Cleveland, OH, November 19--Demand for flooring in China is expected to climb 7 percent per year through 2008 to 2.5 billion square meters, according to a report by the Freedonia Group.
Measured in yuan, flooring demand will expand more than nine percent per year because of increases in average product prices, reaching 172 billion yuan, ($20.8B).
The Chinese flooring market will outpace growth in most other parts of the world, driven by healthy gains in building construction activity as industrialization efforts continue and income levels rise.
Laminate flooring sales will expand nearly 16 percent annually through 2008 in area (square meters). Demand will be stimulated by laminate's outstanding performance characteristics and supported by continuing price declines.
Carpet and rug demand will also climb at an above-average pace, fueled by strong increases in building construction spending and motor vehicle production. Wood flooring sales will be healthy as well, benefiting from rising per capita income and a preference among many buyers for high-end and natural flooring products.
Residential building flooring demand will rise at an above-average rate through 2008, spurred by ongoing privatization efforts, higher income levels and further growth in the average size of new homes.
Nonresidential building floor covering sales will advance at a slower, but still healthy, pace, with the industrial and institutional market segments expected to record the biggest gains.
New construction applications account for the majority of sales in China, unlike the U.S., where replacement sales represent more than two-thirds of all residential floor covering demand. Long-lasting nonresilient flooring products account for a much larger share of total demand in China, resulting in significantly lower annual replacement requirements.
In addition, living standards are lower in China, so that end users are much less likely to tear out and replace still functional flooring for style considerations. Nevertheless, improvement and repair-related demand will account for a growing share of the market total in China as the size of the installed flooring base expands.
