Residential Flooring Materials Market Report

Increasing housing renovation and remolding drives the growth of the market. As consumers seek to improve the ambiance and resale value of their homes, the fundamental component of the interior design, residential flooring is in high demand. In addition, there is a growing need for residential flooring products and services due to the growing popularity of upgrading and updating homes, which is fueled by things such as altering housing options and design preferences. However, future maintenance and remodeling costs will rise significantly, mostly due to the ageing housing stock (especially the homes built during the early 2000s construction boom). For instance, U.S. Census Bureau statistics indicate that American homes are 40 years old on average, and this number is continually rising. Currently, a large percentage of these homes are in the prime remodeling age range, which is 20 to 39 years old. Longer stays at home are a trend among Americans that helps to sustain the continuous need for home renovation projects. This trend is further supported by the high levels of owner equity observed in the US residential real estate market.

Additionally, the floors in homes are frequently overlooked as an important factor in the sustainability of a house. Many homeowners might restrict their options to the most appropriate color that enhances the general interior decor. Furthermore, certain types of flooring materials may come with significant health and environmental disadvantages. Most people have a detrimental impact on indoor air quality or leave behind a significant carbon footprint. On the other hand, some might originate from tropical forests that were unlawfully or irresponsibly cut down. The market is expected to be driven by customers' growing preference for natural flooring over carpeting options in the forecast period. Inadequately cared-for carpets can serve as a reservoir for different kinds of volatile organic compounds (VOCs).

For instance, the carpeting can easily absorb VOCs from a fresh coat of paint and release them at a later time. The increasing emphasis on minimal upkeep by homeowners is predicted to drive the popularity of residential flooring products. Also, the manufacturers in the market are focusing on the launch of eco-friendly, sustainable products. For instance, in 2022, Mohawk introduced its latest Ultra Wood Naturally Sustainable Flooring, designed to mimic the look and feel of natural hardwood. Simultaneously, it is environmentally friendly since it requires less natural wood for production, capable of extracting carbon from the atmosphere and preserving it in an attractive, durable flooring. As the manufacturers are focusing on the product launch this Creates a lucrative opportunity for the residential flooring materials market.

The growth of the market may be limited by the expensive price of specific flooring materials. Depending on the product category, the importance of installation and maintenance may vary.  Different types of flooring materials vary widely in terms of characteristics. Marble, granite, and rubber tiles are viewed as the most expensive, while Terrazzo, mosaic, vinyl, and ceramic tile floors are seen as moderately expensive. A material's quality determines its durability, performance, and appearance. Higher-quality materials often cost more than lower-quality materials, but they usually last longer and require less maintenance. For instance, hardwood flooring is typically a pricier option ranging from US$ 9 to US$ 15 or higher per square foot. The high price of these flooring materials may restrict the market expansion.

Additionally, factors such as installation and maintenance costs may impede the growth of the market. Installation of the material involves labor, tools, equipment, and other materials, such as subfloor, underlayment, adhesive, grout, etc. The installation cost can vary depending on the complexity, difficulty, and time required for the installation. Certain materials may require expert assistance, which would raise the price. Also, the maintenance of the material involves cleaning, repairing, refinishing, or replacing the material, depending on its condition and wear and tear. Depending on the frequency, technique, and products needed for the maintenance, the cost of the work may change. The product with high maintenance has a higher cost. Some materials may also require special care, which can increase the cost. These several factors impede the growth of the market.

Major market participants are focusing and investing in product launches and collaboration activities to develop new products that fulfill customer demand. They are also implementing several market strategies such as acquisitions, mergers, expansion, and others to strengthen their market position. This proactive approach to investing in developments, and innovating new products diversifies the various needs of the customers, which strengthens the profitability of the manufacturer. For instance, in February 2023, Tarkett is launching DESSO X RENS, a novel method of material reuse, in collaboration with Studio RENS, a Dutch design research company. This collection introduces a fresh perspective on design by extending the useful life of current materials and cutting waste. It is made out of leftover carpet tiles from the most popular collections. This is a carpet tile which can be recycled into new material. Along with this, Tarkett has introduced the carpet tile collection with the unique properties of the lowest circular carbon footprint.

Additionally, in November 2022, the manufacturer Mohawk Industries acquired the Elizabeth coatings. In terms of this acquisition, the company has become the largest producer of ceramic tiles by revenue in Brazil. Also, in July 2022, Mohawk Industries Inc. acquired the Georgia-based Foss manufacturing company, known for expertise in non-woven, needle punch technology used in products ranging from peel-and-stick carpet tile to artificial turf. However, in March 2023, Shaw Industries Group, Inc. declared its collaboration with Encina to recycle waste produced during the carpet production process. Shaw Industries will give Encina more than USD 2.5 million worth of garbage annually. Through the cooperation, the former will be able to reduce its carbon footprint and greenhouse gas emissions, helping the company to meet its sustainability goal.

Moreover, the June 2023, the manufacturer Serene Summer is the newest flooring collection from wooden flooring manufacturer Span Floors. These floors, with their adaptable soft natural tone palette, offer to blend strength and utility to create a stunning home. The latest flooring line meets the E1 emission level standards for harmful formaldehyde, solvents, and volatile organic compounds (VOCs). Environmentally friendly and sustainable too. Plansks, herringbone, and chevron patterns are just a few of the sizes and forms available for the flooring, which makes it suitable for usage with a wide range of interior design styles. Additionally, wood flooring is incredibly stable and perfect for the climate of India.

Asia Pacific region holds a significant market share in the forecast period. This supremacy is attributed to factors such as the growing construction industry, rising investment of the government in affordable housing units, and the expansion of smart cities. Along with this, the rise in renovation and modeling creates a lucrative opportunity for them to grow in the forecast period. These several factors drive the growth of the market in the Asia Pacific region. For instance, in a developing economy such as India, in June 2015, the government of India announced the Pradhan Mantri Awas Yojana (Urban) or PMAY (U) for affordable housing. Also, the Indian government has the vision to realize its ambitious housing for all initiatives in the next 25 years. The Affordable Housing sector is leading the way in this vision, serving as a significant driver of growth in the real estate industry. By giving affordable housing infrastructure status, projects can now receive benefits and draw more foreign and private capital. The main goal of the Pradhan Mantri Awas Yojana-Urban, a key program, is to offer suitable housing to qualifying urban recipients. The rising government investment in the construction industry creates a lucrative demand for residential flooring material, which will boost the growth of the market in the forecast period.

However, North America is anticipated to hold the fastest growth in the forecast period. The residential floor materials market in the United States is driven by the rise in renovation and modeling projects.  For instance, the U.S. Department of Energy (DOE) today announced US$32 million to fund over 30 next-generation building retrofit projects that will dramatically improve affordable housing technologies. Seven recipients will evaluate restoration methods that minimize tenant disturbance while enhancing buildings' energy and environmental performance more rapidly, efficiently, and economically. This initiative may increase the adoption of modern and sustainable flooring solutions to improve energy efficiency, durability, and overall liability in the housing units. This proactive approach of the government drives the demand for residential flooring materials in the United States.