Strategic Insights into the Australia & New Zealand Flooring Market: Key Players and Innovations

The Australia New Zealand flooring market size was estimated at USD 4.40 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2024 to 2030. Growth in the construction industry in Australia New Zealand is attributed to the rising commercial and residential construction activities, which is expected to propel the demand for flooring products over the forecast period.

Asia Pacific is one of the largest consumers of floor covering products in the world. Factors, such as increasing investment in affordable housing, smart city construction, upgradation construction of infrastructure, and investment in tourism sector, are expected to boost demand for floor-covering products in Asian Countries including Australia New Zealand. Many companies are investing in establishing their presence in Australian and New Zealand markets through acquisition of regional companies and strengthening their position in the industry. For instance, Mohawk Industries, Inc. announced its acquisition of Godfrey Hirst Group.

Carpets, ceramic tiles, porcelain tiles, marble stones, and vinyl tiles are majorly used flooring types in commercial construction sector in countries in Asia Pacific including Australia and New Zealand. These products are used to enhance overall aesthetics and interiors of non-residential buildings such as offices, commercial complexes, hospitals, hotels, and educational institutions. Positive growth trends of the commercial construction sector in urban areas in developing countries including New Zealand are expected to play a vital role in creating ample scope for the consumption of building materials including floor coverings.

Growing population in Australia New Zealand also requires various commercial buildings, such as theaters, restaurants, hotels, educational institutions, dormitories hostels, and hospitals. Hence, with rise in such establishments, demand for flooring products, such as natural stone, wood, and laminate, is also growing rapidly.

Market Dynamics

Building and construction is one of the fastest-growing industries in Australia New Zealand, with significant annual spending. Rapid urbanization in developing countries has led to more people shifting to urban areas in search of jobs and better quality of life. Due to this, infrastructural projects, such as residential complexes and apartments, have increased rapidly. This has resulted in the growing demand for flooring solutions across Australia and New Zealand. Moreover, rising consumer disposable income due to rapid globalization and industrialization will support industry growth.

Detailed Segmentation:

Channel Type Insights

Based on channel type, commercial channel segment led the market with the highest revenue share and is expected to grow at the fastest CAGR of 5.4% from 2024 to 2030. This commercial channel type mainly focuses on purchase of flooring products in bulk to cater to large building projects.

Product Insights

The tiles product segment dominated the market with the largest revenue share of 30.4% in 2023. This tiles segment consists of floor products, such as ceramic tiles, porcelain tiles, vinyl, luxury vinyl tiles (LVT), and linoleum rubber.

Country Insights

Australian flooring market accounted for the largest revenue share in 2023 and is forecasted to grow at a significant rate over the coming decade. Construction is one of the key industries in Australia. In 2022, Australian construction industry generated over USD 360 billion in revenue, which was about 9% of the country’s GDP.

Key Australia New Zealand Flooring Companies: