The replacement kitchen door market is growing at a greater pace than the kitchen market as a whole, according to a new report by AMA Research, having grown at an annual rate of around 4-5% since 2008.
This is “mainly the result of consumer confidence being eroded due to the recession, encouraging consumers to look for cheaper alternatives”, according to AMA Research.
However, the growth rate for the sector is expected to slow from now until 2019 as the economy improves and consumers “spend more money on sustainable design and products, which could lead to kitchens lasting longer and needing to be replaced less frequently”.
The increasing cost of raw materials are likely to squeeze short-term margins, the report by AMA Research says, although a heavier reliance on e-commerce could off-set this for door manufacturers.
“The rate of growth in the replacement market is expected to decline as the economy improves, assuming no major changes in the market structure, such as a major company in the fitted kitchen furniture sector entering the replacement sector,” said AMA Research director Keith Taylor. “This seems unlikely at the moment, with the mainstream kitchen furniture market expected to show steady growth in the short to medium term future.”
AMA's forecast for the development of the door and window replacement market is for further good growth overall in the region of 5% in the short term, given continued growth in the general economy, strong consumer confidence and a good housing market. For the longer term, our forecasts are for steady recovery of around 2-3% growth, reflecting market maturity and a steadily rising economy. We anticipate that certainly in the short term, the market will be primarily driven by demand from the private rather than public sector, because of the impact of cuts in government spending for the forecast period.
Some of the companies included in the report are: Aluk Group, Anglian Windows, Benlowe Group, Birtley Group, Britdoors Group, C R Smith, Clearwood Joinery, Deceuninck, Distinction Doors, Door Stop International, Duraflex, Epwin Holdings, Eurocell Profiles, Everest, GBW Panels, Griffin Windows, Hallmark Panels, HL Plastics, Homesafe-Lindman, Howarth Timber, Howdens Joinery, Hurst Plastics, IG Doors, Jeld-Wen UK, Kawneer UK, LB Plastics, Magnet, Masterdor, Mumford and Wood, My House Group, New World Developments, Permadoor, Premdor Crosby, Premier Manufacturing Ltd, Profine UK, Rehau, Rockdoor, Safestyle, SAPA Building Systems, Securidor, Selecta Systems, Senior Architectural Systems, Smart Systems, Synseal, Veka, Vista Panels, Weatherseal, Zenith Home.