Plumbing Goods Wholesaling in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC F3332Revenue
$5.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
11,005
Businesses
737
Wages
$XXX.Xm
Plumbing Goods Wholesaling in Australia industry analysis
Industry revenue is experiencing a slump, primarily due to subsiding activity in major downstream segments like residential building construction. Nevertheless, a surge in home renovations and an upturn in consumer discretionary income have cushioned this decline, fuelling demand for plumbing goods in recent years. Amid rising wage and purchase costs, largely due to the need for superior talent and a depreciating Australian dollar respectively, wholesalers are leveraging technological advancements and automation to improve operational efficiency, strategically passing on increased costs to consumers to bolster profitability. The industry landscape is continuously shifting as the pinch of competitive pressures, like wholesale bypass and a drive for market dominance, catalyse consolidation among wholesalers. Industry revenue is expected to shrink at an annualised 4.8% over the five years through 2023-24, with a decline of 4.2% anticipated in the current year.
Trends and Insights
- Industry revenue has decreased due to a downturn in demand from major markets, largely attributed to weakened residential construction activity. Nevertheless, increased retail demand, driven by home renovation trends and higher disposable incomes, has countered some losses.
- There's a pronounced drop in demand for plumbing fittings, valves, sanitaryware and other plumbing products due to decreased demand in residential construction. The industry is heavily reliant on residential construction, as the segment demands a large number of industry products.
- Victoria, Queensland and New South Wales have over 80% of plumbing goods wholesalers due to their lucrative opportunities for industry wholesalers. These regions have strong property markets and high population density, which fuels housing and construction activity, boosting industry demand.
- Digitisation is reshaping traditional buying habits, giving downstream markets access to competitively priced international goods. Increased import penetration poses challenges for domestic wholesalers, but Australia-specific regulations and scepticism over quality protect industry wholesalers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 4.8 % over the past five years, to reach an estimated $5.8bn in 2024.
Trends and Insights
Weakening activity in downstream segments is dampening industry revenue
- A downturn in residential construction activity has cut into industry revenue over the past five years, diminishing demand for plumbing goods from construction contractors.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Recovering downstream demand is set to boost revenue despite wholesale bypass
- Demand from the industry’s major markets, like residential construction and plumbing services, is forecast to grow over the coming years. These hikes are due to ensuing government infrastructure projects and economic recovery from pandemic disruptions.
Biggest companies in the Plumbing Goods Wholesaling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Reece | 2,322.0 | |
Fletcher Building | 433.2 | |
Wesfarmers | 234.2 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Pipes, fittings and valves, Bathroom and toilet fittings and Heating and cooking supplies. Pipes, fittings and valves is the largest segment of the Plumbing Goods Wholesaling in Australia.
Trends and Insights
Dropping demand from construction is dampening revenue from sanitaryware and other plumbing products
- This segment boasts a range of products, like bathroom screens, shower enclosures, bathroom cabinets, tap handles and soap holders.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Hardware Wholesaling in Australia
- Hardware and Building Supplies Retailing in Australia
- Online Hardware and Tool Sales in Australia
Complementors
- House Construction in Australia
- Commercial and Industrial Building Construction in Australia
- Institutional Building Construction in Australia
International industries
- Tool & Hardware Wholesaling in the US
- Plumbing & Heating Supplies Wholesaling in the US
- Tool & Hardware Wholesaling in Canada
- Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada
- Hardware Wholesaling in New Zealand
Table of Contents
About this industry
Industry definition
The plumbing goods wholesaling industry is comprised of operators who supply a broad array of plumbing products. These essentials range from baths, basins, toilets, showers and sinks to taps, hot water systems, downpipes, guttering systems and various fittings. They play a crucial role in supplying these goods to hardware stores, tradespeople and the construction industry, ensuring that plumbing systems in buildings are functional, efficient and compliant with relevant local building and health standards.
What's included in this industry?
Pipes, fittings and valvesBathroom and toilet fitting wholesalingHeating and cooking suppliesSanitarywareBathroom screensShower enclosures Bathroom cabinets Faucet handles Soap holdersCompanies
ReeceFletcher BuildingWesfarmersPurchase this report to view all 6 major companies in this industry.
Related Terms
WHOLESALE BYPASSSUPPLY CHAIN DO-IT-YOURSELF (DIY)OCCUPATIONAL HEALTH AND SAFETY (OH&S)Industry Code
ANZSIC 3332 - Plumbing Goods Wholesaling in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Industry revenue has decreased due to a downturn in demand from major markets, largely attributed to weakened residential construction activity. Nevertheless, increased retai...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
There's a pronounced drop in demand for plumbing fittings, valves, sanitaryware and other plumbing products due to decreased demand in residential construction. The industry ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Victoria, Queensland and New South Wales have over 80% of plumbing goods wholesalers due to their lucrative opportunities for industry wholesalers. These regions have strong ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Digitisation is reshaping traditional buying habits, giving downstream markets access to competitively priced international goods. Increased import penetration poses challeng...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies are growing their ventures and boosting consolidation. Reece has expanded into the United States while Tradelink is growing domestically.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Reece's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Fletcher Building's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Wesfarmers's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Reece, and factors influencing its performance in the industry
- Description and key data for Fletcher Building, and factors influencing its performance in the industry
- Description and key data for Wesfarmers, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Compliance with OH&S regulations is non-negotiable for plumbing goods wholesalers to ensure their operatives' safety. Such regulatory measures provide a safe environment but ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Competition and the necessity for human skills have driven up wage costs’ share of revenue. Companies must provide enhanced wage packages to attract top-notch talent, and tec...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Plumbing Goods Wholesaling industry in Australia in 2024?
The market size of the Plumbing Goods Wholesaling industry in Australia is $5.8bn in 2024.
How many businesses are there in the Plumbing Goods Wholesaling in Australia industry in 2024?
There are 737 businesses in the Plumbing Goods Wholesaling industry in Australia, which has declined at a CAGR of 1.2 % between 2019 and 2024.
Has the Plumbing Goods Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Plumbing Goods Wholesaling industry in Australia has been declining at a CAGR of 4.8 % between 2019 and 2024.
What is the forecast growth of the Plumbing Goods Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Plumbing Goods Wholesaling industry in Australia is expected to grow.
What are the biggest companies in the Plumbing Goods Wholesaling market in Australia?
The biggest companies operating in the Plumbing Goods Wholesaling market in Australia are Reece, Fletcher Building and Wesfarmers
What does the Plumbing Goods Wholesaling in Australia include?
Pipes, fittings and valves and Bathroom and toilet fitting wholesaling are part of the Plumbing Goods Wholesaling industry.
Which companies have the highest market share in the Plumbing Goods Wholesaling in Australia?
The company holding the most market share in Australia is Reece.
How competitive is the Plumbing Goods Wholesaling industry in Australia?
The level of competition is high and steady in the Plumbing Goods Wholesaling industry in Australia.
