To continue the series on industry stats and more importantly following the trends on which categories.
We are a BC Canada flooring company, but Catalina and big industry reports are rarely (if ever) produced for just BC, so I use the USA numbers. In my experience over 20 years, they are very similar USA to Canada. So, this is some updates from a recent 2020 market report for the USA flooring industry. This has a slant to the fastest growth category, Vinyl. And the fastest growing portion of LVT (Luxury Vinyl Tile) is Rigid Core Vinyl. The Rigid core types of vinyl are often called WPC or SPC Vinyl.
Look at the growth. Remember, in general, the flooring industry as a whole is flat, and actually is shrinking. The overall market is not growing, and LVT Vinyl is exploding as a category.
In showing the above 2018 to 2019 growth numbers, Carpet is dropping 5.1%. Wood (which includes solid hardwood and engineered hardwood flooring) is down 12.4%. Laminate is off 6.2%. But look at LVT (luxury vinyl tile) and see it grow an incredible 25.3% year over year. What this image doesn't show, is the growth the year before was almost 50%, and the year before that, almost 50%. So the year, over year, over year, over year growth is something that the flooring industry has never seen.
This image shows the forecast for 2023... and almost another doubling of the market. Vinyl is crushing all other hard surface flooring types, and this is absolutely true in BC as well. We see rigid core demand (SPC) is through the roof.
Here is my take on the above chart. Rigid core is the fastest growing portion and the best option in the vinyl sector in our opinion. You can see that WPC is $2.3B and SPC is $1.1B (estimated). But remember, SPC is new. So it is growing much faster. We project that in 2020 and 2021 you will see SPC grow even faster. The other relevant information is WPC is primarily a US Floors product, which is now owned by Shaw. Shaw and Mohawk are the two largest flooring companies in North America, so if Shaw promotes something, it sells. So they bought a company (US Floors) that specializes in WPC rigid core products, and they have been promoting the heck out of it for years. I just am letting you know my opinion... in BC, we sell SPC sell way, way more than WPC. And in North American market in general, we see SPC being the dominate product for years to come. I would be shocked that in the 2023 forecast that SPC isn't the largest portion of the industry.