Ceramic Industry News

U.S. Demand for Wall Coverings to Reach $2.4 Billion in 2013 (posted 5/18/09)

May 18, 2009
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Demand for decorative wall tile is projected to increase 5.0% annually to $920 million in 2013, benefitting from the housing recovery.

According to “Wall Coverings,” a new study from The Freedonia Group, Inc., demand for wall coverings is projected to advance 4.2% annually from a weak 2008 base to $2.4 billion in 2013. This represents a considerable improvement over the performance from 2003 to 2008, as the collapse of new housing construction in 2007 and 2008 seriously reduced demand for wall coverings used in new residential markets. In addition, the long-term decline in manufactured housing shipments drove down demand for finished gypsum board, while competition from paint limited the consumption of wallpaper. Going forward, however, the basic demand fundamentals for wall coverings will be much improved. Demand for wallpaper, which has suffered mightily over the last 10 years, will finally begin to show positive growth once again.

Demand for wall panels is forecast to advance 4.0% per year to $920 million in 2013. Gains will benefit from growth in new home building, a rebound in manufactured housing and new product development in laminated wall panels. In nonresidential markets, demand for wall paneling will post less robust gains, mostly due to slow advances in new nonresidential markets.

Demand for decorative wall tile is projected to increase 5.0% annually to $920 million in 2013. Consumption of these products will benefit primarily from the recovery of the new housing segment, which will spur construction of more kitchen and bathroom space, the primary places for wall covering use. Consumption of wallpaper is projected to expand 2.7% annually to $440 million in 2013. This reflects a long-awaited recovery in an industry segment that had recorded steady declines over the last 10 years due to cost, difficulty of use and changing style trends. The development of new products, such as removable wallpaper, wallpaper cut-outs, customized wallpaper, and low-emission and mold-resistant products, will make wallpaper more consumer friendly and easier to use.

Finished gypsum board demand is projected to increase 4.2% annually to $80 million in 2013. These products are almost entirely dependent on the manufactured housing industry. Consequently, when manufactured housing production declined precipitously in the 1998-2008 period, demand for prefinished gypsum board panels suffered. Conversely, as manufactured housing finally recovers, gypsum board demand will also post gains.

Additional details are available at www.freedoniagroup.com.

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