Current Development Status of the Faucet Industry Market and Analysis of Import and Export Market for Faucets by 2023.
author: Mia
2023-11-27
A faucet, also known as a water valve, is a commonly used device for controlling the flow of water and regulating water consumption. Faucets are frequently updated with new designs and technologies, ranging from old cast iron models to electroplated knob styles, stainless steel single or dual control faucets, and semi-automatic kitchen faucets. When selecting a faucet, consumers consider multiple factors, such as materials, functionality, and aesthetics. Faucets first appeared in the 16th century, made of bronze, and were primarily used to control the opening and closing of water pipes and flow rate. Early faucets were screw-style, but most of those currently on the market use ceramic valve cores, with screw-style faucets being mostly phased out.
In terms of the bathroom industry supply chain, the upstream portion is mainly composed of various raw material production industries for bathroom products, including wood materials, glass materials, plumbing fixtures, copper materials, enamel materials, packaging materials, and product accessories. The downstream portion is mainly composed of new construction and renovation of existing buildings, and demand originates from newly constructed and existing buildings. The progress of the real estate industry's recovery has a significant impact on the sanitation and bathroom industry.
There are several primary water filtration technologies used in faucet filters, including: (1) activated carbon technology, which uses activated carbon as the primary filtration material and nanometer activated filter cores with excellent adsorption capacity to effectively filter out chlorine, heavy metals, and pesticides from water before adsorption saturation occurs; (2) hollow fiber technology, which mainly uses hollow fiber membranes to filter out the majority of pollutants in water, and the filter core must be replaced regularly; and (3) ceramic and nano-KDF technology, which is commonly used in domestic products and mainly uses microporous ceramic filter cores and nano-KDF filter media, chlorine removal balls, and alkaline balls to filter water. This technology offers a higher water flow rate than hollow fiber technology, and the ceramic filter core can be repeatedly cleaned and used, but must be replaced regularly after a certain lifespan.
Analysis of Current Development Status of the Faucet Industry Market
Data shows that during the period of 2016-2022, the market scale of high-end decoration market in China's real estate industry maintained a high-speed growth trend. The rapid development of the high-end decoration market has brought sufficient product demand for the intelligent bathroom industry, promoting the acceleration of market transformation, continuous optimization of production processes, and acceleration of the application of intelligent product functions. During the period of 2013-2021, China's sanitary ware market maintained a high-speed development trend, with the market scale increasing from 85.7 billion yuan in 2013 to 204.6 billion yuan in 2021. In recent years, the growth rate of the bathroom market has slowed down compared with previous years, but it still maintains a high growth rate, and market size has increased by 7.12% compared to 2020 in 2021.
According to the China Building Sanitary Ceramics Association Bathroom Branch, the bathroom industry is roughly divided into sanitary ceramics, faucet hardware, bathroom furniture, bathtub shower rooms and other accessories. The market size of China's bathroom industry was 204.6 billion yuan in 2021, a year-on-year increase of 7.1%, and the CAGR from 2017 to 2021 was 4.9%. The sustained growth of the industry in the past mainly came from factors such as steady progress in urbanization, continuous improvement of residents' income levels, and the promotion of stock renovation demand.
Data shows that since 2010, China's sales of commercial housing have exceeded 1 billion square meters per year, and China has entered the era of stock housing. The renovation of old houses and the second decoration of second-hand houses have also become important sources of market demand. The overall market size of the bathroom industry has shown a steady growth trend. According to data from the China Building Sanitary Ceramics Association, China's bathroom market size increased from 142 billion yuan in 2016 to 193.7 billion yuan in 2022, with a CAGR of 4.5%.
According to the "Research Report on Development Trends and Investment Risks of China's Faucet Industry from 2022 to 2027" released by the CCID Puhua Industry Research Institute
the bathroom industry can be divided into five categories: plumbing hardware, sanitary ceramics, shower rooms and cabinets, bathtub and basin. Plumbing hardware accounts for approximately 45% of the market share, sanitary ceramics accounts for approximately 26%, shower rooms and cabinets account for approximately 16%, and bathtubs and basins account for approximately 12%. Sanitary ceramics mainly include toilets, squatting pans, and urinals.
Currently, the Beijing market has concentrated most of the international faucet products. Leading global brands such as Hansgrohe, Kohler, American Standard, Moen, Delta, Dornbracht, and Japanese brand TOTO have dominated the high-end faucet market in Beijing. Kohler, TOTO, and American Standard are representative companies in this category. These companies have promoted their brand in the market, have a wide coverage, and have high brand recognition among consumers. Moreover, their products are more affordable to the general public.
Arrow Home will focus on the development of intelligent products in the future, while also deeply promoting omnichannel marketing to continuously enhance brand influence. In 2022, the sanitary ceramics business of Arrow Home will account for 46.71% of the market share, which has remained stable over recent years. Moreover, the revenue from faucet hardware products is rapidly increasing, with its revenue share increasing from 18.96% in 2018 to 27.55% in 2022.
Analysis of Import and Export Markets in the Faucet Industry
In 2021, China exported 93.801 million sets of faucets, an increase of 120.47 million sets from the previous year, a year-on-year growth of 14.7%. The export amount of faucets reached 6.59 billion US dollars, an increase of 1.56 billion US dollars from the previous year, a year-on-year growth of 31.0%. The average unit price of faucets was 7.0 US dollars per set, an increase of 0.8 US dollars per set from the previous year, a year-on-year growth of 14.2%. The top five export markets for Chinese faucets in 2021 were the United States, the United Kingdom, Germany, Russia, and Canada. Among them, the export amount to the United States was 1.58 billion US dollars, an increase of 28.8%, accounting for 24.0% of the total export amount. The export amount to the United Kingdom was 360 million US dollars, an increase of 27.1%, accounting for 5.5%. The export amount to Germany was 360 million US dollars, an increase of 27.1%, accounting for 5.5%. The export amount to Russia was 360 million US dollars, an increase of 30.5%, accounting for 5.4%. The export amount to Canada was 220 million US dollars, an increase of 41.2%, accounting for 3.4%. In 2021, the export amount of faucets from Zhejiang Province was 2.63 billion US dollars, an increase of 25.9%, accounting for 39.9%; the export amount from Fujian Province was 1.47 billion US dollars, an increase of 30.6%, accounting for 22.4%; and the export amount from Guangdong Province was 1.24 billion US dollars, an increase of 42.2%, accounting for 18.8%.
According to data from the National Bureau of Statistics, new residential buildings reached a peak in 2019-2020. With the decline in new real estate construction and completion, the new demand for bathroom and kitchen products is expected to gradually decline in the future. However, a large amount of existing housing stock accumulated in the past is entering the renovation cycle. With the increasing demand for the renovation of existing housing stock, this can offset the decline in demand for new housing.
Vaote should take the following measures to cope with strong industry competition:
1. Improve product quality: increase investment, upgrade technical capabilities, strengthen quality management, ensure every product leaving the factory is flawless, and enhance customer trust.
2. Lower costs: strengthen technological innovation, improve production efficiency, lower costs in various cost factors such as raw materials and labor to gain an advantage in international competition.
3. Enhance marketing: establish a sound channel system, expand international markets, use new media tools such as e-commerce for brand promotion, increase product awareness and market share.
4. Upgrade services: improve the quality and efficiency of after-sales service, establish customer feedback mechanisms, identify and solve problems, and strengthen customer loyalty.
5. Continuous innovation: develop new products, provide personalized custom products, increase product added value, continuously meet consumer demand, and enhance market competitiveness.
1. Improve product quality: increase investment, upgrade technical capabilities, strengthen quality management, ensure every product leaving the factory is flawless, and enhance customer trust.
2. Lower costs: strengthen technological innovation, improve production efficiency, lower costs in various cost factors such as raw materials and labor to gain an advantage in international competition.
3. Enhance marketing: establish a sound channel system, expand international markets, use new media tools such as e-commerce for brand promotion, increase product awareness and market share.
4. Upgrade services: improve the quality and efficiency of after-sales service, establish customer feedback mechanisms, identify and solve problems, and strengthen customer loyalty.
5. Continuous innovation: develop new products, provide personalized custom products, increase product added value, continuously meet consumer demand, and enhance market competitiveness.
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