The Asia-Pacific wall covering market was valued at USD 8 billion in 2020 and is expected to reach USD 11.01 billion by 2026 at a CAGR of over 5.55% during the forecast period 2021 - 2026. The increasing disposable income and a sharp rise in urbanization have been majorly driving the historic transformation of human social roots, by predominantly replacing the rural culture. This has resulted in the increased usage of wall coverings, along with other modern products, like window frames with low heat transmission, electrical cables and conduits, easily cleaned flooring, and light-reflecting roofing.
- Residential constructions account for a substantial share in the wallpaper market and are expected to witness a considerable growth rate. The employment-population growth and opportunities are fundamental drivers of rising demand for new housing as sustained population growth across the world has led to increased demand for all dwellings, including apartments.
- Furthermore, high-density buildings have also accounted for most of the surge in residential buildings, such that in Australia, by February 2020, the value of residential buildings rose 0.9% and has risen for six months. The value of non-residential buildings rose 0.1% and has risen for two months. The increase in apartment construction delivered several dwellings that are more economical than larger, lower-density housing.
- The wall covering market in the region however suffers from stiff competition from paint and coatings and negative consumer perceptions.
- Paint is considered a viable option, as compared to wall coverings in specific applications. For instance, in rooms with higher humidity levels, paints are more suitable because, unlike wallpaper, paint is suited to both the kitchen and bathroom, can deal with humidity, and is mold resistant.
- Moreover, removing existing wallpapers can be a difficult task that requires the right tools to be effective. Stripping wallpaper can be done with stripping tools or chemicals, but care must be taken, or the wall can be damage. Paints, however, have reduced their cons over the years. Applying primer paint prior to painting over dark-colored paints will make paint preparation easier. Also, paint requires considerably lesser preparation time than wallpaper.
- COVID-19 has further decreased the market demand. This is due to decreased customer spending on non-essential and lucury items. Moreover due to the perception that coronavirus stays on wallpaper and similar materials, the supply of wallpapers have been exceeding the demand.
Key Market Trends
Residential Sector is Expected to Register a Significant Growth
- The ascending demand for premium real estate is one of the major trends impacting the market studied. Real estate firms are focusing on value addition by further offering sophisticated designs and luxurious interiors to lure consumers.
- The demand for residential wall coverings is majorly driven by household customization. Moreover, with increasing residential constructions and growth of spending power of population, in regions like China, the market studied is expected to register enhanced growth. Additionally, the decrease in the average household size, owing to a rapidly increasing number of individuals living alone, is further driving the demand for real estate, thereby influencing the overall demand for wall coverings.
- Moreover, the advancements in the design of wall covers have led to the launch of eco-friendly interior products for residences. The 3D wall tiles and panels have become prominent in the market in recent times.
- Also, COVID-19 had peaked in China but is still spreading elsewhere in the APAC region. It was anticipated that activity in APAC real estate capital markets would rebound from late Q2 or early H2 2020. However, the global spread of COVID-19 implies this rebound will be pushed back three to six months, thus entailing uncertainty in the wall covering market for the APAC region.
China to Execute Significant Growth
- Growth opportunities through 2020 will be sparked by a recovery in both non-residential and residential building markets and strengthening prospects in renovation and repair markets.
- Adoption of wall covering products in the region is buoyed by the increasing construction sector in countries like China along with the greatest gains in residential markets. For instance, China Communication and Construction also signed a USD 700 million deal for the construction of a terminal at the Port of Sao Luis, while a USD 300 million loan deal was reached between the Exim Bank of China and Banco do Brasil.
- Imports of wall covering products have been steadily declining for a decade, reflecting the weakening market environment for wallpaper. However, changing consumer preferences and improving economies are expected to offer opportunities for growth in the region.
The Asia Pacific wall covering the market is highly competitive and operates with numerous significant players. In terms of market share, some of the major players dominate the market currently. These major players with prominent market shares are focusing on expanding their portfolios and thus enhancing their customer base across foreign countries. These companies are leveraging strategic collaborations to increase their profitability and market share. The companies operating in the market are further acquiring several start-ups working on Wall Covering technologies to strengthen their product offering capabilities.
- August 2020 - India-based UDC Homes launched a new range of wallpapers known as the Nuance collection. This range features wall coverings with nature-inspired designs-majestic mountains, expansive ocean waves and pristine forests with a plethora of vibrant animals and birds.
- March 2020 - Tektura launched 20 new designs to their current wallcovering library.
- February 2020 - A South Korean company Shinhan wallcoverings co. Ltd. launched two new wall covering collections in its portfolio and was named - Living and Pluto.
- The market estimate (ME) sheet in Excel format
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Table of Contents
1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5.1.1 Increasing Demand for Home Furnishing
5.2 Market Restraints
5.2.1 High Inventory Costs and Premium Pricing
5.3 Assessment on the impact of COVID-19
6.1.3 Metal Wall Coverings
6.1.4 Ceramic Tile
6.1.5 Other Products
6.2 Distribution Channel
6.2.1 Specialty Store
6.2.2 Home Centre
6.2.3 Building Material Dealer
6.2.4 Furniture Store
6.2.5 Mass Merchandizer
6.4.5 South Korea
6.4.6 Rest of Asia Pacific
7.1.1 LAMEX Wall
7.1.2 Elegant Haus International
7.1.4 Supreme Interior Design
7.1.5 Ritz Wallcovering Sdn Bhd
7.1.6 JC Maison, Malaysia
7.1.7 Sungreen Co.,Ltd.
7.1.8 A.S. Création (A.S. Création Tapeten AG)
7.1.9 Shinhan Wallcoverings Co., Ltd.
7.1.10 Marshalls Wallpapers
7.1.11 Guangdong Yulan Group Co.,Ltd.
7.1.12 Guilin Wellmax wallcovering Co, Ltd.
7.1.13 Beitai Wallpaper
A selection of companies mentioned in this report includes:
- LAMEX Wall
- Elegant Haus International
- Supreme Interior Design
- Ritz Wallcovering Sdn Bhd
- JC Maison, Malaysia
- Sungreen Co.,Ltd.
- A.S. Création (A.S. Création Tapeten AG)
- Shinhan Wallcoverings Co., Ltd.
- Marshalls Wallpapers
- Guangdong Yulan Group Co.,Ltd.
- Guilin Wellmax wallcovering Co, Ltd.
- Beitai Wallpaper