The UK floorcoverings market was estimated to be worth £2bn at msp in 2019. However, the impact of Covid-19, which has resulted in severe disruption to businesses for several months in 2020, has taken its toll on the floorcoverings sector. The market is therefore expected to decline by 10% in 2020.
A notable feature of the market has been consolidation amongst manufacturers and suppliers in order to improve economies of scale. Many suppliers have also broadened their ranges to encompass a wider array of flooring products.
Use of modern vinyl flooring, especially Luxury Vinyl Tile (LVT), has significantly increased in recent years with glueless, loose lay systems proving popular. Vinyl flooring accounts for around 17% of the total floorcoverings market and is the fastest growing sector within the overall marketplace, underpinned by strong demand within the contract sector.
Despite the significant impact of Coronavirus in 2020 and disruption to supply chains, there are indications that the UK floorcoverings market is already starting to improve in H2 2020. Therefore, 2021 is forecast to return to growth of 3% to reach £1.95bn. Whilst an upward trend, this is still only on a par with 2016 levels. The floorcoverings market is then expected to grow by 4% per annum in 2022 and 2023, before easing back again to 3% in 2024, when it is forecast to be worth £2.2bn. Whilst this reflects steady, but modest growth in value terms, it also reflects heightened price competition from the sheer number of suppliers, including online.
There may be increased interest in affordable and standardised graphics at the top end of the contract market. A notable feature of Covid-19 has been the addition of graphics on carpet tiles and vinyl floors to provide directional arrows and social distancing reminders, such as the 2 metre rule.
The UK market may face further consolidation within the supply chain, as distributors seek to gain market share and to achieve further efficiencies. Improved digital and logistics capability is likely to feature highly on corporate agendas. Smaller suppliers may also be ripe for acquisition, especially as profitability could fall in the face of increased competition.
