The UK bathroom products market had been growing
in volume and value until the recent economic downturn, but like
other higher value consumer goods has been under considerable
pressure more recently, resulting from the difficult new
housebuilding sector and also the challenging home improvement
sector. The market has an estimated value of around £760 million
at Manufacturers Selling Prices (MSP) in 2011. This represents a
moderate increase of around 2% when compared to the market size
in 2010 and reflects the continuing fragility of the UK economy.
However forecasts indicate that the UK bathroom products market
will return to modest growth in 2012-13 as consumer confidence
and housebuilding levels gradually improve.
Estimated at £278
million in 2010, baths and sanitaryware were the largest sector
of the bathroom products market. This was followed by bathroom
accessories (£194m), brassware (£158m), bathroom furniture
(£83m) and whirlpool/spa systems (£33m). Within the baths and
sanitaryware sector, the leading manufacturers in 2011 are Ideal
Standard UK with Ideal Standard and Armitage Shanks, the Sanitec
Corporation with Twyford Bathrooms and Jacuzzi UK. Importers
such as Roca also have a significant presence in this market.
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. Online e-tailers are also
becoming more important as consumers increasingly use the
Internet to source the best deals.
With the downturn in
the economy, consumers have been seen to add value to their
property through refurbishment, instead of moving house. Rather
than going to the expense of extending their property, they are
making the best use of existing space. Products such as
brassware, accessories and modular furniture can be brought to
update the overall ‘look’ of the bathroom at a lower cost than a
total refurbishment. With the growing use of the Internet,
consumers are now far better informed than they were a decade
ago. This has raised expectations and awareness of affordable,
design-led bathroom products. Consumers are now active
participants in the home improvement process and no longer
passively take expert advice.
There has been a
significant increase in the level of imports from low cost
countries, particularly from China and Eastern Europe. Imports
continue to account for a significant proportion of bathroom
products sold in the UK, exposing the market to a high level of
price competition.
Bathroom products
installed in non-domestic applications are likely to decline,
with major cutbacks in capital spending announced in the October
2010 Capital Spending Review. Education and health will see a
decline in funding over the next five years. However there is
likely to be some short term demand in the hotel and leisure
sector emanating from the final preparations for the 2012
Olympic Games and also the Commonwealth Games in 2014.
By 2015, the overall
market value is forecast to be £864 million at MSP, which would
represent an increase of around 14% compared to the estimated
market size in 2011.
