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Industry Statement: Revolution of the shower place. How resin material is disrupting the traditional shower tray market.
Industry statement sanitary ware.
For the industry statement “The revolution of the shower place: How resin material is disrupting the traditional shower tray market”, Munich Strategy analyzed manufacturers of shower trays in Europe and conducted several hundred interviews with market participants. The conclusion: A material substitution is taking place in the shower tray market, whereby resin material could replace ceramic and gradually displace acrylic and steel.
Resin market will double within five years
The disruption started in Spain. Compared to 2012, when the market share of resin shower trays was less than 10%, today more than 80% of all trays in Spain are made of resin. Manufacturers of resin shower trays achieve high double-digit EBITDA margins due to the combination of a low-cost production process and a premium positioning of the material. In Europe the share of resin in the total tray market accounts for about 20% with annual growth rates of 20 to 30%. Munich Strategy expects the current resin tray market in Central Europe to double within the next five years.
Design and functionality are selling points
Resin shower trays are increasingly in demand by end customers. Reasons for this are an increased design flexibility on the one hand – resin offers colors, surfaces and sizes not possible with traditional materials – and functional advantages on the other hand: Resin feels warmer to the touch than ceramic and steel surfaces, it is naturally non-slip and repairable. Installers appreciate the option to cut resin trays onsite in the bathroom. For manufacturers the simple exothermic production process offers flexibility for small lot sizes.
Smart shower drives substitution
During the production process sensors can be embedded into resin material to equip the shower place with digital features. Examples are touch-free control of water temperature or smart functions such as weight measurement and child safety. This upgrade through “Resin 2.0” has the potential to set new price points for the entire shower category. To accelerate this development, the authors advise brand manufactures to move from outsourcing to OEM producers to actively develop the segment themselves.
Manufacturers need to act now
“There is no resin champion in Germany,” comments Dr. Sebastian Theopold, author of the industry statement and building materials expert of Munich Strategy. “Brand manufacturers should now direct their investments and R&D power towards their own production and use all their market power to position themselves as the leading resin brand in all price segments.” This, says Theopold, will also protect them from private label manufacturers from Southern and Eastern Europe.
The publication shows: There is still enough time to act. Talk to us about how to participate in this oppotunity.
Characteristics of resin material
Resin development in the Spanish sanitary industry
Resin shower trays as ideal private label product
How resin material will upgrade the shower place
Sustainable competitive positions for German manufacturers in the resin segment
How to participate in substitution opportunities in the building materials industry
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Munich Strategy GmbH & Co. KG
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