The building valves market - France (2024)

1.2 Global market

The global market for valves and fittings is characterized by concentrated competition. The majority of French players generate sales of around ten million euros, with only a handful of companies exceeding one hundred million euros, while established market leaders battle it out for the podium. Main export countries for sanitary fittings, radiators, taps, valves and gate valves World, ****, $ billion Source: ****

The market for the manufacture of valves and fittings for the building industry has long been dominated by a leading group consisting firstly of China, then Germany, the USA and Italy. Recent pandemic-related events, while not changing this order, do, however, point to future disruptions.

China recorded a significant increase in exports in ****, from **,*** billion to **,*** billion, initially benefiting from the economic rebound following the pandemic, but was unable to maintain this growth due to the strict sanitary restrictions imposed throughout the country. The United States, for its part, recorded a slight increase in exports in **** after the decline in ****, moving a step closer to *nd place on the podium. In view of the rest of the trends, the bottom of the ranking, with its very stable trend, seems unlikely to join the world leaders in terms of export volumes.

It ...

1.3 European market

Main export countries for sanitary fittings, radiators, taps, valves and gate or globe valves Europe, ****, in billions of $ Source: ****

Data for **** on Europe's leading exporters of sanitary fittings, for radiators, taps, valves and gate or globe valves, reveal a marked hierarchy in the sector.Germany dominates the market with exports amounting to *.*** billion dollars, underlining its position as the undisputed industry leader. Italy follows close behind with *,*** billion dollars, demonstrating a significant contribution to the sector's export dynamic.

The UK, France and the Czech Republic also present respectable figures, indicating a solid participation in the European valves market. The other countries, although contributing less in absolute terms, nevertheless demonstrate a diversification of export sources within the European Union

Source: ****

Some of the rankings have been compiled in the absence of data for the United Kingdom

Despite a solid third place in the ranking of European faucet exporters, France suffers from low production of mixing valves and other bathroom faucet accessories, which are in greatest demand worldwide.

Nevertheless, France holds its own in the other areas of building fittings production, competing with the UK for *rd place in most segments, behind Germany and Italy.

This less favorable ranking for France in the ...

1.4 Domestic market

Growth in the size of the national market for apartment faucets France, ****, € million Source: ****

The NAF code used here is the same as that previously used in UNComTrade statistics, code **.**, "Other valves and fittings" composed of "Valves, fittings and similar components for pipes, boilers, tanks, vats or similar containers", "Valves, fittings and similar components" and "Subcontracted operations involved in the manufacture of other valves and fittings"[***]

From **** to ****, moderate growth in the building fittings market, reflecting stable demand. from ****, sales decline until ****, attributable to economic fluctuations and adjustments in construction. Recovery in ****, signalling a post-downturn correction. In ****, there is a significant contraction due to the impact of the COVID-** pandemic on construction. The following years, **** and ****, show a post-pandemic recovery linked to the upturn in construction and increased demand for real estate. It should be noted that the data covers a slightly broader market than that of building valves.

Focus on the sanitaryware market

With over * million complete kitchens sold every year[***], and even more bathrooms, the sanitary fittings market, which accounts for over **% of purchases by fittings dealers, represents the largest segment of the market.

Breakdown of sanitaryware items, by volume sold France, ****, in Source: ****

The bathroom market exceeded * billion ...

1.5 French trade balance

French building valve exports World, ****, in $ billions Source: ****

Data in billions of dollars for the years **** to **** show a fluctuating balance between exports, imports, and the trade balance.

In ****, exports stood at $*.** billion, but fell slightly in **** to $*.*** billion. However, subsequent years saw an upward trend, peaking at $*.*** billion in ****, only to see a slight reduction in **** to $*.*** billion.

Despite a slight drop in ****, imports will continue on an upward trajectory. From *,*** billion dollars in ****, they reach *,*** billion dollars in ****, representing a substantial increase. By ****, although imports have fallen slightly to $*,*** billion, the overall trend remains one of growth in import volumes.

The trade balance, in constant deficit, highlights potential challenges for the sector's competitiveness. Starting from a deficit of *.*** billion dollars in ****, it reached a low point of -*.*** billion dollars in ****, before stabilizing slightly at -*.*** billion dollars in ****.

It's important to note that this data encompasses the whole of customs code ******, which includes taps, valves, and similar appliances for piping, tanks or the like, including thermostatically controlled valves. Thus, the overall performance of the building valves sector must be interpreted in the broader context of this customs classification.

Main imports of sanitary fittings, for radiators, taps, valves and ...

2.1 Typology of demand

Four main types of customer and indirect customers. It's important to note that the importance of a customer type to a manufacturer depends on the segment in which it operates.

2.2 Growing demand in the plumbing market

The plumbing market has extremely low elasticity to most macroeconomic variations: in times of Covid-**, business never collapsed, and even stabilized, since everyone stayed at home, there were no variations in demand linked to vacation departures.

Trend in the size of the national plumbing installation and maintenance market France, ****, € million Source: ****

With an increase in market size of over €*** million between **** and ****, the plumbing market appears to be booming. However, there are a number of factors behind an expected slowdown in performance from January **** onwards. Therise in interest rates and the tightening of mortgage conditions have added a constraint to households, which will be less likely to want to buy a home in the coming months. The **-year usury rate has risen to *.*%, from below *.*% at the end of ****.

There is also fierce competition from seconded workers and undeclared workers , who often offer much lower prices for work of lesser quality, and therefore often buy much cheaper fittings than those made in France.

Number of companies and number of employees in the building water and gas installation sector France, ****, in units Source: ****

Despite this, data for the water and gas installation sector in France from **** to **** reveal a growth trend in ...

2.3 Focus on the maintenance-renovation market

While plumbing work in the construction industry seems highly challenged by current dynamics, themaintenance-renovation sector, the main source of income for plumbers, is going from strength to strength. This improvement is underpinned by government incentives to comply with the new energy and health standards in force, such as the increase in the budget allocated to MaPrimeRénov' from *.* to * billion euros[***]. In addition, growing demand from private individuals, fuelled by demographic growth, is also contributing to this positive trend.

Home maintenance-renovation market France, ****-****, billions of euros Source: ****

The housing maintenance-renovation market, which includes energy renovation, recorded steady growth from **** to ****. The average annual growth rates for large-scale home improvement work and small-scale work are *.**% and *.**% respectively in terms of value.

It should be noted that this sector was one of the few to benefit from the health crisis, as part of the spending was redirected towards home improvements.

As previously mentioned, growth in this sector is mainly due to the impact of inflation and price rises in the industry, as well as new regulations encouraging private individuals to invest in renovating their homes.

2.4 Demand penalized by the slowdown in new and existing real estate

Demand for valves is under downward pressure. In fact, the construction and real estate markets are themselves trending downwards, which is having an impact on demand for faucets.

Trend in the number of housing construction sites France, ****, in units Source: ****

Data on trends in the number of housing construction sites in France up to October **** indicate a downward trend in both building permits and housing starts. This situation can be interpreted as a negative indicator of the overall health of the real estate construction sector in France.

Between **** and ****, the number of building permits fluctuated, reaching a peak in **** with ***,*** permits, but dropping significantly to ***,*** in October ****. Similarly, the number of housing starts has also seen a decline, from ***,*** in **** to ***,*** in October ****.

This instability in the housing construction market may be associated with unfavorable conditions in the building fittings manufacturing sector. The decline in the number of building sites, particularly in **** and ****, points to a slowdown in construction activity, directly impacting demand for faucet products. The drop in permits and housing starts suggests uncertainty in the real estate market, leading to a reduced need for fittings for new housing. However, this demand remains strong enough to drive up manufacturers' ...

2.5 The cyclical nature of consumer demand

Evolution of interest in "Plumbing" search France, ****-**** Source: ****

The popularity of the word "plumbing" has fluctuated over time. Initially high in January **** with a score of **, popularity has fluctuated but overall maintained a stable level, oscillating between ** and **. The emergence of demand cyclicality can be observed from the end of ****, corresponding to the start of the gradual exit from pandemic confinement. Given that the biggest depressions are in December and July, this cyclical pattern can be attributed toFrench people's desire to carry out their tap fitting work outside vacation periods, when some of them are away from home.

3.1 Value chain

3.2 Workforce and production processes

Number of companies and number of employees in the faucet manufacturing sector France, ****, in units Source: ****

Data for the French faucet manufacturing sector between **** and **** show a downward trend in both the number of companies and the number of employees. Between **** and ****, the number of companies in this sector declined steadily, from *** to ***. These declines are partly linked to intensifying foreign competition, difficulties in obtaining cheap supplies and the French macroeconomic framework, which does not encourage the population to spend on real estate.

There is a clear dichotomy between the manufacturing and plumbing sectors in terms of employee numbers and business fabric.

Compared to the data for the water and gas installation sector, which showed growth in both companies and workforce, the situation in the faucet manufacturing sector seems less favorable. The two sectors may be interdependent, with demand for installations requiring fittings products, but production and manufacturing seem to face greater challenges in terms of maintaining competitiveness on the national and international markets.

Source: ****

It's not surprising to find the largest number of industries in the Auvergne-Rhône Alpes region, France's no. * industrial region, which benefits from the presence of numerous clusters.this region benefits from the presence of numerous ...

3.3 Sanitary and heatingware dealers

Breakdown of sales by sanitaryware/heatingware wholesalers France, ****, € billion Source: ****

The breakdown of sales by sanitaryware/heating equipment dealers in France shows overall growth in **** and ****. Heating and air conditioning, sanitaryware and plumbing and piping all recorded increases.

In ****, sales in heating and HVAC were *.*** billion euros, sanitaryware *.*** billion euros, and plumbing and drainage *.*** billion euros. By ****, these figures have risen to *,***, *,*** and *,*** billion euros respectively.

The year ****, marked by the health crisis, had various impacts on the markets. The heating sector benefited from rapid reopenings, and government incentives such as Ma PrimeRenov'. The sanitaryware sector was more penalized by the closure of showrooms. For faucet manufacturers, results for **** showed a *.*% drop in purchases and sales, probably due to the health crisis. However, positive signs appear in ****, with significant annual growth.

Despite an overall drop in plumbing purchases in ****, manufacturers of hand-held power tools posted a notable performance, with a *.*% increase in structural terms and a *.*% increase on ****. [***]: although **** was considered a "cyclical accident", forecasts for **** are positive.

Breakdown of sanitaryware/heatingware retailers' building faucet purchases France, ****, in Source: ****

This breakdown can be interpreted as a reflection of market priorities and demands in ****. The high proportion of purchases in sanitaryware suggests ...

3.4 In the face of retailers, the rise of faucets in DIY stores

The Plumbing-Bathroom-Kitchen segment, representing **% of the DIY market (***), underlines the growing competence of the DIY consumer. Bathroom sales are up +**%/+**%, as are plumbing sales, which are up +**%/+**%. These figures testify to a positive dynamic in the sector, with a notable acceleration in recent years. [***]

Unfortunately, this trend has come up against the dynamics of falling real estate prices and rising raw materials prices, which have had an impact on the prices charged by manufacturers who supply DIY stores.

Private label growth worries manufacturers

Weight of each type of sanitary fittings brand in the trade France, ****, in Source: ****

Weight of each sanitaryware brand in DIY stores France, ****, in Source: ****

A **** SdbPro article highlights the changing dynamics of the faucet market, which is facing a number of challenges. The rise of private label represents around **% of the trade market, causing concern among European manufacturers. Although their share remains relatively modest compared with leading brands such as Grohe and Hansgrohe, private labels are making progress, mainly in the entry-level segment. Private labels aim to secure distributors' margins in the face of competitive pressure from e-commerce. However, their growth ceiling is estimated at around **% of retailer sales, suggesting limits to their expansion. In response, manufacturers ...

4.1 Offer typology

Source: ****

4.2 A supply driven by soaring raw material prices

French Tap Industry Producer Price Index for the French Market (***) France, ****, index base *** April **** Source: ****

A comparative study of production price indices for the French faucet and copper and brass foundry industries reveals significant trends impacting the building faucet market.

For valves, the production price index has risen steadily since ****, from *** to ***.* in July ****. This gradual increase suggests inflationary pressure on production costs, which can be attributed to a variety of factors, including rising raw material costs, but perhaps also the upscaling of fittings, and other components essential to manufacturing.

French copper and brass foundry industry output price index for the French market (***) France, ****, index base **** Source: ****

At the same time, the producer price index for copper and brass foundries also recorded an increase, albeit less marked. Rising from ***.* in July **** to ***.* in January ****, this index reflects a certain volatility, suggesting fluctuations in raw material costs specific to this sector.

Cross-analysis of these two indices suggests that rising raw material prices, particularly those associated with copper and brass casting, are putting additional pressure on production costs for valves and fittings. This could result in higher prices for building fittings on the market, compromising manufacturers' competitiveness and negatively influencing consumer demand.

Manufacturers' ...

5.1 Building valve regulations

Regulations governing sanitary fittings

Since ****, theAttestation de Conformité Sanitaire (***) has been mandatory in France for all equipment in contact with drinking water. It applies to equipment such as faucets and water treatment systems. Issued by the CARSO Group, this certification is the result of rigorous testing in a laboratory approved by the French Ministry of Health. Valid for * years, the ACS is specific to France and has no equivalent in other European countries. All products in contact with drinking water in France must hold ACS certification, thus ensuring their compliance with national health standards.

The nF mark mark on a product confirms its compliance with French, European and international standards. Although not mandatory, this certification guarantees quality and compliance with environmental standards. The process, managed by CSTB, includes regular checks every * years. NF standards for sanitary fittings cover a range of items such as taps, mixers and showerheads. Criteria assessed include coating quality, watertightness, hydraulic and mechanical performance, flow rate, functionality, wear resistance and acoustic performance. NF certification is an indicator of quality for consumers, and is awarded after rigorous checks.

The nF ECAU standardstandard, dedicated to the evaluation of "flow, comfort, acoustics, wear" criteria, is more stringent than the standard ...

6.1 Typology of players

• Comap
• Hansgrohe Wasselonne
• Watts Industries France
• Distribution Sanitaire Chauffage Saint-Gobain
• Richardson
• Téréva
• Leroy Merlin France (Adeo)
• Castorama France (Kingfisher)
• Brico Dépôt
• Hervé Thermique groupe
• Proxiserve
• MCI
• Cedeo
• Bricoman
• Bricolex
• ITM Equipement (Bricorama, Bricomarché, Brico Cash)
• Mr. Bricolage
• Descours et Cabaud
• Huot
• Sopal
• Delabie