Baths & Sanitaryware

UK - Market Report 2009 Fourteenth Edition

Publication Date	August 2009
Publisher	Key Note
Product Type	Report
Pages	119
ISBN Number	not applicable
Product Code	KEY00174

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Summary

Following a year of turbulence in the financial sector and a crash in the housing market, Key Note estimates that the UK market for baths and sanitaryware fell by 20% in 2008 at manufacturers' selling prices (msp) and a further decline is forecast for 2009. Following a period of severe price erosion and falling margins, the total market is estimated at £335.2m in 2008.

Key Note's report includes: all types of sanitaryware (toilets, urinals, cisterns, wash basins, pedestals and bidets) of vitreous china/ceramic, plastic or metallic materials; and baths (of acrylic, metal and other materials). The key markets for bathroom sales are housing and contract/commercial, in both the public and private sector. While new build housing is significant, replacement of bathroom suites in private housing represents a key market sector.

The new-build housing sector dropped dramatically in 2008, with total housing starts falling. The decline was most severe in the private sector, although the public sector also suffered. Additionally, a lack of consumer confidence has caused private housing repair, maintenance and improvement to slow in the face of rising unemployment and uncertain economic conditions, and this sector is expected to decline in 2009. The most buoyant areas are proving to be public-sector investment in the housing refurbishment programme Decent Homes, as well as education and health projects, all of which present opportunities for sales of baths and sanitaryware. Olympic-related work is also providing some activity.

Conversely, the private commercial sector, which includes offices, retail and entertainment, has slowed considerably and is expected to decline in 2009.

The key UK brands include market leaders Ideal Standard and Twyford Bathrooms, both of which are owned by overseas groups. Jacuzzi UK is a key player in the luxury baths market. The UK subsidiaries of Qualceram Shires PLC went into administration at the end of March 2009. There is also a large number of imports, including Roca from Spain and VitrA from Turkey, and a whole host of low-cost imports from the Far East. Bathroom design now reflects international tastes, and as manufacturers have strategic bases around the world, there is greater promotion of global styles at different price ranges. The current relative weakness of sterling against the euro and other currency is, however, causing imports and inter-group transfers to be more expensive and margins to be further eroded.

Key trends for 2009 include sustainability and water efficiency measures, in the face of new Building Regulations to be introduced in October 2009, which will provide a new minimum standard of 125 litres of water per day per person. This is already affecting product design. Housebuilders now have to meet a raft of legislative requirements, including The Code for Sustainable Homes.

Key Note forecasts that the baths and sanitaryware market will not recover until 2010, even though there may be a slight upturn in the housing sector in the second half of 2009. There is, however, likely to be further consolidation internationally among baths and sanitaryware manufacturers, with reduction of costs, production efficiencies, stronger supply-chain partnerships and differentiated design potentially proving critical for survival.

Content

Executive Summary
1. Market Definition
- Report Coverage
- Market Sectors
  - Domestic Sector
  - Contract Sector (Public-Sector Buildings and Private
  - Commercial Work)
- Market Trends
  - Trends in The Housing Market
  - Housing Market Endures Hard times
  - Trends in People Still Moving Home
  - Table 1.1: The Number of Moving Households?? in England by Type (000), 1984, 1988, 1991 and 1993/1994-2006/2007
  - Rising Number of Households
  - Table 1.2: Share of Households in Great Britain by Size (%),
  - 1971, 1981, 1991, 2001 and 2008
  - Trends in Types of Houses Built
  - Table 1.3: Housing Starts on Great Britain and Northern Ireland by Type( % of Total), 2006-Q1 2009
  - Trends in Consumer Expenditure
  - Table 1.4: Average Weekly Household Expenditure on Housing-Related Items by Age of Household Reference Person (£, Based on Weighted Data), 2007
  - Trends in Length of Residence
  - Table 1.5: Household Characteristics - Length of Residence by Number by Tenure (000, % and Years), 2007/2008
  - Trend towards Energy-Efficient Homes
- Trends in The Bathroom Market
- Economic Trends
  - Population
  - Table 1.6: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
  - Gross Domestic Product
  - Table 1.7: UK Gross Domestic Product at Current and
  - Annual Chain-Linked Prices (£m), 2004-2008
  - Inflation
  - Table 1.8: UK Rate of Inflation (%), 2004-2008
  - Unemployment
  - Table 1.9: Actual Number of Unemployed Persons in The UK (Million), 2004-2008
  - Household Disposable Income
  - Table 1.10: UK Household Disposable Income per Capita (??), 2004-2008
- Market Position
  - The UK
  - Table 1.11: The Estimated Size of The Bathroom Equipment Market by Sector by Value (£m at Msp), 2008
  - Overseas
2. Market Size
- The Total Market
  - Table 2.1: The Total Apparent UK Market for Baths and Sanitaryware?? by Value( £m at Msp), 2004-2008
  - Figure 2.1: The Total Apparent UK Market for Baths and Sanitaryware?? by Value( £m at Msp), 2004-2008
- by Market Sector
  - Table 2.2: The Estimated Total Apparent UK Market for Baths and Sanitaryware by Market Sector (£m at Msp), 2008
  - Toilets
  - Baths
  - Basins and Pedestals
  - Bidets
- Official Statistics
  - Table 2.3: UK Net Supply of Baths, Sanitaryware, Shower Baths and Associated Bathroom
  - Accessories by Material Type by Value (£m at Msp), 2004-2007
- Market Sector by Building Type
- Overseas Trade
  - Table 2.4: UK Net Supply of Baths and Sanitaryware by Material Type by Value (£m at Msp), 2004-2007
  - Key Importing Countries
  - Table 2.5: Total UK Imports and Exports of Ceramic Sanitaryware by Region (£000), 2008
  - Table 2.6: Total UK Imports and Exports of Plastic Sanitaryware by Region by Value (£000), 2008
3. Industry Background
- Recent History
- Industry Synopsis
  - Table 3.1: Turnover and Profitability of Leading Sanitaryware Brands in The
  - UK Market by Value (??), Years Ending 31st December 2007 or 2008
- Number of Companies
  - Table 3.2: Number of UK Paye- and/or Vat-Based Enterprises Engaged in The
  - Manufacture of Ceramic Sanitary Fixtures by Turnover Sizeband, 2008
- Employment
  - Table 3.3: Number of Paye- and/or Vat-Based Enterprises Engaged in The Manufacture
  - of Ceramic Sanitary Fixtures by Employment Sizeband (000), 2008
- Regional Variations in The Marketplace
- Distribution
  - Table 3.4: Estimated Breakdown of Baths and Sanitaryware by Volume of Purchases (%), 2008
  - Table 3.5: Houses Completed by County and Region (Number), 2007-Q1 2009
  - Table 3.6: Median Selling Price of New Houses by Value (??000), Q1 2008 and Q1 2009
  - How Robust Is The Market?
- Legislation
  - Building Regulations Approved Document G - Sanitation,
  - Hot Water Safety and Water Efficiency (October 2009)
  - Code for Sustainable Homes (May 2008)
  - Scottish Building Regulations (May 2006)
- Key Trade Associations
  - The Bathroom Sector
  - The Association of Plumbing and Heating Contractors
  - Bathroom Manufacturers Association
  - Ceram
  - Cerame-Unie - The European Ceramics Industries
  - The Chartered Institute of Plumbing and Heating Engineering
  - The Independent Bathroom Specialists Association
  - The Housing Sector
  - The Home Builders Federation (Hbf)
  - The National House-Building Council
  - The Chartered Institute of Housing
  - The Federation of Master Builders
  - National Federation of Builders
  - The Housing Forum
  - The National Housing Federation
4. Competitor Analysis
- The Marketplace
  - Table 4.1: Estimated Share of The UK Baths and Sanitaryware Market (%), 2008
- Market Leaders
  - Ideal Standard (UK) Ltd
  - Twyford Bathrooms
  - Jacuzzi UK Group Plc
  - Roca Ltd
  - Qualceram Shires Plc
  - Vitra UK Ltd
  - Kohler Mira Ltd
- Other Overseas Manufacturers
- Other UK-Based Companies
  - Premier Bathrooms Ltd
  - Dolphin Fitted Bathrooms
- outside Suppliers
  - Marketing Activity
  - Table 4.2: Main Media Advertising Expenditure on Bathroom Furniture
  - and Fittings (£000), March 2009
  - Table 4.3: Main Media Advertising Expenditure on Bathrooms by Leading
  - Diy Retail Brands (£000), March 2009
- Key Trade Exhibitions
5. Strengths, Weaknesses, Opportunities and Threats
- Strengths
- Weaknesses
- Opportunities
- Threats
6. Buying Behaviour
- Introduction
- Customer Profile
  - The Domestic Customer
  - Levels of Home Ownership among Domestic Consumers
  - Table 6.1: Level of Home Ownership and Dwelling Stock in England and Wales( Million and %), 1939, 1953, 1961, 1971, 1981, 1991, 1996 and 2006-2008
  - Penetration of Bathroom Fittings
  - Table 6.2: Penetration of Bathroom Fittings (% of Adults), March 2008
  - Table 6.3: Penetration of New Bathroom Fittings (% of Adults), Year Ending March 2009
  - Housing Affordability Issues among Domestic Customers
  - Gross Mortgage Lending Has Declined
  - Table 6.4: Gross Mortgage Lending by Value (£m), Years 2000-2008
  - and Additional Monthly Comparison April 2008-April 2009
  - The Number of Property Transactions Has Slowed
  - Table 6.5: Number of Residential Property Transaction Completions in The UK Valued
  - at ??40,000 or above (000), Q1 2007-Q1 2009
  - The Buy-to-Let Market and Repossessions
  - New Housing Starts and Completions in The Private and Public Sectors
  - Table 6.6: Number of Starts in Private and Public Sectors (000), Q1 2007-q1 2009
  - Table 6.7: Number of UK Housing Starts (000),2004/2005-2007/2008
  - Table 6.8: Number of UK Housing Completions (000), 2004/2005-2007/2008
- The Contract Customer
  - Table 6.9: Construction Industry Output (£m at Constant 2000 Prices), 2008
7.Current Issues
- Introduction
- Environmental Issues
  - Water Efficiency
- Company Information
  - Villeroy and Boch
  - Laufen Bathrooms Ag
  - Airbath Range
  - Victoria & Albert
  - Ideal Standard
  - Kaldewei
  - Pjh Group
  - Vitra
  - Wickes
  - Kohler UK
- Surviving The Financial Crisis
- Major Changes in The Banking Sector Affecting Availability
- of Mortgages for Consumers
- Ambitious Government Housing Plans
- Housing Growth Areas and Growth Points
- Decent Homes Initiative
  - Eco-Towns
- Risk of Flood
- Technological Developments
  - Health Scare - Eco-Friendly Ventilation
- Modular Homes
- Legislative Issues
  - En997:2003, Class 2
- The Code for Sustainable Homes
  - Zero-Carbon Homes
  - Home Information Packs (Hips)
  - Energy Performance Certificates (Epcs)
  - Building Regulations
  - Approved Document G - Sanitation, Hot Water Safety and Water Efficiency( October 2009)
8.The Global Market
- European Companies Dominate The World Sanitaryware Market
  - Table 8.1: Leading World Sanitaryware Manufacturers by Total Annual
  - Production Capacity (Number), 2007-2008
- European Housing Market Sluggish
- Ideal Standard International
- Sanitec Group
- US Housing Market Still Slow
  - Table 8.2: Forecast Change in US Housing Market by Number of Housing Units( Million), 2008-2010
- Kohler Co
- American Standard Brands
- Japanese Manufacturer Establishes Strategic Base in Europe
- Brazilian Bathroom Market Enjoys Growth
9. Forecasts
- Introduction
  - The Economy
  - Table 9.1: Economic Forecasts (000, % and Million), 2009-2013
  - Table 9.2: Forecast of Housing Output at Constant 2000 Prices (£m), 2009-2013
  - Table 9.3: Forecast of Construction Non-Housing Output at Constant 2000 Prices( £m), 2009-2013
  - Forecasts 2009 to 2013
  - Table 9.4: The Forecast Total Apparent UK Market for Baths and Sanitaryware by Value (£m at Msp), 2009-2013
- Market Growth
  - Figure 9.1: Total Apparent UK Market for Baths and Sanitaryware by Value (£m at Msp), 2004-2013
- Future Trends
  - Meeting The Needs of An Ageing Population
  - Table 9.5: UK Population Projections by Age Group (000), 2011, 2016, 2021 and 2026
  - Table 9.6: Great Britain Household Estimates and Projections by Number of Households (000), 2006, 2011, 2016 and 2021
  - A Continued Emphasis on Sustainability
  - Fierce Competition to Continue
  - Reducing Production Costs
  - Importance of Product Design, Quality and Service
10. Company Profiles
- Ideal Standard (UK) Ltd
- Jacuzzi UK Group Plc
- Qualceram Shires Plc
- Roca Ltd
- Twyford Bathrooms
- Vitra (Uki) Ltd
11. Further Sources
- Associations
- Publications
- General Sources
- Government Publications
- Other Sources
- Key Note Sources
- Understanding Tgi Data
- Number, Profile, Penetration
- Social Grade
- Standard Region
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