
The UK shower equipment 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, both from the
housebuilding industry and the home improvement sector. The market
has an estimated value of around £438 million at Manufacturers
Selling Prices (MSP) in 2011. This represents a moderate increase
of around 1% when compared to the market size in 2010 and reflects
the continuing fragility of the UK economy. Forecasts indicate
that the UK shower equipment market will return to modest growth
in 2012-13 as consumer confidence and housebuilding levels
gradually improve. By 2015, the overall market value is forecast
to be £500 million at MSP, which would represent an increase of
around 14% compared to the estimated market size in 2011.
Shower controls account for the
greatest proportion of the market with 45% of the overall shower
equipment market. Enclosures, screens and trays have grown their
share of the market in recent years and now account for only a
fraction less than the shower controls sector at 44%. Shower
accessories account for the remaining 11%.
Shower 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 maturing UK shower market
there are greater levels of replacement purchases. Many shower
products are now designed specifically for retrofit purposes; for
example electric showers with multiple cable and water entry
points that can replace any existing electric shower. Sales of
replacement shower accessories such as hoses and handsets are also
increasing year on year. With the UK economic downturn, shower
products installed in new housing has declined significantly in
the last 2-3 years. This has particularly impacted on mixer
control sales.
With the downturn in the housing
market, householders have been seen to ‘improve don’t move’.
Rather than going to the expense of extending their property, they
are making the best use of existing space such as minimalist
bathroom refurbishments and the replacement of baths with wetroom
areas. The downturn in the UK economy has led to an increasing
number of lower priced ‘entry level’ showers such as utility or
contract mixers. Electric showers have also gained share during
the downturn as they are perceived as relatively cheap to run as
stored hot water is not required.
The number of showers installed in
new houses will start to increase with some recovery in private
housing starts evident as the UK economy stabilises. However, key
factors such as mortgage availability and high deposit
requirements are likely to continue to impact on the rate of
recovery in the short term. Housing starts in the public sector
are expected to decline as spending cuts and the removal of
regional housebuilding targets impacts on social housing
construction levels.
The shower equipment market will
continue to fragment and the number of own label products is
likely to increase. Cheaper products sourced from abroad will
continue to put pressure on prices. Manufacturers will need to
increase brand recognition and create greater product differential
by investing in more distinctive ‘added value’ designs.