The UK market for household textiles is estimated
to have grown by 3% in 2015, with similar growth forecast for 2016, according
to a new report by AMA Research. Consumer confidence remained high in 2015,
although market values have been negatively affected by high levels of
competition and a proliferation of lower cost imports in this sector. The
situation in late-2016 is uncertain, though underlying demand will come from
replacement purchases, which in the household textiles market are significant.
Given the maturity of the household textiles market
in the UK, sales are heavily reliant on replacement purchases. Daily wear and
tear of sheets, towels, pillowcases and similar items, drives the need to
replace them on a regular basis and helps underpin demand. Most items are
relatively low value and therefore the market is not subject to the same degree
of volatility experienced by higher value household products.
Bed linen dominates the household textiles
product mix in 2016 with a share of around 40%, followed by filled products,
bathroom textiles and then table linen/kitchen towelling, which accounts for a
smaller share. Factors influencing the bed linen sector in recent years have
included competitive pricing and year-round discounting, which have been
compounded by increasing fragmentation and a growing online market. Lower
prices have also shortened replacement cycles, encouraging householders to
replace worn or damaged linens more often, but lower prices are also
stimulating a switch to higher quality bedlinen as consumer tastes become increasingly
influenced by exposure to higher quality bedding in hotels, for example.
Market growth in the filled products sector
has been stimulated by higher demand levels from the hospitals and care homes
sector as well as the hospitality sector. Sales of duvets have remained fairly
strong, underpinned by continuing developments in filling materials, whilst
steady demand from the contract sector has continued to drive sales of pillows.
In addition, another important factor stimulating volume growth has been the
extension of ranges within grocery multiples and also discount retailers, with
the latter in particular offering filled products at competitive prices.
Bathroom Textiles is a substantial sector,
now worth around £300m – sales growth has been steady and largely influenced by
the same factors impacting on the wider market.
“Future
prospects for the household textiles market are relatively positive, although
given the potential for a significant shift in economic conditions; it is
currently difficult to make any confident forecasts” said Andrew Hartley,
Director of AMA Research. “Current
forecasts are for steady but moderate growth of around 2-3% in 2016, and 1-2%
per annum in the medium term, reflecting not only the maturity of the market
and the potentially challenging economic conditions, but also a continuing
polarisation of the market.”
The post-Brexit market points to a number of
potential concerns, not the least of which is a fall in consumer confidence and
spending. Business confidence may also be affected, although the hospitality
sector – a major user of household textile products and an important indicator
of the health of the market – is expected to benefit from a weaker pound. On a
more positive note, household textiles are relatively low-cost items and
largely essential rather than luxury items, with some products, such as towels
and bedlinen in particular, subject to high levels of wear and tear. While
replacement cycles can be extended, the availability of a greater choice of
affordable products on the market means that householders have the option of
cheaper replacements, should economic circumstances dictate, but AMA are
reasonably positive about the market in the next few years.
The ‘Household
Textiles Market Report – UK 2016-2020 Analysis’ report is published by AMA
Research, a leading provider of market research and consultancy services with
over 25 years’ experience 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.
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