Flooring (Russian Market)

2023: 4.6% increase in flooring sales to 343.2 million sq.m.

In 2023, sales of flooring in Russia reached 343.2 million square meters against 328.1 million in 2022. Thus, the industry showed an increase of 4.6%, as stated in the BusinesStat study, the results of which were released on March 21, 2024.

The statistics take into account the sale of such products as linoleum and solid non-polymer floor coverings, parquet and parquet board, laminate and floor ceramic tiles. Among the key players in the Russian market, analysts call the companies Ultradecor, Egger Dreproduct Gagarin, Castamona Integrated Wood Industry, Kerama Marazzi and Sviss Krono.

In 2019, it is estimated that approximately 353.6 million square meters of flooring were sold in Russia. In 2020, an increase of 1.1% was recorded - up to 357.5 million square meters, and in 2021 the market grew by another 5.7%, reaching 377.8 million square meters.

Then, in 2022, there was a decline: the volume of sales decreased by 13.2% - to 328.1 million square meters. Due to the formed geopolitical situation, housing sales decreased. In addition, the rise in prices significantly reduced the volume of planned repairs. Plus, the construction of new shopping centers has practically stopped, which is due to the accelerated transition of consumers to online stores. All these factors negatively affected the supply of flooring in the Russian Federation.

In 2023, the industry began to recover. Average prices for flooring have stabilized, which is partly due to a shift in demand to lower price segments. Thus, in order to save money, Russians began to choose domestic materials more often, and not expensive analogues from Europe. At the same time, the demand for linoleum increased, while sales of parquet and floor tiles continued to decline.^[1]

2022

11.9% decrease in coating sales to 333 million sq.m.

The volume of the Russian flooring market in 2022 amounted to 333 million square meters. meters, which is 11.9% less than a year earlier. Such data in October 2023 was published in the analytical agency BusinesStat.

According to the researchers, the start of a special military operation and the subsequent partial mobilization affected the desire to buy housing. People were wary of taking on a heavy loan load, especially long-term mortgages. In addition, the rise in prices significantly reduced the volume of planned repairs, the Russians preferred to spend less and save more money for the future, experts say. The main trend of the crisis stage is a reduction in the share of premium products in sales due to the more active development of the middle and economy segments, they add.

It is noted that in 2022 the volume of sales of all types of coatings decreased, but the depth of the fall in the market for floor ceramic tiles was the smallest. Sales of parquet and parquet board decreased the most. As a result, the sales structure in 2022 was as follows: linoleum accounted for 37.7%, floor ceramic tiles - 34.9%, laminate - 23.7%, parquet and parquet board - 3.7%.

The study also notes that in 2018-2021. sales of floor coverings have grown steadily. Even the COVID-19 pandemic has had a limited impact on the market amid growing interest among individual buyers in materials for repairs during the period of self-isolation. The largest increase in sales occurred in 2021: a temporary decrease in the refinancing rate, preferential mortgage programs stimulated business activity in the construction industry, and therefore, the demand for building materials, including floor coverings.^[2]

Laminate production in the Russian Federation decreased by 21.6% to 95 million square meters. m

At the end of 2022, laminate production in Russia amounted to 95 million square meters. m, which is 21.6% less than the previous year. The fall of the market was recorded by BusinesStat analysts. They published their research in May 2023.

According to experts, in 2022, the sanctions crisis, on the one hand, caused serious negative economic consequences, which led to a contraction in demand within the country, on the other, to a complication of foreign trade logistics, and therefore a reduction in exports of products.

A distinctive feature of the Russian laminate market in BusinesStat was called the fact that many of the world's leading manufacturers built factories in Russia. The ultimate owners of Castamonu, Swiss Krono, Kronoshpan, Egger, Unilin, Tarquette are located in Europe, so they are often called local manufacturers. And only three enterprises - Laminate-Trade, Monolit-Stroy and Bebel - are really domestic and operate with Russian capital.

In 2022, none of the local manufacturers announced their departure from Russia. Almost all of the leaders are giants of woodworking, and laminate production is just one of their many activities. Analysts say a major concern for the industry has been the near-total disconnect from Western technology, which plays a key role in laminate production.

In 2022, imports of laminate decreased by 33.3%. The European Union imposed sanctions on the code TN VED 4411 13, according to which part of the laminate is declared: a ban on the sale, supply, transfer or export of goods that can contribute, in particular, to the strengthening of Russian industrial capacities. The largest decline was in 2022 (-7.1 million m2), which was mainly influenced by the reduction in supplies from China (-3.5 million m2 to the level of 2021), Poland (-1.6 million m2) and Germany (-1.5 million m2).^[3]

2013

In the structure of the flooring market in 2013, linoleum and floor ceramic tiles (including porcelain stoneware) took the most significant shares - about 33% and 28.5%, respectively, laminate is in third place, it accounts for about 24%, carpet accounted for 13%, parquet - 1.5% of the market in physical terms. DISCOVERY Research Group data. In 2013, the ratio of flooring market segments remained virtually unchanged from 2012.

The structure of the flooring market is changing mainly under the influence of two factors: the emergence of new technologies in production and a change in the level of well-being of the population. The main market trend is the continued displacement of linoleum with newer materials - primarily laminate. For large players, environmental responsibility is of increasing importance, business is both nominal and actual. This trend is dictated by demand, which is increasingly turning to natural, natural materials.

For the flooring market, the crisis period was short-lived. After the fall in 2009, the market grew by 18.7% over the year, and a year later - in 2011 - exceeded the pre-crisis period, breaking the threshold of 400 million m2. Currently, according to DISCOVERY Research Group calculations, the market volume is 514 million m2, although in the post-crisis period the growth rate became more restrained: in 2013 the market grew by 5% (volume in 2012 amounted to 489.2 million m2). The market potential lies in an increase in construction volumes, as well as repair and finishing work, an increase in the well-being and solvency of the population.

In the linoleum market, the main share is occupied by domestic companies. At the same time, the concentration of production increases. The share of two leading manufacturers - Tarkett CJSC and Komitex Lin LLC accounts for over 90% of the total output, of which 18% is the release of Komitex Lin. The share of the third once strong player of Stroyplastmass-SP LLC in recent years has noticeably decreased and as of March 2014, the company is at the stage of bankruptcy.

In the laminate market, the supply of imports and local production is approximately equal. Two large factories of Western holdings producing laminated parquet have long been operating on the territory of Russia - these are the world famous concerns Kronostar and Kronospan. Tarkett and the new large plant in Russia, Unilin, which opened in 2012, follow by a margin from the leaders in terms of production volume. The launch of the very large Kastamonu Entegre plant, which is due to take place in 2014, could have a serious impact on the Russian laminate market.

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