MATERIAL: SOFT
FOCUS ON: THE CARPET MARKET
MARKET PERFORMANCE The UK carpet market is mature and highly susceptible to the changing economic climate. However, the economic downturn since 2008 has impacted badly on sales of all floorcoverings, reflecting a combination of a fall in housebuilding, moving levels and contract sector investment.
“It would seem that some forecasts of ‘doom and gloom’ for the carpet market have been vastly overstated.”
While carpets have seen an erosion of share over the last 20 years, due mainly to the growth of wood, laminates and tiles, the last few years has seen the market become more stable. Carpets are still the dominant sector accounting for an estimated 57% of the market – only marginally down on their share in 2007.
FUTURE PROSPECTS Prospects for the carpet market over the next few years are reliant on the strength and timing of recovery in the UK housing and commercial office sectors.
The recent rise in the private housebuilding market should be sustained, but may be partially offset by falls in public sector housing, while
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It would seem that some forecasts of ‘doom and gloom’ for the carpet market have been vastly overstated. The carpet sector has performed better than expected in recent years and there are an increasing number of instances where hard flooring is being removed and replaced with carpet.
Ultimately, our view is that the relative shares of different floorcoverings has now stabilised, with each product having relative strengths and benefits in specific applications. Consumers are happy to choose tiles, vinyl, wood and laminates or carpets in different rooms, while the contract sector recognises the relative merits of each material in different applications.
As a result, AMA forecasts indicate that carpet will continue to retain a leading share of the overall floorcoverings market in the medium term and will benefit from an upturn in the housing market in 2014 and beyond.
15%
recovery in the commercial office sector is expected to be moderate. However, flood damage replacements could have a positive impact in the short-term.
Into the medium-term, market prospects remain hopeful but with only moderate rates of annual growth anticipated to 2016 when the carpet sector is forecast to reach around £1.04billion.
57% 16%
UK Flooring Type Product Mix 2007- 2012 – by Value (£million)
2007 10% 13% 59% 18%
Carpet
Wood
Vinyl
Others
2012 12%
Carpet
Wood
Vinyl
Others
www.tomorrowsflooring.com
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