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Strong Rebound Expected for Wallcovering

Wednesday, May 20, 2009

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After a decade of steady decline, the demand for wallcoverings in the U.S. market is expected to rebound sharply and grow by 4.2 percent annually, becoming a $2.4 billion market by 2013, according to new research by The Freedonia Group, a Cleveland-based industry research firm. Finished gypsum board demand is also projected to increase 4.2 percent annually, to $80 million 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 wallcoverings used in new residential markets,” Freedonia reports in a summary of its report, Wall Coverings.

“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 ten years, will finally begin to show positive growth once again.”

Among the report’s key findings:

• Demand for wall panels is forecast to advance 4.0 percent 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.

• Demand for decorative wall tile is projected to increase 5.0 percent 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 wallcovering use.

• Consumption of wallpaper is projected to expand 2.7 percent 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, 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 percent annually to $80 million in 2013. These products are almost entirely dependent on the manufactured housing industry. As manufactured housing finally recovers, gypsum board demand will also post gains.

For more information, visit www.freedoniagroup.com.

   

Tagged categories: Gypsum board; Market research; Residential; Wallcovering products

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