Executive Summary
The UK market for baths and
sanitaryware grew by 4.6% in 2000, to an estimated £362m at manufacturers
selling prices (msp). The market accounts for 39.9% of total bathroom equipment
and accessories sales, which were worth £908m at msp in 2000.
The market is broadly segmented into
baths - including 'luxury baths' such as whirlpools and spas - and sanitaryware,
which includes toilets, urinals, cisterns, pedestals, basins and bidets.
Products can also be segmented by type of material, such as vitreous china,
plastics and metals.
The domestic market accounts for an
estimated 81% of sales of baths and sanitaryware, while the contract market
accounts for the remaining 19%. The domestic replacement sector is extremely
strong, accounting for 63% of total domestic sales, and is heavily driven by
trends in consumer spending.
The last few years have witnessed a
number of acquisitions and mergers within the UK market, and an increasing
degree of US ownership. At the same time, imports' share of the market has
increased. Most notable among the company takeovers were the purchase of the two
market leaders Armitage Shanks Group Ltd by American Standard Plumbing (UK)
Ltd (and the subsequent merger of Armitage with Ideal Standard) in 1999, and
Caradon Bathrooms by Sanitec Oyj Abp of Finland, in January 2001. The major UK
manufacturing companies are now directly owned by overseas groups.
Imports are set to increase,
especially given the mandatory introduction of the new Water Regulations on 1st
January 2001. These will bring the UK in line with other European markets, by
permitting the use of a flushing valve and reducing toilet cistern capacity to 6
litres.
Key Note predicts that the baths and
sanitaryware market will continue to grow at a healthy pace. The replacement
sector is forecast to remain strong, with competition between manufacturers
increasing as they vie for consumers' business. It is anticipated that companies
will seek to introduce more global or pan-European ranges to effect economies of
scale. However, the need to create consumer brands which target particular
lifestyle sectors is also envisaged, and will result in an increase in the
marketing of aspirational, 'feel-good' products, such as luxury baths and
hi-tech gadgets - the latter incorporating 'entertainment centres' with music,
television and aromatherapy.
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