MTW forecasts growth of bedroom-furniture market

The bedroom-furniture market fell by an average of GBP5m per month during the recession, according to a new report from MTW Research.

According to the company, however, this market - led by children's bedroom furniture - is set to grow by around GBP15m in 2010 as demand returns.

The recession has had a significant impact on the bedroom-furniture industry, with a large number of business failures evident across the sector during the last two years.

However, MTW predicts renewed optimism in the market from mid-2010 onwards as the UK economy improves, consumer confidence returns and expenditure rises.

Based on sales data from the industry, the report forecasts the market to rise by 13 per cent between 2010 and 2014, reflecting stronger demand patterns across most sectors of the bedroom-furniture market.

However, imports continue to gain share of bedroom-furniture sales in 2010, with this trend posing an increasing threat to the ability of UK manufacturers and retailers to add value and grow revenue.

The report states: 'UK manufacturing currently accounts for around 48 per cent of the UK market.

'Output by UK manufacturers has declined from a peak of GBP499m in 2006 to current levels of GBP371m, reflecting a contraction of some 26 per cent over a four-year period,' it added.

According to MTW, retailers and suppliers active in the lower-value or volume-oriented channels are unlikely to achieve any real-term growth in turnover, with profitability in this segment of the market likely to come under increasing pressure.

However, despite a relatively bleak outlook for lower-value bedroom-furniture products, MTW's research highlights optimism for independent retailers and UK manufacturers operating in the higher-value sector of the market in 2010 and beyond.

A rising population age, declining unemployment, 'trading up' and a range of other factors are identified in the report as boosting demand for higher-value products and, more specifically, the fitted-bedroom-furniture sector, which has outperformed the overall market in recent years.

With market penetration strategies set to account for 60 per cent of the growth to 2014, the importance of consumers 'trading up' will grow in significance in the near-to-medium term for the fitted-bedroom-furniture market.

The report also reviews key specification criteria that influence the children's bedroom-furniture market - a sector that has experienced buoyant performance in recent years, having grown share of the overall market during the recession.

MTW identifies a range of important issues for the end user and the purchaser of children's furniture, including design, materials, price, functionality and brand perceptions.

Following a slight decline in 2009 as consumers reigned in spending, the children's bedroom-furniture sector is set to rise in 2010 by just less than three per cent, reflecting the only sector likely to return to 'real-term growth' during 2010.

Alongside product mix and trends for both fitted and freestanding wardrobes, drawer chests, dressing tables and bedside cabinets, MTW also examines sales for more than 130 manufacturers and retailers and analyses future prospects and style trends in the bedroom-furniture market.

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