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Ceramic Household & Ornamental Article Manufacturing in the UK - Industry Market Research Report

United Kingdom ornamental products manufacturing market: £397.3 million industry by 2019

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2014-02-13 10:23:03 - Ceramic Household & Ornamental Article Manufacturing in the UK - Industry Market Research Report - a new market research report on

The United Kingdom ornamental products manufacturing market and ceramic household products manufacturing industry has struggled in recent years and is expected to continue to do so into the future. Revenue for 2013-14 is expected to contract 1.7% to reach £427.9 million. If it were not for a series of high-profile events hosted by the United Kingdom that confused revenue trends, the industry compound annual growth rate would have similarly reflected decline. Instead, thanks to an uncharacteristic surge in demand from the royal wedding, Diamond Jubilee and Summer Olympic Games, the industry registered compound annual growth of 1.6% for the five years through 2013-14.

The economic downturn of 2008 decimated household disposable and shattered business confidence. As a result, both curtailed expenditure



on discretionary items like ceramic wares to the detriment of industry revenue. This, however, only compounded the woes of an already struggling industry. Ceramic tableware, a key source of industry revenue has slowly but steadily lost favour to cheaper alternatives. Wood and plastic products can be purchased far more cheaply and are preferred by today´s cost-conscious consumers. This is hardly the only threat to industry vitality, though.

Foreign competition has enjoyed an edge on local ceramic manufacturers for years. Domestic producers continue to lose ground to cheaper foreign alternatives allowing import penetration to spiral out of control. For 2013-14 alone, imports are expected to satisfy as much as 45% of domestic demand.

Undercut by foreign suppliers, many domestic manufacturers have ducked out of the market altogether. Others have launched joint business ventures to stage a fight back. The vast majority of smaller operators, however, continue to forge on despite a distinct lack of profitability.

Things are not forecast to get much better. Steep competition, high import penetration and slow economic recovery are expected to preside over continued industry decline. In 2014-15, revenue is likely to contract by 1.1%. This is merely a taste of things to come. In the five years through 2018-19 the British Ceramic Household and Ornamental Manufacturing industry is expected to shrink at a compound annual rate of 1.5%. Industry revenue for that year is forecast to fall to £397.3 million – a dismal outlook for a flailing industry.

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