RECENT PERFORMANCE
The overall contract floorcoverings market was relatively static in the 2012-13 period, but there was steady growth in the following The overall contract floorcoverings market was relatively static in the 2012-13 peri
Introduction ET
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years, with particularly strong growth of 4% in 2015. It is estimated that the market size reached just over £1bn in 2017, around 12% higher than the level reached in 2012, with growth being un4derpinned by a steady performance by the UK economy, leading to returning confidence across some end-use sectors. After strong growth in 2015, the outcome in 2016 and 2017 was disappointing for the industry, but not perhaps unexpected given the uncertain economic climate following the Brexit vote, increasing inflation towards the end of the period, adverse currency movements affecting imports and relatively low wage increases.
Currently, the carpet sector represents over half of the contract floorcoverings market although this share has decreased marginally in recent years. Overall demand within the contract floorcoverings market is dependent upon the economic climate in the UK, the levels of business confidence and investment and the state of new build and refurbishment activities in the non-residential sector of the construction industry.
There has been a continuing fall in volume demand for broadloom carpet in recent years, as a result of price increases for imported products and materials, although the effect could be reversed if the Pound Sterling strengthens further against other currencies going forward.
200 300 400 500 600
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Recent Performance ts el Product Mix st
ong, n.
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ent PRODUCT MIX
The product mix has stabilised to some extent in recent years, with carpet losing only marginal share, mainly reflecting a growth in vinyl flooring – now the second largest product group – which has been underpinned by the increased specification of safety flooring and the more recent trend for luxury vinyl tiles to be installed in the retail and office sectors.
Others 4%
Vinyl 19%
Floor Tiles 11%
The overall contract floorcoverings market was relatively static in the 2012-13 period, but there was steady growth in the following years, with particularly strong growth of 4% in 2015. It is estimated that the market size reached just over £1bn in 2017, around 12% higher than the level reached in 2012, with growth being underpinned by a steady performance by the UK economy, leading to re turning confidence across some end-use sectors. After strong growth in 2015, the outcome in 2016 and 2017 was disappointing for the industry, but not perhaps unexpected given the uncertain economic climate following the Brexit vote, increasing inflation towards the end of the period, adverse currency movements affecting imports and relatively low wage increases.
UK Contract Floorcoverings Market Product Mix – 2017 Share by Value
UK Contract Floorcoverings Market Product Mix – 2017 Share by Value (% by Value)
Carpet 52%
Wood 14%
Future Prospects
Medium term prospects for the contract carpet sector remain subdued, with current forecasts indicating annual value growth 2% in the next 2-3 years, followed by 3-4% in the years throug 2022.
Current indications are that contract carpets will continue to lose share marginally in the short to medium term, although growth prospects will be influenced by the outcome of the Brexit negoti and the performance of the economy in the years ahead, with business confidence under pressure due to the uncertain outlook
Continuing pressure on prices and margins are likely to continue the medium term for UK manufacturers, with cheaper imported carpets likely to continue to take market share. Additionally, competition from other floorcoverings will continue into the med term. The growth of LVT in particular may well bring additional pressure into the contract carpet market.
FUTURE PROSPECTS Medium term prospects for the contract carpet sector remain subdued, with current forecasts indicating annual value growth of 1-2% in the next two to three years, followed by 3-4% in the years through to 2022.
The product mix has stabilised to some extent in recent years, with carpet losing only marginal share, mainly reflecting a growth in vinyl flooring. Vinyl is now the second largest product group due to the increased specification of safety flooring and the more recent trend for luxury vinyl tiles to be installed in the retail and office sectors.
Demand for floor tiles has benefited from the trend for larger format decorative tiles in recent years, particularly in volume terms,C but their lower value, relative to ca pet and vinyl products, has meant there has not been any significant gain in market share by value.
The medium-term outlook is for little significant change to the product mix. However, the contract market remains susceptible to changes in the fortunes of specific end-use sectors and this factor may affect the market.
oduct Mix – 2017
Wood 14%
Demand for floor tiles has benefited from the trend for larger format decorative Future Prospects
carpet and vinyl products, has meant there has not been any significant gain in subdued, with current forecasts indicating annual value growth of 1-
the contract carpet sector remain market share by value.
The medium-term outlook is for little significant change to the product mix. Current indications are that con ract carpets will continue to lose
specific end-use sectors and this factor may affect the market.
2% in the next 2-3 years, followed by 3-4% in the years through to 2022.
However, the contract market remains susceptible to changes in the fortunes of share marginally in the short to medium term, although growth
prospects will be influenced by the outcome of the Brexit negotiations and the performance of the economy in the years ahead, with business confidence under pressure due to the uncertain outlook.
Vinyl 19%
twitter.com/TContractFloors
Continuing pressure on prices and margins are likely to continue in the medium term for UK manufacturers, with cheaper imported carpets likely to continue to take market share. Additionally, competition from other floorcoverings will continue into the medium term. The growth of LVT in particular may well bring additional pressure into the contract carpet market.
tiles in recent years, particularly in volume terms, but their lower value, relative to Medium term prospects fo
Extracted from the ‘Contract Floorcoverings Market Report – UK 2018-2022’ ontact
sales@amaresearch.co.uk or see
www.amaresearch.co.uk for details.
Current indications are that contract carpets will continue to lose share marginally in the short to medium term, although growth prospects will be influenced by the outcome of the Brexit negotiations and the performance of the economy in the years ahead, with business confidence under pressure due to the uncertain outlook.
Continuing pressure on prices and margins are likely to continue in the medium term for UK manufacturers, with cheaper imported carpets likely to continue to take market share. Additionally, competition from other floorcoverings will continue into the medium term. The growth of LVT in particular may well bring additional pressure into the contract carpet market.
Extracted from the ‘Contract Floorcoverings Market Report – UK 2018-2022. Contact
sales@amaresearch.co.uk or
seewww.amaresearch.co.uk for details.
CONTRACT CARPET | 33
The market has also seen increased demand for patterned woven carpets - particularly for more modern designs and patterns, together with carpets available in narrow loom - underpinned by construction and refurbishment activity in the hotel and entertainment sector.
UK Contract Carpet Market and Forecasts 2014 to 2020 - by Value (£m at MSP) and Growth (%)
UK Contract Carpet Market and Forecasts 2014 to 2020 - by Value (£m at MSP) and Growth (%)
The care sector’s greater focus on slip and trip prevention has led to growing demand for specialist carpet products, which are generally higher value, though the care home sector is currently facing financial pressures, and despite demand being strong, the construction outlook for this sector is uncertain.
Additionally, it is estimated that the carpet tiles sector has grown relatively strongly and now accounts for around 15% of the contract carpet market. In recent years carpet tiles have benefited from rising investment in the non-domestic sector of the construction industry.
2014 2015 2016 2017 Est
2018 Fcst
Product Mix
The product mix has stabilised to some extent in recent years, with carpet losing o marginal share, mainly reflecting a growth in vinyl flooring – now the second large product group – which has been underpinned by the increased specification of safe flooring and the more recent trend for luxury vinyl tiles to be installed in the retail office sectors.
Demand for floor tiles has benefited from the trend for larger format decorative tile recent years, particularly in volume terms, but their lower value, relative to carpet vinyl products, has meant there has not been any significant gain in market share value.
2019 Fcst
The medium-term outlook is for little significant change to the product mix. Howev the contract market remains susceptible to changes in the fortunes of specific end- sectors and this factor may affect the market.
0 1 2 3 4
2020 Fcst
market reached just over £1bn in 2017
The contract floorcoverings
Recent Performance
but there was steady growth in the following years, with particularly strong growth % in 2015. It is estimated that the market size reached just over £1bn in 2017, a 12% higher than the level reached in 2012, with growth being underpinned by a s performance by the UK eco omy, leading to re turning confidence across some en sectors. After strong growth in 2015, the outcome in 2016 and 2017 was disappoin for the industry, but not perhaps unexpected given the uncertain economic climate following the Brexit vote, increasing inflation towards the end of the period, advers currency movements affecting imports and relatively low wage increases.
cycle to generally be much shorter than in the domestic sector, and this replacement demand provides significant stimulus for the market - especially considering the high standards of presentation demanded by some end use sectors such as hotels, entertainment, retail, offices etc.
200
2014 2015 2016 2017 Est
2018 Fcst
2019 Fcst
2020 Fcst
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