FOCUS ON WOOD & LAMINATE Focus On Wood An We take a look at the findings from the latest report on the Introduction


The UK wood flooring sector, which includes solid wood, engineered wood and laminates, currently accounts for an estimated 16% of the total flooring market, which is worth around £1.9bn. Wood floorcoverings represent a mature and competitive sector, characterised both by changing consumer tastes and a high level of susceptibility to the performance of the economy.


Market Overview


The market for wood and laminate floorcoverings is worth in excess of £310m in 2017. Since 2011, the market has experienced positive growth, buoyed by rising consumer confidence and by growth in the housebuilding and wider construction sectors. However, market value has yet to recover to the pre-recession levels and is some way below the peak of £385m achieved in 2007. Additionally, as in other market sectors, there was considerable variation between the performances of individual suppliers, together with strong competition from other smooth flooring products – particularly luxury vinyl.


Laminate, the largest product category in this sector, continues to be a strong driver of growth in the overall wood floorcoverings market. While both engineered and solid wood have become much more affordable, laminate’s excellent environmental credentials have made it an increasingly- popular choice in the commercial/contract sector. Value- added products with useful additional features, such as non- slip, non ‘sparkle’ and water-resistant or waterproof flooring, have also helped stimulate demand.


The solid and engineered woods sector has been slightly more volatile than laminate. The sector saw strong growth in both 2014 and 2015, however this slowed considerably


Supply Structure The UK wood floorcoverings market is characterised by a high level of fragmentation and diversity, with players targeting the market both directly and via intermediaries, as well as supplying unbranded, branded and retailer branded goods. The market is also subject to ongoing change, often the result of rationalisation or acquisition, with new entrants attracted by the growth potential of specific products or product groups.


Competitive conditions within the market exert negative 16 | Tomorrow’s Retail Floors


pressure on profit margins, this is exacerbated by volatile raw material costs and excess production capacity. The market has also seen an increase in the number of suppliers, including the entry into the market of timber merchants and importers, active in other related markets.


The high level of imports means that prices are subject to exchange rate fluctuations and global supply issues, with the fall in the value of Sterling against other major currencies following the Referendum result being the latest such change.


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in 2016 and similarly slow growth is expected in 2017. Previous growth in demand was largely the result of improvements in both the housing market and the underlying economy, with consumers gaining confidence and increasing expenditure on home furnishings.


The contract market for wood floorcoverings has continued to gain share and now accounts for a 51% share of end use application by value, a significant shift from the 44% share held a decade ago. At the same time, the contract sector is now suffering from the uncertainty in business confidence, particularly in the commercial office and retail sectors. In turn, the market share of domestic DIY installations has reduced in the last decade and is unlikely to improve in the short to medium term. A major factor influencing this is increasing consumer reluctance to carry out their own home improvement tasks.


UK Market for Wood Floorcoverings 2012-2019 by Value (£m MSP)


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