The wallpaper market - Italy (2023)

1.2 The global market

In ****, the global wallpaper market reached values of $*.** billion. Between **** and ****, the market is expected to grow at a comparative annual rate of *.** percent, which will lead the market itself to reach values of $*.* billion.

Size of the global wallpaper market World, ****-*****, in US$ billion Source: ****

One segment of the global wallpaper market, the digitally printed wallpaper market, is the main driver of this growth. In fact, the latter is set to grow from US$*.** billion between **** and **** thanks to a comparative annual rate of **.* percent, which is six times that of traditional wallpaper.

Global printed wallpaper market World, ****-****, in billions of dollars Marketsandmarkets

1.3 The domestic market is shrinking

In order to analyze the Italian wallpaper market, the turnover of companies active in the sector until **** and the value of production sold for the following two years are used. It should be noted that for **** and **** this is an estimate based only on the value of production, thus excluding import and export for which no data are available.

Between **** and ****, the wallpaper market in Italy appears to be shrinking. Although between **** and **** the figure is growing (***), in the last * years the trend is negative. Considering the turnover of enterprises, between **** and **** the decline is **.*%. Then considering the value of production sold, between **** and **** the contraction is confirmed, with a decrease of *.*%.

Italian wallpaper market Italy, ****-****, millions of euros Istat *Value of production sold

1.4 International trade

Italy exports more wallpaper value than it imports. Between **** and ****, the trade balance-given by the ratio of exports to imports-is always more than ***%. In ****, the value of exports is * times higher than that of imports.

importantly, the trade balance has decreased since **** because the value of exports has decreased, while the value of imports has increased. In fact, the value of exports decreased by about **.*% between **** and ****, while the value of imports increased by **.*%. This figure can be explained by the emergence of low-priced products, which have increased imports into the territory and cannibalized a portion of exports.

International trade in wallpaper Italy, ****-****, in millions of € Source: ****

A more in-depth analysis of the geographical breakdown of imports and exports in **** can shed light on the main destination countries and the main supplier countries of wallpaper to and from Italy.

France is the main destination for wallpaper exports, garnering **.*% of the total. It is followed by the United Kingdom (***), account for almost half of Italian exports, with the remaining portion going to the rest of the world.

Main countries of destination for wallpaper Italy, ****, in % Source: ****

Italy tends to be less fragmented in terms of imports. In fact, France, the Netherlands ...

2.1 Summary of demand drivers

The demand for wallpaper is closely linked to some existing macro trends in other markets and Italian demographics. The Italian real estate market is an important factor that must be analyzed to assess wallpaper demand, as the construction of new residential and nonresidential units represents a potential new market. In addition, the evolution of the average annual income of Italians influences demand, as a negative trend would prevent an increase in the use of wallpaper, which is seen by most of the population as a nonessential decorative element. Another factor to consider is which households devote most of their income to household expenses.

it is essential to analyze the preferences of the Italian population in terms of wallpaper design, materials, and intended use. To make sure that supply meets demand, we analyzed:

which room of the house Italians are most willing to spend on where they prefer to install wallpaper which style of decoration they prefer which wallpaper patterns they prefer which wallpaper materials they prefer

In addition, Italians' shopping habits are changing. Although physical stores remain the preferred choice of Italians, who are more conservative than other countries when it comes to decorating their homes, the online channel is increasingly ...

2.2 Macro trends influencing demand

**** was a virtuous year for the Italian real estate market with transactions exceeding ** billion euros in valoe. Compared to ****, the growth is sharp, +**%. Despite the growth recorded in both **** and ****, the figure for transactions remains lower than in **** (***). However, the data recorded in the last two years hint at a recovery in the sector.

Evolution of the Italian real estate market Italy, ****-****, in € billion Source: ****

Between **** and ****, residential and nonresidential construction shows an uncertain trend. Looking at the number of square meters of new construction, while between **** and **** the figure is up for both types, +*.* percent and +**.* percent respectively, following the outbreak of the pandemic in **** the sector seems to have suffered a setback. Between **** and ****, residential construction grew by *.*%, almost half the previous period, and nonresidential construction shows a negative trend, with a decrease in the number of square meters of new construction of **.*%.

All told, there were **,*** residential constructions in ****, compared to **,*** in ****. Residential new construction thus registers an increase of **.* percent. The figure is also in line with the increase in the area of residential construction: between **** and ****, the total area increased by **.*%, from *.* million square meters to *.**.

Construction of new units by type Italy, ****-****, in ...

2.3 Italians' online shopping habits

Analyzing searches for the word "wallpaper" on Google Trends, we can see that online demand records similar values at the same times of the year between periods. Moreover, between January **** and September ****, online searches for wallpaper remained stable when looking at the annual average (***).

Google search for the word "Wallpaper" Italy, ****-**** Source: ****

Delving into the behaviors related to the purchase of furniture items, in **** **% of Italians buy furniture accessories online (***), **% then opt to purchase through online channels because of cheaper prices and **% because of the wider offer. Finally, **% make the entire purchase process at physical stores.

Buying habits for furniture Italy, ****, in percent Compass Observatory

2.4 New trends in demand

The evolution of wallpaper over the years has led to the use of many different and increasingly technological materials so that it can be used in all rooms of the home. The subjects reproduced in wallpapers are also gradually acquiring a new, multi-purpose content guise that encourages their use not only in classically styled rooms, but also in more minimalist and modern designs. The main stylistic trends in demand include the styles:

Tropical and Jungle: lush vegetation, exotic animals and bright colors are the main features of tropical-themed wallpapers. These are very richly detailed graphics that can be defined as maximalist. This style is mostly chosen for living areas with minimal furniture and neutral tones. Art Deco inspiration: a style characterized by geometric designs and the presence of gold and silver ideal if you want to achieve an atmosphere reminiscent of the ****s. These are very versatile wallpapers, perfect, for example, in the living room, as well as in the bedroom to create a background behind the bed, or even to characterize a small study corner, or in a bathroom with a classic style. Trompe l'oeil: by this style is meant that pictorial genre in which the representation of landscapes, objects, ...

3.1 Market structure overview

To analyze the structure of the wallpaper market, we will refer to Ateco **** code, which is the classification of economic activities used by Instat.

According to Istat, Ateco **** code No. ** identifies the manufacture of paper and paper products. More specifically, code No. **.**.** identifies the manufacture of wallpaper.

In Italy, the wallpaper industry belongs to the broader converting paper industry, which consists of the following segments:

corrugated paper and board and packaging sanitary and household products papermaking products wallpaper other paper and paperboard articles

3.2 Wallpaper production has halved in the past five years

Between **** and ****, wallpaper production in Italy declined by **.* percent, from **.* thousand tons to **.*. The trend in production volume is fluctuating throughout the entire period with a positive trend between **** and ****, followed by a drastic decline in **** and a recovery in ****; however, in ****, production declined again, returning to lower values than in ****.

Volume of wallpaper production Italy, ****-****, in thousands of tons Source: ****

Analyzing Italy's largest converting paper industry, the wallpaper industry experienced the most drastic decline in production between **** and ****, with the sole exception . This decline was partly caused by a decrease in domestic demand and exports. In contrast, all other segments, with the exception of paper bags, have consistently recorded year-on-year increases in production. Favorable trends in the food and cosmetics/perfumery segments, such as increased consumption of individually portioned foods and small-format beauty products, have supported this growth.

Percentage change in wallpaper production in Italy Italy, ****-****, in % Source: ****

In addition, the wallpaper industry's operating margin is also declining sharply. Between **** and ****, the GOP dropped by **.* percent, from **.* million to just *.* million. This decrease is due to both an increase in raw material costs and a decrease in final product prices.

Operating margin of the Italian wallpaper market Italy, ...

3.3 The limited number of players in the wallpaper industry

In the broader Italian converting paper industry, the wallpaper industry accounts for only a marginal portion (***). The industry is dominated by paper products, accounting for **.* percent, while corrugated cardboard and packaging account for about **.* percent of the total value.

Distribution of companies by production sector Italy, ****, in % Source: ****

3.4 The main manufacturers

The following are some of the leading Italian wallpaper manufacturers:

Zambaiti Parati: founded in ****, its technological pre-eminence and ability to create innovation as a factor of success in international markets has enabled the company to gain great international notoriety, and today the company can count on a network of distributors present in almost every country in the World, with a prevailing vocation for export and a constant collaboration with the classic distribution channel, consisting of specialized showrooms. Limonta Wall/Domus: founded in ****, the company has diversified its production over the years, developing not only the textile sector, but also the chemical sector. Wallpaper Collection Chapter * is the project that was born from the collaboration between two divisions of Limonta, in which Society's home textile research experience evolves into new decorative proposals for Limonta's wall surfaces Jannelli&Volpi: founded in ****, is a leader in Italy in wallcoverings and wallpapers with a ***% Made in Italy product of the highest standards of style and quality. The contemporary Italian desgin and style adopted by the company is highly successful especially in the high-end international and contract market. Glamora: founded in ****, the company expresses the idea of living a dream through custom wallcovering collections inspired by ...

4.1 The different types of wallpaper

Depending on the material it is printed on, we can identify different types of wallpaper available on the Italian market:

Traditional wallpaper: printed on paper Vinyl wallpaper: printed on a layer of PVC "TNT" wallpaper: composed of polyester and cellulose fibers Natural fiber wallpaper

However, another subdivision is possible based on the functional characteristics of the wallpaper. The criteria for this subdivision are:

Washable or non-washable wallpaper Level of breathability Soundproofing capacity Type of wall on which the wallpaper will be placed

Wallpaper can also be classified according to its method of installation:

Adhesive: wallpaper is printed on a removable adhesive substrate. To apply the wallpaper, the substrate is peeled off and the adhesive part is applied to the wall. To remove the wallpaper, its corner must be pulled up and peeled off. Water-activated adhesive: the wallpaper is printed on a removable adhesive substrate, which is activated by water. Non-adhesive: glue must be added to install the non-adhesive wallpaper.

In addition, the offering can be classified according to the clientele:

Residential (***) Non-residential (***)

Brewster Source: ****

4.2 Overview of the production process

The production of wallpaper consists of numerous steps, which can be carried out exclusively by artisans or be completely digital depending on the company.

The stages of the wallpaper production process are:

Design: Designers submit various sketches with different designs. Companies may purchase original sketches from independent designers, or they may hire some of them in-house Choice of colors : The pigment combination is chosen to maintain the aesthetic qualities of the wallpaper, either through craftsmanship control or, in some cases, the use of an electronic dye meter using advanced software Choice of printing method : The company discusses which printing method it will use. Then, depending on the method, the design is modified or left intact, and is then ready for printing General proofing and approval : Some designs are printed as sample pieces. This is an opportunity to review the product and decide whether or not to start final printing. Paper cutting : Usually the production process requires print-ready paper, which is cut to size to fit the pattern. Coating : The paper vieve been prepared for printing. For example, ground wood sheets are normally coated with vinyl, while pulp sheets are more likely to be coated with latex. The amount of pvc applied ...

4.3 Prices

The following are some of the products available on the Italian market with their selling price. Product sizes vary depending on the standard adopted by the manufacturing company.

4.4 The rise of digitally printed wallpaper

Digitally printed wallpaper is produced with a software-controlled electronic printer that prints with special inks, on smooth or lightly textured materials. Digital printing of wallpaper is usually done on "TNT" paper. This type of wallpaper was initially developed in the mid-****s, but has become increasingly popular in the last decade due to its advantages and new customer demand. Digital printing has shifted the focus from large runs of standardized designs and low profit margins to smaller runs of unique products with larger profit margins.

Digitally printed wallpaper has several advantages over more traditional printing methods:

Ability to print large designs that are expressed over the entire wall and do not repeat. In this case, printing is done on multiple panels that are assembled during installation to form the complete design. Unlimited customization that opens up a new market. With digital printing, clients, who may be designers, architects, or families, have the ability to choose the design they prefer to give a space the look and feel they want. Limited set-up costs. With digital printing, very small print runs can be achieved, even of a single wall. This results in greater flexibility for the wallpaper manufacturer and lower inventory costs because ...

5.1 The European and international regulatory framework

In order to ensure the free trade of construction products, the European Commission issued the Construction Products Regulation (***) No. ***/****. The regulation includes six aspects:

mechanical resistance and stability fire safety hygiene, health and environment safety in use noise nuisance energy saving and heat retention

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

reaction to fire formaldehyde release release of heavy metals release of VMC

EU Directive ****/**/EC on the limitation of emissions of volatile organic compounds due to the use of solvents in decorative paints and varnishes establishes the maximum content of VOCs (***) in paints, varnishes and vehicle refinishing products. Building and decorating products must have a label indicating, in a simple and legible manner, their level of emission of volatile pollutants. The products covered by this regulation are building products or wall coverings for use indoors, as well as products used for their application.

In addition, there are a number ...

6.1 Segmentation

• Jannelli&Volpi
• Wall&Decò
• Inkiostro Bianco
• Glamora
• Zambaiti Parati
• WallPepper
• Limonta Wall/Domus