The market for gutters in the top 5 European countries saw a significant decline of 10.5% in 2023, after modest growth of 0.7% recorded the previous year, according to a recent study by Interconnection Consulting. The total number of gutters sold decreased from 20.4 million to 18.3 million linear meters. Gutters cannot escape the negative construction environment and will not experience growth again until 2025.

The Perfect Storm for the Hardware Store

This shift is primarily attributed to a significant decrease in the new construction segment, which declined by 11.8% in 2023. 43.6% of all gutters sold belong to this segment and face the challenges currently affecting new construction overall: rising construction costs, high financing interest rates, geopolitical uncertainties, and reduced government subsidies. None of the five countries – Germany, Austria, France, Italy, and Poland – experienced market growth in 2023. Gutter sales declined by 2.7% in Italy and by 12.5% in Poland. The decline is higher the higher the share of new construction. For example, in Italy, about 80% of gutters are sold in the renovation segment, while in Poland, 65% of gutter sales are for new construction. The renovation segment is more resistant to the economic climate because a defective gutter does not allow for postponement.

Zinc Dominates the Market

Zinc is the most popular material in the gutter market, with a market share of 40.5%. Buying arguments for zinc include sustainability, easy processing, and recyclability. Germany and France have particularly high zinc shares of over 55%. PVC gutters rank second, with a market share of 19.6%. Poland stands out here, with an impressive 63.4% of all gutters sold being made of PVC. Despite the cost advantage of PVC, the other four countries prefer metal gutters. Aluminum leads in this category with a market share of 16.5%, especially in Italy and Austria. “Copper gutters rank last in popularity among metallic gutters, with 8.6%, due to the higher price and the specific appearance that corresponds less to modern architectural styles,” adds Julia Hrebenkova, author of the study.

Market for Global Players

Market concentration in the gutter market is relatively high: the top 10 manufacturers share a quantitative market share of 54.0% in the countries examined. Poland has the highest market concentration and simultaneously has many local manufacturers. The key players in the top 5 countries, in alphabetical order, are Gamrat, Marley, Mazzonetto, NedZink, Prefa, Rheinzink, and VMZinc.

20/02/2024

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.