The wallpaper market - France

1.2 A global market driven by Asian growth

The global wallpaper market is experiencing strong growth. It was worth $*.** billion in **** and is expected to reach $*.** billion in ****. Between **** and ****, the market is expected to grow at a CAGR of *.*%.

The sector is mainly driven by the Asia-Pacific region, whose growing industrialization and extremely dynamic demographics are driving real estate and wallpaper demand. The region accounts for **% of the global market. [***]

The main advantages of wallpaper are its ease of installation, its durability and its composition, which makes it less harmful to health than paints that may contain lead, particularly in emerging markets.

Global wallpaper market World, ****-****, in billions of dollars Source: ****

In Europe, the paper converting market, which includes wallpaper, is estimated at *.* billion euros. It also includes mail-order sales of paper products, paper products for household and sanitary use, boxes, crates, sacks and miscellaneous paper and cardboard packaging, office stationery, labels, cardboard tubes, cores and pipes, and other paper and cardboard products.

1.3 French market growth slows

Wallpaper manufacturing in France has been in slow decline since the ****s, a victim of its outmoding in favor of paints. From ** million rolls sold in **** to ** million in the ****s and ** million in ****, the French market has been divided by more than three in ** years. [***]

Market estimate based on French production

This decline in wallpaper sales can also be seen in terms of value. The sales index for French wallpaper manufacturers (***). However, this drop in value must be put into perspective, as it corresponds only to French manufacturers.

The chart below shows changes in the sales index for Naf code **.**Z, which covers "manufacture of wallpaper and similar wall coverings, including vinyl-coated wallpaper and textiles". Once again, this code does not include the manufacture of plastic wallpaper. We note, however, that the years **** and **** saw a slowdown in the growth seen in the previous two years due to the COVID-** crisis.

Sales of wallpaper manufacturers France, ****-****, in millions of euros Source: ****

Pre-tax sales by wallpaper manufacturers France, ****-****, in millions of euros Source: ****

Estimating the market by the number of rolls sold each year

According to Les Echos, around ** million rolls are sold each year in France. According to ...

1.4 Foreign trade

Foreign trade in wallpaper can be analyzed using the following HS codes:

******** - Wallpaper and similar wall coverings, consisting of paper coated or covered, on the face, with a layer of grained, embossed, surface-colored, patterned or otherwise decorated plastic material ******** - Wallpaper and similar wall coverings, consisting of grained, embossed, surface-colored, patterned or otherwise surface-decorated paper, coated or covered with transparent protective plastic material ******** - Wallpaper and similar paper wallcoverings, and paper stained-glass windows (***)

France's foreign trade in wallpaper is largely in deficit, with exports amounting to **.* million euros in **** and imports worth *** million euros. A fall in exports coupled with a sharp rise in imports in **** has led to a sharp drop in the coverage rate, which was only **.*% in ****.

Foreign trade in wallpaper France, ****-****, in millions of euros Source: ****

The United Kingdom is the main importer of French wallpaper, accounting for **.**% of exports. The United States is responsible for **.**% of exports, ahead of Germany (***). These three countries account for **.**% of French exports.

Main import countries for French wallpaper France, ****, in percent Source: ****

The main countries exporting wallpaper to France are Germany, Belgium and Italy. France is extremely dependent on Germany for its imports. The country accounts for ...

1.5 The post-confinement craze

French wallpaper manufacturers have emerged stronger from the health crisis. Sales held steady during the first containment in ****, before surging during the first decontainment. The summer of **** was also dynamic, with a high sales index.

Monthly sales index for wallpaper manufacturers France, ****-****, index base *** **** Source: ****

The French have developed a passion for DIY. GSB sales are up **.*% year-on-year. This craze for small jobs directly benefits wallpaper, a quick and economical way to redecorate the home. It remains to be seen whether this increase in sales is a case of catching up, or whether it reflects a structural change in demand for wallpaper. [***]However, even if the French have developed a taste for DIY during the COVID-** crisis, wallpaper has not managed to capture the attention of new DIY enthusiasts.

2.1 Most wallpaper sales go to households

Wallpaper is used by many different types of consumer with different expectations.

Different wallpaper outlets by value France, ****, in percent Source: ****

The general public accounts for **% of wallpaper sales by value, ahead of the high-end segment (***). The high-end market includes the prescription market, where architects and decorators work for shops, hotels, cafés and restaurants, the residential sector and very high-end offices.

However, in terms of volume, households are by far the biggest consumers, with ** million rolls purchased in ****, compared with just * million for the high-end segment. The difference in product prices between the two segments explains the difference between market shares in volume and those in value.

2.2 Real estate, a major determinant of demand

The wallpaper market is closely linked to the real estate market in France, both new and existing. As such, a good indicator to take into account is the number of real estate transactions,a good indicator to take into account is the number of real estate transactions. Indeed, with each transaction, new homeowners are likely to invest in interior decoration and therefore in wallpaper for their new home (***). After a period of slump following the crisis in ****-****, the real estate market has returned to growth.

Cumulative number of transactions in existing homes over ** months France, **** - ****, in units Source: ****

The number of transactions over ** months has never been higher than in the second quarter of ****. The number of transactions has been on the rise since ****, with growth of almost **% between quarter * of that year and quarter * of ****, rising from *** transactions over ** months cumulated to **** in almost * years.

This increase can be explained in several ways: the postponement of unrealized sales during the first containment period, but also the implementation of economic and social shock absorbers that have enabled buyers to realize their real estate projects, all at a time when the market is dynamic, which anchors this trend. The rental ...

2.3 Household consumption driven by interest in decoration

A **** survey by YouGov reveals just how significant interior design is in the lives of the French. In fact, **% of French people said they attach importance to interior design, with **% saying they were even very interested. The French need their own interior design to feel at home. This is particularly true in living rooms or the most convivial rooms: for **% of French people, the most important room to decorate is the living room, and for **% of them, it's the dining room.

Most important room to decorate France, ****, in Source: ****

What's more, the most widespread sources of inspiration for the French when buying an interior design item are websites(***).social networks, meanwhile, are increasingly a source of inspiration, thanks in particular to Pinterest and Instagram. Today, **% of consumers draw inspiration from social networks, but this percentage climbs to **% for women and up to **% among young adults aged ** to **. This is all the more interesting as they are the clientele decorating their first apartments, and who will make up the bulk of consumers in the medium/long term. We can logically assume that the importance of social networks in the purchase of interior design items will increase as each new generation enters the ...

2.4 Changing consumer habits

The era of fast-fashion decorating and personalization represents a real opportunity for the wallpaper market. Indeed, the French are looking for personalized decoration that can be easily replaced, enabling them to renew their interiors more frequently. [***] Wallpaper, which is increasingly quick and easy to install, meets this new demand.

The best-selling wallpapers are those in imitation brick or stone, but trompe l'oeil wallpapers, depicting a library or foliage, are also increasingly popular. Consumers are looking less and less for plain backgrounds and more for originality. [***]

Gone are the days of floor-to-ceiling wallpapers. Today, wallpaper is considered a decorative element, and is therefore integrated into a room in small touches, on a section of wall for example. [***]

3.1 Wallpaper market value chain

there are two different types of players involved in wallpaper production: publishers, who are responsible for the graphic design of wallpapers and must therefore keep abreast of the latest trends in order to offer modern, original designs, and paper suppliers such as Erfuhrt and Glatfelter.

Wallpaper manufacturers then print the products. They often also act as publishers, deciding on designs and collections. Finally, wallpapers are sold to individual consumers via various distributors such as wholesalers or DIY superstores.

3.2 A low level of local production that has held steady since 2013

Wallpaper production in France has been relatively limited since the bankruptcy of several of the sector's heavyweights. The number of employees fell by **% between **** and ****, but seems to have begun a slight recovery since ****, with an increase until ****. However, the levels observed have nothing in common with those seen prior to ****, which was a black year for French wallpaper production. The Chalonnais site of Belgian company Grantil (***) had to file for bankruptcy, leaving *** people without jobs. [***]

Number of wallpaper companies in France France, ****-****, in number of companies Source: ****

Number of employees in paper wallpaper manufacturing France, ****-****, in number of employees Source: ****

The Hauts de France region concentrates the majority of employees in the sector, with a workforce of ***. Next come Nouvelle Aquitaine with ** employees and Grand-Est with **. Before the closure of the Châlons-en-Champagne production site in ****, the Grand-Est was the leading region for wallpaper production, with *** employees.

In the Hauts de France region, the majority of jobs are filled by Ugépa, based at Moreuil in the Somme. The company had *** employees in France, the majority of whom work at the Moreuil production site. [***]

3.3 Highly concentrated production attracting new players

The French market is highly concentrated and the number of players is very limited, particularly since the closure of the Chalonnais factory of Belgian company Grantil in ****.

The last French wallpaper manufacturer is Ugépa. Founded in ****, the group employs *** people (***), and under its own brand for wholesalers since ****.[***]

Other French companies are active in the market, particularly in the high-end segment, such as Maison Pierre Frey. The company has a weaving workshop in northern France, but its wallpaper production is carried out by French or European suppliers. [***]

New entrants, such as Papermint, a brand created in ****, are entering this market with modern, original wallpapers. They hope to capitalize on the return of wallpaper to French homes in the coming years by making it more "trendy". [***]

However, given the weakness of French production, the main players in this market in France are foreign. Germany is the leading country of origin for French imports. Brands such as Rasch and Komar are very popular with the French, and can be found on all DIY store websites.

3.4 Distribution channels

There are far more French players in wallpaper distribution than in production.

As we saw in section *.*, the majority of French people undertake their painting and wallpapering work without consulting a professional. The ease with which new wallpapers can be installed has accentuated this trend, with the result that the majority of homeowners buy their wallpaper from DIY superstores.

DIY superstores account for almost three quarters of sales of DIY products: their market share in value terms will reach **% by ****.

Breakdown of DIY sales by distribution channel France, ****, in Source: Federation of DIY stores Furthermore, it appears that pure players are the most dynamic, having increased their sales by **% in ****, due to the various periods of confinement and the general boom in online sales in ****. Change in sales by distribution channel in the DIY market France, ****, in Source: ****

Among DIY superstores, * groups share **% of the market: Adeo (***). These * groups therefore represent **% of the total DIY market. The brands held by these groups are as follows:

Market share of DIY groups France, ****, in Source: ****

For the **% of French people who prefer to call on a professional for renovation work, the distribution channel is more complex, and the craftsman will in most cases ...

4.1 A wide range of products

There are * main types of wallpaper:

Traditional wallpaper, made up solely of sheets of paper, on which the design is printed directly; Vinyl wallpaper, covered with a layer of PVC to increase resistance and waterproofing; Expanded vinyl wallpaper, which is thicker due to the incorporation of swelling inks that give it a raised appearance; Non-woven wallpaper, which appeared in the late ****s and consists of a non-woven fiber backing coated with vinyl. It is the most popular wallpaper for its resistance and ease of installation and removal.

An even finer subdivision is possible, however, as realized by the Ooreka website. Ooreka's product segmentation highlights a number of wallpaper characteristics that enable products to be differentiated by their functional features. These criteria include

Whether or not the wallpaper is washable Resistance to traffic and humidity (***) Type of wall to which the paper can be applied

Source: ****

4.2 Rising prices

The annual consumer price index gives us an idea of the trend in wallpaper prices with code **.*.*.*.*, which covers the consumption of paints, coatings and wallpapers. Prices for these products have been rising steadily since ****, with just one year of decline in ****. This increase is due to the innovations that are being made to make the items more efficient, easier to install and more aesthetically pleasing.

Prices rose particularly sharply between **** and ****, with growth of *%. Between **** and ****, they continued to rise, but much more slightly, before experiencing more significant growth in ****, **** and ****.

Annual consumer price index France, ****-****, base *** in **** Source: ****

As mentioned above, wallpapers come in many variations. This is due to differences in initial materials, production time and difficulty, investment in design and personalization. As a result, selling prices can vary widely.

Non-woven and velvet wallpapers are the most expensive. The former justify this price difference by its resistance and ease of installation, the latter by its aesthetic appeal and the material used.

Installation must also be taken into account in the price analysis, as some households prefer to call in professionals to carry out this work. Installation costs range from ** to ** euros. These prices can be reduced if ...

4.3 Product innovations

The wallpaper market is a hotbed of innovation, not only in terms of durability and aesthetics, but also in terms of materials for water resistance, insulation and digital technology.

The first innovations in this market concerned durability and ease of installation in the ****s with non-woven wallpaper. It saves **% time compared with traditional wallpaper. Removal is also easier and can be carried out dry. [***]

Digital printing, which appeared in the ****s, has also revolutionized wallpaper, allowing infinite customization while reducing production costs. [***] Previously, wallpapers were printed mechanically using gravure or screen printing.

However, manufacturers are competing with each other to offer their customers more efficient products. Wallpapers for sound and heat insulation, for example, have been developed. Sound-absorbing glass fabrics are available for sale, combining utility with decoration. [***]

Other wallpapers have been designed to be water-resistant and can be installed in bathrooms thanks to waterproof coatings. LED and magnetic products are also available. [***] You can even find outdoor wallpaper, resistant to UV fading, high and low temperatures that could cause it to crack, and humidity.

Finally, with digital technology, new applications can be made of this product. By concealing data and codes in the patterns, wallpaper becomes a game for cell ...

5.1 Current regulations

European standards :

To ensure free trade in construction products, the European Commission has published Regulation (***) No. ***/**** on construction products. Wall coverings and carpets, laminates and resilient floor coverings are considered to be materials intended for construction and must comply with basic regulations for a reasonable service life from the point of view of durability.comply with basic regulations for an economically reasonable service life, provided that regular maintenance is carried out. [***]

The fundamental regulations include seven aspects:

mechanical strength and stability fire safety hygiene, health and the environment safety in use noise protection energy savings and thermal insulation sustainable use of natural resources

European standard EN ***** applies to all products in rolls and panels for wall coverings as defined in UNI EN ***, applied indoors to walls, partitions or ceilings, with an adhesive, mainly for decorative purposes. It also defines criteria for assessing product conformity with the requirements of the standard, and contains provisions for CE marking. Products are assessed for :

reaction to fire formaldehyde release release of heavy metals

European Directive ****/**/EC on the limitation of emissions of volatile organic compounds due to the use of organic solvents in decorative paints and varnishes sets maximum VOC content limits (***).

Optional standards and ...

6.1 Segmentation

• Ugépa
• Pierre Frey
• Tapetenfabrik Gebr Rasch
• Élitis
• Papermint
• Sanderson design Group (Zoffany)
• Iksel Decorative Art
• Nobilis
• 4Murs
• Zuber Papiers Peints
• Ressource Peintures
• Ripolin
• Sommer Needlepunch
• Grassin Décors
• Delzongle Couleurs & décoration