Dec 21 2012
Research and Markets has announced the addition of the "Floorcoverings Market Report - UK 2012-2016 Analysis" report to their offering.
The UK floorcoverings market is mature and, as a result, sales are highly susceptible to the cyclical nature of consumer confidence & spending and the performance of the underlying economy.
Following decline of 20% 2007-11, the floorcoverings market experienced moderate increase in 2012 to around £1.73bn. Key drivers for this moderate recovery include the refurbishment works in preparation for the Golden Jubilee and the Olympic Games as well as sustained demand for sector specific products within the commercial sectors.
Carpet dominates the floorcoverings product mix in 2012 with value share estimated at 57%, followed by wood (16%), vinyl (15%).
The domestic market for carpet has remained difficult in 2010-12 with retailers recording reduced footfall as consumer spending on non essentials' remains subdued. The contract market has been boosted by increased demand for carpet and carpet tiles from the education and entertainment & leisure sectors over the last 2-3 years, but increased pressure on prices in the contract sector has meant that value growth has been subdued. Tufted carpets continue to dominate the carpet mix with value share of 73% in 2012 followed by wovens with 15% and with fibre bonded and others' maintaining value share at 6%.
The wood floorcoverings sector has experienced 26% decline in value since the market peak of £385m in 2007 and is estimated to be worth around £233m in 2012. Key to the decline in wood flooring has been the dramatic fall in laminate sales, which into 2012 appears to be stabilising with laminates now characterised by a move upwards into the mid-market sectors. Engineered and solid woods have performed better than laminates in recent years with demand from both the contract and domestic sectors generally less susceptible to the volatility experienced in the laminates market. However, increased price of oak into H2 2012 appears to be driving up average prices.
Prospects for the floorcoverings market indicate that growth is likely to be marginal at best into the short-medium term, driven by struggling housing market and the prospects of spending cuts likely to reduce demand from key public sectors. Recent extensive flooding damage in late 2012 will provide a short term boost to the sector in 2013, though this will only have a limited impact on the market. The overall market is currently forecast to experience only marginal 1-2% growth to 2016 when value is expected to reach around £1.84bn -approximately 15% below pre-recession peak of £2.16bn recorded for 2007.