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21st April 2017
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Brexit Bump & Bounce for Shower Market to 2020
A new report on the UK shower market from MTW Research suggests above inflation growth in 2016, with new technology paving the way for a £50 million sales 'bounce' by 2020, despite Brexit dampening volume growth.
Based on industry sales data, the report forecasts volume and values and suggests that sales of shower products are set for 10% growth by 2020, highlighting healthy fundamentals as consumer spending remains strong in 2016.
According to MTW, growth in digital shower sales of 26% and a steady shift to higher spec preferences are boosting value performance whilst volume growth is underpinned by rising domestic refurbishment activity for shower controls, screens, trays and enclosures.
Discussing current trends, MTW executive James Taylor commented: "The showers market in 2016 is being driven by demand for not just high quality, design led enclosures and trays but also the latest technologies in smart showering which offer an inclusive product that the whole family can use for great levels of control and ease of use."
The 280-page report reviews the impact of Brexit, forecasting that whilst demand from housebuilding may dip in the near term, value growth is set to remain healthy as consumers demand higher value products with enhanced features. MTW also identifies a number of opportunities presented by Brexit, highlighting a likely growth in UK manufacturing as investment in production facilities increases in the longer term, underpinned by low corporate taxes, a lower cost of Sterling and flexible labour force.
MTW also identifies a number of key threats to the shower products market, with pricing pressure a key characteristic of the sector in 2016. The showers market continues to polarise into the higher value, brand-led sector underpinning value growth whilst lower value imports are rising in volume terms.
The report provides channel shares since 2010 with Internet distribution gaining share in 2016, though online retailers are growing share primarily in the low-mid value end of the market, with less success at the higher value end of the market. According to MTW, this represents a key opportunity for specialist bathroom retailers who are able to occupy a differentiated market position by offering higher value products and services.
MTW also reviews the commercial showers market, suggesting that whilst there may be some 'Brexit bumps' in the road over the next 2 - 3 years, the overall trading environment is reasonably positive with above inflation growth forecast to 2020. The report suggests that should Brexit result in a slowing of consumer confidence, growth in 'Staycations' may prompt the domestic tourism and leisure markets, as was the case during the last recession, underpinning some additional stimulus for the commercial showers sector.
The tone of MTW's report is generally optimistic, with growth led by smart technological advances offering greater levels of control in the bathroom. By 2020, MTW forecasts growth of £50 million for the UK shower products market, underlining healthy longer term conditions though somewhat erratic sales in the near term.
The report identifies opportunities for sectors such as concealed mixing valves, low profile shower trays and semi-frameless enclosures.
MTW asserts that the 'inclusive' showers market also offers growth potential with around 14 million consumers aged 60 representing around 30% of all shower purchases in 2016.
5th August 2016