News / Business
Wall Covering Demand to Exceed $2 Billion in 2015
Demand for wall panel products is forecast to increase 9.0 percent annually to $1.2 billion in 2015. Sales of wall panel products will benefit from the expected recovery in residential construction activity, coupled with improving prospects in nonresidential construction markets. Laminate panels, in particular sheet panels, will continue to dominate demand, but greater growth prospects will emerge for several products at opposite ends of the value spectrum.
Demand for wallpaper products is projected to increase 7.3 percent annually to $480 million in 2015. Sales of wallpaper products have been in decline for more than a decade, reflecting changes in consumer preferences away from wallpaper in favor of paints and coatings. However, the development of products such as wallpaper borders, custom wallpaper and textured wallpaper is expected to breathe new life into a previously depressed product category. Also, advances in wallpaper technology, which make these products easier to apply and remove, will expand sales opportunities.
Demand for decorative tile wall coverings is projected to increase 7.1 percent annually to $450 million in 2015. Gains will derive primarily from a recovery in new housing construction, although consumption will also benefit from accelerating new nonresidential construction. In addition, the recovery in construction markets will also lead to growth in improvement and repair spending in both residential and nonresidential markets, supporting increased demand for ceramic tile in bathroom and kitchen renovations. Higher end products, such as glass tile, will provide outsized niche growth prospects.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
