US demand for decorative laminates forecast to rise 4.1%/year to 11.9 bsf in 2018; largest markets in 2013 were cabinetry, accounting for 26% of laminates demand, and furniture, 23% of demand

Aimee Bellah

CLEVELAND, Ohio , March 3, 2014 (press release) – Demand for decorative laminates in the US is forecast to rise 4.1 percent per year to 11.9 billion square feet in 2018, a continuation of the improvements between 2011 and 2013 after the declines from 2007 to 2010. Advances will be driven by renewed economic growth, along with rebounding construction activity, greater credit availability, increased interest in home improvements, and pent-up demand for nonresidential upgrades. According to analyst Pamela Safarek, “Competition from other materials continues to increase based on price, design trends, and greater awareness of the benefits of these alternatives.” To compete, laminate producers will continue to introduce improved textures and enhanced graphics that rival the aesthetics of alternatives (e.g., solid wood, natural stone) at a cost savings. These and other trends are presented in Decorative Laminates, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Cabinets and furniture were the two largest markets in 2013, accounting for 26 percent and 23 percent of total laminates demand, respectively. Of these, the cabinet market is projected to post the more rapid gains. Sales of laminates to the furniture market will also post above average gains, benefiting from advances in new housing completions, as well as accelerating residential improvement and repair spending. The store fixture, flooring, and countertop markets will not see such rapid gains in laminate sales. Increased consumer interest in powder coated engineered wood in store fixtures, luxury vinyl tile in flooring, and engineered stone in countertops will all place pressure on laminates as early adopters of new trends focus on these competitive materials. Decorative laminates dominate material usage in countertop production in volume terms. The low cost of laminates in countertops will limit extreme market share losses.

Demand for low-pressure laminates, which account for more than 80 percent of the market, is forecast to generate the fastest average annual growth through 2018. Advances will be driven by the significant use of low-pressure laminates in the large cabinet and store fixture markets, where the cost advantages of these products outweigh the durability benefits of higher priced high-pressure laminates. Sales of high-pressure laminates will continue to stem from their advanced performance characteristics such as long-term durability and greater resistance to scratches and other types of damage caused by wear and tear. Edgebanding use will be limited by postforming and other curved edges, reducing the need for this product.

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