Plumbing products (Russian market)

2023

Plumbing Market Growth of 8.6% to 71.96 Million

In 2023, the volume of the Russian plumbing market reached 71.96 million units. This is 8.6% more than in the previous year, when the figure was 66.26 million units. The industry returned to growth after a downturn driven by a worsening geopolitical environment. This is stated in the review of the analytical agency "GuideMarket," published on August 20, 2024.

The study takes into account data on the supply of products such as toilets, sinks, urinals, bidets, showers, baths and washes. Against the background of the current situation, the cost of plumbing produced in Russia is increasing due to rising prices for raw materials. In addition, shipments of certain types of products from foreign suppliers have ceased, and domestic manufacturers are forced to look for alternative sources within the country. Due to the sharply increased demand for Russian raw materials, logistics problems arise - the need to increase production, increase the capacity of railway junctions, etc.

According to estimates, in 2019 the volume of the plumbing market in Russia was 73.08 million units. In 2020, a decline of 1.6% followed - to 71.88 million units. In 2021, the industry reached a maximum: growth was at around 16% with a final result of 83.42 million units. However, in 2022 there was a decrease of 20.6%.

In general, as noted in the review, the plumbing market in Russia is at the stage of maturity and is approaching saturation. In the period from 2019 to 2023, the country has a positive trend in the development of the construction industry, which stimulates the consumption of building materials and equipment, including plumbing. Import substitution programs also have a positive impact on the increase in production volumes. The main Russian plumbing manufacturers are located in the Oryol, Kaluga, Samara, Sverdlovsk regions, as well as in the Republic of Udmurtia.^[1]

Imports of plumbing to Russia in 4 years increased by 35% to 50.5 million units

At the end of 2023, the import of household plumbing to Russia reached 50.5 million units. For comparison, in 2019, the indicator was estimated at 37.5 million products. Thus, for four years, an increase of about 35% was recorded. Market analysis is provided in the BusinesStat review published at the end of July 2024.

Statistics cover baths and showers, shower fences and pallets, sinks and washes, toilet plumbing, toilet seats and covers, and mixers. According to estimates, in 2020, about 42.3 million such products were imported to Russia, which exceeded the previous year's figure by 12.8%. In 2021, the volume of imports increased by another 16.1%, reaching 49.1 million units. And in 2022, a decline of 3.6% followed - to 47.3 million units. In 2023, the industry returned to growth: an increase of 6.8% was recorded on an annualized basis.

The review said that in 2022-2023, against the background of the current geopolitical situation, there was a decrease in imports of plumbing from European countries - the Czech Republic, Germany, Bulgaria, Portugal, Italy, Poland and Spain. At the same time, the main supplier of these products to Russia is China, which was able to fully compensate for the dropped volumes.

It is also said that from 2019 to 2023, the average price of imports of household plumbing to Russia decreased by 12.8% - from $13 to $11.4 per unit of product. The largest reduction in value was recorded in 2020 (minus 12.4%), however, due to a sharp increase in the dollar exchange rate, the ruble equivalent of the price changed insignificantly. In 2022-2023, the import price fell by 8.1%, which is due to a change in the supply structure: in particular, the share of budget Chinese products increased amid a decrease in purchases of premium plumbing from European countries.^[2]

Increase in mixer sales by 4.2% to 41.6 million units

In 2023, mixer sales on the Russian market reached 41.6 million units, which is 4.2% more than in the previous year. Positive dynamics has been observed since 2020, and the main driver of the industry is record volumes of commissioning new buildings and issued preferential mortgage loans. This is stated in a study by BusinesStat, the results of which were released at the end of July 2024.

Analysts take into account the sales of mixers of various types for sinks, baths and showers: these are valve, single-arm, thermostatic and electronic products. According to estimates, in 2019 the volume of sales of these products in the Russian Federation amounted to 31.4 million units. In 2020, an increase of 5.8% followed - up to 33.3 million units. In 2021 and 2022, an increase was recorded at 13.2% and 6%, respectively, with a final result of 37.7 million and 39.9 million units.

In general, in the period from 2019 to 2023, sales of mixers in Russia increased by 10.2 million units, or 32.1%. It is noted that in 2022, due to the limited availability of imported products and certain types of materials for the production of domestic mixers, the range of products has significantly decreased. Against the background of the deteriorating geopolitical situation, activities in the Russian Federation were limited by foreign manufacturers of the country's popular plumbing Duravit, Villeroy & Boch, Grohe, Hansgrohe, Geberit, Axor, Roca. However, mixers imported by parallel import were very expensive. Other players took advantage of this situation, starting to raise prices, which negatively affected domestic demand.

In 2023, market growth was supported by the supply of economy segment mixers from China. In addition, Russian manufacturers have tried to strengthen their market position by expanding their assortment and constantly updating catalogs in the context of the gradual stabilization of supplies of raw materials and materials for production.^[3]

2022

Decrease in mixer imports by 0.2% to 38.1 million units

Imports of mixers to Russia in 2022 decreased, but slightly, by 0.2% compared to 2021 and amounted to 38.1 million units. BusinesStat analysts indicated such figures in their study published in November 2023.

Prior to this, the supply of mixers to the Russian market from abroad grew for several years. Experts attributed the drop in imports in 2022 to the withdrawal from the market of the largest producers (Duravit, Villeroy & Boch, Grohe, Hansgrohe, Geberit, Axor, Roca, etc.). At the same time, the dropped volumes were almost completely compensated by supplies from China, Turkey, as well as other countries that do not support sanctions, the researchers clarify.

According to their estimates, imported products make up the bulk of the range of mixers submitted for sale in Russia in 2022. In foreign supplies, inexpensive Chinese products prevail, often characterized by low performance and therefore requiring frequent replacement. In addition, in 2022, real estate objects were equipped with plumbing, the construction of which was started before the crisis. In this regard, there was no significant drop in imports.

In 2022, mixers were imported to Russia at an average price of $8.52 apiece, which is 6.9% higher than in 2018. The increase in import prices is due to the fact that in addition to inexpensive Chinese products, the share of premium plumbing from Germany, Italy and Spain was large in the import structure, experts explain.

At the end of 2023, analysts predict a moderate decline in mixer imports. The key factors in reducing supply volumes will be the decline in the segment of individual housing construction, as well as the containment of sales of finished real estate by developers in the context of general economic uncertainty and a decrease in demand.^[4]

Household plumbing sales growth by 18.3% to 68.3 million units

In 2022, 68.3 million units of household plumbing were sold in Russia, which is 18.3% more than in 2018. Such data in early October 2023 was presented by BusinesStat analysts.

According to their estimates, the market volume in 2022 compared to the previous year slightly decreased (-0.6%). From a more significant fall, the market was held back by the growth in sales of mixers, which, on the one hand, are one of the most affordable types of plumbing, on the other, require the most frequent replacement. The decline in the remaining segments of sanitary products ranged from 6.5% (sinks and washes) to 23.9% (showers), the study said.

In 2021, sales of household plumbing showed the largest increase in five years - by 10.8%. Positive factors for the market retained their influence in 2021, when the record for mortgage lending was broken. Another driver was the transition of household plumbing sales online through increasingly popular marketplaces.

In their report, experts took into account the following types of household plumbing:

• Baths - ceramic, polymer, hot massage, cast iron are taken into account in this form
• baths and baths made of other metals.
• Shower cabins - all categories of shower cabins are considered in this form.
• Shower enclosures and pallets - this type includes glass and shower enclosures
• polymers and shower trays made of metals, polymers, ceramics and artificial
• stone.
• Sinks and washes - sinks, washes, washbasins and pedestals to
• it is made of metals, polymers, artificial stone and ceramics.
• Mixers - all categories of mixers are considered in this form.
• Toilet plumbing - toilets, drain tanks, urinals, bidet and
• pedestals to them made of polymers and ceramics.
• Toilet seats and covers - polymeric seats and covers are considered in this form
• for toilet bowls.^[5]

Bath sales down 18.8% over 5 years

In 2022, 1.18 million baths were sold in Russia, which is 19.6% less than a year earlier, and in comparison with 2018, the volume of this market decreased by 18.8%. Such data are given in a study by the analytical agency BusinesStat.

According to experts, the rush demand for plumbing against the background of the expected increase in prices and the deficit at the beginning in 2022 was replaced by its fall in the following months. As a result, bath sales in Russia significantly decreased by the end of 2022. The range of products has significantly decreased as a result of sanctions restrictions on the supply of imported products and certain types of materials for the production of domestic baths. Foreign manufacturers of plumbing popular in the country have limited their activities in Russia: Duravit, Villeroy & Boch, Geberit, Roca, Cersanit and others. Companies remaining on the market, trying to reduce risks, constantly raised prices, which negatively affected demand.

1.18 million baths were sold in Russia

During the period 2018-2022. The increase in bath sales was recorded only in 2021 (+ 10.2% compared to the level of the previous year). Among the factors are the weakening of restrictive measures associated with the COVID-19 coronavirus pandemic, the revival of investment activity, an increase in housing construction, and the commissioning of new buildings.

Acrylic and steel baths are the most popular in Russia. At the same time, the share of acrylic baths in the sales structure increased from 40.1% in 2018 to 50.3% in 2022, the share of steel baths decreased from 47.7% to 41%. According to the researchers, acrylic baths differ in a variety of shapes and sizes: it is easy to choose the necessary model for a specific bathroom design. Such plumbing products are convenient to use, have an attractive appearance. The main advantage of metal baths is their low average cost.^[6]

Notes