Overall, parquet sales on the European market during the first 9 months of 2015 look more or less stable compared to the same period last year. More countries are getting out of the red zone, as reported by the European Federation of the Parquet Industry FEP.

The Board of Directors of the FEP met on 20 October 2015 and discussed amongst others both the parquet situation and recent economic indicators on the European market. Positive news comes from Sweden, the Netherlands, the United Kingdom, Czech Republic, Poland and, to a lesser extent, Denmark. Negative news comes from the Baltic states, Finland, Norway and Russia. A brief per country recap is provided below.

Austria
The information provided to FEP points in the direction of a stable market compared to the same period of last year.

Baltic countries
Indications collected from FEP Board members point towards negative sales figures in the first nine months of 2015.

Belgium
Consumption and production are both reported to be stable.

Czech Republic
The Czech parquet market seems to be performing a little better in the first 9 months of 2015 than during the same period in 2014. Growth is estimated to be in the order of 1 to 2%.

Denmark
The market remains stable, and could even be slightly positive (± 1%) when compared to the first 9 months of 2014.

Finland
Parquet sales are down by an estimated 5 to 8%. The perspectives for next year seem better, with new constructions expected to perform better, in a hesitant market.

France
Business started out well this year, with sales improving by an estimated 3% during the first months of 2015. The second quarter was still good, before a weaker 3rd quarter. Overall, this translated into a pretty flat picture.

Germany
Compiled data indicate that parquet sales in the first 9 months of the current year have remained comparable with the same period of the previous year. DIY markets tend to face more difficulties. LVT remains a strong competitor.

Hungary
Parquet sales do not seem to improve in Hungary. FEP Board members expect the market is maintaining itself at a stable level compared to the same period last year.

Italy
Altogether, the consumption of parquet remains stable. Higher taxes weighing heavily on the housing market are reported to be a major problem as well as a harsh competition from China and Eastern Europe.

Netherlands
The market is characterised by a slight increase (in the order of 1 to 2%) in consumption compared to the first 9 months of 2014. This results in a proportional increase on the production side. The housing market is presently appealing, with a better outlook than in the last 7 years.

Norway
The Norwegian parquet market is down by an estimated 6%. The retail market is stable.

Poland
Polish parquet sales are improving by an estimated 3%.

Spain
Compared to the same period last year, the Spanish parquet market is stable to slightly up (+1%). However, there are no big projects ongoing for the time being as all stakeholders await the results of the elections scheduled to take place on 20 December.

Sweden
The Swedish market has grown by some 3% in the first three quarters of 2015. Parquet sales should end the year on a positive note.

Switzerland
For the first time in 5 years, the market remains flat due to the second home initiative - new homes are forbidden in recreational areas - and to immigration. Implications for the future are negative in construction. The renovation business is expected to grow.

United Kingdom
Estimates are that the total UK market is performing rather well, with parquet sales growing by 4 to 6%. To be confirmed.

Russia
Parquet sales follow a downwards trend. Exports to Russia follow the same path.

GFA/FEP, October 2015
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Last year, consumption of parquet flooring increased in only a few countries in Europe, such as the Netherlands, Hungary, Slovakia and Sweden, according to the final FEP statistics for 2014.

In the European countries covered by FEP, consumption of parquet decreased by 6.4 percent to a level of just over 77 million square meters. However, FEP explains that again strong variation exists between the different countries. Production figures also show that the course of events on the European parquet market in 2014 had not yet reached the desired stage of stabilization. In the FEP countries, parquet production volumes decreased overall by 6.6 percent to a level of nearly 63 million square meters. For Europe as a whole, including countries outside the FEP area, the picture looks slightly more favorable, with a volume of just over 76 million square meters in total, just slightly more than one percent less than previous year.

GFA/FEP, June 2015
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In 2014, the 21 ordinary member companies of the European producers of laminate flooring (EPLF) sold 467 million square metres of laminate flooring worldwide (463 million in 2013). That is 2 million square metres more than the figures published by the EPLF earlier in January 2015 (please see below), based on a rather conservative extrapolation for 2014. The total market is therefore at a similar high level to the previous year with a rise of 0.9%.

The regional markets varied greatly in the way they developed in 2014, however: whereas Western Europe experienced a small downturn overall, Eastern Europe experienced an upturn. North America also recorded a slight improvement and growth was distinctively greater in Asia. And finally, in South America, sales of EPLF laminate flooring showed a downward trend.

Sales in the West European core markets of the European laminate flooring industry (including Turkey) declined by just under 2.7% overall in 2014. In absolute figures, West European sales fell from 290 million m2 in 2013 to 282 million m2 in 2014.

Revenues in Germany, the largest regional single market in Central Europe, were again somewhat weaker compared to the previous year, standing at around 69 million m2 in 2014 (2013: 72). The EPLF considers that the reason for this downward tendency is the current shift towards LVT floors. According to the EPLF, Turkey still represents the largest European consumer market in general, and for the EPLF members it is the second largest target market in Europe. Yet, according to the EPLF, the decline in sales there has been striking: in 2014, turnover for EPLF members fell by roughly 13% to 57 million m2 (2013: 66). According to the EPLF, this development is predominantly due to a weaker economic situation, shortages in the supply of raw materials and the temporary shutdown of production plants.

France has remained stable at 39 million m2 and occupies third place in Europe. Thanks to its construction sector becoming stronger, the United Kingdom stands in fourth place at 32 million m2 (2013: 29): a growth of 8.3%. Netherlands had weaker results in 2014 at -8.1%, but a figure of 18 million m2 (2013: 19) puts them in fifth place. Spain retains sixth place with +4% to roughly 14 million m2.

As reported in January, EPLF members (“despite the political situation”) have recorded substantial growth in the Eastern European business area: European laminate flooring producers in this region recorded total sales of 110 million m2 in 2014 (2013: 103), which equates to an increase of 6.8% over the previous year. Russia has achieved 28 million m2 (2013: 24), a plus of 19%, which now puts them in the sales ranking ahead of Poland which shows an improvement of 6% at 26 million m2. The subsequent places in the ranking are occupied by Rumania with 11 million m2 (2013: 10), Ukraine with 8 million m2 (2013: 9) and Hungary with 6 million m2 (2013: 5).

Turnover in North America rose again back in 2013 to around 28 million m2, and this trend continued into 2014 with a rise of 4.8% to 29 million m2. The USA accounts for 18 million m2 (2013: 16) and Canada remained relatively stable in 2014 with 11.2 million m2. Total sales in 2014 for European laminate production in Asia Pacific stands at around 15 million m2 (2013: 13). South America as a whole showed a decrease in 2014 with 16 million m2 (2013: 17). Whereas sales in Mexico followed a downward trend, sinking to around 4 million m2 (2013: 5), the Chilean market shows a significantly better result at 7 million m2 (2013: 6) and a plus of 10% compared with the previous year.

GFA/EPLF, April 2015
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FEP, the European Federation of the Parquet Industry, estimates that the overall consumption figures of the European Parquet Industry for the year 2014 have contracted in the order of 3.8%.

FEP wishes to stress that this is a first prognosis subject to variations, in anticipation of the complete data to be communicated at FEP’s annual General Assembly at the beginning of June in Bordeaux. As was witnessed in the past few years, the results show some variation from country to country and even from quarter to quarter. FEP reports: “From a regional perspective, it can be stated that the effects of the crisis are still strongly felt in countries like Italy and France. The good news comes from Sweden where positive developments have been reported, but also from Hungary, which saw its market go slightly up in the course of 2014. In Central Europe, Switzerland remains a steady ‘parquet country’ with a stable consumption at a high level. Both Austria and Germany saw a consumption evolution for 2014 slightly in the red figures.”

“As far as parquet products are concerned, planks remain very popular among customers, who also tend to upgrade towards high range products,” FEP continues. “Fine gradings are back in vogue and natural looks are increasingly popular. Oak is still expanding its domination over other wood species due to its versatility, whereas exotic species are progressively disappearing from the European market.” FEP concludes its trading update by saying: “Generally speaking, the captains of the industry see positive signs ahead for 2015 and expect a stabilisation in the European parquet business, even if competition with other flooring solutions will remain harsh, not in the least as regards LVT’s in view of their market positioning.”

GFA/FEP, January 2015
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According to a conservative extrapolation for 2014, the 21 ordinary member companies of the EPLF, i.e. the European producers of laminate flooring, sold 465 million square metres of laminate flooring worldwide (2013: 463 million. The total market is therefore at a similar level to the previous year with a slight rise of 0.4%.

The regional markets varied greatly in the way they developed in 2014, however: whereas Western Europe experienced a small downturn overall, Eastern Europe experienced an upturn, the EPLF explains. North America also recorded a significant improvement and growth was even greater in Asia. In South America, sales of EPLF laminate flooring remain relatively steady. Sales in the West European core markets of the European laminate flooring industry (including Turkey) declined by just under 3.5% overall in 2014. In absolute figures, West European sales fell from 290 million m2 in 2013 to 280 million m2 in 2014.

Revenues in Germany, the largest regional single market in Central Europe, were again somewhat weaker compared to the previous year, standing at around 69 million m2 in 2014 (2013: 72 million). The EPLF considers that the reason for this downward tendency is the current shift towards ‘LVT floors’. In 2014, turnover for EPLF members in Turkey, the second largest target market in Europe, fell by roughly 18% to 54 million m2 (2013: 66 million). According to the EPLF, this development is predominantly due to a weaker economic situation, shortages in the supply of raw materials and the temporary shutdown of production plants for maintenance. France has remained stable at 39 million m2 and occupies third place in Europe. Thanks to its construction sector becoming stronger, the United Kingdom stands in fourth place at 32 million m2 (2013: 29 million), a growth of 10%. Netherlands had weaker results in 2014, but a figure of 17 million m2 (2013: 19 million) puts them in fifth place. Spain retains sixth place with a stable 14 million m2.

EPLF members have recorded substantial growth in the Eastern European business area, despite the political situation, the EPLF adds. European laminate flooring producers in this region recorded total sales of 110 million m2 in 2014 (2013: 103 million), which equates to an increase of 6%. Russia has achieved 27 million m2 (2013: 24 million) which puts them in the sales ranking on the same level as Poland, which shows an improvement at 27 million m2 (2013: 25 million). The subsequent places in the ranking are occupied by Rumania with 11 million m2 (2013: 10 million), Ukraine with 8 million m2 (2013: 9 million) and Hungary with 5.8 million m2 (2013: 4.6 million).

Turnover in North America rose again back in 2013 to around 28 million m2, and this trend continued into 2014 with 30 million m2. The USA reached a level of 19 million m2 (2013: 16 million) and Canada remained stable in 2014 with 11 million m2. Total sales in 2014 for European laminate production in Asia Pacific stands at around 15 million m2 (2013: 13 million), which means an increase of 15%. Most notably, the Chinese market (including Hong Kong) showed substantial growth, the result of European manufacturers exporting products to the high value sector; in 2014, almost 5 million m2 were sold here (2013: 4 million). South America as a whole was stable in 2014 at 17 million m2. Whereas sales in Mexico followed a downward trend, the Chilean market shows a significantly better result at 7 million m2 (2013: 6 million) compared with the previous year.

EPLF members’ sales in Western Europe in 2014    (source: EPLF)

GFA/EPLF, January 2015
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