CLEVELAND, OH -- World demand for flooring and carpets is expected to rise 4.9 percent annually to 18.6 billion square meters in 2016. This will be an improvement from the rate during the 2006-2011 period, as countries rebound from the 2008 global economic crisis. In value terms, demand for floor coverings is projected to advance 6.8 percent per year to $270 billion. The primary driver of demand in developed areas will be rebounds in the residential construction markets of many countries (especially in the US). In developing regions, rising building construction activity and growing per capita incomes will spur demand and allow households to afford more expensive floor coverings. Rising motor vehicle production in many areas will also boost overall demand for floor coverings. These and other trends are presented in World Flooring & Carpets, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The Asia/Pacific region is forecast to see the fastest gains in floor covering demand, as the rapid industrialization of many countries in this region and rising personal incomes will drive demand. China alone is projected to account for over one-third of all new demand generated through 2016, strengthening its position as the largest market for flooring and carpets in the world. North America is expected to see the second fastest gains in flooring and carpet demand, driven by an expected rebound in the US housing market. Solid increases in motor vehicle production in the US will also boost demand for floor coverings. Gains in developed areas such as Western Europe, Australia, and Japan will not be as strong as those in North America or developing regions. However, a rebound in new housing construction will boost demand in many of these countries.

Residential buildings constitute the largest market for floor coverings, accounting for 59 percent of sales in 2011. Nonresidential buildings made up 35 percent of demand, with transportation and other markets representing the remaining six percent. Through 2016, the fastest gains in demand are expected in the nonresidential buildings market, primarily due to a rebound in nonresidential construction expenditures in countries recovering from the 2008 global financial crisis and 2009 economic downturn. Demand growth in the transportation equipment and other market will see strong gains due to rising motor vehicle production, while demand in the residential building market will see similar growth because of rebounding housing markets in many countries.

© 2013 by The Freedonia Group, Inc.

World Flooring & Carpets (published 01/2013, 412 pages) is available for $6300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail [email protected]. Information may also be obtained through FreedoniaGroup.com.

Source: The Freedonia Group