The market for elastic floor coverings in the CEE countries of Poland, the Czech Republic, Slovakia, and Hungary reached a volume of EUR 221.4 million in 2017, an impressive increase of 7.9% over the previous year. In the coming years, the pace of growth is expected to slow down slightly on account of the sinking dynamics in construction. Average annual growth to 2021 will be 5.1%, according to a study by Interconnection Consulting.

Overall, the market for elastic floor coverings is benefitting from good economic developments: domestic demand is up, unemployment down, and salaries are rising. “Many projects that are also financed by EU resources will continue to contribute to the growth in the sector,” explains Katarina Gajdova, author of the study. However, due to the strong economic developments of the Visegrad Group, EU funding will be falling off by roughly 21.5% beginning in 2020.

Health Sector a Driving Force

With a market share of 17.0%, the health/medical sector represents one of the driving forces of growth on account of its heavy investment activities. In Poland, EUR 3 billion will be invested in the sector between 2014 and 2020. Hungary’s hospital infrastructure will also be extensively renovated. “Large-scale hospitals with a capacity of nearly 3,000 beds are planned for completion by 2025,” explains Gajdova. In Slovakia, the Ministry of Health has already approved EUR 153 million for the renovation of 44 hospitals. The largest area of application for elastic floor coverings, however, remains residential construction, with a market share of 36.4%.

New Trends Expected

The largest product group is heterogeneous vinyl/PVC, with a share of 42.6% in volume. The material is not only less expensive than other flooring material such as hardwood, marble, and stone, but it is also one of the less expensive materials among elastic floor coverings. However, vinyl still has many advantages, such as durability, ease of maintenance, and versatility. LVTs (Luxury Vinyl Tiles) are the fastest-growing product group, with a current market share of 18.4%. But this might not always be the case. There are indications that SPC flooring will soon take over the position as fastest growing floor covering. The reasons are the simpler installation, lower investment costs, lower material and labor costs, better waterproofing, and greater stability. And, it is better for the environment. The top five companies have a market value of 54.8%. The top companies are Amtico, Atro, Beaulieu, Gerflor, Graboplast, Fatra, Forbo, IVC, Lentex, and Tarkett.

17/09/2018

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.