Ceramic tiles have become a vital part of numerous households around the globe. Ceramic tiles can transform the interior as well as the exterior of your house and give it a new look. The global ceramic tile industry has been a rather robust one with steady growth rates and production figures rising progressively.
The following figures give an outlook to the global ceramic tile industry
6900 Million sq.mt World Production
Per Capita Consumption stands at 0.30 sq.mt
Industry Growth Rate is 6 at a Global level
The figures highlight the tremendous potential that exists in the industry. The world tile production has increased by 53 through 2003-2007 and the consumption corresponding to this production during the same time frame increased by 55.
The Ceramic Tile Industry Characteristics
The first clays were produced some eight thousand years ago and the history of tiles can be traced back to Egypt in the era of 4000BC. By 900AD the concept of tiles had spread and the making and decoration of tiles became widely popular in Persia, Syria, Turkey, China and North Africa. By the end of the 12th century tiles had been spread across Europe thanks to the Romans and their conquests. This era was marked by hand-painted and hand-made ceramic tiles but today, however more advanced and modern techniques are employed to guarantee quality production through automated manufacturing techniques.
The ceramic tile industry can be characterized into two broad categories i.e. the demand side and the supply side. Lets discuss each in turn
Demand for Ceramic Tiles
The demand for ceramic tiles has been rising at a steady rate which has allowed the industry to grow by 6 per annum. There are numerous uses of ceramic tiles for all sorts of construction i.e. residential, commercial and industrial as well. Modern household demands for fancy ceramic tiles have erupted in the recent past since they are used in the kitchens and bathrooms. The industrial demand of ceramic tiles stems from the fact that walls must be protected against chemicals. The most interesting demand for tiles comes from NASA (National Aeronautics and Space Administration where a space shuttle doesnt leave earth without heat resistant tiles as part of its exterior. The demand for tiles is directly associated with construction and re-construction activities in the market.
Demand is also on the rise as consumers shift from traditional mosaic, granite and marble towards ceramic tiles because of their cleanliness. Demand will continue to rise as industries such as construction housing, retail and even IT grow and develop. The retail booms also drive demand for high end products in which ceramic tiles are categorized.
Supply of Ceramic Tiles
On the supply side, there are various factors that affect the supply of ceramic tiles. The major factor that affects supply is the availability of raw material used in tile manufacturing itself. The raw material utilized in the manufacturing of tiles is clay and if it is abundantly available then supply would be high. Moreover, supportive government policies such as anti-dumping laws to deter competitors from dumping cheap tiles in local markets, investments in research and development and raw material exploitation all play major roles to fuel supply which can be utilized to meet local demand and then exported to earn revenue.
The Top 5
The global market of ceramic tiles is said to be aiming to cover 102billion square feet in 2010 with the Middle East and Asia-Pacific regions posting the highest demand. Where there is demand, there is supply. The following data highlights the ceramic industry in terms of largest producers, largest exporters and largest markets for ceramic tiles
Largest ProducerLargest ExportersBiggest Export MarketsChina
Spain
Italy
Turkey
Brazil Spain
Italy
China
Turkey
BrazilUSA
France
Germany
UK
Greece(Trade Map)
Investment Opportunities
The above table ranks the largest producers, consumers and exporters of ceramic tiles. The success that each has had can be attributed to various factors such as high construction demand, abundant raw material, efficient manufacturing techniques etc. We will analyze each of the countries in order to highlight why an investor should tap these markets.
China
China is the largest manufacturer of ceramicporcelain tiles in the world with an annual growth rate of an amazing 20 over the past decade. Production figures according to Chinese official statistics have reached 5 billion square meters with exports of around 600 million square meters. The country has six dedicated ceramic production regions where there is abundant raw material, skilled labor, supplier networks, state-of-the art manufacturing equipment and innovative product designs are developed.
More than 16 key multinational ceramic manufacturers are sourcing operations from China where 60 of the products are exported and the remaining sold to the local market. All the players in the industry are subjected to strict national quality standards which are applied by Chinese authorities. The Chinese government has taken additional efforts to promote the ceramic industry through administrative, legal and economic reform. The country in itself is self-sufficient in terms of machinery and equipment requirements to manufacture ceramic tiles and but imports are part of its trade especially in the form of high-end ceramic tiles from Italy and Spain.
China is still far behind the more developed countries such as Italy and Spain in terms of quality, innovation and technology which are more environmentally friendly. Therefore, there is room for investment in the economy and the returns in the form of increased local and export demand from the Asia-Pacific region (Wen Hu Zheng Gang, 2006).
Italy
Italian ceramic tiles are by far the most famous around the world because of the constant innovation and development which takes place in the Italian industry. The Italian ceramic tile industry has pioneered major innovations and design concepts which have been implemented and replicated across the world. It has developed the industry through a technological, progressive perspective which has gained it fame. Italy is the thirds largest producer with 650 million square meters and second largest exporter of ceramic tiles. The industry has also focused on the Green design whereby manufacturers are encouraged to use recyclable materials and environmentally friendly production processes.
Italy is the market leader in the field of ceramic tiles and this can be justified through the Cersaie international trade show held on an annual basis with around 90,000 visitors from across the globe. This global platform is an ideal stage for key international manufacturers and customers to interact and offers tremendous opportunities for investment. The major brands of Italian ceramic tiles include Marazzi, Florim, Iris and Ceramica.
Spain
Spain is the second largest producer and the largest exporter of ceramic tiles 1,460 Euros worth of Exports. Its export markets include the Asia-Pacific region, Northern Africa, Middle East and North America. Tile of Spain is the brand promoting the ceramic tile industry of Spain. Similar to Italian tiles, Spanish tiles are also known for their innovation, quality, diversity, technology and design something which other competitors such as China have failed to replicate.
Investor interest in the country remains high mainly because of the positive export prospects of the Tile of Spain and its brand image around the world. The significant growth in production levels after the economic recession is also attractive for investors. Moreover, international trade policy is also shifting towards in-house production which places Spain in the spotlight because of its supply of expertise, raw material and state-of-the-art technological expertise (M.L Flor M.J Oltra, 2003).
Brazil
Brazil is amongst the top five producers and exporters of ceramic tiles in the world. With more than 160,000 employees in both the organized and unorganized sectors and a worldwide recognition, the industry is performing positively despite the recession of 2009. This has been possible for various reasons including increased product quality, modernized production techniques and mainly due to Anfacer, the Brazilian Association of Ceramic Tile Manufacturers. Capacity utilization has remained high at 88.1 and by no doubt Brazil is the largest production and consumption market for tiles in the Western Hemisphere. The Expo Revestir is the international trade fair that seeks to promote the Brazilian ceramic tile industry. Demand for Brazilian tiles is also expected to increase by 20 following the recession and the government has adopted investment friendly policies in this sector to attract investors (Ceramic Industry, 2000)
Turkey
Ceramics is one of the leading industrial sectors in Turkey and thus demands investment. Amongst European countries, Turkey ranks third in tile production which can be attributed to rapid development and industrialization after the 1950s. Figures regarding exports, production and even employment in the ceramic industry are positive and highlight the potential for future growth and development. The tiles manufactured in Turkey feature designs based on the ancient Ottoman Empire that reigned in Turkey thus creating a unique demand from around the globe through this diversity. Turkey has been able to increase its market share each year, and through the establishment of lasting relationships with customers, it has maintained its place as the leading exporter in the region (Ceramic Industry - Turkish World Media).
We have analyzed the countries which are ideal for ceramic tile manufacturing due to various reasons. Let us now analyze the world markets with the highest demand for ceramic tiles i.e. the largest importers of ceramic tiles.
United States of America
The USA is the largest importer of ceramic tiles. Its main suppliers are Italy, Spain and Mexico with 44, 20 and 11 shares of the US market. Given the size of the country and the massive population, USA is an ideal market for investment. The demand is driven by residential, hotel, industrial, and commercial construction, expansion and reconstruction requirements. Imports of ceramic tiles constitute to an astounding 80 of the market, therefore, investment opportunities are vast since there is a wide gap between local production and local demand. Moreover, with the strong growth in the residential and construction markets, it is anticipated that the ceramic tile market value will cross US 3 billion by the end of 2010.
Others
The ceramic industry of Germany, UK, Greece and France are not that popular and most of the demand is met through imports. The imports are supplied by Italy and Spain themselves. The market potential for these countries is great and demand is on the rise due to the various factors already discussed such as construction demand, residential etc.
Asia-Pacific Middle East
The Asia-Pacific and Middle East regions including China, Indonesia, Japan, Saudi Arabia, United Arab Emirates, Qatar, Kuwait and India etc have seen extremely high rates of population growth over the past decade which has given rise to demand for construction materials such as ceramic tiles themselves. Healthy growth rates in the hotel, retail IT, health care and housing industries have fueled demand. In India alone, 20 million new units in the housing sector and 60,000 hotel rooms are planned. Saudi Arabia is the fifth largest importer of ceramic tiles in the world with no industry of its own, it solely relies on imports. Thus, investment opportunities in these regions are high and investors can expect a high return for their investments.
Even with the current crisis of the economic meltdown, rise in inflationary pressures, increased in credit costs and delays in project approvals, the ceramic industry has immense potential in the future. With innovation, technology and diversity incorporated, investors can be guaranteed a good return for their investments in the markets discussed in this report.
The following figures give an outlook to the global ceramic tile industry
6900 Million sq.mt World Production
Per Capita Consumption stands at 0.30 sq.mt
Industry Growth Rate is 6 at a Global level
The figures highlight the tremendous potential that exists in the industry. The world tile production has increased by 53 through 2003-2007 and the consumption corresponding to this production during the same time frame increased by 55.
The Ceramic Tile Industry Characteristics
The first clays were produced some eight thousand years ago and the history of tiles can be traced back to Egypt in the era of 4000BC. By 900AD the concept of tiles had spread and the making and decoration of tiles became widely popular in Persia, Syria, Turkey, China and North Africa. By the end of the 12th century tiles had been spread across Europe thanks to the Romans and their conquests. This era was marked by hand-painted and hand-made ceramic tiles but today, however more advanced and modern techniques are employed to guarantee quality production through automated manufacturing techniques.
The ceramic tile industry can be characterized into two broad categories i.e. the demand side and the supply side. Lets discuss each in turn
Demand for Ceramic Tiles
The demand for ceramic tiles has been rising at a steady rate which has allowed the industry to grow by 6 per annum. There are numerous uses of ceramic tiles for all sorts of construction i.e. residential, commercial and industrial as well. Modern household demands for fancy ceramic tiles have erupted in the recent past since they are used in the kitchens and bathrooms. The industrial demand of ceramic tiles stems from the fact that walls must be protected against chemicals. The most interesting demand for tiles comes from NASA (National Aeronautics and Space Administration where a space shuttle doesnt leave earth without heat resistant tiles as part of its exterior. The demand for tiles is directly associated with construction and re-construction activities in the market.
Demand is also on the rise as consumers shift from traditional mosaic, granite and marble towards ceramic tiles because of their cleanliness. Demand will continue to rise as industries such as construction housing, retail and even IT grow and develop. The retail booms also drive demand for high end products in which ceramic tiles are categorized.
Supply of Ceramic Tiles
On the supply side, there are various factors that affect the supply of ceramic tiles. The major factor that affects supply is the availability of raw material used in tile manufacturing itself. The raw material utilized in the manufacturing of tiles is clay and if it is abundantly available then supply would be high. Moreover, supportive government policies such as anti-dumping laws to deter competitors from dumping cheap tiles in local markets, investments in research and development and raw material exploitation all play major roles to fuel supply which can be utilized to meet local demand and then exported to earn revenue.
The Top 5
The global market of ceramic tiles is said to be aiming to cover 102billion square feet in 2010 with the Middle East and Asia-Pacific regions posting the highest demand. Where there is demand, there is supply. The following data highlights the ceramic industry in terms of largest producers, largest exporters and largest markets for ceramic tiles
Largest ProducerLargest ExportersBiggest Export MarketsChina
Spain
Italy
Turkey
Brazil Spain
Italy
China
Turkey
BrazilUSA
France
Germany
UK
Greece(Trade Map)
Investment Opportunities
The above table ranks the largest producers, consumers and exporters of ceramic tiles. The success that each has had can be attributed to various factors such as high construction demand, abundant raw material, efficient manufacturing techniques etc. We will analyze each of the countries in order to highlight why an investor should tap these markets.
China
China is the largest manufacturer of ceramicporcelain tiles in the world with an annual growth rate of an amazing 20 over the past decade. Production figures according to Chinese official statistics have reached 5 billion square meters with exports of around 600 million square meters. The country has six dedicated ceramic production regions where there is abundant raw material, skilled labor, supplier networks, state-of-the art manufacturing equipment and innovative product designs are developed.
More than 16 key multinational ceramic manufacturers are sourcing operations from China where 60 of the products are exported and the remaining sold to the local market. All the players in the industry are subjected to strict national quality standards which are applied by Chinese authorities. The Chinese government has taken additional efforts to promote the ceramic industry through administrative, legal and economic reform. The country in itself is self-sufficient in terms of machinery and equipment requirements to manufacture ceramic tiles and but imports are part of its trade especially in the form of high-end ceramic tiles from Italy and Spain.
China is still far behind the more developed countries such as Italy and Spain in terms of quality, innovation and technology which are more environmentally friendly. Therefore, there is room for investment in the economy and the returns in the form of increased local and export demand from the Asia-Pacific region (Wen Hu Zheng Gang, 2006).
Italy
Italian ceramic tiles are by far the most famous around the world because of the constant innovation and development which takes place in the Italian industry. The Italian ceramic tile industry has pioneered major innovations and design concepts which have been implemented and replicated across the world. It has developed the industry through a technological, progressive perspective which has gained it fame. Italy is the thirds largest producer with 650 million square meters and second largest exporter of ceramic tiles. The industry has also focused on the Green design whereby manufacturers are encouraged to use recyclable materials and environmentally friendly production processes.
Italy is the market leader in the field of ceramic tiles and this can be justified through the Cersaie international trade show held on an annual basis with around 90,000 visitors from across the globe. This global platform is an ideal stage for key international manufacturers and customers to interact and offers tremendous opportunities for investment. The major brands of Italian ceramic tiles include Marazzi, Florim, Iris and Ceramica.
Spain
Spain is the second largest producer and the largest exporter of ceramic tiles 1,460 Euros worth of Exports. Its export markets include the Asia-Pacific region, Northern Africa, Middle East and North America. Tile of Spain is the brand promoting the ceramic tile industry of Spain. Similar to Italian tiles, Spanish tiles are also known for their innovation, quality, diversity, technology and design something which other competitors such as China have failed to replicate.
Investor interest in the country remains high mainly because of the positive export prospects of the Tile of Spain and its brand image around the world. The significant growth in production levels after the economic recession is also attractive for investors. Moreover, international trade policy is also shifting towards in-house production which places Spain in the spotlight because of its supply of expertise, raw material and state-of-the-art technological expertise (M.L Flor M.J Oltra, 2003).
Brazil
Brazil is amongst the top five producers and exporters of ceramic tiles in the world. With more than 160,000 employees in both the organized and unorganized sectors and a worldwide recognition, the industry is performing positively despite the recession of 2009. This has been possible for various reasons including increased product quality, modernized production techniques and mainly due to Anfacer, the Brazilian Association of Ceramic Tile Manufacturers. Capacity utilization has remained high at 88.1 and by no doubt Brazil is the largest production and consumption market for tiles in the Western Hemisphere. The Expo Revestir is the international trade fair that seeks to promote the Brazilian ceramic tile industry. Demand for Brazilian tiles is also expected to increase by 20 following the recession and the government has adopted investment friendly policies in this sector to attract investors (Ceramic Industry, 2000)
Turkey
Ceramics is one of the leading industrial sectors in Turkey and thus demands investment. Amongst European countries, Turkey ranks third in tile production which can be attributed to rapid development and industrialization after the 1950s. Figures regarding exports, production and even employment in the ceramic industry are positive and highlight the potential for future growth and development. The tiles manufactured in Turkey feature designs based on the ancient Ottoman Empire that reigned in Turkey thus creating a unique demand from around the globe through this diversity. Turkey has been able to increase its market share each year, and through the establishment of lasting relationships with customers, it has maintained its place as the leading exporter in the region (Ceramic Industry - Turkish World Media).
We have analyzed the countries which are ideal for ceramic tile manufacturing due to various reasons. Let us now analyze the world markets with the highest demand for ceramic tiles i.e. the largest importers of ceramic tiles.
United States of America
The USA is the largest importer of ceramic tiles. Its main suppliers are Italy, Spain and Mexico with 44, 20 and 11 shares of the US market. Given the size of the country and the massive population, USA is an ideal market for investment. The demand is driven by residential, hotel, industrial, and commercial construction, expansion and reconstruction requirements. Imports of ceramic tiles constitute to an astounding 80 of the market, therefore, investment opportunities are vast since there is a wide gap between local production and local demand. Moreover, with the strong growth in the residential and construction markets, it is anticipated that the ceramic tile market value will cross US 3 billion by the end of 2010.
Others
The ceramic industry of Germany, UK, Greece and France are not that popular and most of the demand is met through imports. The imports are supplied by Italy and Spain themselves. The market potential for these countries is great and demand is on the rise due to the various factors already discussed such as construction demand, residential etc.
Asia-Pacific Middle East
The Asia-Pacific and Middle East regions including China, Indonesia, Japan, Saudi Arabia, United Arab Emirates, Qatar, Kuwait and India etc have seen extremely high rates of population growth over the past decade which has given rise to demand for construction materials such as ceramic tiles themselves. Healthy growth rates in the hotel, retail IT, health care and housing industries have fueled demand. In India alone, 20 million new units in the housing sector and 60,000 hotel rooms are planned. Saudi Arabia is the fifth largest importer of ceramic tiles in the world with no industry of its own, it solely relies on imports. Thus, investment opportunities in these regions are high and investors can expect a high return for their investments.
Even with the current crisis of the economic meltdown, rise in inflationary pressures, increased in credit costs and delays in project approvals, the ceramic industry has immense potential in the future. With innovation, technology and diversity incorporated, investors can be guaranteed a good return for their investments in the markets discussed in this report.
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