Decorative Laminates

US demand to grow 5.4% annually through 2015
US demand for decorative laminates is forecast to advance 5.4 percent per year to 12.4 billion square feet in 2015, a rebound from the 2005-2010 period. The state of the decorative laminates industry is sensitive to changes in the overall economy, as well as spending in new construction, and building remodeling and repairs. During 2005 to 2010, the decorative laminates industry contracted in light of macroeconomic recessionary conditions in the latter part of that period and a downturn in the housing market. Going forward, continued improvement in the housing market, lower unemployment and greater credit availability will boost the potential market for laminates used in applications such as cabinets, countertops, flooring, furniture and wall panels.

Consumer perception of laminates as workhorse material to boost gains
Advances will also be stimulated by the consumer perception of decorative laminates as the workhorse surfacing material, providing a low-cost, lowmaintenance, durable surface. Competition from alternative materials is intense as other materials are often chosen due to consumer preference for a more natural appearance or feel, or for a surface that can be renewed when damaged. In order to compete, decorative laminate manufacturers focus on developing advanced printing techniques that create patterns and textures that rival the aesthetics of alternative materials such as solid wood or natural stone, but at a lower cost.

Cabinets to remain largest market; flooring to be fastest growing
The cabinet market will continue to account for the single largest share of decorative laminates demand in 2015. Decorative laminates will largely benefit from a rebound in cabinet production, based on accelerated domestic demand from an improving US housing market and expanding export opportunities. In addition, gains will be led by rising interest in decorative laminates as a less costly alternative to lumber, particularly exotic hardwoods, and wood veneers in cabinet production.

The flooring market for decorative laminates will record the most rapid gains through 2015, fueled by the expected rebound in new housing construction and improvements in residential improvement and repair spending through 2015. Advances will also be supported by improvements, such as enhanced durability, and manufacturers’ ongoing introductions of versions that resemble natural stone or tile flooring, as well as such costly and exotic wood species as bamboo and mahogany.

Low-pressure laminates to remain dominant by volume
Low-pressure laminates will continue to lead the market in area terms, projected to account for 82 percent of total decorative laminates demand in 2015. Gains will benefit from increased penetration of low-pressure laminates in high-end markets with low use patterns, in applications where these laminates have comparable durability and surface properties to high-pressure laminates at a lower cost. High-pressure laminates will experience opportunities in applications where heavy use patterns preclude the use of less durable low-pressure laminates. In addition, high-pressure laminates with improved patterns, hues and textures will find increased growth in markets where exotic solid woods and natural stone are too costly.

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