Carpet Tile Market Report

Due to the rising awareness regarding the environment and the demand for biodegradable carpet tile in the year 2023, the DESSO X Rens introduced 100% biodegradable, which can be used in wellness real estate. The Netherlands has started using biodegradable carpet tiles in wellness real estate. As per the data of the Global Wellness Institute, the demand for wellness real estate has peaked and reached the mark of US$ 438 billion in 2023; furthermore, the market expansion is predicted to double itself and reach US$ 913 billion by 2028. Thus, the rising demand for biodegradable carpet tile and wellness real estate is expected to boost the demand for the carpet tile market. The demand for carpet tiles is also expected to rise due to their features of ease of cleaning, cost efficiency, and design flexibility. It also permits the user to spot cleaning and individual tile replacement, which results in making maintenance easier and less disruptive compared to traditional carpets. Furthermore, they are ideal for high-traffic areas, extend the overall lifespan of the flooring, and are durable.

The growth of the carpet tile market is hindered due to the available flooring options such as vinyl flooring, hardwood flooring, ceramic tiles, area rugs, and broadloom carpets. End users prefer alternative options due to their features, such as durability, ease of installation, aesthetics, and cost, which is considered the biggest challenge to the carpet tile market. The next challenge that is faced by the carpet tile market is the fluctuations and economic downturns in the construction market. During periods of economic uncertainty, commercial construction projects may face the challenge of delays or being scaled back, which may result in a reduction in demand for carpet tiles in the construction sector. Also, the challenge of consumer preferences can be considered a restraining factor as the choice of the varies from customer to customer. Thus, to overcome this challenge, carpet tile manufacturers need to keep up with design trends and anticipate fluctuations. Hence, consumer preferences might be a key challenging factor to market growth.

In March 2023, America's Best Carpet & Tile (ABCT), which provided full-service flooring solutions, was acquired by Kansas City-based private equity firm Great Range Capital (GRC). The partnership supported ABCT's continued growth and expansion in both new and existing markets. The Company offered a broad range of flooring products and provided installation, cleaning, and repair services. With a reputation for best-in-class quality and customer service, ABCT was a market leader and reliable partner to customers. In February 2023, Tarkett launched DESSO X RENS, a playful take on material reuse in collaboration with the Dutch design research firm Studio RENS. It comprised discarded carpet tiles from the most widely used ranges. The collection showcased the commitment to designing carpet tiles with circularity in mind. DESSO X Rens came with the 100% recyclable EcoBase backing, which contained on average 80% recycled chalk from the local drinking water industry. At the end of their life, the carpet tiles could be recycled into a new raw material at our facility in Waalwijk, the Netherlands.

North America can be considered a lucrative market due to the rising demand for the home improvement and renovation industry. According to the data of the National American Hardware and Paint Association, the United States market for home improvement retailing has reached the target of US$ 527 billion in 2021. Further, the compound annual growth rate for the United States home improvement market for 2021-2026 is 3.2%. Thus, due to the rising home improvement, the United States can be considered a lucrative market. Furthermore, Europe can also be considered a promising market due to the rising number of constructions of commercial buildings.

According to the data from the European Commission, the construction sector holds 9% of the European Union’s gross domestic product. Also, according to the data of Eurostat, the for-construction sector's gross value added is valued at 5.5% of the European Union’s gross domestic product in 2021. Currently, Germany is considered the top country in the construction sector due to the rising automotive and aerospace industries, which will indirectly boost the market for production sites. Residential real estate and commercial offices are some of the main reasons for the expansion of carpets and rugs in Germany.