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UK Bathroom Market By Product Group 2007
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The bathroom products market had an estimated value
of £902m at manufacturer selling prices in 2007. This represents a
2% increase over the previous year. Up to 2006, the buoyant new
house build market facilitated a growth in the number of en suites
and downstairs cloakrooms. Government regulations stated that new
houses required a WC on the ground floor and it became standard for
houses with three or more bedrooms to have an en suite. However,
since then there has been greater emphasis on building flats and
apartments and therefore relatively fewer en suite and cloakroom
installations. |
Another trend in new build properties is that there is now a greater
demand for compact bathrooms. Recent regulations have allowed developers
to build a higher number of properties on a plot by reducing the overall
footprint of a building. This has resulted in a greater number of homes
built with less floor space, but over three storeys. This trend means
that many UK bathrooms continue to be tight on space.
The media has significantly influenced this market sector,
with a greater focus on design and style throughout the home. In the
past, the media encouraged high levels of DIY (Do It Yourself) home
improvement activity. However, more recently this trend has been reversed
and the emphasis is now much more on professional refurbishments using
quality products and to GSI (Get Someone In).
The media and the Internet have also increased the
awareness of more upmarket and niche products, providing consumers with
the knowledge and information to source a wider range of styles. In the
bathroom refurbishment sector it is now estimated that around 75% of all
purchases are specified by the consumer.
The bathroom market will continue to suffer from the
rising price of raw materials. The prices of oil, nickel, zinc, aluminium
and MDF are rising sharply. The heavy reliance on oil for acrylic is a
huge concern and will continue to add pressure to margins.
The level of imports from low-cost countries is expected
to remain high with further increases from lower cost sources such as
China and Eastern Europe. This growth of lower cost imports has increased
the level of price competition across all sectors of the bathroom market.
In 2008, the market is expected to show a modest decline
and is estimated to be around £878 m at manufacturers selling price,
which represents a decrease of around 3% compared to 2007. The impact of
the ‘credit crunch’ is beginning to take effect and there is a decline in
the number of mortgage approvals. In addition, there is now a higher
degree of uncertainty as a result of the global financial crisis.
In the medium to long term, the market for bathroom
products is expected to experience modest growth. By 2012, the market
value is estimated to be around £973 million at MSP, which would
represent an increase of around 8% compared to 2007. It is expected that
2008 and 2009 will be more difficult while 2010 through to 2012 will show
more positive growth.
AMA Research’s “Bathroom Market - UK 2008-2012” report is
available in hard copy or electronic format for £625 and can be ordered
online at www.amaresearch.co.uk or by calling 0871 3103450. | 
