China Wood Flooring Industry Summary

1. Overview of the wood flooring industry

Wood flooring is an indispensable carrier of modern lifestyle, and it carries people's yearning and pursuit for a better life, supporting a comfortable, warm and belonging home space. While having unique functions such as comfortable feeling, warm in winter and cool in summer, warm color, anti-slip and anti-fall, humidity regulation, sound insulation and noise reduction, and relying on the natural beauty of wood that is appreciated by both the refined and the popular, wood flooring has become a popular floor decoration material for homes and commercial spaces around the world. At present, the main types of wood flooring include solid wood flooring, solid wood composite flooring, laminate flooring and bamboo flooring.

Jingda Laminate Flooring

2. Wood flooring industry policy

Wood and bamboo are renewable, green, low-carbon and recyclable. They are materials that are beneficial to human physical and mental health, sustainable resources, environmentally friendly materials that effectively reduce greenhouse gas emissions, and recyclable materials. From the perspective of the general trend of world and national economic development, replacing high-energy consumption and high-pollution materials with wood and bamboo is a basic direction of green development and low-carbon development. The policy orientation has created a good development environment for the production and use of wood flooring.

3. Wood flooring industry industry chain

*Industry chain structure diagram

The wood flooring industry industry chain includes forestry enterprises, which provide log materials for solid wood flooring and solid wood composite flooring; artificial board enterprises, which use wood or other fiber materials to produce artificial boards for the manufacture of composite flooring; decorative veneer enterprises, which produce veneer paper required for laminate flooring to simulate wood texture or other decorative effects; paint and coating enterprises, which provide paints and coatings for surface finishing of wood flooring to protect and beautify the floor. The downstream is mainly the real estate industry, including the decoration of residential and commercial real estate projects; building decoration companies, which provide interior decoration services for various buildings, and wood flooring is one of the commonly used decorative materials.

* Trend of National Urbanization Rate

Wooden flooring is mainly used for the decoration of urban real estate, and the continuous increase in urbanization rate will bring long-term stable demand to the wooden flooring industry. In 2024, influenced by factors such as the steady recovery of the national economy and active population migration, the urban population will continue to increase. At the end of the year, the urbanization rate of the national permanent population was 67.00%, an increase of 0.84 percentage points from the end of the previous year. The spatial layout of urbanization will continue to optimize, and the population urbanization rate will steadily increase. However, compared with the average level of over 80% in developed countries, there is still significant room for growth in China's urbanization level. The transfer of rural population to cities will also drive a large amount of new demand for wooden flooring in the decoration market. In addition, with the continuous improvement of the living standards of Chinese residents, the gradual release of improved demand and some high-end demand in the stock market of new and second-hand houses, as well as the increasingly prominent environmental protection concepts and personalized needs of consumers, have also brought broader development space to the wooden flooring industry.

4. Current status of the development of the wood flooring industry

*Current status of supply and demand

After nearly 30 years of development, China wood flooring industry has made great progress in technological innovation, product research and development, equipment manufacturing, standard system construction, brand building, market development, etc., and has now formed a relatively complete industrial system. At present, domestic wood flooring production, consumption and export volume are all ranked first in the world. According to statistics, China wood flooring production in 2024 will be 702.884 million square meters, and the demand will be 685.525 million square meters.

*Market size

In recent years, China wood flooring industry has made great progress in technology innovation, product research and development, equipment manufacturing, standard system construction, brand building, market development, etc., and has now formed a relatively complete industrial system. According to statistics, the market size of China wood flooring industry in 2024 will be 87.346 billion yuan, and the average market price will be about 125.6 yuan/square meter.

5. Competition pattern of wood flooring industry

China wood flooring industry has entered a mature stage. The industry as a whole is in a state of stock game, the market pattern is stable, and the industry concentration may gradually increase. At present, as the wood flooring industry has shifted from price competition to comprehensive competition in brand, management, talent, scale and other aspects, companies will face greater cost control pressure. Customized home furnishings are a sub-industry of the home furnishing industry. The industry entry threshold is relatively low, there are many market participants, and the product homogeneity trend is significant. At the same time, in recent years, traditional furniture manufacturers, home appliances, home improvement companies and board manufacturers have opened up the customized home furnishing industry market, and the industry penetration has continued to increase, resulting in intensified market competition.

6. Trends in the Wood Flooring Industry

In recent years, the wood flooring industry has faced some challenges, such as rising raw material prices, continuously increasing labor and transportation costs, severe homogenization competition, as well as the development of wood flooring alternatives and environmental non-compliance, which have led to a downward trend in the retail market size of wood flooring. But with the transformation of urban development mode and the development of urban agglomerations, the coordinated development of large, medium, small cities and small towns in China, the optimization of urban spatial layout, and the steady increase of population urbanization rate have brought new opportunities to the wooden flooring market. At present, the competition in the wooden flooring market is fierce, with price wars and differentiated competition coexisting between different brands and categories. The concentration of the future wooden flooring industry will continue to increase, and the integration of large-scale production and modern technology, as well as health and environmental protection, will be the development trend of wooden flooring.