Leisure construction buoyed by rapid growth in budget segments

In overall terms, construction activity in the entertainment and leisure sector has performed relatively well during the downturn compared with other sectors, with construction output values reaching around £5.7bn in 2013, a 14% rise on 2012. However, expansion and investment have been largely confined to the budget hotels, health and fitness and, more recently, the cinema segments, with less buoyant activity in mid-market hotels, pubs and the gaming sectors where some major operators have reigned in capital spending plans.

The largest sector within the UK leisure industry in terms of revenue is the food service industry, worth £45bn in 2014, of which sales in the restaurant and fast food sector account for over 50%. The restaurant sector has experienced a difficult trading environment over the past 5 years and the pub sector in particular has seen considerable restructuring. While spending has not reached pre-recessionary levels, consumers are returning to restaurants and refurbishment activity within the sector is largely driven by international businesses looking to expand in the UK.

After years of being constrained by capital budgets, hotels have now refocused portfolio investment through refits and refurbishment programmes to maximize occupancy levels rather than through new build properties – though the exception has been budget hotels where value chains continue to expand their portfolios through new development. Hotel construction is expected to be one of the fastest-growing sectors in 2014, boosted over the next few years by competition between budget hotel chains.

A further trend emerging from the recession is the rise in popularity of the budget gym sector, where membership prices are around 50% cheaper than for traditional clubs. As in the hotel sector, the budget gym market is forecast to increase market share as consumers look to spend existing disposable income more wisely. Many budget operators have aggressive expansion plans for 2014 and beyond.

In 2014, the fortunes of the UK leisure market are thought to have received a boost from major sporting events such as the Commonwealth Games in Glasgow, stages of the Tour de France in Yorkshire, Cambridge and London, the Ryder Cup at Gleneagles, the World Cup etc., which could have a significant positive impact on both regional and London leisure market performance. However, market performance has been uneven.

“Whilst the outlook for the hotel and leisure sector is now more positive, the implications for construction, fit-out and refurbishment work in the sector remains mixed” said Andrew Hartley, Director of AMA Research. “Significant expansion plans have been announced by budget hotels, value gym, food-led pubs and cinema sectors, contrasting with less buoyant prospects for mid-market hotels and the betting and gaming industry.“

The outlook for the hotel, leisure and entertainment sector as a whole remains positive, with annual output increases of 2-5% currently forecast to 2018. UK tourism spending is also expected to continue to grow strongly to 2025, with inbound tourism the fastest growing sector with growth rates of 5-6% forecast. Much of this growth is being driven by higher consumer spending as the economic recovery gathers pace and is becoming firmly established.

The ‘Construction in the Hotel, Entertainment & Leisure Sector Report – UK 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Energy efficiency and retrofitting drives UK Lighting Market growth

The UK lighting market was estimated to be worth around £1.6 billion in 2013 with good growth prospects for 2014, according to a new report by AMA Research. Forecasts into the medium-term remain relatively optimistic with growth projected at 4-6% per annum until 2018, driven by increased demand for energy efficient lighting and growth of LEDs.

The issue of retro-fitting of more efficient lamp products has been crucial to value growth rates within the market in recent years, particularly where incandescent lamps have been replaced with higher value alternatives. The trend towards LED technologies has also driven up value growth, as has the introduction of a number of finance schemes that allow for lighting refurbishments and replacement to be paid for from future energy cost savings.

The UK lamps market has experienced significant change in recent years as European Directives have impacted on the supply and sales of certain lamp types. The phased removal of inefficient lamps from both the residential and non-residential sectors has continued to see the replacement of the traditional incandescent lamp in the domestic sector with compact fluorescents which in turn have been replaced by LEDs. In addition the trend for improving lighting quality, particularly the trend for “whiter” light in the private commercial sector has increased demand for higher value LED and fluorescent products.

Luminaires account for the largest share of the UK lighting market accounting for a share of around 61% in 2013. The sector is reliant on the levels of new build and refurbishment activity, particularly in the non-domestic sector, and was affected by the decline in output for the private commercial sector from 2009-12. The recent trend has been positive with moderate market growth in 2013 underpinned by investment in street lighting as well as the beginnings of recovery of private sector offices and retail.

Although the lamps and luminaires sectors have experienced more positive conditions 2013-14 than in previous years, it is the controls sector that is experiencing the most positive growth.  Again this is due to the focus placed on efficiency and cost savings with organisations recognising the need to reduce unnecessary lighting provision.

“The key driver for the whole lighting market is LED lighting which has gained significant share in the non-domestic sector in recent years.  This technology represents an innovative aspect for the lighting market and is likely to promote a period of innovation and expansion particularly in terms of more integrated products, control and lighting solutions” said Keith Taylor, Director of AMA Research. “The adoption of more efficient lighting products in the medium-term will boost value growth, however these products have increased life cycle expectations which may have more negative implications for the market into the longer-term”.

The current trend for retro-fitting LED lamps into existing luminaires is likely to be superseded by the development of integrated LED luminaires into the medium-term, though the large established base of existing luminaires will sustain the trend for some years to come. However, increased demand for LED technologies is likely to lead to an increase in average prices for some luminaires.

The controls market is currently in a particularly innovative stage where new products are introduced on a regular basis thereby underpinning good value growth. This innovation stage is likely to transform to more moderate developments into the medium-term, though the integration with LEDs has created a good platform for increased use and benefit of lighting controls. However, the longer term trend for lighting solutions – where control, luminaire and lamp are incorporated into a single unit may dampen demand for separate controllers in future years and make market segmentation by product far more difficult.

The ‘Lighting Market Report UK - 2014-2018 Analysis’ is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Good weather boosts growth in the UK Garden Leisure market

The Domestic Garden Leisure market fell in value terms during 2012, but has since started to recover and was estimated to be worth over £500 million in 2013, reflecting an estimated growth of 12% compared to 2012. This estimate relates to domestic sales only and excludes the wider commercial market for garden furniture.

Expenditure on garden leisure products has been volatile in recent years due to a combination of key factors such as consumer confidence, the economic climate, and the weather. Positive drivers for the market include; good weather on bank holiday weekends, sporting events and the trend for greater utilisation of outdoor space.

The largest sector of the garden leisure market is garden furniture, which accounts for over 60% in 2013. Metal and plastic garden furniture have gained share at the expense of wood as consumers have moved away from traditional towards more contemporary styles. The plastic category has been boosted in recent years by the popularity of rattan style garden furniture made of all-weather materials.

The barbeque sector has benefited from the trend to trade up from charcoal to gas barbecues, the increasing interest in dining outside and added value from product development, with 2014 a good year for the sector. Own brands dominate this sector of the market accounting for an estimated 45-55% share.

Garden leisure products are increasingly sourced and manufactured abroad, particularly in the Far East and Eastern Europe. The main route to market for garden leisure products is through DIY multiples which dominate the market with over 40% market share.

However, garden centres are losing share in this sector, with the more recent trend towards greater internet sales continuing – both from specialists and general retailers. The garden centre market is dominated by a number of large national and regional groups and there has been some consolidation in this market which is expected to continue in the coming years.

Sales will always be subject to the impact of the weather which can cause wide fluctuations on an annual basis, but our estimates for the domestic garden leisure market for 2014 and beyond are for good underlying growth given continued improvement in the economy and favourable weather. The trend for outdoor dining and use of the garden for socialising has benefited the garden leisure market - and is likely to continue.

Other factors driving growth in the garden leisure market in the medium to long term include; a general interest in environmentally friendly products creating added value, continued media interest in the garden as an aspirational living space, continued product development and a trend towards higher quality/value products in both furniture and barbecues, though average prices for better quality products have fallen in real terms.

“Overall, the garden leisure sector is likely to remain a vibrant market, with plenty of suppliers and a wide range of products on offer.” said Andrew Hartley, Director of AMA Research. “Future product developments are likely to be driven by fashion, demographics and housing/garden styles and sizes, and the ageing population will result in more people having time to spend in the garden – with older age groups also more inclined to use barbecues than 15-20 years ago.”

The ‘Garden Leisure Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Gradual recovery in the UK wall cladding market

Including facing bricks, rendered block and insulated render systems, AMA Research estimates that the total installed wall cladding area declined from over 45m m² in 2008 to 39 m², before showing gradual improvement to 48m m² in 2012 and 2013.

Since 2011, there has been some improvement in private housebuilding output, social housing refurbishment, waste management infrastructure and the central London office market.

Driven largely by the Help to Buy schemes and a shift back from flats to houses, demand for facing bricks has outpaced supply, with imports needed to make up the shortfalls. This has been due to the time taken to restart ‘mothballed’ brick plants combined with a marked shortage of bricklayers. Energy efficiency legislation and initiatives (e.g. CERT) and requirements of Part L of the Building Regulations have driven up demand for insulated external walls, in particular render coated external wall insulation systems and composite panels.

The social housing refurbishment sector originally seemed as if it would be a key area of demand for insulated render systems, due to the introduction of the ‘Green Deal’, and, more relevantly, the Energy Companies Obligation (ECO) in 2013. However, should the government’s proposed changes for more moderate targets for solid wall insulation go through, then projected growth levels will be negatively affected. Other potential market drivers for cladding products are likely to arise from the waste management, recycling and renewable energy sectors.

By value, the largest sector is the curtain walling and structural glazing sector, while the share taken by facing bricks is considerably lower by value. Other higher value sub-sectors include the high specification zinc, copper and aluminium metal cladding systems, natural stone cladding and pre-cast concrete cladding systems.

Over the 2008-2012 period, lower levels of construction activity in the commercial sector have fed through to reduced demand for up-market cladding, particularly unitised curtain wall and other architectural products. Since 2012, there has been renewed demand in Central London office projects and a growing trend among architects for copper and zinc rainscreen systems and roofing.

With so many different types of cladding products on the market, the supply base is highly fragmented, although there is a high degree of market concentration in some sub-sectors. In the clay bricks industry, the top three producers account for around 80% of the market. These companies are also leading suppliers of other types of ‘niche’ clay cladding material such as brick slips and terracotta rainscreens. However, imports account for the majority of terracotta rainscreen systems installed in the UK.

The metal cladding panel market is a little more fragmented while the profiled panel market is even less concentrated. Systems companies and their approved fabricators / installers mostly account for the lower-middle sectors of the curtain wall market. The remainder of the wall cladding market is highly fragmented in terms of material types and in each sub-sector there are relatively few suppliers.

“Over the short to medium term, reasonable volume growth of between 5-8% per annum is expected, largely driven by private housebuilding activity and the government’s Help to Buy and other affordable homes programmes.” said Keith Taylor, Director of AMA Research. “Other end-use sectors likely to show increased demand are commercial offices, waste management and leisure, reflecting expected recovery in the commercial new build sector as well as commitments to further expansion in sectors such as waste.”

The overall value of the wall cladding market is difficult to estimate due to the fact that some elements are system based and the product and material is integral with the installation. Keeping this in mind, the product value at trade purchase price was estimated at around £1.8 billion in 2013.

The ‘Wall Cladding Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Office Furniture Dealers market remains fiercely competitive

The overall UK office furniture market has been through a sustained difficult trading period, with the market declining substantially in 2009/10. However, it has recovered somewhat since then, with sales reaching an estimated £665m in 2013.

There is still a surplus of supply capacity over demand, despite some well-known companies having ceased to trade, and this has resulted in suppliers having to cut prices further to maintain share.

The two main distribution channels for office furniture are via the dealer network, accounting for 44% of the market, or directly to end users, with around a quarter of the market. Retail furnishing groups and miscellaneous outlets account for 20% of the market, whilst superstores and mail order sales account for the remaining 11%.

The office furniture dealers’ sector is extremely fragmented with an estimated 2,000 to 2,100 branches in the UK, largely single branch enterprises. Dealers source their furniture mainly from UK based manufacturers, although they have increasingly used importers to supplement their offering in recent years.

The majority of dealers source their products from individual manufacturers and this enables them to offer a comprehensive range of products at different price points, however, some dealers have close links with individual suppliers, usually with the larger companies. Having good quality products with enhanced features is the most important factor when dealers are looking for a supplier and this is particularly true of the premium sector, where it is important to differentiate from other distribution channels in order to avoid direct price comparison.

The supply chain in the market is likely to experience some changes, with further growth in the SOHO market benefiting the less traditional channels of supply, such as multiple furnishing retailers, superstores, mail order and the Internet in the short to medium term future. Competition is expected to be relatively intense due to the furniture multiples offering a wide range of flat pack products at lower prices. Growth in this sector may entice new entrants into the market, although this is more likely to be on the manufacturing side, rather than in the retail sector.

The dealers’ market is expected to show modest growth in the next few years, increasing from an estimated £293m in 2013 to £318m in 2018. Although the share of the market held by dealers is forecast to decline to 42% by the end of the period, growth in the overall market should more than offset that decline.

Keith Taylor, Director of AMA Research said: “The dealers’ channel is expected to see low-level growth over the next few years, though it is expected that their market will remain challenging. Retailers, such as IKEA, Argos and Tesco, together with Internet suppliers are likely to be joined by other multiple retailers and are expected to increase their share of the market using catalogues and the Internet to support their nationwide chains of outlets.”

The ‘Office Furniture Dealers Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Explosive growth in the UK LED Lighting market

In 2013, the UK LED lighting market was estimated to be worth £330 million at manufacturers’ selling prices (MSP). This incorporates all finished, mains-operated LED lighting products, domestic and non-domestic used within construction and building.

The LED lighting market is currently experiencing an explosion in growth as the new technology becomes more widely accepted in the mainstream lighting market, further encouraged by energy cost savings and CO2 concerns, driven by legislative changes. 

The market is largely reliant on total system upgrades and new installation applications. Non-domestic end users dominated in 2013, accounting for 95% of the market in terms of value. Infrastructure is the leading sector within LED lighting with many councils replacing or planning to replace conventional street lighting with LED lighting, attracted by significant energy cost savings, lower CO² output and long life cycles.

The Leisure & Entertainment and Health & Education sectors have been high early adopters of LED lighting and will continue to be major end use sectors in the near to medium term. Retail use is growing strongly whilst office, industrial and domestic use will expand over a longer time period.

In 2013, the LED lighting market was characterised mainly by sales of LED luminaires, accounting for an estimated 75% of the market, with the rest of the market made up by replacement LED lamps and LED controls and accessories. The use of this technology for lighting often requires installation of specific luminaires in order to achieve the full benefits. However, product development within LEDs is largely focused on development of replacement and retrofit products, greater efficiency and improved colour rendering index (CRI).

Distribution is led by direct sales as many manufacturers introduce, and have a better understanding of, the new technology, but this will change longer term. This channel is further supported by the dominance of larger public sector projects, which tend to source directly from manufacturers. Electrical wholesalers and specialist distributors are also significant players and their share is likely to grow as the technology becomes more widely established and used by the electrical contractors more widely. Retailers, including DIY, supermarket, and high street stores are the principal suppliers to the domestic market.

The supply of LED products is led by five main suppliers who are estimated to account for around 80% of the market. The remainder of the market is fragmented comprising many second and third tier specialist and smaller firms.

The average price of LED lighting products has fallen in the last 12 months driven by the growing volumes of sales, manufacturing techniques and increasing competition in the UK market. However, LED products remain significantly more costly than many alternatives restricting volume sales, particularly in the domestic sector.

The LED lighting market is expected to continue to experience significant growth as the new technology further penetrates the lighting market. This is likely to be supported in the short-medium term by government cutbacks hitting public sector budgets and prompting investment in technologies which provide reductions in long term running costs. 

The government is also committed to promoting energy efficient products, through their use within public sector projects and through the introduction and strengthening of energy conservation and monitoring legislation. However, the lack of product standards in the market has led to some consumer reluctance to purchase LED lamps due to poor experiences with lower quality products in the past. This may continue to restrict growth in the short term.

“In the medium term, as the commercial and increasingly the domestic sectors utilise the new technology, and with higher volumes of housing required and increasingly sophisticated, task orientated lighting used across all markets, LED lighting will see high volume growth supported by a wider range of sectors” said Keith Taylor, Director of AMA Research. ”We expect the market to grow rapidly until 2018, when the it is estimated to be worth in excess of £1bn.”

The ‘LED Lighting Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

UK Water Saving Plumbing Products Market growing rapidly

The UK water saving plumbing products market is estimated at £164 million at Manufacturers Selling Prices (MSP) in 2013, according to a new report by AMA Research.

During the period 2009-2012, the market for water saving plumbing products was relatively flat - in line with the difficult economic situation at this time. However, since 2013 the market for water saving plumbing products has seen an increase, with demand picking up as the economy and new housebuilding levels improve. The core product sectors of the UK water saving plumbing products market are water efficient bathroom products (87%) and water recycling systems (13%).

Water efficient bathroom products are distributed through a wide range of channels. The main distribution channel continues to be merchants with the DIY multiples also holding a substantial share. Other channels include bathroom specialists and online retailers. The vast majority of water recycling systems are distributed either through plumbing and drainage merchants or direct via water recycling specialists. There are also a growing number of online retailers operating in this market sector.

There is an increasing awareness and demand for water saving products in UK homes and businesses. Demands for water are continuing to rise and maintaining supplies to meet these demands is becoming increasingly difficult. The development of new housing in areas of water stress, population growth and a doubling in the number of single person households since the 1970’s have increased demand for water.

In addition, there has been a significant growth in the number of second bathrooms, en-suites and cloakrooms. In 2013, it is estimated that around 22% of all UK properties have two or more bathrooms and around 41% have two or more cloakroom / WC facilities.

The future performance of the water saving plumbing products market is likely to be driven by government legislative changes and growing concerns and attitudes towards water usage and its impact on the environment. The compulsory requirement for water meter installations in new housing and the introduction of The Water Label as standard on water-using bathroom products from summer 2014 will also increase awareness among householders of the benefits of water saving products.

“The replacement of inefficient WCs in particular will be motivated by more widespread water metering and the rising cost of water. Nearly two thirds of water is used in the bathroom either for showering, hand washing/bathing or flushing the toilet. With around 7 million inefficient high flush WCs still in use in the UK, there is a significant replacement opportunity that could achieve substantial water savings.” said Keith Taylor, Director at AMA Research. “Furthermore, most new-build schools, colleges, offices, government buildings, multi-residential and retail buildings will be designed to meet a higher BREEAM rating.”

Digital technology will also become more prevalent in UK bathrooms and play an important role in sustainability. For example, water efficient bathroom products that operate automatically with electronic sensors and digital systems that allow water flow to be controlled and run for a set period of time.

By 2018, the market value is forecast to be around £220 million, which represents an increase of around 35% compared to the market size in 2013.

The ‘Water Saving Plumbing Products Market Report – UK 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Event Equipment Hire market to grow by 23% over the next 5 years

The UK market for event equipment hire is estimated to be worth some £560m in 2013, according to a new report by AMA Research. Good weather in 2013, particularly over the key months of the year, benefited the events sector and consequently the event hire sector.

The UK has a well-developed infrastructure of event destinations, venues and service suppliers, and the market does not appear to have been impacted by the economic downturn to the same extent as many other product and service sectors, though corporate events have seen a decline.

The market was boosted significantly in 2012 due to the Queen’s Diamond Jubilee and the London 2012 Olympic Games and related events. While good weather provided a boost to the market in 2013, some post-Olympic readjustment meant that the market size fell marginally during the year compared to the peak in 2012. However, underlying growth remains strong with prospects for 2014 positive, given the reasonable weather.

It is estimated that the exhibitions & trade show sector accounts for the largest share of the event market at more than 50%. Other key sectors include sports, music, festivals & cultural events, corporate hospitability and ‘other events’ such as charity events and hobby festivals. The largest equipment hire sectors are estimated to be staging, structures & seating, and portable buildings & sanitation, which have a combined share of 50-60% of the market.

Other important hire sectors are power generation & climate control, audio-visual & lighting, signage, traffic & crowd control, security & portable access, interiors and access equipment & other plant. The sector has seen some changes in recent years as event organisers improve standards of safety, comfort and sanitation, as well as investing in better AV equipment to enhance the visitor experience – all factors driving growth in equipment hire.

“2014 has been positive for the event hire sector and the market is forecast to grow steadily to 2018. Up-coming sporting events across the period, as well as a wide range of music concerts & festivals, exhibitions & trade shows and corporate events, are expected to boost the equipment hire market to over £600m by the end of the forecast period.” said Andrew Hartley, Director of AMA Research. “While adverse weather can impact negatively on the market, developments in the climate control and structures product sectors have led to outdoor events being less dependent on the prevailing weather.”

The ‘Event Equipment Hire Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Online distribution of garden products set to double by 2018

In contrast to the overall garden products market, online gardening sales have experienced substantial levels of growth in recent years and the internet is by far the fastest growing distribution channel for garden products. In its newly published report on this sector, AMA Research estimates that the Internet garden products distribution market is now worth over £300m at retail prices.

Consumer shopping behaviour is changing, influenced by digital technology, and many non-specialist suppliers such as garden centres, store-based garden product retailers and mail order/ catalogue companies are increasingly entering the online retail market. Use of mobile phones and tablets is also growing rapidly and some non-specialists have seen rapid growth in the ‘click and collect’ service.

Selling over the Internet tends to favour some product categories over others, with garden leisure, garden equipment and horticulture being key products for sales online. There are also significant differences in mix between the specialists and non-specialist online retailers by product group. For example, garden sundries and chemicals are dominated by the non-specialists, whilst the specialist e-tailers compete well in garden leisure and horticulture.

The Internet garden market is still relatively immature and is expected to continue to show strong annual growth levels, although inevitably the pace of growth will slow down as the market matures. Taking these issues into account, it is estimated that the UK Internet garden products market will be worth an estimated £744 million in 2018, more than twice its current size.

Andrew Hartley, Director of AMA Research said: “The Internet has removed barriers to entry previously enjoyed by traditional store-based retailers and other suppliers, which has allowed small and medium sized specialist e-tailers to enter the garden products market, creating a new competitive dynamic. By 2018, it is estimated that the Internet garden products market will account for an estimated 15% of the total garden products market, up from around 8% in 2013.”

There are a number of key factors affecting the future prospects for the Internet garden market in the UK, including consumer spending levels, the pace of economic recovery and overall trends in online e-retail shopping. Demand for garden products is also heavily affected by the weather, and as a result there are likely to be fluctuations of sales growth and decline on an annual basis.

The ‘Internet Garden Market Report - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Positive market prospects for kitchen and bathroom distributors

Overall, conditions in UK kitchen and bathroom markets have remained difficult over the last five years, with low levels of housebuilding - and a difficult housing market generally - significantly affecting these sectors, particularly bathrooms. However, housebuilding levels increased in 2013 supporting modest value growth and the kitchen and bathroom distributors’ market was estimated to be worth £840 million at distributors’ selling prices at the end of 2013.

In 2013, the total UK kitchen and bathroom products market is estimated to have reached a value of £6,027m at DSP, and the distributors’ share of this market in 2013 was approximately 14%.

Increasing raw material costs and higher transport costs have impacted on margins in the sector over the last 2 years. Generally however, a number of distributors have avoided significant losses by focusing on logistics to reduce transport costs and own brand product ranges offering higher margins.

National distributors account for around 75% of the market, with large regional distributors making up most of the rest of the market. A large proportion of distributors’ sales are bathroom products, with around 30% of sales falling into this category.

The growth of showering continues to add pressure to the bath sector, with additional bathroom installations such as en suites favouring shower enclosures and wet room areas. Distributors’ share of the kitchen furniture market has remained fairly stable in recent years, with distributors continuing to supply all sectors of the market.

Sales to kitchen and bathroom specialists dominate the distributors’ market, accounting for 40%. Builders’ merchants are also a key customer accounting for 29% of the market. Other customers include DIY Outlets, other retailers such as department stores, electrical independent retailers and others including sub contractors and end users such as local authorities or housebuilders.

“The kitchen and bathroom supply chain has changed in recent years, with growth of Internet retailers in the plumbing and bathroom sectors, allied to more difficult conditions in some of the domestic contract sectors of the market.” said Keith Taylor, Director of AMA Research. “With more positive market prospects in the future, it seems likely that the Internet channel with continue to prosper, benefitting the kitchen and bathroom distributors”

The report estimates that the market will reach a value of around £1.1bn in 2018.

The ‘Kitchen and Bathroom Supply Chain Market Report – Focus on Distributors - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.