Product areas covered in detail are:-

• FINISHED WALLPAPER
• VINYLS
• WHITES

The market was worth over £186 million at manufacturers’ prices in 2000 having undergone substantial change in terms of supply structure in the last two years. Sales of wall coverings have remained depressed during this time, despite periods of buoyant economic growth. This report assesses some of the reasons behind this and reviews the market's future prospects.

Of Particular Interest:

• Re-organisation and consolidation of supply structure.
• Analysis of key growth sectors within the wall coverings market.
• Key factors influencing the market.

The report is written by marketing professionals with wide experience of consumer durable products and answers the need for both a comprehensive QUANTITATIVE review of market developments and detailed QUALITATIVE analysis of background reasons and future trends - essential requirements for good marketing planning.

Information is collated from a wide range of trade and other sources and not simply a collection of government statistics - data and comment is therefore specific and relevant to the markets involved.

Key areas of coverage in the report include:

THE MARKET

• Total Wall Coverings Market - analysis of size by value, historical trends from 1994-2000 and forecasts to 2004.
• Historical trends and key influencing factors.
• Recent trends and key factors affecting the overall performance of the UK wall coverings market.
• Future prospects for the wall coverings industry.
• Mix of wall coverings by end-use sector - trade commercial, trade domestic and DIY, relative changes of mix and current performance of each sector.
• Imports & Exports - size of each sector, significance of exports, main export markets and key countries influence on demand.

PRODUCT MIX

• Definitions of types of wall coverings within the market.
• Historical and current mix of wall coverings - finished wallpaper, vinyl wall coverings and whites - recent trends in mix.
• 2000 mix by value of finished wallpaper, smooth vinyls, blown vinyls, vinyl rolls, embossed, woodchip & lining. Recent developments and trends in each sector.
• 2000 mix of blown coloureds and whites, comparison with earlier years.
• Other fashion trends such as borders, children's designs etc.
• Current trends in terms of designs, patterns and colours.
• Key areas of recent development within the market.

SUPPLIERS

• Recent changes in the overall supply structure.
• Major suppliers of wall coverings in the UK market with shares by value.
• Profiles of major suppliers, financial information and recent developments.
• Details of major companies targeting the higher quality sector of the market.
• Product and sector strengths, trends, developments etc.

DISTRIBUTION

• Distribution structure for commercial wall coverings illustrating major channels involved.
• Distribution structure for domestic wall coverings outlining key channels.
• Share of wall coverings distribution by outlet type.
• Review of major outlets within each type of distribution channel.
• Overall performance of key channels, growth / decline, areas of strength.

KEY MARKET INFLUENCES

• Construction sector - historical trends and current performance of housing and commercial construction markets, house moving.
• Age distribution of UK population.
• PDI, level of employment interest rates, inflation.
• Households - stock of dwellings, average household size.

MARKET PROSPECTS

• Future prospects for the commercial and domestic wall coverings markets.
• Key factors influencing future prospects.

The report contains ORIGINAL research and comment on the UK Wall Coverings industry and provides incisive and thought provoking views on its future development.

Source: AMA Research / Trade Estimates The chart indicates that the wallcoverings market is currently in overall decline with the rate of decline having accelerated significantly during the past two years. However, the medium term picture is a depressing one, with 4 constant years of decline from 1996 through to 2000, and at real price levels this situation would be even worse.

During 2000, the wallcoverings market had an estimated value of £186 million, with value of the market declining by 18.5 percent in overall terms since the peak during 1996. Sales volumes have also declined during the past two years with increasing pressure on prices, particularly at the lower end of the market, contributing to lack of value growth within the market.

The rate of decline of the wallcoverings market has been exacerbated by the continuing popularity of the paint and paint effects market and its continued adoption as a main method of redecoration by an increasing percentage of younger home owners. However, the upper end of the wallcoverings market has performed reasonably well with higher value wallcoverings products attracting interest from consumers who are seeking a differentiated product, which is not available in the volume market.

DIY installation still dominates as an end use sector, but the transfer of allegiance to paints has meant the market share in value terms has declined slightly to 69 percent (73 percent during 1998). Both commercial and domestic professional installations have gained value share during 2000 with 19 percent and 12 percent of wallcoverings sales respectively.

International trade in wallpapers has continued to be fairly good with the UK remaining a net exporter of wallcoverings. However the export trade has been hit by the high value of the pound and the collapse of strategically important markets in Eastern Europe and the Far East. Levels of imports have continued to make steady progress and were valued at £28.7 million during 2000. Due to the shrinking of the UK market, imports have increased their value share of the market and are now estimated to account for 16 percent of the market.

In terms of product mix, vinyl based wallcoverings dominate the market and have increased value share of the market to 64 percent during 2000 (1998 62 percent), with an estimated value of £119 million. Finished wallpapers have effectively maintained share at 28 percent (29 percent in 1998) but the whites sector continues to lose value share due to the low cost nature of these products. Within the vinyl sector both smooth and blown vinyls continue to outperform the market with consumers seeming to appreciate the added benefits of these products.

Both value and volumes sales of borders have declined during the past two years with the trend away from split wall having impacted upon the sector. Children's wallpaper designs continue to be popular with many new ranges introduced. This is the one area of the wallcoverings market, which is showing increased growth due to the "fashion" element, whereby children quickly grow out of certain designs.

There has been considerable activity within the supply side of the wallcoverings market during the last two years with a number of acquisitions, mergers and takeovers. The Englewood Group has emerged following the acquisition of Vymura by the parent company of John Wilman and Coloroll.

The supply of wallcoverings is becoming increasingly concentrated with a smaller number of manufacturers responsible for an increasingly large percentage of market share. Leading wallcoverings suppliers during 2000 included IHDG (UK), Englewood, Graham & Brown and Cova Products.

In terms of distribution, DIY multiples continue to dominate retail wallcovering supply but value share has been affected by the decline in the overall market and the poor performance of the lower end of the market, which DIY multiples tend to serve.