Abstract
Demand in China to grow 10+% per year through 2009
The plumbing fixtures and fittings market in China has expanded nearly 17
percent per year during the last five years and reached 66.5 billion yuan in
2004. Demand gains will continue to outpace the global plumbing products
market, rising 10.7 percent annually to 110.5 billion yuan in 2009,
benefitting from robust growth in China's building construction industry.
Fittings to remain larger segment
Demand for plumbing fixtures is projected to reach 49.2 billion yuan in 2009,
primarily driven by strong increases anticipated in building construction
expenditures in China. Rising income levels will also drive demand for
higher-end product types, resulting in higher value fixtures accounting for an
increasing share of the product mix and leading to gains in overall market
value. Plumbing fittings demand is expected to exceed 61 billion yuan in 2009,
driven by above-average growth in bathtub and shower fittings. Lavatory,
kitchen and other sink fittings will benefit from strong advances in new
building construction expenditures as well as rising renovation demand.
Fashionconscious residential consumers will support gains in replacement
demand, as new finishes and product and design advances are introduced.
Nonresidential market to outpace residential
Residential markets for plumbing fixtures and fittings accounted for over two-
thirds of total demand in 2004. However, the nonresidential and nonbuilding
markets will offer better growth prospects through 2009. Stronger growth in
building construction in the nonresidential markets will spur demand for
plumbing products, as will increasing use of plumbing fixtures and fittings in
nonbuilding applications such as transportation equipment.
Opportunities vary by region
Although China is a single nation, it consists of many distinct regional
markets characterized by different economies, cultures and languages. The
Northwest
remains largely underdeveloped, but is targeted by the central government's
"Go West" strategy, which will result in sizable growth in plumbing demand
derived from industrialization and housing construction activities. Also, the
Northeast -- credited as "the cradle of China's planned economy," although it
has experienced subpar economic growth in the past decade -- is positioned by
the central government's "Reviving the Northeast" campaign to become the
fourth economic engine for China, joining ranks with the Pearl River Delta,
the Yangtze River
Delta and the Jing-Jin-Tang Triangle areas. However, the Central-East and
Central- South regions will remain home to well over half of China's total
population and will account for approximately three-fifths of all plumbing
product consumption in China in 2009.
Reliable market analysis now available for China
International plumbing fixtures and fittings producers and distributors
recognize the tremendous market potential that China offers. However, planning
for expansion into China is difficult due to the lack of reliable market
information. Freedonia's new industry study, Plumbing Fixtures & Fittings in
China, can help you position your company in China. The study presents
historical (1994, 1999, 2004) demand data and forecasts to 2009 and 2014 by
plumbing product (fixtures, fittings), by market (e.g., residential building,
nonresidential building), and by Chinese geographic region. The study also
considers market environment indicators, profiles 33 industry competitors and
estimates market share for the largest players in the Chinese market.
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