
in raw material costs inflating prices and offsetting low demand, coupled with
modest improvements in the economy and growth in the construction market
resulted in 10% market growth in 2011. While the market declined in 2012, signs
that the economy was improving started to appear in 2013, housebuilding picked
up and in addition, the electrical accessories market continued to be supported
by major public sector projects, committed to prior to cuts, and as a result
the market saw healthy growth in 2013.
The electrical accessories market, according
to AMA’s definition, is dominated by low voltage cable systems with value share
of over 50%, followed by circuit protection with around a quarter of the market
and wiring accessories, which accounted for the remainder. As the electrical
accessories market is mature, the product mix has remained fairly stable in
recent years.
Raw material prices play an important role in
determining market performance for electrical accessories, with the price of
cable in particular being highly dependent on copper prices. These have fluctuated
widely in recent years. Legislation on energy efficiency and carbon emissions
as well as volatile fuel prices has seen interest in, and use of, integrated
systems spreading into the wider domestic and light commercial markets to
provide greater control for heating, lighting and all electrical systems.
Activity at supplier level during the
recession has been focused on consolidation, rationalisation and cost cutting
exercises, with many taking the opportunity to integrate earlier acquisitions,
streamlining purchasing processes and even repositioning their businesses.
As the electrical accessories market is a
mature and sizeable market, recovery will be relatively slow and steady.
However, market value is expected to surpass its 2007 peak level by 2016.
Pressure on pricing is likely to remain a key aspect of the market for some
time. The current focus on solutions and systems within the electrical products
market will continue to lead to demand for integrated systems in both the
domestic and commercial sectors in the medium term, as well as an increased use
of pre-fabricated wiring assemblies and wireless switches.
The demand for environmentally friendly
products continues to be a major issue and this is a factor which is likely to
be more influential in future years, as homeowners and business operators
alike, use whatever means they can to improve the environmental credentials of
their properties. This will lead to increased use of individual and central
controls for lighting and other electrical products, perhaps creating demand in
the electrical accessories sector.
Product development will continue to focus on
environmental efficiency, wireless systems, integrated controls, reduced space
and impact, quick installation such as prefabricated units and low installation
application such as plug and play connections to reduce time on site and cut
‘down time’ during RMI situations.
“Current
forecasts indicate annual growth rates of 5-6% from 2015 as the economy
improves and house building activity increases” said Keith Taylor, Director of AMA Research. “It is expected that the market value will
be around £1.8bn in 2018. However, this will depend on the speed of economic
recovery and any fluctuations in raw material prices.”
The ‘Electrical
Accessories Market Report - UK 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.
The market for beds and mattresses fell steadily in the
2008-2011 period, before showing consistent growth to reach an estimated value
of £650m in 2013.
This market is mature and as such is experiencing high
levels of price competition, in particular from imported products. Faster
replacement cycles and trading up to higher value products are some of the
factors that have contributed to market growth in recent years.
Divans account for around a third of the market by value,
although market share has been eroded steadily by the strong growth in demand
for bedsteads, including wooden, upholstered and metal bedsteads. Overall
bedsteads currently account for around 28%, with growth supported by a wider
range of product options.
Mattresses sold separately have grown to account for
around a quarter of the market in value terms. This growth has been underpinned
by the growth in the higher value pocket sprung sector and by the growing
popularity of other materials, such as memory foam. Mattresses are one specific
area of the beds market where opportunities for value growth exist, with
consumers trading up to higher quality products. In addition, the growth of
bedsteads has also supported the demand for higher quality mattresses.
During the last 5 years there has been a marked trend
away from single to double beds and, in particular, to king sized beds. This
growth can be attributed largely to falls in the price of double beds relative
to single beds, with prices being driven down as a result of the high level of
price competition within the market.
The beds sector is dominated by several large suppliers. Total
imports of beds and mattresses have increased steadily in the last few years,
reaching £164.2m in 2013, with imports of metal bedsteads accounting for 53% of
bed imports by value in that year. Since declining to £23.7m in 2006 exports
have expanded steadily to reach £52m in 2013. The distribution of beds is
dominated by the furniture multiples with 46% of the market.
Total sales of beds are forecast to reach £760m by 2018,
with the market showing steady and increasing growth during that period. This
market is also likely to benefit from investment in the contract sector,
particularly in the hotel and leisure sector, although this may be offset by
reduced Government expenditure in the education and health sectors.
Manufacturers are likely to continue to add value with
features such as integral side tables, storage and upholstered bedsteads,
particularly in leather, along with higher quality mattresses, in order to
combat the declining average prices in the beds sector.
“The mature nature of
the beds market has resulted in the emergence of niche sectors, which are
expected to support volume growth in the near future, as prospects for the UK
economy improve. In addition, the market will be supported by higher levels of
replacement purchasing, added-value purchases and some value growth at the
upper end of the market” said Keith Taylor, Director of AMA Research.
However, the beds and mattress market is mature and
heavily reliant on manufacturers encouraging shorter replacement cycles. As a
result the development of value added features and the communication of these
benefits to the consumer are likely to continue to be key elements in terms of
product development and the stimulation of early replacement sales. Parts of
the contract sector are not expected to experience the high levels of growth
seen in the past, as expenditure in sectors such as health, education and the
MOD has been reduced as part of the Government’s austerity measures.
The ‘Upholstered
Furniture and Beds Market Report - UK 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.
By value, data indicates that the market for the
collection, treatment, recycling and disposal of controlled waste was worth an estimated
£18.9 billion in 2013. Strong underlying annual growth rates have
been driven by the implementation of EU Directives, aimed at reducing the
volumes of landfilled waste and increasing the levels of material recovery
through recycling, composting and energy-from-waste.
Above all, the impact of the Landfill Tax escalator on
landfill gate fees has made these alternative approaches more commercially
attractive. The downturn in the UK economy suppressed growth rates in 2012 due
to lower levels of waste arisings, declining prices for many types of recyclate
and the delay to many infrastructure projects.
Over the
medium-longer term, however, the key 2020 targets for both the EU Landfill
Directive and renewable energy mean that regardless of the economic situation,
central government, local authorities and businesses do not have the option of
scaling back waste reduction and recycling objectives. There remains a pressing
need for the UK to improve waste recovery rates, particularly in the commercial
and industrial waste (CIW) sector, and to develop a suitable waste collection,
treatment and recycling infrastructure in this sector.
From 2014 through to 2018, it is expected
that there will be an increase in the market growth rate, underpinned by the EU
Landfill Directive target for 2020 which will necessitate an increase in waste
recovery rates and a major increase in investment in the infrastructure needed
to deliver this, by possibly as much as £5bn.
To achieve both these aims, energy-from waste
(EfW) technologies, in particular advanced conversion technologies (ACT), will
be core to government plans to meeting both the Landfill Directive and
renewable electricity targets. Despite opposition from local interest groups
and NGOs, there are a large number of 'mass burn' EfW incineration and ACT
plants in the development pipeline that will be used to dispose of large
volumes of the 21 million tonnes of residual ‘black bag’ waste currently being
landfilled.
There has also been marked growth in the
rolling out of anaerobic digestion (AD) plants treating food waste, underpinned
by Landfill Directive requirements to divert biodegradable municipal waste from
landfill. From just one facility in 2005, there were over 60 AD plants taking
food waste at the end of 2013.
Keith Taylor, Director of AMA Research said: “The current rate of expansion and
convergence with the EfW sector continues to attract new players into the UK
waste management industry, particularly from overseas. The market has also seen further consolidation among UK companies
over the past 2-3 years.”
By 2018, it is estimated that the market for
the collection, treatment, recycling and disposal of controlled waste will be
worth around £24bn, following annual growth rates of between 3-7% per annum
during the period.
The ‘Waste
Management 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.
The UK domestic central heating market is substantial,
with an estimated total value of around £1.1 billion at manufacturers’ prices
in 2014. Over recent years this market has benefited from more stringent energy
efficiency legislation and a drive towards sustainability.
Currently around 92% of UK homes have central heating
installed, but while the market can now be considered mature, it still offers
plenty of growth potential through upgrade and replacement purchases as well as
product innovation to improve thermal
performance, energy efficiency and control.
Between 2009 and 2012, the UK domestic central heating
market was comparatively volatile, in line with the uncertain economic
situation at this time. However, since January 2013 the market for domestic
central heating products has seen a notable increase, with demand picking up as
the economy improves. This growth can be partly attributed to the introduction
of Government initiatives such as the ECO scheme and the Green Deal in 2013 as
well as the further tightening of energy efficiency legislation in all product
sectors of this market.
Estimated at £637 million at MSP in 2013, the boiler
sector dominates the industry's sales. This is followed by radiators, heating
controls and circulator pumps. The majority of these products are distributed
via the trade channels such as builders/plumbers merchants and electrical
wholesalers. However, replacement and retrofit products are often distributed
via the DIY multiples and Online retailers. Other distributors include
specialist heating retailers, hardware stores and catalogues. A number of
products are also sold into OEMs.
In 2013 the market for domestic central heating products
could be broken down into three key
areas; refurbishment, which accounts for over 80% of sales, new build
and first time installations. A major area of support for the market is
expected to come from the domestic refurbishment sector. With new legislative
measures, householders are now more aware of energy efficiency and the
environmental impact of domestic central heating products.
The future performance of the UK domestic heating market
is likely to be influenced by overall trends in house building, home
improvement, fuel prices, energy efficiency legislation, renewable
technologies, and technological developments also niche market drivers such as
the self-build and conservatory markets.
Increasing legislation represents a major influence in
the long term development of this market. In addition to the demands of the European
ErP directive, all radiators sold in
the UK since July 2013 have to conform and have outputs verified to British
Standard BS-EN442, something which is supporting the UK radiator industry as a
whole, as it will eliminate low cost, imported products that do not meet this
new mandatory standard. Higher levels
of efficiency are also likely to be driven by the 2014 revisions to Part
L of the Building Regulations.
Increasing awareness of energy usage and cost among
consumers, partly as a result of the smart meters installation programme under
which 53 million gas and electricity meters will be replaced with smart meters
by 2020, is also a factor. This will also drive growth and product development
within the heating controls sector, as demand for more sophisticated control
products filters through into the consumer segment. The Governments’ renewable
energy strategy with initiatives such as the domestic Renewable Heat Incentive
(RHI) and Feed-in Tariffs (FIT) is likely to lead to further development of
heating systems that are compatible with these technologies.
“The outlook for the
UK domestic central heating market in Q4-2014 remains positive, with the
continuing recovery in the UK economy and the related upturn in housebuilding
and consumer confidence. However, with the election in mid-2015, uncertainties
do exist regarding Government policy after this time” said Keith Taylor,
Director of AMA Research. “By 2018 it is
estimated that the UK domestic central heating market will be worth some £1.3
billion, representing an increase of around 18% when compared to the estimated
market size in 2014.“
The
‘Domestic Central Heating 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.
