How New Zealand Plastic Pipes And Fittings Market Positioned?
New Zealand Plastic Pipe and Fitting Market is at its late growth stage. The plastic pipes and fittings market is highly correlated with the construction and infrastructural investments going on in the country and the level of spending in the agriculture sector. The market size of the industry has increased from USD ~millions in FY’2013 to USD ~ millions in FY’2018; growing at a CAGR of ~%. Around ~% of the sales taking place in the country is happening through the mode of distributors and wholesalers, which makes them an important stakeholder in the value chain of the industry. The manufacturers emphasize on extending their distribution network with an aim of increasing their sales with the help of these over the counter strategy.
The increase in demand is attributed to the ongoing construction activities going in the market because of the recent earthquakes that occurred in the country. The major domestic manufacturers include Iplex Pipeline, Marley, RX Plastics and others while trading corporations mainly include Asmuss Plastic Systems, Sono Plastics and others. The increasing housing unaffordability in few regions of the country tremble the decreased demand for alteration and modification activities. Improvements in technology and plastic materials have helped plastic pipe increase its share in energy, agriculture, and industrial sectors in New Zealand
New Zealand Plastic Pipes and Fittings Market Segmentation
By Product Type
The PVC pipes and fittings market contributed ~% to the overall revenue of plastic pipes and fittings market of New Zealand. The consumption of PVC plastic pipes and fittings has been increasing at a slow pace owing to the shift in the preferences of end users from PVC to PE products and other plastic types.
By End User
Plumbing and civil industry is the biggest end user segment with a share of ~% of the overall plastic pipes and fittings market in New Zealand. The plastic pipes and fittings are mainly used for irrigation systems, fertilizers, and pesticides to the crops and end users in this segment prefer PVC and PP pipes owing to their low installation cost and other chemical properties. Other applications include oil and gas transmission, healthcare and automotive industries which accounts for the ~% of the total plastic pipes and fittings market of New Zealand.
By Organized and Unorganized Markets
The market of plastic pipes and fittings in New Zealand is concentrated with organised players constituting ~% in the overall plastic pipe and fittings market in terms of value as of FY’2018. Unorganized players undertake manufacturing of pipes and fittings at a small scale and also import plastic pipes and fittings from South-East Asian countries.
By Geographical Regions
The northern region accounts for the majority of the share due to the presence of major cities of the countries such as Auckland, Wellington, and Hamilton. The region has high population concentration and the region also accounts for the majority of the migration into the country. This drives the requirement of housing faculties that increase the demand for plastic pipes and fittings. Construction of houses requires plastic pipes for water conveyance, and sewerage. The southern island of the country had the remaining revenue share of USD ~ as of FY’2018 of the overall Plastic Pipes and Fittings Market.
Competitive Landscape in New Zealand Plastic Pipe and Fittings Market
New Zealand Plastic Pipes and Fittings market is concentrated with three players; Iplex Pipeline, Marley and RX Plastics constituting around ~% in the overall plastic pipes and fittings market of New Zealand, as of FY’2018. In FY’2018, Iplex pipeline were the market leader of the plastic pipes and fittings market in terms of sales value and production capacity. The company leverages the network of its parent company, Fletcher Building Group, to capture the New Zealand market. Iplex has sister companies operating in the related sector of its business such as Placemakers and Mico Plumbing in the distribution sector, Laminex, Winstone Wallboards in the building products sector and others. The organized and the unorganized players primarily compete on the basis of the final price and brand loyalty of the product. Unorganized players undertake manufacturing at smaller scale or import products from other countries and as a result of which, they are able to avoid the overhead costs and high prices of their products. In case of trading corporations, the cost of equipments and injection moulding techniques is negligible and hence they are able to reduce the price of the pipes and fittings.
New Zealand Plastic Pipe and Fittings Market Future Outlook and Projections
The revenue from the plastic pipes and fittings market in New Zealand is estimated to grow at a CAGR of ~% during FY’2018- FY’2021. The revenue of the market is estimated to be at USD ~million in FY’2021. The Northern region is expected to flourish in the next three years because of the new expected housing projects in the region. The main drivers for the market in the long term are considered to be the recovery in the housing and construction sector after the slowdown in short term.
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Ankur Gupta, Head Marketing & Communications