Glassware Market Report 2007

Retail sales of glass tableware and ornamental ware in the UK increased by just 0.4% in 2006, following 2 years of marginal decline, to £356.5m. The market for glassware may be divided into the categories of soda lime glass, lead glass and heat-resistant glass, and it includes both functional products (e.g. tumblers) and decorative products (e.g. vases and collectibles).

Little remains of the UK's indigenous glass-manufacturing industry as factory after factory has closed and companies have been forced into liquidation or have moved their production overseas. As in other manufacturing sectors, British companies are unable to compete with foreign suppliers, which are not hampered by the high labour, environmental and energy costs that are found in the UK. According to trade sources, the past 3 years have seen an enormous transfer of glass production to countries outside the EU, particularly those in the Middle East, South America and the Far East.

The UK's last two volume producers of machine-made glassware are no more. Demaglass Tableware, which once produced more than 2 million pieces of glassware per week, went into receivership in 2001 and the two giant chimneys on its former Chesterfield site were demolished in 2006, in preparation for the site's redevelopment. Demaglass's main competitor, Ravenhead, went into administration in 2001 and the brand was subsequently acquired by Rayware Ltd. Hundreds of jobs have also been shed at Waterford Wedgwood's sites in the Republic of Ireland, and the last commercial glassware factory in Sunderland is closing in 2007.

Figures from National Statistics indicate that the volume of sales by household-goods stores (including furniture, electrical and DIY stores) increased by 4.9% in the 3 months to July 2007 — the strongest growth in this sector since May 2001. However, July 2007 saw retail footfall drop below its 2006 level for the first time in 6 months, and it is arguable whether the full effects of the five interest-rate rises in the past 12 months have yet been felt.

In an oversupplied market, with high levels of cheap imports and discounted glassware, it has proved difficult to increase the value of sales significantly, although the growth in the number of UK households has benefited sales volumes. Accordingly, Key Note forecasts only modest growth in the value of UK retail sales of glassware between 2007 and 2011. SHOW LESS READ MORE >

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

MARKET TRENDS

General Trends Affecting the Market

Number of Households

The Bridal Market

Expanding Markets

Industry-Specific Trends

Mass Production Moving Overseas

Commemorative Glassware

ECONOMIC TRENDS

Gross Domestic Product

Table 1: UK Gross Domestic Product at Current Prices (£m), 2002-2006

Inflation

Table 2: UK Rate of Inflation (%), 2002-2006

Household Disposable Income

Table 3: UK Household Disposable Income per Capita (£), 2002-2006

Population

Table 4: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006

Unemployment

Table 5: Actual Number of Unemployed Persons in the UK (million), 2002-2006

Business Confidence

MARKET POSITION

The UK

Table 6: UK Household Expenditure on Glassware, Tableware and Household Utensils at Current Prices (£m), 2002-2006

The EU

2. Market Size

THE TOTAL MARKET

Manufacturers' Sales

Table 7: UK Manufacturers' Sales of Hollow Glass at Current Prices (£000), 2002-2005

Retail Sales

Table 8: UK Retail Sales of Glass Tableware and Ornamental Ware at Current Prices (£m at rsp), 2002-2006

Figure 1: UK Retail Sales of Glass Tableware and Ornamental Ware at Current Prices (£m at rsp), 2002-2006

BY MARKET SECTOR

Table 9: UK Retail Sales of Glass Tableware and Ornamental Ware by Sector at Current Prices (£m at rsp and %), 2006

Soda Lime Glass

Lead Glass

Heat-Resistant Glass

OVERSEAS TRADE

Table 10: UK Imports and Exports of Glass Tableware and Decorative Glassware by Value (£m), 2004 and 2006

Imports

Table 11: UK Imports of Glass Tableware and Decorative Glassware by Type by Value (£000), 2006

Exports

Table 12: UK Exports of Glass Tableware and Decorative Glassware by Type by Value (£000), 2006

3. Industry Background

RECENT HISTORY

INDUSTRY SYNOPSIS

NUMBER OF COMPANIES

By Turnover

Table 13: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Hollow Glass by Turnover Sizeband (£000 and number), 2006

By Employment

Table 14: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Hollow Glass by Employment Sizeband, 2006

REGIONAL VARIATIONS IN THE MARKETPLACE

DISTRIBUTION

Manufacturers

Importers and Distributors

Specialist Glass Retailers

Department and Variety Stores

Supermarkets

Tourist Attractions

Home Shopping

Miscellaneous

HOW ROBUST IS THE MARKET?

LEGISLATION

General Legislation

Manufacturing of Glass and Glass Items

KEY TRADE ASSOCIATIONS

British Glass Manufacturers' Confederation

Contemporary Glass Society

Giftware Association

Guild of Specialist China & Glass Retailers

International Crystal Federation

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Burns Crystal Glass Ltd

Financial Results

Caithness Glass

Financial Results

Dartington Crystal (Torrington) Ltd

Financial Results

Georgian Crystal (Tutbury) Ltd

Financial Results

Portmeirion Group PLC

Financial Results

Rayware Ltd

Financial Results

Villeroy & Boch (UK) Ltd

Financial Results

Waterford Wedgwood PLC

Financial Results

Table 15: Waterford Wedgwood PLC — Financial Results by Business Division (_m), Year Ending 31st March 2007

OUTSIDE SUPPLIERS

Raw Materials

Machinery, Processing Equipment and Technical Support

MARKETING ACTIVITY

Main Media Advertising Expenditure

Other Marketing Activity

Waterford Crystal

Trade Exhibitions

International Glass Manufacturing Exhibitions

Spring and Autumn Fairs

Summer Fair

Home & Gift

Pulse

Top Drawer

Exclusively Housewares

Showcase Ireland

Ambiente Frankfurt

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

HOUSEHOLD EXPENDITURE

By Gross Income Decile Group

Table 16: Average Weekly UK Household Expenditure on Glassware, Tableware and Household Utensils by Gross Income Decile Group (£), 2005/2006

By Age of Household Reference Person

Table 17: Average Weekly UK Household Expenditure on Glassware, Tableware and Household Utensils by Age of Household Reference Person (£), 2005/2006

7. Current Issues

CLOSURES, MERGERS AND ACQUISITIONS

Edinburgh Crystal

Tutbury Crystal Glass

Arc International

Corning Inc

Ardagh Glass Group

BOARD AND SENIOR MANAGEMENT CHANGES

Villeroy & Boch

Portmeirion Group

NEW PRODUCTS

Evolution by Waterford

8. The Global Market

INTRODUCTION

SELECTED GLOBAL COMPETITORS

Villeroy & Boch AG

Cristalleria Artistica La Piana SpA

Arc International

Lancaster Colony Corporation

Libbey Inc

Williams-Sonoma Inc

Waterford Wedgwood PLC

Table 18: Waterford Wedgwood PLC — Revenue by Geographic Region (%), Year Ending 31st March 2007

Crystalex AS

Zwiesel Kristallglas AG

HAG Import Corp (Australia) Pty Ltd

New Glass

9. Forecasts

INTRODUCTION

FORECASTS 2007 TO 2011

Table 19: Forecast UK Retail Sales of Glass Tableware and Ornamental Ware at Current Prices (£m at rsp), 2007-2011

MARKET GROWTH

Figure 2: Actual and Forecast UK Retail Sales of Glass Tableware and Ornamental Ware at Current Prices (£m at rsp), 2002-2011

FUTURE TRENDS

Demographics and Lifestyles

Industry Consolidation

Increased Competition from Multiple Retailers

Tourism

A Possible Ban?

10. Company Profiles

Portmeirion Group PLC

Rayware Ltd

Villeroy & Boch (uk) Ltd

Waterford Wedgwood PLC

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Improves

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Willingness to Borrow Slips Slightly

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007

SPENDING FROM SAVINGS

Slight Increase in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

12. Further Sources

Associations

Publications

General Sources

Government Sources

Other Sources

Bisnode Sources

-PORTMEIRION GROUP PLC
-RAYWARE LTD
-VILLEROY & BOCH (UK) LTD
-WATERFORD WEDGWOOD PLC