China Floor Covering Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The China floor covering market is expected to witness strong growth during the forecast period. The China floor market demand is dominated by the real estate and construction industries, of which the proportion of residential housing demand for the flooring industry is relatively prominent. The demand for flooring in the renovation of commercial houses, new houses, old houses, and second-hand houses has been steadily increasing. In particular, the growth of secondary decoration and improved housing is conducive to the good growth of the Chinese high-end flooring market.

Floor covering is viewed as a building material and not as a decoration in China. Most of the floor covering is retailed and installed by manufacturers. The Chinese flooring industry is growing at a rate of 15% per year.

Between 1,600 million and 1,900 million square meters of new floor space will be needed each year between now and 2025 to meet the needs caused by urban migration. This is a staggering demand with every square meter of floor space needing floor covering, which is expected to boost the market growth.

Chinese floor market demand is increasing year by year. The development of the Chinese real estate industry continues to rise, and the demand for flooring in the future development of the national economy may be strongly driven. The continuous development of the real estate industry and the increasing acceptance of flooring's aesthetic needs are likely to boost demand for flooring in China during the forecast period.

Key Market Trends

Ceramic Tiles are The Most Dominant Flooring Category in China

In terms of floor output, China's ceramic floor output is relatively high. The growth in the market for ceramic tiles is linked to the growth of the construction industry. Increasing residential construction is expected to drive demand for indoor and outdoor wall coverings with ceramic tiles. The growth in the population may significantly boost construction needs and, in turn, increase demand for ceramic tiles in the country. The high percentage of low-cost ceramic tile that makes up the majority of the Chinese market.

Among the main flooring product categories, ceramic flooring occupies the major market share in China. In 2018, the ceramic flooring market accounted for 44.7% of the share, followed by wooden flooring. The market share of stone flooring and laminate flooring is relatively small.

Manufacturer Owned Stores are the Most Preferred Distribution Channel

In China, flooring can be purchased from retail stores and even the internet, but there are no buying groups or home centers promoting flooring. The majority of retail stores are owned by flooring manufacturers who also install and service the floor. The retail channel in China is very fragmented, with the 50 largest retailers accounting for less than 5% of the total market.

When it comes to purchasing flooring, there are a number of retail options available in the country. A major factor affecting where flooring is purchased is that flooring is considered a building material, not a home decoration, and is often grouped with plumbing fixtures and lighting. Flooring manufacturer-owned stores and home products/design malls are the largest retail outlets for flooring in China. Manufacturer stores (Nature, Elegant Living, Power Dekor, for example) can be stand-alone units or showrooms located within large, multi-story structures where other home products, such as plumbing and lighting fixtures, are sold. These are the most preferred channels for the purchase of flooring products in the country.

Competitive Landscape

The Chinese floor covering market is highly competitive and fragmented with the presence of major players, such as Elegant Living, Jiusheng Flooring Co. Ltd, Yihua Lifestyle Technology Co. Ltd, and Kronowiss. The rising innovation of flooring products, channel, and marketing construction, or opening up the industry chain, is becoming one of the main ways for flooring companies to deal with brand concentration and develop new markets. There are many international companies already operating inside China in the flooring market. The new market and spending power due to China’s rising consumerism hold enormous potential for manufacturers worldwide.

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