Flooring Market Trends

Growth Drivers

• Growing urbanization - Urbanization has been considered one of the major driving forces for the flooring industry owing to the increasing construction and residential activities such as renovation or new housing developments and the boost in the demand for flooring products in various projects such as public spaces, railway stations, airports, bridges, roads, and many more. According to a report in 2024, about 44% of the world's population lives in cities, about 43% lives in suburbs and towns, and around 13% lives in rural areas in 2020. Additionally, urbanization has also led to an increasing focus on aesthetics and design, which has created a surge in the flooring market demand for flooring solutions that are not only functional but also visually appealing.
• Increase in disposable income - There has been a growth in disposable income, which is attributed to the growing need for comfort in residential buildings. According to a report, by the Office for National Statistics in 2023, when compared to the gross disposable household income (GDHI) of 2020, it increased by 3.6% in 2021 in the UK. Moreover, there has been growth in residential housing, which fuels the demand for this sector.
• Surge in population - There is a surge in the population that demands both non-residential and residential construction. According to a report in 2023, the global population was predicted to be 8 billion and is estimated to increase by 1 billion by 2040.

Challenges

• Disposal of waste - The flooring sector produces a large amount of garbage when it comes to renovation, demolition, and installation. Old flooring materials, scraps, packaging, adhesives & sealants, and other associated materials are all included in this garbage. Such massive waste quantities can be expensive and time-consuming to dispose of the hazardous compounds that may be present in some flooring products, including specific adhesives, coatings, and underlays. Adherence to particular legislation and guidelines is necessary for the proper handling, containment, and disposal of hazardous materials to prevent threats to the environment and human health.
• Volatility in raw material prices - Changes in raw material prices have the potential to restrict market expansion by impacting the profitability of manufacturers. The main raw materials used in surface-covering goods are vinyl fibers, fiber composites, and resins, and therefore the cost of production rises on account of increased raw material prices. The final product's price also rises, boosting the cost for both raw materials and completed goods, which eventually has an impact on flooring demand.