Bathroom Market UK 2008-2012

A new AMA report provides a major review of the UK Bathroom Market.

‘In 2008, the market is expected to show a modest decline and is estimated to be around £878 m at manufacturers selling price, which represents a decrease of around 3% compared to 2007. The impact of the 'credit crunch' is beginning to take effect and there is a decline in the number of mortgage approvals. In addition, there is now a higher degree of uncertainty as a result of the global financial crisis.’

Government regulations stated that new houses required a WC on the ground floor and it became standard for houses with three or more bedrooms to have an en suite. However, since then there has been greater emphasis on building flats and apartments and therefore relatively fewer en suite and cloakroom installations.

Another trend in new build properties is that there is now a greater demand for compact bathrooms. Recent regulations have allowed developers to build a higher number of properties on a plot by reducing the overall footprint of a building. This has resulted in a greater number of homes built with less floor space, but over three storeys. This trend means that many UK bathrooms continue to be tight on space.

The media has significantly influenced this market sector, with a greater focus on design and style throughout the home. In the past, the media encouraged high levels of DIY (Do It Yourself) home improvement activity. However, more recently this trend has been reversed and the emphasis is now much more on professional refurbishments using quality products and to GSI (Get Someone In).

The media and the Internet have also increased the awareness of more upmarket and niche products, providing consumers with the knowledge and information to source a wider range of styles. In the bathroom refurbishment sector it is now estimated that around 75% of all purchases are specified by the consumer.

The bathroom market will continue to suffer from the rising price of raw materials. The prices of oil, nickel, zinc, aluminium and MDF are rising sharply. The heavy reliance on oil for acrylic is a huge concern and will continue to add pressure to margins.

The level of imports from low-cost countries is expected to remain high with further increases 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.

In the medium to long term, the market for bathroom products is expected to experience modest growth. By 2012, the market value is estimated to be around £973 million at MSP, which would represent an increase of around 8% compared to 2007. It is expected that 2008 and 2009 will be more difficult while 2010 through to 2012 will show more positive growth.

AMA Research's ‘Bathroom Market - UK 2008-2012’ report is available in hard copy or electronic format for £625 and can be ordered online at http://www.amaresearch.co.uk or by calling 0871 3103450.