Ceramic Tiles Market

Ceramic Tiles Market Outlook & Key Findings

• The ceramic tiles market is expected to grow at a CAGR of 6.7% during the forecast period (2020-2030)
• Despite COVID-19 induced structural weakness, demand from residential construction sector will push ceramic tiles market to US$ 120 Bn in 2020
• Floor tiles will be fastest growing segment by volume through 2030
• Residential replacement will capture the largest share, tantamount to 45% of the ceramic tiles market volume

Ceramic tiles Market Analysis – High Adoption in Residential Spaces

Ceramic tiles are pegged as one of the affordable flooring materials at costs ranging anywhere between US$ 5 - US$ 15 for consumers with fixed budgets. Professional installation and customized offerings of ceramic tiles can shoot up costs by as much as US$ 15 - US$ 60 per square foot.

Ceramic tiles are often used in kitchens and bathrooms, foyers and areas which receive more frequent footfalls in commercial and residential spaces. Whilst they are slightly difficult to install for DIYers, they are drawing significant attention on back of their high durability and elegance.

With their hard surface, they offer hassle-free cleaning and maintenance. Ceramic flooring is considerably easy to care for especially in case of glazed tiles thus enhancing their applicability in bathroom and kitchen flooring.

Ceramic tiles come in both glazed and unglazed variants such as the Saltillo tile. Unglazed ceramic tiles need to be adequately sealed as grout in between the tiles can readily take on moisture.

Manufacturers are using modern and nuanced techniques to produce materials that can be printed and embossed. Tiles with solid accents can be mixed and matched and further accentuated with motifs and custom designs.

Ceramic Tiles Market Trends – Manufacturers Dabble with Colours, Textures and More

Ceramic tiles are seeing a spate of trends that are commemorating their aesthetics and durability. Some of the key trends in the ceramic tiles market include,

• Innovations are rife in digital printing technology and this can be effectively seen in wood designs that mimic the look and texture of natural wood
• Mixed colour palette schemes are enrapturing consumers with colours such as sage green, baby pink and dustier, orange hues for a serene effect
• Ceramic tile manufacturers are also playing extensively with geometric designs and shapes that make for dynamic layouts. Tile designs with trapezoids and rhombus are garnering traction
• Porcelain with its expanding applications is set to be a standout material in ceramic tiles on back of its stain-resistance and high durability
• Sustainability index is soaring within the tile industry with manufacturers emulating the look of rare stones and precious metals through dramatic visualization techniques
• Blending is trending in the ceramic tiles landscape with the amalgamation of wood and concrete and marble and terrazzo to inject freshness in the flooring decor

Ceramic Tiles Consumption – How Regional Business Models Are Influencing Purchase Decisions Globally?

In developed regions such as Europe, space is not only a luxury but also expensive. Thus manufacturers refrain from showcasing their offerings in lavish retail outlets. Thus online sales for showcasing products and thereafter sales is becoming increasingly prevalent.

In developed regions, consumers opt for online sample after which architects visit the customer to help him/her choose the right product. For retail sales, customers choose to take prior appointments. This allows retailers to manage volume and footfalls.

Developed regions also offer a plethora of options from polished, mosaic, matte, stone and rustic covering both floors and walls. Most also have 3D pictures on their websites showcasing the use of actual tiles in beautifully done up rooms.

Government policies in developed regions are more relaxed towards home loans at interest rates of ~ 2%- 3% making it affordable to purchase and renovate.

In developing regions however, footfalls at retail stores account for 95% of the revenue shares. Where space is not a constraint, developing countries in Asia Pacific are seeing mushrooming showrooms with high end ambience.

Further space and labour are cheaper in countries such as South Asia and Southeast Asia. Developing regions also have lesser options to offer in terms of product variants.

Loans for renovation or building a new house also comes at a hefty 13%-15% interest rates per annum which makes customers more discerning and circumspect. Thus purchasing decisions are influenced more by necessity than the need for luxurious living.

Flooring Options Act as Cornerstones of Growth

Within the ceramic tiles market, flooring has continued to account for a significant share in the overall market. With myriad ceramic tile flooring options, design schemes are being offered that are not only smooth flowing but least jarring to the eye. Tile such as 600X600 mm size are seeing high demand as kitchen floor tiles.

Floor tiles for living rooms/halls are using larger formats such as 800 X 1200 mm or bigger. For floor ceramic tiles, texture will continue to play a key role.

For instance, tiles in granite, marble and wood finish are seeing high traction in developed regions as they add considerable grandeur to living spaces.

Not only this, but manufacturers are ensuring that all floor tiles strictly adhere to various green building norms.

Ceramic Tiles Regional Analysis – Asia Pacific Leads with India and China as Frontrunners

Tile production fell by almost 3% in the year 2018. Despite Asia Pacific accounting for ~70% of the global output of ceramic tiles, a negative growth trend in terms of volume was noticed with a steep fall in China’s output and higher outputs in countries such as Indonesia, India and Vietnam.

Within Asia Pacific, India has remained the frontrunner as the second largest manufacturer and consumer of ceramic tiles. India also rules the roost in trade being the fourth largest exporter.

In Europe, substantial ceramic tiles exports come from countries such as Spain and Italy accounting for ~ 78% of the exports each.  The European tiles market is slated to witness substantial growth on back of high demand for tiles as an efficient building material for residential spaces.

However, the region has also been facing price fluctuations in its raw materials which has squeezed margins of leading players.

Within North America, the US leads, being the top importing country. The steady drop in revenues of leading ceramic tile players in the US such as Landmark and Stone, Florida Tiles and Del Conca has forced the country to import tiles from countries such as China, Italy and Spain.

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Ceramic Tiles Manufacturers – Players Race to Increase Profit Margins as Expansions Abound

The ceramic tiles market is fairly fragmented with a large number of regional and unorganized players. With low entry barriers, companies are extensively expanding their operations in newer markets.

For instance, Mohawk Industries Inc. has charted for itself the number one position with estimated revenues anywhere between US$3 Bn – US$ 4 Bn.

The Company’s rapid growth trajectory is attributable to expansion of its facilities in countries such as Russia and its acquisition of a Brazilian company Eliane in the year 2018.

In terms of volume, Thai leader SCG Ceramics ranks second holding nearly 7% of the global volume in the year 2018. In India, with its large export and production volume, there has been a proliferation of start-ups and expansions.

For instance, Rak Ceramics has increased its production capacity at a brand new factory in Morbi, Gujrat, India. Companies such as Kajaria and Somany in India are also emerging as fierce contenders with double digit revenue growth.

Somany, an Indian tile manufacturer has a dedicated R&D department that is extensively researching on tiles with bigger formats in the range of 800X 1600 mm and 1200X 1200 mm in myriad finishes such as polished and matte.

Ceramic Tiles Future Outlook – Advanced Manufacturing to Enhance Product Quality

Techniques in manufacturing have received an uptick which has greatly improved the quality of ceramic tiles. Industry concerns abound to reduce the carbon footprint by resorting to sustainable and greener manufacturing processes. This will also pave way for sustainable development and energy efficiency.

Digital printing in tiles is an upcoming trend. Further, tiles are increasingly replicating natural textures and looks. Many tile manufacturers are now looking at design solutions that are not only aesthetically pleasing but are also functional in nature.

Companies such as Somany are aggressively innovating and pushing the boundaries of technology. They have recently acquired patents for their VC technology which shields the tile against stains, scratches and wear and tear. Moreover these tiles come in a silky matte finish that adds to the overall aesthetics of the tiles.

As consumer preferences are evolving, ceramic tiles are changing from being mere decorative products to tiles which are functionally advanced without compromising on their visual characteristics.