Market Trends: Demand for High-End Premium Sanitaryware Products Booming in India
Higher incomes and a shift in lifestyle patterns are contributing to an increased demand in high-end premium products.
Sanitaryware manufacturers in India are experiencing high demand for their products for multiple reasons, including an increase in average household income levels among Indian consumers, along with shift in lifestyle patterns, both of which have led to booming demand for high-end premium products over the past few years.
According to a recent report from Research and Markets, more people in India are viewing sanitaryware products as a medium through which they can showcase their wealth and premium lifestyle. In addition, companies are also manufacturing products to suit the upbeat lifestyles of new-age Indians by providing a greater emphasis on looks and comfort. The rapid growth of the real estate sector also reportedly has an important role to play in the growth of the domestic sanitaryware market.
With new residential and commercial establishments coming up at a very fast pace, demand for sanitaryware has also increased. Moreover, builders have also reportedly started to understand the importance of having bathrooms with a premium look; as a result, they are investing more in installing high-end products. The replacement demand in the country is currently very low, but this offers a vital growth opportunity for the sanitaryware manufacturers.
Entry-level products are also likely to experience high demand in the future, owing to the low level of penetration of sanitation facilities in India. Reportedly around one-third of the country’s population does not currently have access to basic sanitation facilities. As awareness and affordability of such products increases, more people will be willing to spend money on sanitaryware.
The market is reportedly characterized by a large unorganized sector. Nearly 250 companies operate in the sector, which caters largely to the low-end segment and the export market. While the organized players generally manufacture premium products, the unorganized sector manufactures low-end products.
Price-sensitive consumers looking to purchase low-end products generally choose products from the unorganized players due to the relatively lower prices—and subsequent lower end products—compared to the organized players’ portfolio. Moreover, several foreign players operate in the market; these mostly concentrate on the premium segment.
The various state governments and the central government are implementing various sanitation campaigns that will ultimately benefit the market players, especially those manufacturing entry-level products. The government target of having sanitation facilities installed in every household of the country and the steps taken by it in this direction will reportedly ensure a higher uptake of products. Moreover, the 675% increase in the proposed allocation for sanitation in the 12th Five Year Plan compared to the fund allocation during the 11th Five Year Plan is expected to provide a major boost to the market. Public toilet promotions, such as installing “Sulabh” toilets in public places, as well as the various housing policies undertaken by the government over the years to reduce housing shortages, are expected to prove beneficial for the players.
With the steady growth in the market, several foreign companies have recently entered the domestic sanitaryware industry. These companies are trying to gain an entry by focusing on retail sales or by entering into joint ventures with established domestic players. The growing preference for premium products in India has also ensured that some of these new entrants have registered a growth rate of as much as approximately 30% on a year-over-year basis.
For more information, visit www.researchandmarkets.com.