| AM45164 |
| AMA Research Report : UK Wallcoverings Market : May 2004 |
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Introduction and Overview
| AMA Research have now published the Sixth Edition of the "Wall Coverings Market – UK 2004" report. Incorporating original research, the report is a comprehensive and up-to-date review of the wall coverings market - representing a worthwhile investment and giving excellent value for money. |
| Product areas covered in detail are:- |
| FINISHED WALLPAPER |
| VINYLS |
| WHITES |
| The market was worth over £182 million at manufacturers’ prices in 2003 having undergone substantial change in terms of supply structure in the last two years. After having declined for some time, the market is slowly showing signs of recovery. This report assesses some of the reasons behind this and reviews the market's future prospects. |
| Of particular interest are the following: |
| Changing attitudes in 2003/4 towards wallpapering by consumers. |
| Re-organisation and consolidation of supply structure. |
| Analysis of key growth sectors, such as children’s wallcoverings, designer market etc. |
| Key macro and micro influencing factors impacting on the market in 2004. |
| 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 1997-2003 and forecasts to 2007. |
| 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. |
| 2003 mix by value of finished wallpaper, smooth vinyls, blown vinyls, vinyl rolls, embossed, woodchip & lining. Recent developments and trends in each sector. |
| 2003 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. |
Executive Summary
| The wallcoverings market has always been a cyclical market, enjoying periods of growth when consumer confidence is high and declining during times of economic constraint. The wallcoverings market is currently improving after having experienced steady decline since 1997. The market is expected to continue to increase, albeit at a relatively slow rate for the medium term future. |
| Between 1997 and 2002, the wallcoverings market is estimated to have declined by 19%. During 2003, the wallcoverings market was indicated to account for £182 million in terms of value, having increased slightly since 2002 when it was estimated at around £180 million. Volume sales did not experience the same rate of decline as the market value, with prices being squeezed down in order to maintain volume sales. |
| The higher value sector of the market is indicated to have performed reasonably well in 2003, with consumers seeking added value products which have not historically been linked with the volume end of the market. This has sustained overall market performance to some extent, and the increasing influence of ‘designer’ influences is likely to stimulate this sector further in the short to medium term. |
| Over the last few years, the rate of decline experienced in the wallcoverings market has been intensified by the continuing popularity of the paint and paint effects market, particularly fuelled by the media focusing on the ease of use of these products. However, during 2003, there are indications of a shift again towards wallcoverings with manufacturers focusing on the simplicity of wallpapering to change consumers’ perceptions of this activity. With some additional help from designers, wallcoverings are now back in fashion. |
| DIY installation still dominates as an end use sector accounting for around 70%. This sector has lost value over the last few years, mainly because the DIY retailers generally target the lower end of the market, which remains under significant pricing pressures. Trade commercial and trade domestic are estimated to account for around 20% and 10% respectively. |
| International trade in wallpapers has continued to be fairly good with the UK remaining a net exporter of wallcoverings. However there has been a decline in the export of wallcoverings since 1997. This is due partly due to the collapse of strategically important markets in Eastern Europe and the Far East, and the continued high level of Sterling on the foreign exchange markets. Levels of imports have continued to make steady progress and had an estimated value at £45.6 million during 2003. |
| In terms of product mix, vinyl based wallcoverings dominate the market with a value share of 64% during 2003. Finished wallpapers are currently accounting for 30% of the market, having increased their share from 28% in 2000, at the expense of the whites sector. 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. Blown vinyls are particularly becoming more popular. |
| Borders have experienced decline both in terms of volume and value, as the trend away from split walls has emerged, and they have also lost some share to instant stencils. The children’s wallpaper market has been the most successful sector of the wallcoverings market in the last few years, with new ranges and designs being introduced frequently. The popularity of this area is also fuelled by the increased frequency in which children’s rooms are being redecorated. |
| Many manufacturers and stockists are showing renewed interest in wallcoverings and have started to promote them quite heavily. This has fuelled the rising amount of consumers switching preference from paint to wallcoverings. |
| The supply of wallcoverings is becoming increasingly concentrated with a smaller number of manufacturers responsible for an increasingly large percentage of market shares. Particularly significant was the recent takeover of IHDG (UK) by the CWV-Group. |
| 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 value end of the market, which DIY multiples tend to serve. |
List of Contents
| 1 | INTRODUCTION |
| 2 | SUMMARY |
| 3 | ECONOMIC ENVIRONMENT |
| 3.1 | GDP GROWTH |
| 3.2 | INTEREST RATES & INFLATION |
| 3.3 | EMPLOYMENT/UNEMPLOYMENT |
| 3.4 | HOUSEHOLD CONSUMPTION, EARNINGS AND SPENDING |
| 3.5 | STERLING |
| 3.6 | CONCLUSION |
| 4 | MARKET OVERVIEW |
| 4.1 | MARKET BACKGROUND |
| 4.2 | MARKET SIZE |
| 4.3 | MARKET CHARACTERISTICS AND TRENDS |
| 4.4 | WALLCOVERINGS INDUSTRY - EMPLOYMENT TRENDS AND SIZE OF BUSINESSES |
| 4.5 | END USE SECTORS |
| 4.5.1 | DIY |
| 4.5.2 | Trade - Domestic |
| 4.5.3 | Trade - Commercial |
| 4.6 | IMPORTS & EXPORTS |
| 4.7 | KEY MARKET INFLUENCES |
| 4.7.1 | The Housing Market |
| 4.7.2 | The Commercial and Industrial Construction Markets |
| 4.7.3 | Population Profile And Household Size |
| 4.8 | FUTURE PROSPECTS |
| 5 | PRODUCT MIX |
| 5.1 | OVERVIEW OF PRODUCT MIX |
| 5.2 | FINISHED WALLPAPER |
| 5.3 | VINYL WALLCOVERINGS |
| 5.3.1 | Smooth Vinyls |
| 5.3.2 | Blown Vinyls |
| 5.3.3 | Other Vinyl Wallcoverings |
| 5.4 | WHITE WALLCOVERINGS |
| 5.4.1 | Embossed Wallcoverings |
| 5.4.2 | Woodchips And Lining |
| 5.5 | OTHER TRENDS |
| 5.5.1 | Borders |
| 5.5.2 | Children's Designs |
| 5.5.3 | Wall Covering Designs, Patterns & Colours |
| 5.5.4 | Other Developments |
| 6 | SUPPLIERS |
| 6.1 | GENERAL |
| 6.2 | MAJOR SUPPLIERS |
| 6.2.1 | The Imperial Home Decor Group (UK) |
| 6.2.2 | Englewood Ltd |
| 6.2.3 | Graham & Brown |
| 6.2.4 | Cova Products |
| 6.2.5 | Walker Greenbank |
| 6.2.6 | Fine Décor Wallcoverings |
| 6.2.7 | Country Décor Wallcoverings |
| 6.2.8 | Other Companies |
| 7 | DISTRIBUTION |
| 7.1 | DISTRIBUTION STRUCTURE |
| 7.2 | MAJOR CHANNELS |
| 7.3 | DIY MULTIPLES |
| 7.4 | INDEPENDENTS & SPECIALISTS |
| 7.4.1 | Hardware & Independent DIY Stores |
| 7.4.2 | Paint and Wallpaper Specialists |
| 7.4.3 | Interior Designers |
| 7.5 | TRADE CENTRES AND WALLCOVERINGS WHOLESALERS |
| 7.6 | DEPARTMENT STORES, VARIETY STORES AND FURNISHING MULTIPLES |
| 7.6.1 | Department Stores |
| 7.6.2 | Variety Stores and Co-operatives |
| 7.6.3 | Furnishing Multiples |
| 7.7 | OTHERS |
| 7.7.1 | Builders Merchants |
| 7.7.2 | Market Stalls |
| 8 | FUTURE PROSPECTS |
Tables and Charts
| CHART 1 | UK WALLCOVERINGS MARKET 1997-2007 (£ MILLION MSP) |
| CHART 2 | INTEREST RATES AND INFLATION (RPI) FROM 1990-2005 |
| CHART 3 | PDI & SAVINGS RATIO 1980-2005 |
| TABLE 4 | EXCHANGE RATE FLUCTUATIONS 1997-2004 - DOLLARS, AND THE ECU TO THE POUND STERLING, SPOT RATES |
| CHART 5 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 ('000) |
| TABLE 6 | THE UK MARKET FOR WALLCOVERINGS (£ MILLION AT MSP) 1997-2007 |
| CHART 7 | RETAIL PAINTS & WALLCOVERINGS MARKET 1996-2003 (INDEX OF SALES, 1996=100) |
| TABLE 8 | % OF CONSUMERS UNDERTAKING DIY WALLPAPERING AND INTERNAL PAINTING ACTIVITIES 1995-2003 |
| TABLE 9 | SIZE OF BUSINESSES OF UK WALLPAPER MANUFACTURING INDUSTRY 2003* - NUMBER OF EMPLOYEES |
| TABLE 10 | SIZE OF BUSINESSES OF UK WALLPAPER MANUFACTURING INDUSTRY 2003 - TURNOVER SIZE (£ THOUSAND) |
| CHART 11 | WALLCOVERINGS BY END USE APPLICATION 2003 - % BY VALUE |
| TABLE 12 | IMPORTS & EXPORTS OF WALLCOVERINGS 1997-2003 BY VALUE (£ MILLION) |
| CHART 13 | MAJOR IMPORT SOURCES FOR WALLCOVERINGS DURING 2003 - % BY VALUE |
| CHART 14 | MAJOR EXPORT DESTINATIONS OF WALLCOVERINGS DURING 2003 - % BY VALUE |
| TABLE 15 | HOUSEBUILDING COMPLETIONS 1995-2004 GREAT BRITAIN ('000) |
| TABLE 16 | NUMBER OF PROPERTY TRANSACTIONS IN ENGLAND AND WALES 1995-2002 |
| TABLE 17 | STOCK OF DWELLINGS GREAT BRITAIN - 1985-2002 |
| TABLE 18 | AVERAGE HOUSEHOLD SIZE FOR GREAT BRITAIN 1971 - 2001 |
| CHART 19 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 ('000) |
| CHART 20 | PDI & SAVINGS RATIO 1980-2005 |
| TABLE 21 | RETAIL SPENDING - PREDOMINANTLY NON-FOOD STORES 1995-2002 |
| CHART 22 | UK MARKET FOR WALLCOVERINGS % VALUE SHARE BY PRODUCT GROUP |
| TABLE 23 | WALL COVERING TYPES - % SHARE BY VALUE 2003 |
| CHART 24 | THE UK WALLCOVERINGS MARKET - % SHARE FOR SMOOTH VINYLS |
| CHART 25 | UK MARKET FOR BLOWN VINYLS % MIX BY VALUE 2003 |
| CHART 26 | UK MARKET FOR BLOWN VINYLS % MIX BY VALUE 1991 TO 2003 |
| TABLE 27 | MARKET SHARES OF MAJOR UK WALL COVERING SUPPLIERS 2003 |
| TABLE 28 | MARKET SHARES OF MAJOR UK WALLCOVERING SUPPLIERS BY VALUE 1996 |
| CHART 29 | WALLCOVERINGS DISTRIBUTION - COMMERCIAL MARKET |
| CHART 30 | WALLCOVERINGS DISTRIBUTION - DOMESTIC MARKET |
| TABLE 31 | DISTRIBUTION OF WALLCOVERINGS BY OUTLET - % BY VALUE 2003 |
Text © 2004 AMA Research
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Last updated by Amanda Porteous 2004
