After nearly a century of development in Europe and the United States and other countries and regions, PVC flooring products have been highly recognized by the market, and the annual demand is in a state of steady growth, which is currently the world's largest PVC flooring consumer market. However, the local PVC flooring production capacity is very limited, extremely dependent on imports from developing countries, and China has gradually become one of the major countries in the global PVC flooring market.
The situation of the export volume of PVC flooring in China
From 2015 to 2021, the export volume of PVC flooring in China increased from 157950,000 tons rose to 506810,000 tons, with a compound annual growth rate of 1812%。Among them, the number of PVC flooring exported from China to the United States has increased from 64870,000 tonnes rose to 2.51930,000 tons, with a compound annual growth rate of 2139%。
The situation of the export value of PVC flooring in China
From 2015 to 2021, the export value of PVC flooring in China increased from 21$7.5 billion rose to $6.2$4.2 billion, with a compound annual growth rate of 1625%。Among them, the amount of China's PVC flooring exported to the United States has increased from 8$4.5 billion rose to $2.9$9.8 billion at a CAGR of 1983%。
Affected by tariffs, some domestic enterprises choose to build factories abroad
Since the beginning of the Sino-US conflict in 2018, the United States has continuously raised tariffs on PVC products exported domestically, with a maximum of 30% tariffs, and is currently subject to a 25% increase. Due to tax avoidance considerations, domestic PVC flooring companies have shifted their production capacity to Vietnam. Therefore, from 2020, the export value of Vietnamese PVC flooring products to the United States has risen rapidly, reaching 7US$3.9 billion, up 352% year-on-year.
The sales and imports of resilient flooring such as PVC flooring in the European market have increased year by year
In 2022, the sales volume of resilient flooring such as PVC flooring in the European market reached 52.3 billion square meters, an increase of 418%。
At the same time, the import value of PVC flooring in Europe has increased year by year, from 3$900 million increased to $16 in 2022$100 million at a CAGR of 1367%, the same as the U.S. market, the import demand for PVC flooring products in Europe is also large. In recent years, European consumers have paid more and more attention to the environmental protection attributes of products, and in the future, with the further expansion of the scale of the European PVC flooring market, it will be conducive to the development of China's PVC flooring export enterprises.
The future domestic market can be expected
Although the current domestic PVC flooring is mainly exported, the future domestic market can be expected. PVC plastic flooring was introduced to China from the 80s of the last century. Compared with developed countries and regions such as Europe and the United States, China's PVC flooring application market started late. Affected by factors such as traditional concepts, market promotion efforts and home decoration habits, there is still a large gap between the popularity of PVC flooring in China and European and American countries.
The reasons for the low penetration rate of PVC flooring in China are as follows: low-quality PVC flooring floods the market, and residents have misunderstandings about PVC flooring; Some domestic home improvement houses do not meet the requirements of PVC flooring. The world's largest markets for floor materials are Asia and the United States, and Asia is the largest market in China.
With the growth of China's national income and the upgrading of consumer consumption concepts, PVC flooring will be more widely used in various fields, and the penetration rate of China's domestic market will also be improved, and its market size will also grow rapidly. Here's why:
i.Under the switch of consumption concept, the increase in the penetration rate and urbanization rate of PVC flooring has brought continuous and stable demand. According to the 2022 Statistical Communiqué on National Economic and Social Development released by the National Bureau of Statistics, the urbanization rate of the country's permanent population at the end of 2022 was 6522%, an increase of 050 percentage points. The increase in urbanization rate will also increase the number of supporting public facilities such as shopping malls, schools, hospitals, and office buildings, providing a broad space for the development of ground decoration materials.
ii.The formation of the concept of environmental protection and safe consumption of consumers has brought market demand. In the thirties of the twentieth century, the United States introduced PVC flooring and began industrial production, which was not recognized by consumers in the early stage, and gradually gained consumer recognition with the improvement of PVC flooring technology, the upgrading of structure, and the increase of types, and the application field has also expanded from commercial floor decoration to household floor decoration.
In recent years, the concept of environmental protection and safe consumption of consumers has gradually taken shape, and the advantages of PVC flooring such as health and environmental protection, waterproof and anti-slip, and formaldehyde-free have gradually taken root in the hearts of the people.
iii.Labor costs are rising year by year, driving consumers to choose PVC flooring. PVC flooring is widely popular in the United States and Europe and other countries and regions, an important reason is that the labor cost in Europe and the United States is high, the installation of traditional floor decoration materials is cumbersome, and the installation cost is high. In recent years, the relationship between supply and demand in China's labor market has gradually changed, and the labor cost will increase year by year in the future.