This report is the 2nd edition of our review of the modular floorcoverings market. The report analyses the current trends in the market and considers future trends, opportunities and threats. Having outperformed the overall floorcoverings market in recent years, growth for modular floorcoverings has been more subdued over 2018-19 as levels of consumer spending and business investment have declined. In addition, the increased competition within the market has seen average prices squeezed as suppliers compete for share.
The level of competition between modular and broadloom/sheeting products has intensified in recent years not only within each floor coverings sector (carpet, vinyl, etc) but also between modular products themselves. One of the key drivers for this has been the increased use of modular products as part of mixed floorcoverings schemes in key contract sectors. In addition, the advances in design and manufacturing techniques now allow suppliers to provide increasingly realistic products – eg stone effect LVT, wood effect ceramic & porcelain tiles, etc.
The modular floorcoverings market is mature, with market performance dependent on a wide range of factors including business confidence & investment, new build output and refurbishment activities as well as homeowners’ confidence & spending levels, the housebuilding and house moving markets.
The modular floorcoverings market experienced good levels of growth to 2017, although performance has since been more subdued. Brexit has introduced uncertainty and caution into the market and the fall in the value of Sterling has seen the price of imported products and materials increase. In addition, the low levels of business confidence and investment has meant that some larger-scale commercial projects have been deferred. Demand from the domestic sector has benefited from the increase in housebuilding levels and RMI activities, with an increased tendency to ‘improve, not move’, seeing householders prepared to spend on home improvements.
Information within this report has been collated from a wide range of sources including company literature and accounts, trade magazines, government and other published data. This has been supplemented by interviews with companies involved in the modular floorcoverings market.