Floor Covering Market

Market Overview

The global floor covering market size was valued at USD 361.22 billion in 2021. and is predicted to reach USD 626.53 billion by 2030, increasing at a CAGR of 6.31% from 2022 to 2030. In the annual NWFA Industry Outlook poll, respondents predicted that sales would rise by 21%, 41%, and 24%, respectively. A small decline is predicted by 4%, and a drop of 8% or more is predicted by 10%. Compared to renovation, new buildings will offer the most opportunities.

For a property's overall aesthetic appeal, floors are a necessary component of interior design. When we talk about flooring, we're talking about the process of putting down a long-lasting surface covering on top of a floor. A property's functional and monetary value can be greatly increased by using high-quality flooring products in its construction. In terms of common flooring materials, you may get everything from vinyl to rubber to laminate to carpets and rugs to natural stone and wood.

Demand for floor covering in both developed and emerging countries, as well as rising investment in R&D, are expected to fuel the market's expansion throughout the forecast period. Infrastructure projects in emerging markets have a positive impact on market growth as well. As more people seek to furnish their homes and offices, the need for floor coverings is likely to rise. The rising need for insulation will also fuel the market expansion throughout the forecast period. Companies are remodelling their workplaces to incorporate modular system furniture, which has resulted in an increase in the quality of office space. There is hence a high probability of growth in this industry throughout its anticipated time frame.

Market Dynamics

Floor Covering Market Drivers

The Rapidly Expanding Market for Floor Coverings in The Construction Industry

Increasing investments in the building sector have been one of the primary drivers behind the development in demand for floor coverings in the market. As a result of considerable government investments and a number of important impending events in several nations, including the Qatar FIFA World Cup 2022 and the ICC World Cup of Cricket 2023, amongst others, the construction industry is witnessing robust year-on-year expansion.

In addition, growing demand from hospitality and tourism needs, as well as various advancements in commercial, residential, industrial, and retail infrastructure, are anticipated to continue to drive future growth by a huge amount over the forecast period. This is expected to continue throughout the entirety of the market.

Multistory Buildings Are Estimated to Boost the Floor Covering Market

The acceleration of urbanization and the proliferation of ultramodern workplaces are the primary forces driving this industry. In both the residential and the commercial real estate markets, multistory buildings are preferred over single-family homes. Demand for residential structures with multiple stories has been driven up by both an expanding population and rising levels of consumer spending. On the other hand, increased rates of industrialization and urbanization in developing nations are responsible for the expansion of commercial multistory structures in those economies. It is anticipated that actions taken by governments to construct smart cities will lead to a rise in market demand. In addition to this, the constantly expanding real estate market is another factor that has led to the proliferation of multistory structures. As a result, the demand for floor coverings is expected to continue to be strong throughout the forecast period.

Floor Covering Market Restraints

Environmental Concerns Over Product Waste Management

It is projected that the expansion of the market will be hampered by the inefficient management of dumping and recycling waste that is produced either during the production of finishing materials or after their usage. Poor waste management can have major adverse effects on the surrounding environment, including the spread of infectious diseases that are harmful to humans, the clogging of drains, contamination of the land and water, and the reduction of biodiversity. The development of the market may be hampered to some degree by the reasons that have been discussed above.

Floor Covering Market Key Future Opportunities

New Opportunities Will Be Opened as A Result of Customized Floor Coverings

The market for floor covering is extremely competitive, and consumers in this sector anticipate high-quality product performance at an affordable price. In addition, businesses now offer customization in accordance with the specific requirements of individual customers, in addition to supplying items in standard sizes. For instance, manufacturers now offer customized carpet tiles, customized colored and printed carpets, and so on.

In addition, manufacturers have begun to offer customized 3D floors, which might include images of the customer's preferred location, ocean themes, and other such motifs. Companies are also providing end users with financing alternatives and loyalty programs by offering discounts on the expenses of installation, cleaning, and maintenance. This would open up profitable opportunities for floor coverings in the global market in the forthcoming years.

Regional Analysis

The global floor covering market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

As a result of the high demand in India and China, Asia Pacific dominated the market for floor coverings in 2021 and accounted for almost 55 percent of the revenue share. A further factor that will contribute to the expansion of this market is the rising purchasing power of the commercial industry in regard to these products. It is anticipated that the consumer goods industry will demonstrate strong growth as a result of the multiple opportunities that the region affords for that sector.

The construction industry in Asia and the Pacific region is being driven by rapidly developing nations such as China, India, and Vietnam. It is expected that China, which has the largest economy in the region, will fuel the expansion of markets in the region. It is anticipated that India would raise its expenditure on building, which is anticipated to generate a multitude of chances for industry participants to strengthen their footprints in the region.

It is anticipated that the market for floor covering in Europe would see a CAGR of 7.32 percent between the years 2022 and 2030. One possible explanation for this is that there is a growing need for floor covering in this part of the world. The ever-evolving lifestyles of those working in the business industry have contributed to an increase in demand for products related to floor covering. As a result, it is anticipated that this region will display the highest growth rate over the time under consideration.

It is anticipated that North America will exhibit robust growth in the not-too-distant future. North America is a developed region that offers a great deal of job chances to anyone looking for work. A good level of living combined with increased employment opportunities attracts highly skilled workers from all over the world. As a result of higher levels of immigration, the local population of people who were born outside of the region is becoming increasingly diverse. As a direct consequence of this, there is a growing requirement for residential units such as single-family homes and flats. Additionally, the expansion of building projects around the world will be a driver for the global floor covering market.

Segmental Analysis

The global floor covering market is divided into different segments according to the product, distribution channel, and region (geography).

By product, the global floor covering market is segmented into carpet & area rugs, wood flooring, and others. As a result of the rapid building in the IT sector, the carpet and area rug category led the market for floor covering and accounted for the biggest revenue share in 2021, which was approximately 42 percent. This can also be attributed to the continual introduction of new features and improvements to the goods. Additionally, it generates a comfortable seating space and contributes to the enhancement of the aesthetic appeal of the workplace or home decor. Floors benefit from an additional layer of defense that is provided by carpets and rugs. Carpets and rugs are utilized because of the utilitarian features that they possess as well as their aesthetic look. This helps to further improve the overall look of the decor and finishes it off. Nylon, polyester, and polypropylene are some of the components that are utilized in the production of carpets and rugs. Because of their superior tensile strength, nylon carpets are ideally suited for use in high-traffic environments, such as those seen in commercial and industrial settings.

It is anticipated that the segment of wood flooring will record the greatest CAGR of 6.91 percent between 2022 and 2030 due to the tremendous growth in demand that it is seeing in the commercial market. In general, the demand for these kinds of products is particularly strong in developing nations. It is one of the types of floor covering products that is employed in the widest variety of settings. Other factors that will enhance the growth of the category over the forecast period include a rise in house renovation as a result of both building and non-construction activities, as well as an increase in disposable income. The rise of the wooden flooring industry is being driven by an increase in the number of home renovations that are occurring as a direct result of increased disposable income as well as a quicker expansion in both building and non-building activities, particularly in developing countries. A growing emphasis on the utilization of environmentally friendly materials such as wood is one factor that is fueling the rise of this category. This is just one of the considerations.

By distribution channel, the global floor covering market is segmented into online and offline. The offline sector was the most successful in the market for floor covering in 2021, as evidenced by the fact that it held the biggest revenue share at more than 70 percent. Customers are showing a greater interest in floor covering as a result of the greater level of sustainability provided by these offline retailers in comparison to any other channel. As a result, it is anticipated that the sector will demonstrate growth during the period under consideration. In addition, the expansion of supermarkets and hypermarkets is anticipated to provide key market players with new potential to generate revenue in the near future.

During the time under consideration, it is anticipated that the online sector will experience a great deal of expansion. It is possible to save money on floor coverings by shopping for it through online marketplaces. These kinds of channels are able to provide a number of benefits, like coupons, free delivery, and other kinds of unique bargains. In addition, during the period covered by the projections, the market is being driven ahead by a number of well-liked products that can be purchased online from an expanding number of app-based sellers. Additionally, significant firms are presenting their product portfolios on online websites and e-commerce platforms such as Amazon, Flipkart, and Home Depot in an effort to attract new customers and boost revenue. In addition, the availability of dependable internet connections, consumer knowledge regarding online shopping, and government measures to support the growth of e-commerce are some of the primary factors that are driving the expansion of the market.

By region or geography, the global floor covering market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Due to strong demand in China and India, the Asia Pacific region controlled a majority of the global floor covering market in 2021, accounting for around 55% of total sales. From 2022 to 2030, the floor covering market in Europe is anticipated to grow at a CAGR of 7.32 percent. This can be attributed to the region's rising need for flooring.

Recent Developments

March 2022­­ - 3M had previously stated that it had successfully sold the Gerflor Group its Western European floor products division, formerly known as Dinac. The company belonged to 3M's division for the construction and home improvement markets. The flooring, wall coverings, and finishes manufacturing and distribution company Gerflor Group is a world leader in these industries.

February 2022 - It has been revealed that Mannington Mills, Inc. has bought Chatsworth, Georgia-based Georgia Carpet Finishers Inc. Georgia Carpet Finishers Inc. is a supplier of carpet backing to the residential, hotel, and turf industries, as well as high density polyurethane cushioning.