ASEAN Laminate Flooring Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The ASEAN laminate flooring market is projected to register a significant CAGR in the forecast period due to developing countries and economies.

COVID-19 has shaken ASEAN economies and changed the market scenario. It has negatively impacted the ASEAN laminate flooring market. Transactions are halted due to manufacturing industries shutting down due to the pandemic, which restricted the construction of housing and building projects, and the lockdown restrictions have limited the new purchases of laminate flooring, and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021.

Laminate flooring refers to a multi-layer synthetic flooring product that is made up of the wear, design, core, and back layers sealed together using the lamination process. The upper layer usually comprises melamine and aluminum oxide that aid in providing the laminate board a scratch and moisture-resistant surface. Laminate flooring is economical, highly resistant to dust and damage, versatile, durable, eco-friendly, and is easy to install. As laminate flooring is relatively inexpensive compared to engineered wood, solid hardwood, and stone floor coverings, it is available in varying widths, lengths, and thicknesses and can replicate different surfaces, including wood, stones, and tiles. The demand for laminate flooring is increasing across ASEAN countries. Economic development and substantial infrastructure development have constituted regional revenue generation. Further, the patterns associated with domestic production, import and export, and consumption have helped market participants to analyze and capitalize on potential opportunities. In this region, laminate flooring is sold to the residential and commercial sector, such as office/shopping complexes, hospitality. Thailand, Malaysia, and Indonesia have some manufacturers who are constantly innovating in terms of product offerings in the country, which is expected to further fuel the demand for laminate flooring in the region in upcoming years. The growth will be supported by increasing urbanization and mounting disposable income. The productive forces behind such an extravagant jump include the growth of laminate flooring trade between ASEAN countries, which affords regional countries the possibility to establish themselves as the regional hub in the area. The Flooring manufacturing sector is one of the sectors that is bearing the toughest brunt of COVID-19 for more than a year, and manufacturers were stranded on raw material orders due to a major effect on the logistics industry due to the lockdowns. All these factors are limiting the laminate flooring industry growth during the pandemic.

Key Market Trends

High-density Fiberboard (HDF) Laminated Flooring Segment is in Demand Due to Its Properties

The HDF segment is in demand in the laminate flooring market, as it is affordable and is installed in regions that have extreme weather conditions. The growth of the HDF segment remains high due to its properties, which makes it a preferred laminate flooring solution for residential as well as commercial applications. The high-density fiberboard (HDF) laminated flooring solutions are considered suitable for almost all applications, such as residential and commercial. In comparison to engineered wood, solid hardwood, and stone floor coverings, laminate flooring is inexpensive and easy to install as well as maintain. It is available in varying widths, lengths, and thicknesses and can replicate different surfaces, including wood, stones, and tiles. It has several properties such as durability, flexibility, ease of installation, and is budget-friendly, which is projected to drive the growth of this segment.

Growing Construction Industry in ASEAN Countries is Fueling the Market

The ASEAN construction industry will grow by more than 6% on an annual average in the next five years. The ASEAN region presents investors and developers with a lower level of risk of projects being put on hold or canceled, according to GlobalData’s Construction Risk Index. According to GlobalData, the combined value of mega-projects (with a minimum value of USD 25 million) across ASEAN stands at USD 2.9 trillion. This includes all projects from the announcement stage to execution. An analysis of the pipeline by stage reveals that the region provides huge opportunities with respect to a large volume of early-stage projects. Just under USD 1.5 trillion of projects are currently in the planning and pre-planning stages, suggesting significant construction spend to occur for some time. Southeast Asia’s construction industry growth in 2019 is among the world’s strongest. Real value growth in construction in the Philippines, Vietnam, and Indonesia ranked third, fifth, and sixth worldwide according to the Arcadis 2019 International Construction Cost report. With rapid industrialization, rising expenditure on infrastructure projects, and manufacturing facilities, along with the growing residential construction market, the floor covering market is anticipated to register rapid growth in the forecast period. The laminate flooring market, which is a sub-segment of non-resilient floor coverings, is growing with the positive trends in commercial construction and is followed by residential construction.

Competitive Landscape

The report covers major international players operating in the ASEAN laminate flooring market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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