Builders’ merchants market forecast to grow 11% by 2030

According to a new report by MRA Building Market Reports (MRA Reports), future growth in the general builders’ merchant market is expected to be slow and gradual between 2026 and 2030.

The new report quantifies the general builders’ merchants’ market, excluding plumbing & heating merchants and other specialist segments within building products distribution.

The report reveals that many merchants are struggling financially. A detailed analysis of profitability among general builders’ merchant businesses shows that overall, average profit margins fell sharply during 2023 and 2024, with almost a quarter of businesses reporting a loss in 2024. Larger groups and National operators performed particularly badly, and this could lead to further changes to the market structure during 2026.

However, the report highlights that since 2019, the market has seen growth of 18% in value terms, though volume sales have declined. MRA forecasts value growth of 11% over the 2026 – 2030 period.

Forecasts for the market though are relatively optimistic. Unless another major disruptive global event occurs, MRA expects construction activity, general confidence levels and merchants’ sales to pick up towards the second half of 2026/early 2027. There is a significant latent demand in many
sectors, such as housing, offices and infrastructure, with many projects waiting to go ahead. Merchants will need to stay focused on what their customers want from them, rather than what customers are buying in other channels, while improving their resilience in the event of future supply
chain disruption.

Anna Eriksson of MRA Reports comments: “The builders’ merchant supply chain is complex and highly fragmented. Market sizes, growth rates and trends look very different depending on how the market is defined and measured. We identified a need for an independently researched, more granular review of each of the channels and product sectors within the building products distribution market.

“This report focuses specifically on the general builders’ merchant segment and is underpinned by robust primary research as well as rigorous desk research and data analysis. Our quarterly Builders’ Merchants Pulse Survey includes open questions and delivers real depth and insight into market conditions and sentiment, providing an up-to-date view of the state of the market and its challenges. “