Flooring Market Size, Share & COVID-19 Impact Analysis, By Type (Non-Resilient {Ceramic, Wood, Laminate, and Others}, Resilient {Vinyl [Luxury Vinyl Tiles, Vinyl Composite Tiles, and Vinyl Sheet Flooring], Rubber, Linoleum, and Cork}, Carpets & Rugs, {Tufted, Woven, and Others}), By End-use (Residential and Non-residential), and Regional Forecast, 2023-2030

The global flooring market size was valued at USD 376.44 billion in 2022 and is projected to grow from USD 395.19 billion in 2023 to USD 579.40 billion by 2030, exhibiting a CAGR of 5.6% during the forecast period.

Flooring is a finishing material applied over a floor or subfloor structure to arrange for a walking surface. These products offer properties, such as resistance to scratches, dents, and moisture, and are very easy to clean. Majorly used products include ceramic tiles, vinyl tiles, carpets, and laminates, as they provide a smooth, clean, hard, and attractive surface to the floors. These benefits lead consumers to use these products during the development and renovation of residential and non-residential buildings. Increasing new construction facilities and the surging demand for residential buildings, commercial amenities, and healthcare facilities will drive market growth.

COVID-19 IMPACT

Delayed Construction Projects during Pandemic Restricted Market Growth

The pandemic severely impacted the construction industry globally. The restrictions in the movement of materials resulted in a shortage of raw materials. Furthermore, the lockdown rules and regulations constrained the contractors and builders to conduct their construction activities. This factor led to delays in new and current construction projects. In the first quarter of 2020, the architects and contractors canceled or postponed their construction plans in China, Japan, the U.S., and India. As per the 2020 U.S. Chamber Study, in July, more than 85% of contractors experienced construction project delays in the U.S. owing to the COVID-19 pandemic. This factor decreased the consumption of finishing materials in the same time span. However, government investment policies for building and enhancing healthcare facilities served as the key trend for market recovery after the COVID-19 impact.

FLOORING MARKET TRENDS

Manufacturing of Sustainable Products to Present Lucrative Opportunities

Sustainable products manufactured from recycled material are emerging in this market. For instance, the demand for natural and recycled carpets has increased over time owing to the cost-effectiveness and support of the green manufacturing initiative adopted by the different governments of the U.S. and the U.K.

On the other side, manufacturers of products, such as Luxury Vinyl Tiles (LVT), Vinyl Composite Tiles (VCT), vinyl sheet covering for the floors, and rubber focus on reducing the product's Volatile Organic Compounds (VOC) content. The VOCs pollute the indoor environment, affecting human health. Hence, reducing VOC content would increase the product’s sustainability. For instance, in November 2022, Tarkett S.A. launched its renowned Johnsonite brand of products. The brand's adherence to stringent material health, renewable energy, product circularity, climate requirements, water stewardship, and social fairness criteria provides a competitive edge to the company.

Moreover, leveraging the latest technology, companies may create new processes and systems to recycle product waste. Manufacturing products from waste will enhance the profitability of the companies while also benefiting the environment. Further, consumer preference for sustainable products will boost the product demand from the end-users.

FLOORING MARKET GROWTH FACTORS

Rapid Increase in Building & Construction Industry Globally is anticipated to Drive Market Growth

The rising population across the globe is surging the demand for residential and non-residential construction. During the initial stages of 2023, the global population crossed eight billion, expected to double by the end of 2050. Such rising population and urbanization have created massive space for the construction industry.  This has increased demand for products, such as tiles, carpets & rugs, and hardwood floors owing to their wide utilization in construction structures. These products are utilized based on their requirements. For instance, hardwood floors are utilized in residential buildings as they deliver the utmost strength, a long life span, and a decorative touch.

People in emerging economies, such as China, India, and other ASEAN countries, have witnessed substantial improvement in their living standards and house purchasing power. Over the past few decades these aspects have played a key role in driving the demand for modern surface coverings, including carpets & rugs. Improved spending and the untapped regional construction industry will likely prompt new infrastructure and construction project initiation during the forecast period.

Additionally, developing countries in the Asia Pacific region are home to around 60% of the world population, and governments in these countries are taking initiatives to provide affordable housing. For instance, the Government of India runs Pradhan Mantri Awas Yojana (Urban) and Pradhan Mantri Awas Yojana (Rural) to provide affordable housing to the poor in urban areas & rural areas, respectively.

Growing Requirement for Aesthetics in Buildings Presenting Significant Demand for Flooring

The global population is increasing quickly and has created substantial demand for housing facilities for the people. The consumer keeps a keen eye on the aesthetic design and interior of the building while constructing or selecting a prebuilt home. As a result, several manufacturers focus on providing suitable aesthetic surface solutions and maintaining the house's interior, which meets specifications regarding impact resistance, strength, and durability. Moreover, several consumers also seek visual and touch aesthetics while selecting their products. Hence, such factors are expected to increase consumer investment in aesthetically superior products and drive the market's growth.

RESTRAINING FACTORS

Volatility in Raw Material Prices to Limit Market Growth 

Fluctuations in the prices of raw materials may limit the market's growth by affecting the manufacturer's profitability. Raw materials, such as vinyl, fibers, fiber composites, and resins, are primarily utilized in surface-covering products. Thus, increasing prices of these raw materials result in rising production costs and increase the price of the finished products. Hence, higher prices of the raw materials & finished products ultimately affect the demand for the flooring.

Moreover, the volatility in the prices and decreasing availability of the petroleum-based raw materials used in manufacturing certain products, such as vinyl surfaces for the floors, is anticipated to impact market growth. For instance, carpets and rugs are manufactured using crude oil-based raw materials, including polyester, nylon, latex and synthetic backing materials, various dyes, and chemicals. Hence, the volatility in crude oil prices is anticipated to limit market growth.

FLOORING MARKET SEGMENTATION ANALYSIS

By Type Analysis

Non-Resilient Segment Dominated the Market due to Increasing Need for Easy-to-install Floor Coverings

By type, the market is segregated into non-resilient, resilient, and carpets & rugs. The non-resilient segment is further classified into ceramic, wood, laminate, and others. Similarly, the resilient flooring segment is sub-segmented into vinyl, rubber, linoleum, and cork. Also, the carpets & rugs segment is further divided into tufted, woven, and others.

The non-resilient segment accounted for the largest flooring market share in 2022, with the ceramic sub-segment being the most significant type. Ceramic tiles have a distant protecting layer on their surface, making them impervious to spreading pigment and water damage. They also provide a harder surface, easy maintenance, no allergy concerns, and durability. These properties increase their use primarily on residential floors. Laminate is a low-investment floor alternative, and it replicates stone, and wood floors. The growth of this segment is attributed to the increasing need for easy-to-install floor coverings.

In the resilient segment, vinyl is anticipated to boost the market owing to its moisture-resistant qualities and durability. Luxury vinyl tiles are highly preferred in residential and commercial buildings. In the carpets & rugs segment, the tufted sub-segment is the major type. The tufted carpet is widely adopted for wall-to-wall carpeting and is suitable for rooms with heavy furniture.

By End-use Analysis

Residential Segment Holds Dominant Share Owing to Rising Residential Expansion

By end-use, the market is bifurcated into residential and non-residential. The residential segment takes the lead in the global market. The segment expansion is driven by the rising disposable income of consumers and the growing population. The surging popularity of renovation solutions to improve the overall appearance of buildings is expected to boost floor product demand from the residential sector. Hence, the rising number of residential buildings will fuel the flooring market growth.

The non-residential segment is expected to have a faster CAGR from 2023 to 2030, owing to the rapidly growing need for commercial buildings, including hospitals, offices, and institutes. Additionally, the rising demand for seamless floorings, such as polished concrete, epoxy, and polyurethane from commercial and industrial workspaces will boost market growth.

REGIONAL FLOORING MARKET ANALYSIS

The market is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific recorded USD 193.98 billion in annual revenue during 2022 and is expected to be the fastest-growing region in the market. Market growth in the region is driven by rapid industrialization and surging planned investments and structured policies for construction activities in India, China, and Southeast Asia. China is the leading country in the market and is expected to register higher growth. The increasing population and need for infrastructure and new buildings are the key factors driving market growth in China.

Europe will witness growth backed by the growing use of ceramics and vinyl in non-residential buildings. Additionally, rising consumer expenditure and preference toward luxurious living spaces would drive growth in this region.

North America’s market growth is driven by the rising demand for healthcare facilities, commercial buildings, and luxurious houses. Further, rising consumer expenditure for interior designing to improve the aesthetics of the residential spaces will surge the product demand in the region.

In South America, the market is expected to grow significantly due to increasing renovation and remodeling activities in private and multi-story houses to change the appearance and structure of buildings.

The Middle East & Africa market is expected to boost during the forecast period due to the rising demand for floor coverings from ongoing construction projects. The increasing government investments in public recreational spaces, schools, and hospital facilities will surge product consumption in the region.

KEY INDUSTRY PLAYERS

Key Players Adopted Product Innovation Strategy to Maintain Their Position in the Market    

At present, this market is fragmented due to the presence of many players around the globe. Key companies operating in the market have invested their resources in novel product developments. A wide range of product offerings, production competency, and safe & unique technology development for floor applications are enhancing the strengths of the key market players. Companies have adopted the strategies of new product development, expansion, joint ventures, and acquisitions to increase their regional presence and product portfolio.

LIST OF KEY COMPANIES PROFILED IN FLOORING MARKET:

• Mohawk Industries, Inc. (U.S.)


• Shaw Industries Group, Inc. (U.S.)


• TARKETT S.A.  (France)


• Armstrong Flooring, Inc.  (U.S.)


• Forbo Flooring Systems (Netherlands)


• Gerflor (France)


• Interface, Inc. (U.S.)


• Beaulieu International Group (Belgium)


• Toli Corporation (Japan)


• Milliken & Company (U.S.)


• Congoleum (U.S.)


• Flowcrete (U.K.)


• James Halstead (U.K.)


• The Dixie Group (U.S.)


• Victoria PLC (U.K.)


• Mannington Mills, Inc. (U.S.)


• Swiss Krono (Switzerland)


• LX Hausys (South Korea)


• Parador GmBH (Germany)


• Kajaria Ceramics (India)


• Engineered Floors (U.S.)


• MBB - Ihr Bodenausstatter GmbH (Germany)


• Altro Limited (England)


• Welspun Group (India)


• Avant Holding (UAE)


• Twintec Group Limited (Germany)


• Mirage (Canada)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 – Shaw Industries announced plans to install innovative solar technology at its carpet tile manufacturing facility. This move demonstrates the company's commitment to sustainability and reducing its carbon footprint. By utilizing renewable energy sources, Shaw Industries is taking a proactive step toward protecting the environment and ensuring a cleaner future for future generations.


• November 2022 - Tarkett North America recently reintroduced its Johnsonite product line, which includes a wall base, resilient flooring, stairwell management systems, and finishing accessories. These products are all manufactured in the U.S. and boast low VOC levels, contributing to a healthier indoor environment and reducing the need for harsh chemical cleaners. Moreover, many Johnsonite product lines have received Cradle to Cradle certification, indicating their adherence to stringent material health, renewable energy, product circularity, climate requirements, water stewardship, and social fairness criteria. The company is prioritizing the quality of its products while also considering its environmental and societal impact.


• November 2022 – Mohawk Industries, the global giant of floor products, announced its acquisition of the Brazilian-based company Elizabeth. This move is expected to help Mohawk Industries expand its presence in the South American market and increase its production capabilities. The acquisition is also expected to benefit Elizabeth as it gains access to Mohawk Industries' extensive distribution network and resources. Both companies are committed to maintaining high quality and sustainability standards. The acquisition is a positive step forward for both Mohawk Industries and Elizabeth, who are looking forward to seeing the benefits of this partnership in the years to come.


• July 2022 - Mohawk Industries announced that it will acquire Foss Floors, which sells primarily to national home centers and other manufacturers. It is a leading non-woven flooring specialty product using 100% recycled PET polyester manufactured from plastic drinking bottles. It is expected to bring the company new product categories and exciting opportunities. The acquisition is set to close in the third quarter of this year.


• July 2022 - AHF Products acquired certain assets from Armstrong Flooring, including the rights to the brand name. AHF has purchased three of Armstrong's U.S. manufacturing facilities in Lancaster, Beech Creek, PA, and Kankakee, IL. They're successful in various flooring categories and responsible for commercial brands, such as Bruce Contract and Parterre.


• June 2022 - Mohawk Industries announced the acquisition of Vitromex, a leading Mexican tile manufacturer, from the Group Industrial Saltillo at an all-cash deal value of USD 293 million. This acquisition will include four Vitromex manufacturing plants at strategic locations and a nationwide supply chain network in Mexico. This deal aims to provide a strategic advantage in the Mexican market by widening the product offerings.


• November 2021 - Shaw Industries announced plans to expand its operations in Aiken County at a USD 400 million investment, bringing more job opportunities and economic growth to the area. The company will invest in the community and looks forward to working with local leaders to make this expansion successful. This move highlights Shaw Industries' commitment to providing quality products and services. The expansion is expected to be completed by the end of 2024.

REPORT COVERAGE

This report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading end-use of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation