In 2006, the total apparent UK market for baths and sanitaryware grew by 0.5%, to £411.4m at manufacturers' selling prices (msp). The market is expected to remain flat in 2007.

The baths and sanitaryware market, as defined by this Key Note Market Report, covers baths (of acrylic, metal and other materials) and all types of sanitaryware — toilets, urinals, cisterns, wash basins, pedestals and bidets — of vitreous china (VC)/ceramic, plastic or metallic materials. The market can be divided into the domestic/housing sector and the contract/commercial sector. Housing can be subdivided further into the private and public sectors, both new-build and repair, maintenance and improvement (RM&I). The latter provides opportunities for replacement bathroom suites. The contract (or commercial) sector incorporates offices and facilities for education, health, retail, leisure and entertainment, hotels and sports, for example.

Although the number of housing starts has risen in recent years, the RM&I sector has been somewhat muted. The public sector has been the focus of significant investment plans, but these have been somewhat slow to come to fruition. However, the contract/commercial sector is performing well, with forthcoming opportunities for the London 2012 Olympics. The UK market has seen a degree of competition, as overseas imports — notably from the People's Republic of China — compete on branded design at one end of the scale and price at the other. As a result, when examining the market in terms of msp, the value has been affected.

The two leading UK brands, which account for more than 50% of the marketplace, are also owned by overseas companies. Ideal Standard (with Armitage Shanks) is owned by a US company, American Standard, and Twyford Bathrooms is owned by the Finnish company Sanitec. Despite reciprocal opportunities for market growth in the People's Republic of China, global competition is fierce, with manufacturers attempting to make their production processes more efficient in the face of rising raw material, energy and transport costs, and to build differentiated brands, despite falling prices. It is feasible that there will be further mergers and acquisitions on a global scale.

Key Note forecasts that the baths and sanitaryware market will rise slowly over the next 5 years (to 2012), with the strongest growth forecast in 2009 and 2010. This growth is on the back of a recovering private RM&I sector and the degree of activity in the contract/commercial sector. Housing starts are also expected to fare well to bolster this picture. Key Note's forecasts are in value terms and the impact of competition from imports has been taken into account. From a design perspective, the needs of an increasingly ageing population may bring greater demand for adaptable sanitaryware design, which caters practically for the less mobile, while still incorporating modern tastes. Water-efficient products will also become increasingly important.

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Domestic/Housing Sector
Contract/Commercial Sector
MARKET TRENDS
Trends in the Housing Market
Will Home Ownership Continue to Rise?
Are People Still Moving Home?
Table 1: The Number of Moving Households† by Type in England (000), 1996/1997-2005/2006
Figure 1: The Number of Moving Households† in England (000), 1996/1997-2005/2006
Trends in Consumer Expenditure
Table 2: Average Weekly Household Expenditure on Housing-Related Items by Age of Household Reference Person (£), 2005/2006
Household Size and the Impact on Type of Houses That are Being Built
Table 3: Number of Households in Great Britain by Size of Household (%, million and number), 1971, 1981, 1991, 2001 and 2006
Figure 2: Household Size in Great Britain (%), 1971, 1981, 1991, 2001 and 2006
Table 4: Housebuilding Completions in England by Number of Bedrooms (%), 2000-2004
Figure 3: Housebuilding Completions in England by Number of Bedrooms (%), 2000-2004
The DIY Phenomenon
Trends in the Bathrooms Market
An Ageing Population
Reducing Water Consumption
Trends in Bathroom Design
ECONOMIC TRENDS
Population
Table 5: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006
Gross Domestic Product
Table 6: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006
Inflation
Table 7: UK Rate of Inflation (%), 2002-2006
Unemployment
Table 8: Actual Number of Unemployed Persons in the UK (million), 2002-2006
Household Disposable Income
Table 9: UK Household Disposable Income Per Capita (£), 2002-2006
MARKET POSITION
The UK
Table 10: The Estimated Total UK Bathroom Equipment Market by Sector by Value (£m at msp), 2006
Figure 4: The Estimated Total UK Bathroom Equipment Market by Sector by Value (£m at msp), 2006
Overseas

2. Market Size
THE TOTAL MARKET
Table 11: The Total Apparent UK Market for Baths and Sanitaryware by Value (£m at msp), 2003-2007
Figure 5: The Total Apparent UK Market for Baths and Sanitaryware by Value (£m at msp), 2003-2007
BY MARKET SECTOR
By Building Type
Table 12: The Estimated Total Apparent UK Market for Baths and Sanitaryware by Building Type by Value (£m at msp and %), 2007
By Product Type
Table 13: The Estimated Total Apparent UK Market for Baths and Sanitaryware by Product Type by Value (£m at msp and %), 2007
Toilets/Urinals/Cisterns
Basins/Pedestals
Bidets
Baths
By Product and Material Type
Table 14: UK Net Supply of Baths, Sanitaryware, Shower Baths and Associated Bathroom Accessories by Material Type by Value (£m at msp), 2002-2005
OVERSEAS TRADE
General Overview
Table 15: UK Net Supply of Baths, Sanitaryware, Shower Baths and Associated Bathroom Accessories by Material Type by Value (£m at msp), 2002-2005
Table 16: Total UK Imports and Exports of Ceramic Sanitaryware by Region (£000), 2006
Table 17: Total UK Imports and Exports of Plastic Sanitaryware† by Region (£000), 2006

3. Industry Background
RECENT HISTORY
INDUSTRY SYNOPSIS
Table 18: Financial Analysis of Companies Engaged in the Manufacture of Non-Refractory Ceramic Goods Other Than for Construction Purposes (%, days and £), 2006
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
Figure 6: Estimated Breakdown of Distribution of Baths and Sanitaryware by Volume (%), 2007
HOW ROBUST IS THE MARKET?
LEGISLATION
Code for Sustainable Homes (December 2006)
Building Regulations
Part G
Part L — Dwellings and Other Buildings (all 2006 editions)
Part P
HTM-4-01
Water Efficiency in New Buildings
Previous Legislation of Relevance
KEY TRADE ASSOCIATIONS

4. Competitor Analysis
THE MARKETPLACE
Table 19: Estimated Share of the UK Baths and Sanitaryware Market by Company by Value (%), 2007
MARKET LEADERS
Ideal Standard (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Twyford Bathrooms
Company Structure
Current and Future Developments
Financial Results
Jacuzzi UK Group PLC
Company Structure
Current and Future Developments
Financial Results
Roca Ltd
Company Structure
Current and Future Developments
Financial Results
Qualceram Shires PLC
Company Structure
Current and Future Developments
Financial Results
VitrA (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Other Overseas Companies
Duravit
Kaldewei
Lecico
Villeroy & Boch
Other UK-Based Companies
Dolphin Fitted Bathrooms
Heritage Bathrooms
Premier Bathrooms Ltd
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 20: Main Media Advertising Expenditure on Bathroom Furniture and Fittings by Selected Company (£000), Year Ending June 2007
Trade Shows/Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
INTRODUCTION
PENETRATION OF BATHROOM FITTINGS
Table 21: Penetration of Bathroom Fittings by Sex, Age, Social Grade, Region and Family Income (% of adults), 2006
Table 22: Purchasing of Bathroom Fittings by Reason for Purchase and Amount Spent in the Last 12 Months (% of adults), 2006
CUSTOMER PROFILE
Levels of Home Ownership Among Domestic Consumers
Table 23: Level of Home Ownership and Dwelling Stock in England and Wales (000 and %), 1939-2006
Housing Affordability Issues
The Buy-to-Let Market
Table 24: Gross Mortgage Advances in the Buy-to-Let Market (number and £m), 1999-2006
The First-Time Buyer Market
Table 25: Loans for House Purchases (number and %), January-April 2005-2007
New Housing in the Private and Public Sectors
Table 26: Number of Housing Starts and Completions in the UK (000), 2001/2002-2005/2006
Figure 7: Number of Housing Starts and Completions in the UK (000), 2001/2002-2005/2006
The Contract Sector
Table 27: Construction Industry Output by Sector at Constant 2000 Prices (£m), 2006

7. Current Issues
CONSTRUCTION ACTIVITY EXTREMELY BUOYANT
THE AGEING POPULATION
ENVIRONMENTAL ISSUES
Water Efficiency
Home Information Packs and Energy Performance Certificates
Green Mortgages
TECHNOLOGICAL ISSUES
DESIGN ISSUES

8. The Global Market
THE WORLD SANITARYWARE MARKET
Table 28: Leading World Sanitaryware Manufacturers by Total Annual Production Capacity (000), Various Years
THE EUROPEAN MARKET
Table 29: Level of New-Build Activity in Europe by Selected Country (index 2000=100), 2002, 2004 and 2005
THE ITALIAN MARKET
THE US MARKET
Innovative Technology
THE CHINESE MARKET
THE JAPANESE MARKET

9. Forecasts
INTRODUCTION
The Economy
Table 30: UK Economic Forecasts (000, % and million), 2007-2011
Housing and Construction Forecasts
Table 31: Forecast Construction Output by Value at Constant 2000 Prices (£m), 2007-2011
Table 32: Forecast Construction Non-Housing Output by Value at Constant 2000 Prices (£m), 2007-2011
Table 33: Forecast Construction Housing Output by Value at Constant 2000 Prices (£m), 2007-2011
FORECASTS 2008 TO 2012
Table 34: The Forecast Total Apparent UK Market for Baths and Sanitaryware by Value (£m at msp), 2008-2012
MARKET GROWTH
Figure 8: Forecast Growth in the Total Apparent UK Market for Baths and Sanitaryware by Value (£m at msp), 2003-2012
FUTURE TRENDS
Population Trends
Table 35: UK Population Projections by Age Group (000), 2011, 2016, 2021 and 2026
The Global Market

10. Company Profiles
Ideal Standard (uk) Ltd
Jacuzzi Uk Group Plc
Qualceram Shires PLC
Roca Ltd
twyford Bathrooms
Vitra (uk) Ltd

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Improves
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
Willingness to Borrow Slips Slightly
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007
SPENDING FROM SAVINGS
Slight Increase in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

12. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Bisnode Sources