Decline in construction industry affects laminate flooring sales

Laminate flooring sales suffers in 2023

After a challenging year in 2022, the laminate industry’s sales continue to be impacted by the construction sector’s downward trend into 2023, according to the European Producers of Laminate Flooring Association (EPLF).

Despite facing a general decline due to inflation, rising material costs, and slowing demand, the sector maintains confidence in the market and remains optimistic about future sales.

The EPLF total sales for 2023 amount to 318,049,711m², marking a decrease of 13.38% compared to 2022.

Among the main regions, the smallest decline in 2023 was in Western Europe with 7.65% compared to 2022 and the largest in North America, with 42.04% compared to 2022.

In 2023, sales in Western Europe decreased by 7.65% with 165,380,000m² sold. Sales increased in Turkey by 22.46%, Ireland by 16.31% and Belgium by 2.85%.

The majority of countries in the region felt the effects of the international upheaval, with Germany experiencing a decrease of 11.06% to 33,843,105m² sold, and Austria with 14.34% decrease to 2,971,082m² sold. However, Switzerland’s sales remained relatively stable, with a decline of less than 1% compared to 2022.

Eastern Europe faced even harsher conditions, with sales declining by 10.25% to 96.705,775m² sold compared to 2022.

Belarus and Bosnia and Herzegovina recorded a positive sales increase, with 8.84% and 3.26% respectively, while Croatia remained stable with 2,550526m² sold.

However, Poland and Hungary suffered the most significant setbacks decreasing by 7.3% to 3,521,108m² and by 39.2% to 4,626,284m² sold respectively.

On the other hand, Kosovo’s sales shifted from a decline of 47.2% in 2022 to an increase of 3.27% in 2023.

North America experienced the most significant impact compared to other regions worldwide, with a decline of 42.04%. Sales in 2023 amounted to 21,609,239m², a notable decrease from 37,280,606 m² in 2022.

Additionally, Latin America saw a decline of 33.76%, achieving 7,402,177m² in sales for 2023. Notably, Chile, which suffered the most in 2022, experienced a less severe decline of 19.76%, with 3,580,669m² sold in 2023.

EPLF’s sales in Africa declined by 15.66% with 3,244,021m² sold in 2023, with sales increasing only in Morocco by 3.37% in 2023 to 789,685m² sold.

Oceania experienced a similar situation with a drop of 21.41% to 2,361,619m². In Asia, there was a decrease of 17.25% to 17,795,550m² sold. Notably, Kazakhstan showed signs of recovery with sales increasing by 5.67%, with 4,194,635m² sold compared to 2022, while China continued to face a decline of 38.21% to 2,323,046m² sold.

The construction market has been under pressure due to high inflation and rising costs. Consumers stopped building and renovating. As laminate is one of the biggest flooring categories, it follows the downward trend of the construction market.

Long term projections however show a very big opportunity for laminate flooring as new construction and renovation are expected to boom in the next few years. The construction market will go up again as there is a shortage of housing, new houses will need to be built and the existing housing market will need to be renovated because of the implementation of the European Green Deal.

On the short term, the members of EPLF prepare for a difficult market. They are confident on the medium and longer term and are optimistic for future sales.