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The European Market Potential for Cutlery 1. Product Description

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The European Market Potential for Cutlery 1. Product Description The European market potential for cutlery Last updated: 29 December 2020 The European market for cutlery is growing. Almost half of Europe’s imports come from developing countries, making Europe an interesting market for you. Market growth is driven by an increased interest in home cooking and social dining, as well as casual dining, particularly among younger consumers. For disposable cutlery, there is a strong trend towards sustainable materials instead of plastic. Contents of this page 1. Product description 2. What makes Europe an interesting market for cutlery? 3. Which European countries offer most opportunities for cutlery? 4. What trends offer opportunities on the European cutlery market? 1. Product description Cutlery is used to prepare, serve and eat food. In Home Decoration and Home Textiles (HDHT), it falls under the category of homeware and its two sub-categories: dinnerware (flatware) and cookware (kitchen utensils). The main cutlery items for the European market are knives, forks, and spoons, which may be sold in sets or as individual items. This study uses the following codes to indicate trade in cutlery: Table 1: Product codes for cutlery Harmonised Prodcom Description System (HS) Sets of assorted articles of knives of heading 8211 10 8211; sets in which there is a higher number of knives of heading 8211 than of any other article Table knives having fixed blades of base metal, 25 71 11 8211 91 including handles (excluding butter knives and 20 fish knives) Knives with fixed blades of base metal (excluding straw knives, machetes, knives and cutting 25 71 11 8211 92 blades for machines or mechanical appliances, 45 table knives, fish knives, butter knives, razors and razor blades and knives of heading 8214) 25 71 11 Knives with blades other than fixed blades, of 8211 93 60 base metal, including handles (excluding razors) Sets of spoons, forks or other articles of heading 8215, which may also contain up to an 8215 10 equivalent number of knives, of base metal, containing at least one article plated with precious metal Sets consisting of one or more knives of heading 8211 and at least an equal number of spoons, 8215 20 forks or other articles of heading 8215, of base metal, containing no articles plated with precious metal Spoons, forks, ladles, skimmers, cake servers, fish knives, butter knives, sugar tongs and 25 71 14 similar kitchen or tableware of base metal, 8215 91 80 plated with precious metal (excluding sets of articles such as lobster cutters and poultry shears) Spoons, forks, ladles, skimmers, cake servers, fish knives, butter knives, sugar tongs and 25 71 14 similar kitchen or tableware of base metal, not 8215 99 30 plated with precious metal (excluding sets of articles such as lobster cutters and poultry shears) Functionality Ergonomics, for flatware, and optimal performance, for kitchen knives, are the main characteristics in terms of functionality. For kitchen knives, the sharpness is the main quality concern, besides grip. Kitchen knives come in a variety of shapes and sizes. The shape of a knife makes it suitable for a particular job (such as paring, carving, boning, cleaving). Consumers can opt for a general-purpose knife or specialist knives. Material Traditionally, flatware was manufactured from silver and electroplated nickel silver (EPNS). Nowadays however, most cutlery, including high-quality designs, is made of stainless steel. Another option is sterling silver, which contains nickel and copper alloy. Good quality cutlery does not easily tarnish or scratch – it retains its lustre and will not quickly corrode. Kitchen knives are mostly made from carbon or stainless steel, and increasingly from ceramics (zirconia). Knives made of super-hard ceramics are available in an increasing variety of shapes and sizes. They are all thin and incredibly sharp, with precise blades that stay sharp longer than steel blades do. Although larger ceramic knives are very versatile, they are still more complementary to rather than a replacement for steel blades. They do not handle food items such as hard squash, raw potatoes very well. Cutlery for informal meals, picnics and party dinners can be made from synthetic materials (such as melamine), paper or wood (bamboo). These items are convenient to use, wash and/or dispose of. Biodegradable materials are increasingly popular for disposable cutlery, either in the form of bamboo or starch-based materials. "Please be aware that food contact materials made of plastics with added natural fibres such as bamboo (“bamboo melamine”) or corn starch are not biodegradable and can even be unsafe due to high levels of formaldehyde. These types of additives have not been approved by the European Union, and such products are being removed from the European market.” Durability Cutlery for the European market must be dishwasher proof. Stainless steel is the most common material used as it meets the need for cutlery to be tough and strain resistant. Cutlery made from high-quality metals tends to be low maintenance and has long-lasting features. Material and durability are closely linked: stainless steel: contains a high percentage of chrome for durability and protection against corrosion, and a lower percentage of nickel for lustre and resistance to high temperatures silver-plated: consists of a mixture of copper, zinc and nickel, with a silver coating, making it corrosion- resistant but sensitive to sulphides in the atmosphere and certain foods, such as egg sterling silver: contains high percentage (sometimes nearly 93%) of pure silver, also making it corrosion- resistant but sensitive to sulphides silver: is a soft metal that scratches easily, but develops a beautiful sheen with proper care For kitchen knives, ceramic blades offer superior sharpness. Ceramics are much harder than steel, making these knives more durable and longer lasting. Design In addition to providing superior grip and functionality, cutlery has to look good. For flatware, the shape of the set is what makes it look more contemporary or traditional. In flatware and kitchen knives, design aspects are often related to the shape and material of the handles. Especially in the mid-market, colouration of the handles (and sometimes the entire item) can add design value, both in flatware and kitchen knives. Gift packaging can add design value, too, in all types of cutlery. For chef’s knives, the weight, weight balance, and length of the knife are important factors. Preference is subjective, so you need to offer a range of options. In terms of length, 8 inches is common. 2. What makes Europe an interesting market for cutlery? The European market for cutlery has grown in recent years. Almost half of the import value is sourced from developing countries, making Europe an interesting market for you. The coronavirus pandemic and the measures taken against it worldwide are expected to have a large impact on international trade and the European market for many products and services, including HDHT. Please note that the below analysis is based on the statistics that are currently available (2015–2019). Therefore, the expected impact of the pandemic on the European market and global supply chains have not been taken into account in this report. For the latest news in your sector, please check CBI News. The pandemic is expected to affect demand for HDHT products. The current crisis results in very low consumer confidence globally. In addition to worrying about their health, consumers also worry about whether they will have work and income, and to what extent their livelihood will be under pressure. This scenario obviously does not stimulate sales in HDHT. Many brick and mortar retail businesses in HDHT have been forced to close under local government public health rules (being non-essential), and many will not survive the crisis for financial reasons. In addition, the distribution chain in HDHT has also been also severely affected. Between 2015 and 2019, European cutlery imports increased from €1.4 billion to €1.5 billion at an average annual growth of 2.3%. After a dip in 2017, imports from developing countries reached €693 million in 2019, which is comparable to their value in 2015. This value accounts for an import market share of 46% of European imports. These numbers indicate that Europe is an interesting market for you, as an exporter from a developing country. Market growth in Europe is driven by increased interest in home cooking and social dining, as well as casual dining. For more drivers of demand, see ‘which trends offer opportunities?’ below. Tip: For more information on the short- and long-term impact of the coronavirus pandemic, see our study on how to respond to COVID-19 in the HDHT sector. 3. Which European countries offer most opportunities for cutlery? The larger western European economies are the main importers of cutlery. However, importers in these countries generally sell their products across Europe. Your best strategy therefore is to focus on a particular segment, rather than a specific country. Germany is the leading European importer of cutlery with 23% of the market, followed by the Netherlands (12%) and France (11%). Together, they accounted for approximately half of the total European cutlery imports. Smaller markets with a share smaller than 10%, but still in the top-six leading importing countries, are the United Kingdom (9%), Spain (6%), and Poland (6%). However, be aware that in the European market, different countries have different roles. You can make a rough distinction between countries that are mainly importers and countries that are mainly manufacturers. Most western European importing countries do not just import products for sales within their own country, but also to re-export to other countries in Europe. This explains why countries with small HDHT markets, like Denmark and the Netherlands, often import much more than the demand in their own domestic markets.
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