Demand for Carpets in the UK Revitalizes
Carpets And Rugs December 22, 2015
Often overlooked in the retail sector, the carpet industry finally seems poised to roll out a recovery. Although considered dated a decade ago, the renewed interest in carpeting in the UK, particularly a wool weave, has revitalized a seemingly forgotten interest in carpets and floor coverings.
As UK household incomes are returning to pre-crisis levels, and with more disposable income at the ready, British consumers are confident again to spend far more freely. A recent spate of housing construction there has had a major impact on the carpet industry. A fondness for carpets and textile floor coverings never disappeared completely, and with retro living styles getting a new lease on life, the UK carpet sector is making a successful comeback.
In fact, demand from the domestic sector is expected to continue to account for the largest share of the UK carpet market. However, the carpet and textile flooring industry will nevertheless continue to face strong pressure from alternative smooth floor coverings, including engineered and solid wood, as well as vinyl and ceramic tiles.
The geographic distribution of British companies operating in the industry generally depends on the population and income levels across various regions. At present, modular carpet demand is on the rise, outpacing growth of the overall industry. In addition, turnover of carpets has become one of the key factors driving demand. The growing nonresidential construction market is also pushing carpet demand forward.
Carpets and other textile floor coverings will continue to be highly traded, fueled by inexpensive labor force in the countries of Southeast Asia, production capacity transfer to these countries from the UK, as well as a rising demand within the UK.
China and Turkey were the main and the fastest growing suppliers of carpets and other textile floor coverings into the UK, with a combined share of 48% of total UK imports in 2014. The rates of import growth from Turkey and China over the analyzed period stood at +18.7% per year and +10.2% per year, respectively. From 2007 to 2014, China (+16 percentage points) and Turkey (+17 percentage points) significantly strengthened their position in the UK import structure, while India (-14 percentage points) and Pakistan (-11 percentage points) saw their shares reduced.
In 2014, the U.S. (14%) was the main destination of UK carpet exports. It was followed by Ireland (7%), Spain (6%) and Israel (6%). While the share of the U.S. increased, the shares of Ireland and Spain illustrated negative dynamics.
