With consumers increasingly choosing to entertain guests at home and a wider variety of wine becoming more accessible to the British public, it comes as no surprise that wine cabinets have recorded double-digit year-on-year volume growth over the last two years and have grown by nearly 50% in value over the last four, already being worth £8 million in the first half of 2016, reports Alex Foch, account executive, for major domestic appliances at GfK
When considering both standard and premium kitchens, consumers are starting to see wine cabinets as a desirable, must-have fixture.
Combination cabinets have been the major success story in this sector, enjoying a 476% value rise in the year-to-date* and accounting for 20% of all wine cabinet market value. Meanwhile, both single temperature and multi temperature products have declined in total value over the same period.
In terms of average store prices, the market is polarising. Consumers are paying a premium for combination products, which provide multi temperature and storage; however, single temperature offerings are still gaining in volume, as they represent a more cost-effective alternative.
Freestanding wine cabinets represent the biggest growth driver with total value increasing by 33% this year on 2015 and account for well over half of volume, with its success very closely correlated to the success of combination products. In contrast, built-in wine storage has declined in value by more than 32% compared to the same period last year.
Alongside price, space is a key consideration when choosing the type of wine cabinet, with built-in or under counter units generally favoured when space is at a premium. Another important factor is the level of home ownership and renting, with restrictions on built-in appliances often applying to renters, who therefore typically opt for freestanding models.
In a stagnating house market, consumer preference for freestanding should continue to develop; however, this remains to be proven in the current period of economic uncertainty.
Source: GfK Point of Sales Tracking, *All data reflects year-to-date Jan-June 2016 unless otherwise stated.
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