Wood and laminates start to regain share in the UK Floorcoverings market

The UK’s wood floorcovering sector, which includes solid wood, engineered wood and laminates, currently accounts for an estimated 16% of the total flooring market. Growth has been positive since the low point in 2011, and demand for wood floorcoverings has continued to improve into 2015, with improvements in the underlying economy, a recovering housing market, and higher levels of business confidence and investment all helping to boost growth.

The market is, however, subject to strong competition from other smooth floorcoverings products, particularly luxury vinyl. The share of wood also affected by the decline in demand for laminates which began around 2008. However, over the last year, there have been signs that wood and laminates are once again beginning to regain share of the overall floorcoverings market, with manufacturers investing heavily in new innovations and new ranges in order to gain share in an increasingly competitive market. Notable trends in design and home décor recently has been a key influencing factor on this market.

Laminates, the largest product category, continues to act as a strong driver of growth in the overall wood floorcoverings market, and while both engineered and solid wood have become much more affordable, laminates’ excellent environmental credentials have made them an increasingly popular choice in the commercial/contract sector. Sales of laminates continued their upward trend in 2014 and into 2015, benefiting from growth in the housing market and strengthening consumer confidence.

The solid and engineered woods sector has been less volatile than laminates. As with laminates, solid and engineered wood floorcoverings returned to growth in 2012 after four years of decline in 2008-11, which had seen the value of the market fall by an estimated 14%. Growth for the sector in 2014 was estimated at 3%. The accessories sector accounts for around 5% of the total wood and laminates floorcoverings market.

The UK is a net importer of wood flooring, with imports rising quite significantly in 2014, as a result of robust recovery in both domestic and non-domestic construction activity and output. Variable import values year on year, however, reflect factors such as the volatility of global timber prices and currency fluctuations. The rationalisation of production facilities away from the UK to lower cost countries by larger global players is also a critical factor. China remains the dominant supplier of wood flooring imports to the UK, while Poland is the dominant European supplier-country, more than doubling its share of UK imports since 2010.

In terms of end use, the contract market for wood floorcoverings has continued to gain share, with a rise in the use of solid and engineered wood as well as higher specification laminate, which is increasingly used in contract applications. Commercial construction is forecast to continue gathering strength, particularly in the office and leisure sectors which are both major sectors for flooring products, though other important contract sectors such as education and healthcare facing continuing pressure on budgets.

“While domestic DIY installations of wood floorcoverings are still below pre-recession levels there is a degree of pent-up demand in the market, and consumer confidence continues to improve as a result of low inflationary pressures and a strengthening economy” said Jane Tarver of AMA Research. ”Despite reasonable growth, the market value is forecast to remain some 13% lower than its pre-recession peak in 2007.”

Current forecasts indicate annual growth of around 3-4% pa to 2017, with the annual rate of growth falling slightly in 2018-19. The market is estimated to reach a value of around £335m in 2019.

The ‘Wood and Laminate Floorcoverings Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.