The flooring market - France

A floor covering is a material designed to cover all or part of a floor. This study focuses on interior floor coverings. The floor coverings market therefore encompasses all the activities involved in the production, distribution and installation of materials designed to cover a floor. It comprises four main product families : textile coverings, parquet flooring, plastic coverings (PVC or linoleum) and tiles. Other types of covering exist, such as poured concrete or paint, but are currently in the minority. There are therefore several types of player, corresponding to the sector's different activities: floor covering manufacturers, distributors (DIY superstores, retailers, specialized distributors, etc.) and the end customer, which includes the end-user.) and end-users, who include both professional customers (flooring specialists and general contractors) and consumer customers (private individuals). Professional customers also install floor coverings for non-residential and residential buildings. A large number of players, however, carry out several types of activity, such as manufacturer, distributor and installer. The global floor coverings market was estimated at US$266 billion in 2022, and is expected to grow at a CAGR (combined annual growth rate) of 5.2% between 2023 and 2030. Key market players include Tarkett S.A., Mohawk Industries, Inc. Forbo Flooring, RAK Ceramics, Shaw Industries, Inc. and Interface. [Grand View Research] The French flooring market stabilized from 2016 onwards after a period of continuous decline, before being impacted by the global pandemic that forced many economic activities to come to a halt. The building industry, which includes construction and maintenance-renovation, is a major determinant of demand for the floor coverings market, and its recovery in 2022 will have a positive impact on the flooring business. However, this growth is due to the dynamism of certain segments to the detriment of others. In fact, theboom in the LVT (luxury vinyl tiles)segment is largely responsible for the market's growth. To a lesser extent, parquet is also on the rise. Conversely, the steepest declines were in carpets, particularly tufted, and linoleum coverings. In addition, the market has witnessed a move upmarket, as well as a concentration of players, which has exerted upward pressure on prices. This concentration has been the result of numerous mergers and acquisitions and the disappearance of the most fragile companies, but also the power of the sector leaders. In October 2017, the French Competition Authority sanctioned the three main manufacturers/distributors of PVC and linoleum floor coverings for having colluded on numerous aspects of their commercial policy, notably prices, and for having exchanged information, compromising the free play of competition. The three players involved - Tarkett, Gerflor and Forbo - were fined 302 million euros. [French Competition Authority]