Appendix B : Impact analysis methodology
Appendix B : Impact analysis methodology
B . 1 Define the market B . 1.1 The market for engineered stone
Engineered stone was first imported into Australia in the mid-late 1990s and has experienced significant growth due to popularity among home renovators and developers to become the major product in the bathroom and kitchen benchtop market . The previous dominant product was laminate . 36
The kitchen benchtop market was estimated to be worth about $ 600 million in 2022 , comprising 4.5 million square metres of benchtop . Engineered stone represents about 55 % of the Australian market by volume , followed by laminate ( 29 %), porcelain ( 5 %), and granite ( 4 %), with the rest of the market comprising other products . 37
Engineered stone is primarily used in residential dwellings for kitchen and bathroom benchtops , as well as splashbacks and wall and floor tiling . 38 There are an estimated 2-3 million Australian homes with installed engineered stone . The product is also used in the commercial market for benchtops , counters , floors , facades and other interiors in workplaces , retail , care facilities and leisure facilities . 39
Engineered stone is not manufactured in Australia but is imported from various countries such as China , Israel and the United States . Typically , engineered stone is imported by large multi-national suppliers ( who are often also the manufacturer ) such as Cosentino , Caesarstone and Smartstone . The imported product is processed in fabrication workshops , and sold on to builders , cabinet makers , architects , and retailers , working on behalf of their customers on residential developments , renovations and commercial fit outs . The cutting , shaping and polishing is done by engineered stone PCBUs to meet the purchased specifications . 40
The market is driven primarily by residential building and renovation activity . There have been 170,000 to 215,000 new house dwellings and unit constructions each year over the past 5 years to June 2022 ( Australian Bureau of Statistics , 2022 ), as well as an estimated 150,000 to 160,000 home renovations . 41 There is an estimated 960,000 to 1,125,000 new and renovated kitchens and bathrooms in Australia per annum .
B . 1.2 The market for alternative products
There are a range of alternatives to engineered stone available at various price points as shown in the table below .
Table 17 Product prices for engineered stone and alternatives Product Price range ( for kitchen benchtops , excluding sink ) Laminate � $ 120 to $ 350 per square metre
36
Caesarstone and Smartstone submissions
37
Caesarstone submission
38
HIA submission
39
Caesarstone and HIA submissions
40
Caesarstone and Smartstone submissions
41
Caesarstone and Smartstone submissions
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 71 of 107