Friday, 19 May 2017

Ceramic Tiles Industry 2017

       Global ceramic tiles industry reached USD 76Bln in 2016. It is expected to grow at CAGR 9% between 2014-2020 to reach USD 120Bln by 2020. Demand is primarily driven by the growing construction and infrastructure industry. China is the largest industry contributor with construction spending more than USD 1.7 trillion. Increasing industrialization, urbanization, technological advancement in the manufacturing of ceramic tiles and availability of abundant raw materials is also contributed in growth of ceramic tiles market. Wall tiles, floor tiles, and others such as ceiling and roofing tiles are the main products available in this market. Floor tiles alone has highest more than 50% market share and also expected to grow at faster rate than other in future. High durability and good thermal & shock resistance compared to hardwood are said to have positive impact on industry growth of floor tiles. Furthermore, installation and replacement ease are some of the other properties due to which they are extensively used.
       Total production volume reached 12,355 Sq.m.Mill in 2015. Asia is the largest manufacturing zone having more than 69% production. Europe is the 2nd largest area having 9.9% share followed by Central and South America. Country wise, China is the largest production hub contributing 48.3% of the global production in this category. Asia Pacific is projected to witness highest growth of around 10% by 2024. Increasing construction spending in Japan, India and South Korea , China will drive ceramic tiles market share in the region. In addition, drift toward marble floors, replacing paints, metal slabs and other home decorative products with ceramic tiles will further boost regional growth by 2024.
       Total consumption reached 12,175 Sq.m.Mill in 2015. Asia is the largest consumption area having consumption share of 67%. Central and South America is the 2nd largest zone having 10.5% share followed by EU 28 with 7.5% share. China is the largest consumer market contributing 40% of the global consumption in this category followed by Brazil 6.7% share and India 6.3% share. Ceramic tiles are a important materials that are consumed in bulk by construction industry. Hence, positive growth outlook for the construction market in Asia Pacific is estimated to propel the ceramic tiles market in the next few years. Other Key factors driving product demand in Asia Pacific include rise in disposable income of consumers, dense population, increase in government initiatives for infrastructure development and collaboration with foreign investors.
       World exports of ceramic tiles reached 2,735 Sq.m.Mill in 2015. It stand at 21.5% of total production and 22.5% of global consumption. More than half of this volume consist of export to same geographical region. Ex- 87 % of South American export remains in South American nations, 67% of the Asian exports are to other Asian countries. Asia is the largest exporting region exported total 1514 Sq.m.Mill in 2015. Asia is the leader in export with market share of 55.4% followed by EU 28 with 31.3% share, Central and South America having 10.5% share in exports. China ,Spain, Italy, India ,Iran are top 5 exporting countries together contributing around 70% exports. China has the highest share of 39.8 % in global export which 18.2% of the national production in this category. Italy and Spain maintain the highest share of exports as a percentage of production which is 80 % and 86 % respectively. USA, Saudi, Iraq, Germany ,France are the top 5 importing nations. Top 10 importing countries imported 989 Sq.m.Mill which is 36.2 % of global import in this category.
        Indian ceramic tiles industry reached USD 3.7Bln in 2016. It is expected to grow at CAGR 8% between 2012-2019 to reach USD 4.8Bln. It ranks 2nd in the world produces 12.9% of global output also it is the 3rd largest tiles market and among the top 5 fastest growing markets in the world. Ceramic tiles account for 60% of the total tiles demand in India. The key drivers for the ceramic tiles in India are the boom in real estate, retail IT &BPO sectors. Real estate accounts for nearly 70% of the total demand. Per capita consumption has is at 0.59 square meters. Huge potential in Indian tiles market owing to high population and low per capita consumption. Industry is dominated by unorganized sector accounting 60% share. Over 5,50,000 people are employed in the sector. Out of this, 50,000 people are directly employed and 5,00,000 are indirectly associated. ‘Morbi’ in Gujurat
is a major hub for unorganized tiles manufacturer.  Main product segments are the Wall tile, Floor tile, Vitrified tile and Industrial tile segments. Vitrified tiles accounts more than 45% share. Branded players (organized players) are mostly involved in manufacturing of this product.Tiles are available in a wide variety of designs, textures and surface effects among these segment.
       India is World’s 3rd largest producer after China and Brazil. Production in India reached 1600 Sq.m.Mill in 2016 which is highest since last 5 years. Out of total production in 2015, 1.22 Sq.m.Mill (approx) was exported during 2015. It ranks 4th in terms of export in tis category. There are around 14 national players contributing 40 % share in total production with Kajaria, Somany and Johnson tiles among the top 5 players and there are approximately 200 small units (regional players) contributing 60%.
   Domestic consumption increased by just 7 Sq.m.Mill to 763 Sq.m.Mill (+0.9%) compared to pervious increase of +5% . India is also the 3rd largest consumer after China and Brazil.  It Contributes 6.3% (approx.) share in consumption globally. The key catalyst for rising consumption are 2nd largest and young population, rising disposable income and increasing urbanization.
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