Editor's Note
This editor’s note highlights the key facts and market implications behind “TGA | Industry Radar Sanitary: Sanitary Market S”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
According to the market study, both the sanitary ceramics and sanitary fittings markets shrank substantially in 2023. It was already clear to the industry that the sanitary sector had a difficult year with 2023. Current data from the Industry Radar market survey now shows that the lack of renovation business is primarily responsible for this. However, cautious optimism is returning in some places: For example, Marc Dobro , Grohe Managing Director Germany and Leader Central Europe, spoke in the TGA interview about his hope that the economic trough has already been passed.
Sanitary Ceramics: Reduced Replacement Business
The past year presented challenges for manufacturers of sanitary ceramics: According to the current Industry Radar for Sanitary Ceramics in Austria, manufacturer revenues shrank by 12 percent in 2023 compared to the previous year to 49.3 million euros. This brought the market back to the sales level of 2019 . In 2021, manufacturer revenues were still at 56.2 million euros according to Industry Radar; in 2022 there was a slight minus of 0.3 percent.
“Responsible for the massive downturn was essentially the apparent hesitation in renovating wet rooms,” notes study author Dominique Otto. “Around 80 percent of the sales decline can be located in the replacement business.”
– © BRANCHENRADAR Sanitärarmaturen in Österreich 2024
According to the market study, a key reason for this was the price increases of recent years, which made renovation projects more expensive. Material prices for sanitary ceramics rose by an average of 14 percent between 2020 and 2023, and for relevant craft services by 18 percent.
Sanitary Fittings: Renovations Remain Absent
Although the selling prices of sanitary fittings increased by an average of seven percent in 2023, as reported by Industry Radar, sales slumped: According to current data from the market survey, manufacturer revenues decreased by 6.5 percent in 2023 compared to the previous year to 98.4 million euros. In 2020, revenues were still at 100.1 million euros and were able to increase to 105.5 million euros in 2021. 2022 saw the first slight minus of 0.3 percent. Thus, the market lost its growth since 2019; the decline is due to the weak renovation business , according to Industry Radar. Year-on-year, sales fell by ten percent, while revenues in new construction could still be increased by about three percent compared to the previous year. Kitchen and shower fittings also had a harder time than bathtub and washbasin fittings.
Source: Read the original article | Published: July 01, 2024