US Demand for Wall Coverings to Reach $2.2 Billion in 2015

Demand for wall coverings is projected to advance 8.2 percent annually from a weak 2010 base to $2.2 billion in 2015 . This represents a dramatic improvement over the performance of the 2005-2010
period , when demand for wall coverings fell sharply in the wake of the economic recession and the collapse of the US construction market, particularly residential construction. Just as the residential sector suffered the most from the downturn in construction, so will it also lead the way back, with demand for wall coverings in this key market segment advancing more than eleven percent per annum through 2015. These and other trends are presented in Wall Coverings, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Demand for wall panel products is forecast to increase 9.0 percent annually to $1.2 billion in 2015 . Sales of wall panel products will benefit from the expected recovery in residential construction activity, coupled with improving prospects in nonresidential construction markets. Laminate panels, in particular sheet panels, will continue to dominate demand, but greater growth prospects will emerge for several products at opposite ends of the value spectrum.

Demand for wallpaper products is projected to increase 7.3 percent annually to $480 million in 2015 . Sales of wallpaper products have been in decline for more than a decade, reflecting changes in consumer preferences away from wallpaper in favor of paints and coatings. However, the development of products such as wallpaper borders, custom wallpaper and textured wallpaper is expected to breathe new life into a previously depressed product category. Also, advances in wallpaper technology, which make these products easier to apply and remove, will expand sales opportunities.

Demand for decorative tile wall coverings is projected to increase 7.1 percent annually to $450 million in 2015 . Gains will derive primarily from a recovery in new housing construction, although consumption will also benefit from accelerating new nonresidential construction. In addition, the recovery in construction markets will also lead to growth in improvement and repair spending in both residential and nonresidential markets, supporting increased demand for ceramic tile in bathroom and kitchen renovations. Higher end products, such as glass tile, will provide outsized niche growth prospects.

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