The bathroom products market had an estimated
value of around £744 million at Manufacturers Selling Prices (MSP)
in 2009. This represents a decrease of around 7% when compared
to the market size in 2008 and with 2010 also expected to be
down slightly, reflects the expected continued impact of the UK
economic downturn on the building and home improvement markets.
Forecasts suggest
that in 2010, the economic downturn will continue to have a
negative impact on this market, with any improvement unlikely
until towards the end of the year. It is anticipated that 2011
will be period of consolidation as consumer confidence and
housebuilding levels improve.
In the medium to longer term,
the bathroom products market is expected to experience a return
to growth, and by 2014, the market value is forecast to be
around £859 million at MSP, which would represent an increase of
around 16% compared to the market size in 2010.
Bathroom products for the
domestic and commercial sectors are distributed through a wide
range of channels. The main distribution channel continues to be
builders and plumbers merchants with the DIY multiples
also holding a substantial share. Other retail channels include
bathroom specialists, grocery multiples, mail order retailers
and department stores.
The growing use of the
Internet has had a significant impact on the bathroom products
market in the UK. In 2009, 70% (18.3 million) of households in
the UK had Internet access. The Internet has provided consumers
with the knowledge and information to source a wider range of
styles. The UK has the most active online population in Europe.
Online e-tailers are therefore becoming more important as
consumers increasingly use the Internet to source the best
deals.
The level of imports from
low-cost countries is expected to remain high, especially 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. With
higher levels of imported goods, the number of own label
bathroom products has increased significantly. Historically, own
label products were seen as low-priced, low-quality goods.
However, more recently, consumer perception about the quality of
own label products has increased dramatically.
With the General Election
planned for 2010, uncertainty exists over the future direction
of the next Government. This is certain to affect commercial
spending plans and bathroom installations in non-domestic
applications. These include the Building Schools for the
Future programme and Government plans to bring social
housing up to ‘decent’ levels.
