The UK Caravan Industry 'Vital Statistics'

• December 2004:  National Caravan Council reports the UK caravan manufacturing industry continues to show healthy increases in production and sales across all sectors, with caravan holiday homes and motorhomes ending the year on record highs

• June 2005: Touring caravans show small MAT (moving annual total) growth in production levels; motorhomes remain on the up, park homes and caravan holiday homes struggle to maintain last year’s levels in difficult market conditions

The National Caravan Council, the representative body for the caravan, motorhome, caravan holiday home industry and park home industry has released figures for the UK caravan industry at the half year point (end June 2005).

The Council, which represents approximately five hundred companies and over eight hundred outlets,  reports that, of all caravan products, in mid 2005 motorhomes are proving the most resilient sector to challenging market conditions.  They showed a rise of just under 11% over the previous year’s registrations - itself a record year.  Touring caravans still showed a reasonable level of MAT growth at 5%.  In recent years, the UK has become the largest market in Europe for touring caravans; however, the motorhome market in the UK lags well behind that of Germany, France (where around 18,000 are sold per annum) and Italy, indicating that there may be more room for greater market growth.

The lack of consumer confidence, exhibited particularly in high street sales, was most evident in the sales of caravan holiday homes, where there are signs that the market is slowing and that production outstripped demand at the end of 2004 and early 2005.  Park (‘mobile’) homes sales are also less buoyant than they have been - generally they mirror the housing market. 

In spite of this, the overall picture over the last decade shows consistent growth in the caravan market in the UK, which has a very loyal customer base. 

HALF YEAR SUMMARY OF ANNUAL CHANGE
ALL CARAVAN PRODUCTS AS AT 30/06/2005

These figures are based on the production statistics supplied to the NCC by its members.
N.B. Figures given throughout are trade invoiced sales, as opposed to retail sales.  Through its Committee structure, the NCC aims to extend its statistical service to embrace returns that give a clearer indication of up-to date retail, i.e. consumer, sales.

All figures © National Caravan Council 2005.  Figures may not be quoted or reproduced without the permission and accreditation of the NCC. 

PRODUCTION STATISTICS JUNE 2004 -JUNE 2005, ALL CARAVAN PRODUCTS

Caravan holidays

There are nearly one million leisure vehicles in use in the UK:
                                                                                                                                            
Leisure vehicles in use - totalsTouring caravans: 500,000
Caravan holiday homes: 335,000
Motorhomes:120,000
                                                                                                                                                                       

• According to TGI data, 19% of adults who took a domestic holiday as their last holiday stayed in a caravan
• More than one in four adults (26%) aged 15+ has been on a caravan holiday in the last three years – source NOP/Mintel 2004
• Caravanning now appeals to a younger audience – Mintel’s consumer data shows that some 21% of 15-19 year olds have been caravanning in the past three years
• Over a million people take touring caravan holidays each year – source The Caravan Club

What the caravan experts say

All leisure products: ‘In spite of the reduction in discretionary expenditure that is being seen across many areas of consumer activity – from new cars sales to high street retailing – the caravan industry is still performing reasonably well in the UK.  Although prospective purchasers may be delaying decisions, the industry is fortunate in having a very loyal customer base, who will prioritise leisure and holiday spend because it is so important to them.’
Graham Beacom, Director General, National Caravan Council

Touring caravans: ‘Half yearly CRiS figures give a general picture of a cooling market, albeit modest … which must be viewed in the context of three years constant growth and in line with other trends …’
Alan Bishop, Industry Relations Director, HPI

‘Given excess new stock, there is little opportunity for increases in retail prices’
Randal Thomas, Glass’s Information Services

Motorhomes: In the first half of 2005, motorhome market growth continued (however)  with the number of motorhome changes of ownership recorded by the DVLA falling by 1 per cent in the first quarter of 2005, the market recognizes a softening.  Anecdotal evidence still reports strong entry of new people into the market, underlining its long term strength …’
John de Mierre, Motorhome Information Service

Caravan holiday homes: ‘A drop in holiday home sales mirrors the slowing of the housing market and reflects changes in interest rates, with consumers displaying a more cautious approach to spending …’
Chris Turner, Director of Leisure, Capital Bank

Park homes: ‘Taking the long term view, production has more than doubled in a decade.  The current weakness in the housing market is inevitably reflected in sales of park homes, but the design and quality of current production models continues to narrow the gap with traditional houses.’
Graham Beacom, Director General, National Park Homes Council

Editors notes:

1.  The membership of the NCC covers all sectors of the caravan industry, ensuring representation at every level of the supply chain, including:

• Manufacturers
• Caravan dealers and distributors
• Parks
• Suppliers to the industry

2.  Sources:

• The NCC’s publication Vital Statistics 2003 shows caravan production data over the last decade.

• Other sources: Mintel Camping and Caravanning, Leisure Intelligence May 2005