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Strong Price Rise Leads to High Sales Growth in the Flooring Market

The global flooring market will more than make up for last year’s decline of around 6% with an increase in turnover of over 15% this year. However, the increased demand was met with supply bottlenecks at the same time, which on the one hand drove up prices, but on the other hand only marginally increased sales (+4.2%), as a new study by Interconnection Consulting shows.

Although the forecast for 2021 is very positive, optimism could be severely curbed by supply bottlenecks for raw materials, the study notes. The US is the leading market with a turnover of 27.4 billion euros followed by China 20.4 and India 19.4 billion euros. India, however, leads the way in terms of sales, with a global share of 36.4%, ahead of China 30.8% and the US 12.7%. Due to the sensitive price increases, the annual sales growth rates until 2024 will also increase more than the sales growth forecasts. For example, an annual increase in turnover of 10.6% is expected for the USA until 2024. The forecast for India is even higher, with an increase in turnover of 13.1% per year. However, sales will increase by only 1.7% per year in the US and 7.3% per year in India over the same period.

 

Home Office Renovations in Strong Demand

In 2020, the new construction sector was particularly affected by the decline. Sales in this segment fell by 15.6% globally, while the renovation sector declined by only 5.4%. “The boom in optimizing one’s own four walls stemmed not least from the fact that one’s own home has become not only a living space but also a working space since the pandemic,” explains Ivan Pjatko, author of the study. The ratio of residential to non-residential construction is around 60 to 40, with residential construction showing an even stronger dynamic for the next few years, with higher growth potential.

 

Trend Towards Natural Materials on the Rise

Ceramic tiles are the most popular floor covering worldwide with a sales share of 42.5%, followed by resilient floor coverings (16.0%) and laminate (14.6%). Laminate (+7.6%) will achieve the greatest sales growth across all product groups this year. The gap in turnover is narrower. Ceramic tiles account for about 20% of turnover, followed closely by wood/parquet flooring with a share of 17.1%. Only then do resilient floor coverings follow. There are also differences in the individual regions. In India, ceramic tiles account for the lion’s share with 56.7%. In the Middle East there is a growing trend towards wood/parquet flooring. The trend for eco-materials will continue to gain momentum, especially in Western Europe, the study shows. The most important global players are Amtico, Beaulieu, Gerfloor, Hamberger Flooring, Forbo, Interface, Junckers Kaerhs, Kronospan, Mohawk, Parador, Shaw Floors, Tarkett, The Dixie Group.

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Admonter

At the IC Impulsworkhop "Sales Optimization" we appreciate not only the practical relevance, but also the eloquent language and the perfect rhetoric. The most important benefit for our company was the sales pipeline. Adrian Capellarie (Head of Sales Admonter Holzindustrie)

Deutscher Holzfertigbau Verband

Interconnection provides us with the prefabricated house study a plausible and veritable data basis for the analysis of the actual situation in the prefabricated house market and beyond for the assessment of the future market development. We are happy to use this interpreted data for our lobbying and everyday work.

Thomas Schäfer (Managing Director, Deutscher Holzfertigbau-Verband)

ELK

The prefabricated housing study by Interconnection Consulting shows a real picture of the actual market situation and forms a valuable basis for our strategic decisions.

Gerhard Schuller (CFO ELK)

Epson

EPSON is satisfied with the Interconnection's way of communication with the market and with clients. EPSON is also appriciate the Interconnection's continuous work trying to aim the report to be at the higher level. As a result, EPSON rely on Interconnection data, for the market of POS Printers and Systems.

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Gaulhofer

I appreciate on the forum "Impulsworkshop Vertriebsoptimierung" the practical relevance of Peter Berger linked with his practical examples. I also liked the sovereign presentation style. The most important benefit was for me, on the one hand refresh of methods and also the sales management tools that were shown. Ing. Dietmar Hammer (Head of Product Management Gaulhofer)

Kontron

The most important benefit of the Impulsworkshop "sales optimization" was in my view the procedure of the definition of strengths and the entire sales process. Mr. Berger is very competent and professional. Fabian Freund (Sales Manager, Kontron Austria)

Österreichs Personaldienstleister

The sales management tool ZAIS has become indispensable for many Austrian temporary staffing providers for fast and correct sales management decisions. A tailor-made online cockpit provides comprehensive monthly figures and data on temporary work and the labor market in Austria, while at the same time impressing with its overview and intuitive user guidance. Interconnection Consulting has consider individually to all user needs during development process and also convinces with fast response times during operation.

Dr. Gertraud Höltl (Generalsekretärin Österreichs Personal Dienstleister)

Saint Gobain

Long experience and deep understanding of the construciton industry markets make up the quality of the IC studies. Interconnection Consulting is a constant companion concerning the assessment of markets and helpful for decision-making.

Bernd Blümmers (Directeur General, Saint-Gobain Solar Systems, Central Europe, Aachen)

Salamander

Interconnection Consulting reports deliver a worthfull external perspective and are so a good contrast with regards to our internal market point of views.

Pedro Posada (CEO Salamander Industrial Products Spain)

Scandinavian Business Seating

The IC Report gives a very good overview of the Western European office furniture market, in a well-structured way. The data is helpful to better understand the market developments and drivers.

Beatrice Sotelo (Director Business Development , Scandinavian Business Seating)

Schneider Electric

Under a short time constraint, Interconnection was able to deliver an outstanding study that exceeded my expectation in terms of quality and market breadth. I highly recommend Interconnection to anyone in need of market research.

Jeff Canterberry (Director of Strategy and M&A, Schneider Electric)

Sodexo

When developing new market strategies, Interconnection is a trusted source we always come back to. Christian Frey (Marketing Manager CS DACH)

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