A significant decline in the floorcoverings market between 2008 and 2011 has been followed by a moderate but steady improvement.
So concludes a new report by AMA Research, which says the market was worth an estimated £1.8bn in 2014, representing value growth of 2% from 2013.

This has been the result of an improving economic climate, a recovering housing market and rise in business confidence and levels of investment. The market, which is heavily reliant on replacement and refurbishment, was also buoyed by insurance repairs and replacement of floorcoverings after the floods of 2013 and 2014.

However, continuing pressure on margins and prices has meant that there has been further change to the supply structure in the UK, with further rationalisation of production facilities, AMA says.

Carpet still dominates the floorcovering product mix, accounting for over 50% in value terms in 2014, a share that has changed only marginally over the last five years, but at least indicates the slide in share has stabilised.

Wood accounts for around 15% of the market, followed by vinyl, tiles and other floorcoverings. Demand for laminates has remained relatively flat, although it is being boosted by a move upwards, away from low-value entry-level products, while solid and engineered woods remain popular.

Vinyl products have performed relatively well, according to AMA. Luxury vinyl tiles have continued to take share of both the domestic and contract markets and ongoing product developments have included higher-specification coatings, improved slip resistance and formats such as loose lay.

Annual growth for the total floorcoverings market is forecast at around 2-3% over the next few years.

"Heavy competition is likely to remain a key characteristic of all flooring sectors into the medium term, with margins likely to remain under pressure," said AMA director Andrew Hartley.

"In terms of the supply structure, it is likely that UK manufacturing will be subject to further challenges in terms of production facilities, while in the wider European flooring market there is likely to be further consolidation as the emerging floorcoverings 'super specialists' continued to widen their product ranges."