Jan 4 2011
The impact of the global economic downturn on the construction industry brought about new market dynamics and changes in consumer preferences.
In 2009, the market for wall coverings was negatively impacted due to reasons such as worldwide recession, increased competition among paint and coating manufacturers and the vulnerable non-residential construction market. The residential remodeling segment emerged as a key niche market for wall coverings, where in times of scarce finances, consumers are increasingly looking towards remodeling interiors instead of purchasing new houses. In the foreseeable future, anticipated recovery in the residential construction sector is expected to drive demand for wall coverings, specifically by large markets such as the US, Europe and Asia-Pacific. With new product developments and market turnaround in the residential construction activity, the demand for wallpapers and decorative tiles is also projected to expand. In particular, the wallpaper market is witnessing new trends such as introduction of wallpaper cutouts, removable wallpapers, mold-resistant and low-emission wallpapers. Addition of these features is expected to make wallpapers more user and environment friendly, and increase the segment’s market share.
New technologies such as digital printing, and new patterns such as faux finishes were responsible for the segment growth, which had showed dwindling revenues for the past decade or so. Designer names determine the success of products in the wallpaper market. Purchases are driven by the name of the designer and not by brands. In this aspect, wallpaper industry parallels fashion-designing industry. Decorative tiles are finding increasing applications in both non-residential and residential markets, new constructions and home re-modeling, repairs and renovations. While wall panels and decorative tiles would be more benefited, paints would continue to dominate wallpapers segment in terms of size, due to sustained consumer confidence in paints.
China is one of the major producers of building materials and ranks first in the production of ceramic tiles on a global level with Shanghai as one of the largest commercial centers for production of building materials. The country represents huge demand for wall covering products such as mosaic tiles, concrete blocks for outer wall material, roof tiles, coatings, paints, and the like. With huge untapped potential, India is an enticing market for wall covering manufacturers. India’s entry into the WTO has opened up the wallpaper market to foreign manufacturers. Demand for ceramic wall tiles is expected to show high growth in the region. Latin America displays a positive note with booming markets such as Brazil and Chile boding bright prospects for architectural coatings.
Europe and Asia-Pacific constitute two of the largest regional markets, as stated by the new market research report on Wall Coverings. In terms of most promising growth potential, Asia-Pacific, backed by China, India, Indonesia, Thailand and others is the clear winner, and forecast to expand at a CAGR of more than 3.0% through 2015.
The Interior Paints segment continues to hold sway as the single largest market. However, with changing consumer preferences, Wallpaper is forecast to make a comeback after years of suspended activity and profits, and register the fastest CAGR for the period 2007-2015. Hitherto untapped regions such as Asia-Pacific, Latin America and Middle East, which have traditionally been strong markets for interior paints, display huge potential for future growth and expansion of wallpapers segment.
Key market participants profiled in the report include Crossville, Inc, Dal-Tile Corporation, Emilceramica S.p.A, Grupo Porcelanite S.A., Internacional de Ceramica S.A. de C.V., Johnson Tiles, Marazzi Group SpA, Brewster Wall coverings Company, F. Schumacher & Company, Johns Manville, Omnova Solutions Inc., Pacific Wallcoverings Limited, Seabrook Wall coverings Inc., The Designtex Group, Omega National Products, The Sherwin-Williams Company and Duron Paints & Wall Coverings.
The research report titled “Wall Coverings: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market overview, issues & trends, product overview, recent industry activity, product innovations and profiles of market players worldwide. Analysis and overview is presented for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific, Middle East and Latin America. Market analytics are provided in terms of value (US$) for product segments including Wallpaper, Interior Paint, Wall Tiles and Wall Panels. The study also presents historic data for an insight into market evolution over the period 2000 through 2006.
Source: http://www.strategyr.com/