Glassware

2009 UK - Market Report Plus

Publication Date	July 2009
Publisher	Key Note
Product Type	Report
Pages	86
ISBN Number	not applicable
Product Code	KEY00179

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Summary

This Key Note Market Report examines the UK glassware market. At present, the industry is oversupplied and many cut-price products are being imported into the UK. It has consequently proved difficult to increase value sales of glassware significantly, although the market is benefiting from increased volume sales as the number of UK households and the population grow. These difficulties are currently being exacerbated by the recession, which has led to severe reductions in consumer spending, although housewares has proved to be a more resilient sector than others to economic downturns as people spend more on home entertaining to save the expense of going out.

According to figures published by National Statistics in late April 2009, retail sales in household goods stores were worth 11.4% less in March 2009 than in the same month of the previous year. Key Note estimates that the value of retail sales of glassware was virtually static between 2007 and 2008, finishing at £354.5m in the latter year - a 0.4% decline compared with 2004. In terms of manufacturers' sales, National Statistics' figures reveal that sales of hollow glassware - which includes products outside the scope of this report - declined in value by 17.7% between 2004 and 2007.

The glassware market can be divided into four main categories: functional drinking vessels, such as stemware and tumblers; tableware and cookware, including dessert bowls and glass ovenware; decorative and ornamental gifts, including vases, paperweights, fruit bowls and candlesticks; and collectibles, such as glass ornaments and commemorative pieces. In terms of the type of material used to produce glassware, the market is split into three sectors: soda lime glass, lead glass and heat-resistant glass.

The UK no longer has a volume producer of domestic glassware but has earned its reputation for fine crystal from respected manufacturers of longevity such as Waterford Crystal. However, in January 2009, Waterford Crystal's parent company Waterford Wedgwood appointed administrative receivers having succumbed to hefty debts and falling sales and profits. Its products had been falling from favour as formal dining became a thing of the past and competition intensified against cheap imports and low-cost products sold by the likes of IKEA and department stores. Thousands more jobs worldwide are threatened by the potential closure of Waterford Wedgwood's retailing arm, which has 600 outlets across the globe, as well as stores in the UK and more than 100 concessions within larger high-street chains.

Key Note forecasts that the UK glassware market will experience a modest growth of 0.8% between 2009 and 2013, with the value of retail sales reaching £358m in the latter year. Further consolidation and restructuring is expected to take place over this period, and surviving companies will be required to adapt and introduce more contemporary designs in order to meet the needs of modern consumers.

Content

Executive Summary
1. Market Definition
- REPORT COVERAGE
- MARKET SECTORS
- MARKET TRENDS
- Number of Households
- The Housing Market
- The Bridal Market
- Eating Out
- 'Green' and Ethical Spending
- ECONOMIC TRENDS
- Population
- Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008 Gross Domestic Product
- Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
- Inflation
- Table 1.3: UK Rate of Inflation (%), 2004-2008
- Unemployment
- Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008
- Household Disposable Income
- Table 1.5: UK Household Disposable Income Per Capita (£), 2004-2008
- MARKET POSITION
- The UK
- Table 1.6: UK Household Expenditure on Glassware, Tableware and Household
- Utensils at Current Prices (£m), 2004-2008
- The EU
2. Market Size
- THE TOTAL MARKET
- Manufacturers' Sales
- Table 2.1: UK Manufacturers' Sales of Hollow Glass (£000 at msp), 2004-2007
- Figure 2.1: UK Manufacturers' Sales of Hollow Glass (£m at msp), 2004-2007
- Retail Sales
- Table 2.2: UK Retail Sales of Glass Tableware and Ornamental Ware at Current Prices (£m at rsp), 2004-2008
- Figure 2.2: UK Retail Sales of Glass Tableware and Ornamental Ware at Current Prices (£m at rsp), 2004-2008
- BY MARKET SECTOR
- Table 2.3: UK Retail Sales of Glass Tableware and Ornamental Ware by Sector at Current Prices (£m at rsp and %), 2008
- Figure 2.3: UK Retail Sales of Glass Tableware and Ornamental Ware by Sector at Current Prices (%), 2008
- Soda Lime Glass
- Lead Glass
- Heat-Resistant Glass
- OVERSEAS TRADE
- General Overview
- Table 2.4: UK Imports and Exports of Glass Tableware and Decorative Glassware by Value (£m), 2007 and 2008
- Imports
- Table 2.5: UK Imports of Glass Tableware and Decorative Glassware by Type by Value (£000), 2008
- Exports
- Table 2.6: UK Exports of Glass Tableware and Decorative Glassware by Type by Value (£000), 2008
3. Industry Background
- RECENT HISTORY
- NUMBER OF COMPANIES
- Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Hollow Glass by Turnover Sizeband (£000 and number),
2008
- EMPLOYMENT
- Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Hollow Glass by Employment Sizeband (£000 and number),
2008
- REGIONAL VARIATIONS IN THE MARKETPLACE
- DISTRIBUTION
- Manufacturers
- Wholesale Distributors and Importers
- Specialist Retailers
- Department and Variety Stores
- Supermarkets
- Home Shopping
- Tourist Attractions
- HOW ROBUST IS THE MARKET?
- LEGISLATION
- The Materials and Articles in Contact with Food (England) Regulations 2005
- The Producer Responsibility Obligations (Packaging Waste Regulations) 1997
- Climate Change Levy
- KEY TRADE ASSOCIATIONS
- The British Glass Manufacturers' Confederation
- The Giftware Association
- The Glass Association
- The International Crystal Federation
4. Competitor Analysis
- THE MARKETPLACE
- MARKET LEADERS
- Dartington Crystal (Torrington) Ltd
- Portmeirion Group PLC
- Villeroy & Boch (UK) Ltd
- Waterford Wedgwood PLC (WWRD Holdings Ltd)
- OTHER COMPANIES
- Burns Crystal Glass Ltd
- Cumbria Crystal
- Denby Group Ltd
- Georgian Crystal (Tutbury) Ltd and Tutbury Crystal Glass Ltd
- Langham Glass Ltd
- Rayware Ltd
- Riedel Crystal (UK) Ltd
- OUTSIDE SUPPLIERS
- Raw Materials
- Machinery, Processing Equipment and Technical Support
- Recycling Services
- MARKETING ACTIVITY
- Main Media Advertising
- Table 4.1: Main Media Advertising Expenditure on Tableware (£000),
- Year Ending March 2009
- Recent Promotions and Marketing Activity
- Exhibitions and Trade Shows
5. Strengths, Weaknesses, Opportunities and Threats
- STRENGTHS
- WEAKNESSES
- OPPORTUNITIES
- THREATS
6. Buying Behaviour
- HOUSEHOLD EXPENDITURE
- By Gross Income Decile Group
- Table 6.1: Average Weekly UK Household Expenditure on Glassware, Tableware and Household Utensils by Gross Income Decile Group (£), 2007
- By Age of Household Reference Person
- Table 6.2 Average Weekly UK Household Expenditure on Glassware, Tableware and Household Utensils by Age of Household Reference Person (??), 2007
7. Current Issues
- CLOSURES, MERGERS AND ACQUISITIONS
- Waterford Wedgwood PLC
- BOARD AND SENIOR MANAGEMENT CHANGES
- Waterford Wedgwood PLC
- NEW PRODUCT DEVELOPMENT
- Dartington Crystal
- Jme Collection
- Villeroy & Boch
8. The Global Market
- INTRODUCTION
- The US
- Asia
- Europe
- SELECTED GLOBAL COMPETITORS
- Ajka Crystal Ltd
- Arc International SA
- Crystalex AS
- Lancaster Colony Corporation
- Lenox Group Inc
- Libbey Inc
- RCR Cristalleria Italiana SpA
- Villeroy & Boch AG
- Table 8.1: Villeroy & Boch ??