Wall Covering Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Wall Covering Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Wall Covering Market is expected to register a CAGR of 4.9% during the period. The increasing disposable income and rapid growth in urbanization have been significantly driving the transformation of human social roots on a global scale by predominantly replacing the rural culture, which has resulted in the increased usage of wall coverings and other modern products.

Key Highlights

• Residential constructions account for a substantial market share in the wallpaper market and are expected to witness a significant growth rate. The employment opportunities and population growth are fundamental drivers of the rising demand for new housing as sustained population growth worldwide has increased demand for wall dwellings, including apartments.
• According to the Building and Construction Authority (BCA), construction demand in Singapore is expected to hold steady over the medium term. Demand is projected to reach between SGD 27 billion and SGD 34 billion per year for 2021 and 2022 and between SGD 28 billion and SGD 35 billion per year for 2023 and 2024. This indicates a lucrative market for upcoming office spaces, commercial buildings, and retail stores, among others.​
• Moreover, with the advent of graphic designing and new reproduction capabilities, wallpaper is set to become the next big disrupter in design and décor. Recently, some of the regions of emerging economies of Europe witnessed a considerable rise in the demand for textile wall coverings, owing to which there has been an increase in the number of imports of textile coverings. According to the Office of National Statistics (UK), the industry revenue for floor and wall covering in the United Kingdom in the year 2024 will rise to USD 5,410 million.
• The wall covering the market suffers from negative consumer perceptions and stiff competition from paint and coatings. Paint is considered to be a better option when compared to wall coverings in certain applications. For instance, in rooms that record high humidity levels, paints are better suited because the paint could be used for both the kitchen and bathroom, can deal with humidity, and is mold resistant, unlike wallpaper.
• Further, the development of products, such as wallpaper borders, custom wallpaper, and textured wallpaper, is expected to renew the stagnant product category. Also, advances in wallpaper technology, which make these products easier to apply and remove, are expected to expand sales opportunities, thereby fueling market growth. Art-inspired wallpapers are also witnessing an upsurge in demand from European consumers. Besides, due to the rising number of residential construction projects, wall coverings have become a necessity to improve the look of residences.
• Moreover, some of the primary-edge digital techniques are transforming ordinary surfaces into a unique reflection of a company's brand image. For instance, in February 2021, the late designer, Karl Lagerfeld, 's iconic original sketches, logos, and prints were compiled into a wallpaper and launched. As such, wall coverings have witnessed several enhancements and are catering to the demands of consumers.
• Further, with the outbreak of COVID 19, the wall covering market witnessed a decline due to a decrease in advertising across various parts of the world. Moreover, multiple governments enforced lockdown of the cities and towns across various countries, which also impacted the market due to supply chain disruption and closure of many distribution channels.

Key Market TrendsWall Panel is Expected to Register a Significant Growth

• Wall Panels include wooden panels and laminates, which are used for covering walls effectively while also protecting the external environment. The usage of wall panels can significantly reduce construction costs by providing a consistent appearance to the paneled surface without the application of paint or some other finishing material. Additionally, the growth of the construction industry, owing to urbanization, simplified utility, and lower costs, is expected to drive the demand.
• For instance, in October 2021, 3A Composites USA introduced MONARC Wall Panel Solutions to enable design specialists to transform interior spaces with the premium look of natural elements, including stone, wood, tile, and metal, at a fraction of the cost, weight, and maintenance. A specialized and proprietary manufacturing process allows MONARC wall panels to be produced with high-quality finishes designed for kitchen, bath, shower enclosure applications, living room accents, and other interior living space treatments. MONARC consists of two sheets of premium .012-inch aluminum bonded to a fire-retardant mineral core. This composition produces a durable aluminum composite panel that offers exceptional dent resistance and flatness.
• Advancements in the market have been in the form of insulated wall panels, which provide superior and uniform insulation in comparison with more common methods of house construction. These panels can be used in almost any architectural setting but are most common in residential constructions. The greatest advantage of these panels is that they offer superior and uniform insulation when compared to more common methods of house construction.
• Wall panels do not have a standard size. However, 24 inches by 8 feet is suggested as the maximum practical size for wall panels to allow for ease of transportation. Among various others, wood paneling on walls is in trend these days, especially in Australia and European countries, for heat insulation, sound-proofing, and aesthetics.
• The adoption of panels results in an enhanced aesthetic appeal. The wall covers with fewer joints also offer several practical gains, as they are easier to install than separate single tiles, and considerable time can be saved during the renovation process. Besides, after the placement of the wall panels, the end-user also benefits from the ease that these panels offer, as the wall is easier to clean and maintain. The growing investments in the hospitality sector, owing to increasing global tourism, are poised to impact the market studied over the forecast period.
• Moreover, wall panels are increasingly popular as an alternative to ceramic tiling in kitchens and bathrooms. It was once known as the low-end product used mainly in social housing and large-scale public-sector projects. However, the developments in design and technology have combined to produce high-quality finishes, textures, and colors which work with any style of property.
• Furthermore, the rising construction spending across the globe coupled with the growing interest in wall coverings is expected to propel the market growth over the forecast period.

North America is Expected to Hold Significant Market Share

• Trends like construction spending, real estate costs, the rising cost of home renovations, and business prospects for interior designers are boosting the market for wall coverings and décor in the United States. According to the US Census, construction spending during January 2021 was estimated at a seasonally adjusted annual rate of USD 1,521.5 billion, 1.7% above the revised December estimate.
• Further, the private sector construction spending witnessed a positive trend in 2021 when the value of new private construction put in place surpassed USD 1.2 trillion. Even though the start of the COVID-19 pandemic affected the construction industry, the value of new private construction kept growing in 2020, reaching over USD 1.1 trillion. With this, huge investments were made in home décor and home improvements in the United States, which propelled the wall covering the market in the country. A similar trend of rising residential constructions, owing to the increasing population worldwide, is expected to drive the demand for wall coverings.
• Also, the commercial construction sector is on an upswing. According to the FMI Corporation, in the United States, the new commercial buildings are expected to value USD 99.42 billion in 2021 from USD 47.33 billion in 2012. Furthermore, technological advancements in wall coverings, such as inkjet painting (which is expected to mimic the texture, design, and look of natural wood and stone), are expected to boost the market growth in the region.
• The vendors in the market focused on innovating their products to meet the growth in demand from the boom in residential construction. Sublimation printing is gaining traction in textile printing in the home decor segment. This includes printed fabric-based wallcoverings. Various vendors are increasingly innovating their offerings with the help of new printing technology.
• For instance, in September 2021, Beaver Paper Group, a prominent manufacturer of sublimation media, debuted their new TexStyles FashionWalls, a unique new line of printable fabric wall coverings that allows customers to create their own designs to fit any environment. FashionWalls is durable, washable, and abrasion-resistant. It is made of 100% knit polyester, easy to use, and offered in two versions, dye- sublimation and latex/UV.
• While the United States holds the majority share of the market, the adoption rate in Canada for the studied market is likely to grow over the forecast period due to significant investment in the new residential buildings. For instance, according to the FMI Corporation, the forecast for new residential buildings put in place in Canada is expected to reach CAD 136,302 million in 2023, compared to CAD 118,507 million in 2018.
• Although most Canadians prefer online platforms, most well-known wall covering offerings were available with home centers and specialty stores. Stores like Lowe’s, Costco, Walmart, Ikea, Home Depot, and Wayfair remain prominent in the region. ​​
• The improving disposable income and supportive new home housing index (prices of houses decreased in major cities) open new opportunities to install wall coverings in the future.
• According to the NRHA, the home improvement industry sales in Canada are expected to reach CAD 56.3 billion in 2022, compared to CAD 50.2 billion in 2019. Such instances are likely to augment the market growth in the country.

Competitive Landscape

The Wall Covering Market is quite fragmented and consists of several players. The companies in the market tend to partner with international designers to make the wall coverings aesthetically pleasant to the eye and manage to incorporate the latest designs and punchy colors and to perfectly enhance the home interiors, shops, hotels, cafés, and restaurants, as well as exhibition stands and public buildings.

• July 2021 - Grandeco WallfashionGroup announced the acquisition of the entire shareholder capital of Wall! Supply a significant player in decorative 3D panels. Following the acquisition of Holden Decor in 2020, this acquisition is part of Grandeco'sglobal expansion strategy. The objective of the acquisition is to build on Wall! Supply's success and further realize its enormous growth potential.
• June 2021 - Ahlstrom-Munksjö, a leading supplier of wallcovering materials with an extensive range of nonwovens for the high-end segment, announced that it is expanding production capacity at its Malmedyplant in Belgium. The EUR 10 million investment would double the plant's capacity and diversify the production to cover filtration materials.

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