Market Trends of China Wood Flooring Industry
This section covers the major market trends shaping the China Wood Flooring Market according to our research experts:
The Residential Segment Occupied a Major Share of the Market
China's real estate sector took approximately 42% of the total financing in the economy in 2016, according to the UK-based Royal Institute of Chartered Surveyors, making it a prime target for the government. With the changing consumer dynamics, the residential segment of China wood flooring has been occupying a major share of the market. According to the statistics, the average penetration rate of wood flooring in the residential segment in large cities of China is more than 25%, and that in medium-sized cities is about 12%. Commercial banks and insurance companies looking to establish local headquarters usually have a large demand for office space, as evidenced by most spaces larger than 5,000 sq. m being absorbed by tenants from the traditional financial industry, even though they also would be able to purchase such spaces. The number of customers who opt for wood flooring is increasing owing to the advantages such as its thermal capabilities and adaptability according to temperature, easy to install, clean and maintain for a longer time, and the aesthetic richness that the wood flooring offers. The aesthetic feature has expanded its market share to the exterior application as well.
Engineered Wood is Fastest Growing Segment of the Market
China wood flooring market has been dominated by the solid wood floor segment occupying a major share of the revenue generated. Also, during the study period, the demand for engineered wood has started gaining more significance than before. Improving customer's interest in high living standards and the aesthetic appearance and availability of engineered wood in different shapes, sizes, and designs are the major factors that are contributing to the shift in preferences to engineered wood. Also, engineered wood comes with the easy installation procedure, and is more resistant to heat and strains. These factors are also helping the segment to capture more interest from the customers.
