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| AM17010 |
| AMA FLOOR COVERINGS MARKET January 2000 |
| Overview |

This report covers: carpets, vinyls, ceramic tiles, wood, laminates, cork, Tufted Carpets, Woven Carpets, Needlepunch fibre bonded, Carpet Tiles, Non-Woven Carpeting, Carpet Suppliers, rugs, cushioned vinyl sheeting, uncushioned vinyl sheeting, vinyl tiles, Linoleum, wooden flooring, ceramic tiles, bamboo, contract distribution
Companies covered include: Armstrong, Marley, James Halstead, Altro, Forbo Nairn, Amtico, Tarkett Sommer, Axminster, Wilton, H & R Johnson, Pilkingtons Tiles, Tarkett, Junkers, Kährs, Perstorp, Egger, Hewetson Hardwoods, Kronospan, Timbmet , Richard Burbidge
OVERALL MARKET
CARPETS
VINYLS
LINOLEUM, CERAMICS, WOOD, LAMINATE & OTHERS - CORK & BAMBOO
DISTRIBUTION
FUTURE PROSPECTS
In 1998 the UK floorcoverings market was worth over £1.7 billion at manufacturers selling prices. The market, which is historically subject to cyclical activity, experienced significant rates of growth during 1997, which then dramatically slowed during 1998 and continued into the first half of 1999. It is only during the third quarter of 1999 that there have been indications of recovery of growth levels within the floorcoverings market.
The market shows a trend indicative of a market in the mature stage of its product lifestyle, experiencing relatively low levels of decline and growth when compared with other newer products. High levels of growth were recorded in 1997, fuelled by consumer confidence and also by building society windfall payments. The market slowed during 1998 with different sectors of the floorcoverings market experiencing differing levels of decline or growth. This slowing down of the floorcoverings market reflected the slowing down of the economy as a whole, with high levels of interest rates and inflation and a lack of consumer confidence leading to the postponement of number of floorcoverings purchases.
The market is slowing improving during 1999 as economic confidence begins to return and rates of interest, inflation, consumer confidence and spending, all begin to improve. It is estimated that the floorcoverings market will increase by 3-4 percent during 1999 and 2000. Thereafter, the underlying annual rate of increase will be between 2 percent and 3 percent, to give an estimated value for the floorcoverings market of £2 billion by 2004.
In value terms in 1998, carpets accounted for the largest sector with 79 percent of the overall floorcoverings market, followed by vinyl floorcoverings with over 10 percent, wood and wood laminates with 4.4 percent, ceramic tiles with 3.5 percent, linoleum with 1.3 percent and cork and bamboo with just over 1 percent. The main changes in the percentage share of the overall floorcoverings market are that carpets have again lost share of the market, with wood and wood laminates and ceramic tiles both gaining significant share increases.
Carpets are the traditional type of floorcovering and account for the largest percentage of the UK floorcoverings market. Carpets are used in both domestic and contract applications and can be subdivided by carpet type.
Tufted carpets represent the largest sector accounting for 69 percent of the market by volume and worth £807 million during 1998. UK production of tufted carpet actually declined slightly during 1998 but import penetration levels continued to increase. In terms of fibre type, polyamide (nylon) dominates with 66 percent of the tufted market being made up of carpets containing 50 percent or more of this fibre.
Woven carpets are generally higher value lower volume carpets and are comprised of Axminster and Wilton carpet types. Woven carpets accounted for 8 percent of the carpet market by volume during 1998 but were estimated to be worth £300 million, reflecting their higher intrinsic value.Woven carpets are used in both the contract and domestic sectors with Axminster types dominant. A significant proportion of Wilton carpets within the UK market are lower value, synthetic imports, including a substantial range of machine made, synthetic rugs from countries such as Belgium/Luxembourg.
Needlepunch or Fibre Bonded carpets are generally low value, high volume carpets taking 10 percent share of the market in value terms, but 17 percent of the market by volume. A large proportion of this carpeting is used in the contract market, mainly in the automotive and commercial building sector. Historically, Needlepunch or Fibre Bonded carpets have benefited from "trading down" by consumers in straitened economic times.
Carpet tiles continue to perform relatively well, mainly due to the high growth levels within the contract flooring sector. Tufted carpet tiles are the main tile types that are taking share in volume terms, and subsequently boosting the carpet tile market in terms of value.
Others is comprised of fusion bonded carpet, particularly carpet tiles and natural floorcoverings such as sisal, coir and seagrass. This sector is very niche-orientated and the floorcoverings are relatively high value.
Rugs continue to grow, due to wider availability, higher quality ranges and the growth of wood/laminate flooring.
The supply structure of the UK carpet market remains highly fragmented. Corporate restructing throughout 1998 and 1999 have continued with organisations seeking to increase market share through acquisition and merger, which is set to continue into the future. During 1998 the UK carpet supply sector was headed by Beaulieu Group of Belgium, Carpets International Ltd, Interface Europe and Brintons Ltd.
During 1998, the vinyl floorcoverings sector accounted for 10.5 percent of the floorcoverings market in volume terms and was estimated to be worth £180 million. Vinyl floorcoverings are used in both contract and domestic applications accounting, in volume terms, for 56 percent and 44 percent respectively.
The contract sector is dominated by vinyl sheeting with 66 percent of the market by value, with vinyl tiles representing the other 34 percent. The domestic sector is comprised of cushioned vinyl sheet with 81 percent, tiles with 18 percent and un-cushioned sheet with 1 percent share of the market.
The supply structure for vinyl floorcoverings is very concentrated with seven manufacturers accounting for over 80 percent of the market. In 1998, the leading manufacturers of vinyl floorcoverings included, Armstrong, Marley, James Halstead, Altro, Forbo Nairn, Amtico and Tarkett Sommer.
The ceramic tiles sector continued to expand in 1998 and accounted for 3.5 percent of the total floorcoverings market by value. The ceramic tiles market continues to be dominated by imports, which account for approximately 65 percent of the UK market. This ceramic tiles sector has continued to show growth due to their growing acceptance as a floorcovering, but also due to the continuing growth of the domestic conservatories market a significant end user of ceramic floor tiles. H & R Johnson and Pilkingtons Tiles dominate production of ceramic floor tiles in the UK.
The wood and wood laminate floorcoverings sector is continuing to increase and was worth approximately £75m in 1998, representing 4.4 percent share of the total floorcoverings market. Both wood and wood laminates are used in domestic and contract applications. The increased availability of these products and the ease of installation of wood laminates, have combined to increase market share for the wood sector. The increasing popularity of this sector has seen an increase in the number of suppliers, both from the UK and Europe. Major suppliers in 1998 were Tarkett, Junkers, Kährs, Perstorp, Egger, Hewetson Hardwoods, Kronospan, Timbmet and Richard Burbidge.
These are both niche sectors, with cork worth £14m and bamboo a relatively new product, although regarded by some as having potential for future growth.
Major channels for the distribution of domestic floorcoverings are the Independents with 42 percent share, the growing Multiples, DIY stores, Department/Variety stores and Mail Order. Leading contract applications for floorcoverings are commercial construction followed by leisure, retail, education, healthcare, and industrial and warehousing.
| 1. | INTRODUCTION | 7 |
| 2. | SUMMARY | 8 |
| 2.1 | General | 8 |
| 2.2 | Carpets | 10 |
| 2.3 | Vinyls | 11 |
| 2.4 | Others | 11 |
| 2.4.1 | Linoleum | 11 |
| 2.4.2 | Ceramic Tiles | 12 |
| 2.4.3 | Wood and Wood Laminates | 12 |
| 2.4.4 | Cork and Bamboo | 12 |
| 2.5 | Distribution | 12 |
| 3. | ECONOMIC ENVIRONMENT | 13 |
| 3.1 | Introduction | 13 |
| 3.2 | GDP Growth | 13 |
| 3.2 | Inflation and Interest Rates | 14 |
| 3.4 | Unemployment and Consumer Spending | 14 |
| 3.5 | Building & Construction | 14 |
| 3.6 | Conclusion | 15 |
| 4. | CARPETS | 16 |
| 4.1 | Definition | 16 |
| 4.2 | Market Size | 17 |
| 4.2.1 | Market Value | 17 |
| 4.2.2 | Market History | 18 |
| 4.2.3 | Current Situation | 18 |
| 4.2.4 | Future Prospects | 20 |
| 4.3 | Imports & Exports | 23 |
| 4.4 | Carpet Product Mix | 29 |
| 4.5 | Tufted Carpets | 32 |
| 4.5.1 | Market Size | 32 |
| 4.5.2 | Fibre Type | 34 |
| 4.5.3 | Tufted Styles | 36 |
| 4.5.4 | Contract Market for Tufted Carpet | 37 |
| 4.5.5 | Future Prospects for Tufted Carpets | 37 |
| 4.6 | Woven Carpets | 38 |
| 4.6.1 | Market Size | 38 |
| 4.6.2 | Axminster Carpets | 41 |
| 4.6.3 | Wilton Carpets | 42 |
| 4.6.4 | Contract Market for Woven Carpets | 43 |
| 4.7 | Needlepunch or Fibre Bonded Carpets | 43 |
| 4.7.1 | Market Size | 43 |
| 4.8 | Carpet Tiles | 45 |
| 4.9 | Others (Including Non Woven Carpeting) | 46 |
| 4.9.1 | Electro-statically Flocked or Fusion Bonded Carpets | 46 |
| 4.9.2 | Natural Floorcoverings | 46 |
| 4.10 | Rugs | 47 |
| 4.11 | Carpet Suppliers | 48 |
| 4.11.1 | Market Shares | 48 |
| 5. | VINYL FLOORCOVERINGS | 59 |
| 5.1 | Introduction | 59 |
| 5.2 | Market Size | 59 |
| 5.3 | Sector Mix - Contract and Domestic Vinyl Floorcoverings | 61 |
| 5.4 | Domestic Vinyl Sector | 63 |
| 5.4.1 | The Market | 63 |
| 5.4.2 | Product Features | 66 |
| 5.4.3 | Future Prospects of Domestic Vinyls | 66 |
| 5.5 | Contract Vinyl Sector | 67 |
| 5.5.1 | The Market | 67 |
| 5.5.2 | Vinyl Sheeting | 68 |
| 5.5.3 | Vinyl Tiles | 69 |
| 5.5.4 | Future Prospects of Contract Vinyl Floorcoverings | 69 |
| 5.6 | Imports and Exports of Vinyls | 70 |
| 5.7 | Suppliers | 71 |
| 6. | OTHER FLOORCOVERINGS | 76 |
| 6.1 | Linoleum | 76 |
| 6.1.1 | Definition of Linoleum | 76 |
| 6.1.2 | The Market | 76 |
| 6.1.3 | Imports and Exports of Linoleum | 77 |
| 6.1.4 | Types of Linoleum | 78 |
| 6.1.5 | Future Prospects for Linoleum | 78 |
| 6.1.6 | Suppliers of Linoleum | 79 |
| 6.2 | Ceramic Tiles | 79 |
| 6.1.1 | The Market | 79 |
| 6.1.2 | Key Features of the Ceramic Floor Tiles Sector | 82 |
| 6.1.3 | Future Prospects | 82 |
| 6.1.4 | Imports & Exports Ceramic Tiles | 83 |
| 6.2 | Natural Stone Sector | 88 |
| 6.3 | Wooden/Laminate Floorcoverings | 88 |
| 6.3.1 | The Market | 88 |
| 6.3.2 | Product Definitions | 89 |
| 6.4 | Cork | 97 |
| 6.5 | Bamboo | 97 |
| 7. | DIStrIBUTION | 98 |
| 7.1 | Introduction | 98 |
| 7.2 | Distribution Channel Share | 100 |
| 7.3 | Furniture Independents | 101 |
| 7.4 | Multiples | 102 |
| 7.4.1 | Allied Carpets Group | 103 |
| 7.4.2 | Carpetright plc | 103 |
| 7.4.3 | IKEA | 104 |
| 7.4.4 | Courts | 104 |
| 7.4.5 | Harveys Furnishings plc | 105 |
| 7.4.6 | Habitat | 105 |
| 7.4.7 | Laura Ashley | 105 |
| 7.4.8 | Liberty | 105 |
| 7.4.9 | Topps Tiles | 106 |
| 7.4.10 | Other Multiples | 106 |
| 7.5 | DIY Multiples | 106 |
| 7.5.1 | B & Q | 107 |
| 7.5.2 | Homebase | 107 |
| 7.5.3 | Focus Do It All | 107 |
| 7.5.4 | Great Mills | 108 |
| 7.5.5 | Wickes | 108 |
| 7.6 | Mail Order | 108 |
| 7.7 | Department Stores, Variety Stores & Co-operatives | 109 |
| 7.7.1 | Department Stores | 109 |
| 7.7.2 | Co-operatives - Co-operative Retail Services | 110 |
| 7.8 | Distributors and Wholesalers | 110 |
| 7.8.1 | Domestic Contract Markets | 110 |
| 7.8.2 | Market Performance | 111 |
| 7.8.3 | Future Prospects | 112 |
| 7.8.4 | Major Suppliers | 112 |
| 7.9 | Others | 114 |
| 8. | CONtrACT APPLICATIONS | 115 |
| 8.1 | Commercial Buildings/Offices | 116 |
| 8.2 | Leisure | 116 |
| 8.3 | Education | 116 |
| 8.4 | Retail | 116 |
| 8.5 | Healthcare | 117 |
| 8.6 | Industrial and Warehousing | 117 |
| 8.7 | Others | 117 |
| 9. | KEY MARKET INFLUENCES | 118 |
| 9.1 | The Housing Market | 118 |
| 9.1.1 | Construction - New House Build | 118 |
| 9.1.2 | House-Moving | 119 |
| 9.2 | Commercial Construction | 121 |
| 9.2.1 | Contractors Output | 121 |
| 9.3 | Population Profile | 123 |
| 9.4 | Employment/Unemployment | 124 |
| 9.5 | Interest Rates | 125 |
| 9.6 | Personal Disposable Income and Savings | 126 |
| 9.7 | Households | 127 |
| 10. | FUTURE PROSPECTS | 129 |
| 10.1 | Overall Market | 129 |
| 10.2 | Carpets | 130 |
| 10.2.1 | General | 130 |
| 10.2.2 | Tufted Carpets | 130 |
| 10.2.3 | Woven Carpets | 131 |
| 10.2.4 | Needlepunch or Fibre Bonded Carpets | 131 |
| 10.2.5 | Others | 131 |
| 10.3 | Vinyl Floorcoverings | 131 |
| 10.4 | Others | 132 |
| 10.4.1 | Linoleum | 132 |
| 10.4.2 | Ceramic Tiles | 132 |
| 10.4.3 | Wood and Laminate | 132 |
| 10.5 | Supply and Distribution | 132 |
Tables and Charts |
||
| Table 1 | The UK Market for Floorcoverings Value 1990-2004 £m MSP | 8 |
| Table 2 | UK Market for Floorcoverings 1998 Mix by Type - percent by Value | 9 |
| Table 3 | UK Market for Carpeting 1990-1999 - at Both Current and Constant Prices £m MSP | 17 |
| Chart 4 | UK Market for Carpeting (Volume m sq m) | 20 |
| Table 5 | The UK Market for Carpets 1996-2004 £m MSP Current Prices | 21 |
| Table 6 | Mix of Imports and Exports of Carpets 1993-1999 By Value (£ million) | 24 |
| Chart 7 | Imports of Carpets by Type - 1998 percent by Value | 25 |
| Chart 8 | UK Imports of Tufted Carpets By Country 1998 percent by Value | 26 |
| Chart 9 | UK Exports of Carpets By Type 1998 percent by Value | 27 |
| Chart 10 | Destinations of UK Carpet Exports 1998 percent By Value | 28 |
| Chart 11 | Sales of Carpeting By Type - 1998 percent By Value | 29 |
| Chart 12 | Sales of Carpeting by Type 1998 - percent Share by Volume | 30 |
| Table 13 | Annual Sales Of Carpeting By Type - 1990-98 By Value (£M MSP) | 31 |
| Chart 14 | UK Market for Tufted Carpets 1990-98 by Value and Volume | 32 |
| Table 15 | Overseas trade in Tufted Carpets - 1996 to 1999 | 34 |
| Chart 16 | Production of Tufted Carpets by Fibre Type - 1998 Mix By Volume percent | 36 |
| Chart 17 | Market Value for Woven Carpet (£m MSP) 1990-1998 | 39 |
| Chart 18 | UK Woven Carpet Market by Type - 1998 by Value £m MSP | 40 |
| Table 19 | UK Market for Needlepunch Carpets - 1990-1998 by Value (£m MSP) and Volume (m sq. m) | 44 |
| Table 20 | Market Shares for Carpet Manufacturers percent by Value 1998 | 49 |
| Table 21 | UK Carpet Manufacturers - Number by Size | 58 |
| Table 22 | UK Market for Vinyl Floorcoverings at Current Prices 1900- 2002 (£m MSP) | 60 |
| Chart 23 | UK Vinyl Floorcoverings Market - Contract/Domestic - 1998 percent Mix by Value (£m MSP) | 62 |
| Chart 24 | UK Market for Domestic Vinyl percent Value Mix by Type 1998 (£m MSP) | 64 |
| Chart 25 | UK Market for Contract Vinyl 1998 - percent Mix by Value | 68 |
| Table 26 | Import and Export of Vinyl Floorcoverings 1995 to 1998 - Value (£ m) | 70 |
| Table 27 | UK Suppliers of Vinyl Floorcoverings - percent Share by Value 1998 | 72 |
| Table 28 | UK Foreign trade in Linoleum by Value £m MSP 1993-1999 | 77 |
| Chart 29 | UK Market for Ceramic Tiles 1998 - percent Mix of Wall & Floor Applications | 80 |
| Table 30 | UK Market For Ceramic Floor Tiles Value £m MSP 1994-1998 | 81 |
| Table 31 | UK Overseas trade In Glazed/Unglazed Ceramic Flags & Paving, Hearth Or Wall Tiles & Glazed/Unglazed Mosaic Cubes By Value (£ m) | 84 |
| Chart 32 | Sources Countries of Imported Ceramic Tiles in 1998 - percent by Value (£ m) | 85 |
| Chart 33 | Destinations of UK Exports of Ceramic Tiles 1998 - percent by Value (£ m) | 86 |
| Table 34 | UK Market for Wooden & Laminate Floorcoverings 1990-1998 £m MSP | 89 |
| Chart 35 | Wooden Flooring Market 1998 - percentMix by Value | 90 |
| Table 36 | Market Shares of the Major Suppliers to the UK Wood & Laminate Floorcoverings Market 1998 | 93 |
| Chart 37: | Distribution Channels UK Floorcoverings Market | 98 |
| Table 38 | Distribution Of Domestic Floorcoverings - 1998 percent Share by Value | 100 |
| Table 39 | Mix of Furniture, Lighting Component & Household Article Retailers by Size 1996 | 102 |
| Table 40 | UK Contract Floorcoverings 1998 Market By Type of Application | 115 |
| Table 41 | Housing Completions 1990-1998 Great Britain ('000) | 118 |
| Table 42 | Housing Starts 1993-1998 Great Britain (000) | 119 |
| Table 43 | Number of Property transactions in England and Wales 1990-1998 | 120 |
| Table 44 | Contractors Output - New Work and RMI Non Housing - Current Prices (£m) | 121 |
| Table 45 | New Orders Obtained by Contractors 1990-1998 Current Prices | 122 |
| Chart 46 | Age Distribution of the Resident UK Population 1997 (000) | 123 |
| Chart 47 | Number of Employees in Employment GB - June 1981-98 (Millions) | 124 |
| Chart 48 | Interest Rates and Inflation (RPI) from 1990-2000 | 125 |
| Chart 49 | PDI & Savings Ratio | 126 |
| Table 50 | Stock of Dwellings Great Britain 1983-1998 | 127 |
| Table 51 | Average Household Size For Great Britain 1971-1996 | 128 |
Text © 2000AMA Research
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Last updated by Jacob van Eldik 26th February 2000