The Indian tile and sanitaryware industry is showing great preparedness in all sectors and regions to identify their highest-value opportunities while also addressing their most critical challenges.
India is one of the fastest-growing ceramic tiles and sanitaryware markets at the global level. It ranks as the world’s second-largest producer and consumer of ceramic tiles. India’s ceramic tiles industry is expected to double in size by 2027. India’s export market size reached ₹16,500 crores in FY23, constituting 30% of the overall market and growing at a CAGR of approximately 15% from FY19 to FY23.
Around 90% of tiles in India are manufactured in Morbi, Gujarat, and exported through the Mundra port. Of this, 80% is exported to the USA (60-70%), Saudi Arabia (20%), and the remaining 10% to the UAE thus creating a very large network of business.
The Indian ceramic tiles market has seen a tremendous resurge post covid that has been driven by the expansion of the building industry, owing to the rapid expansion of the housing sector and increased construction spending across the globe. The ceramic tiles market is expected to expand because of rapid urbanization and population growth.
The burgeoning real estate sector in India, fueled by increased urbanization and a rising middle class, represents the prime factor fueling the demand for tiles, sanitary wares, and bathroom fittings in the country. Besides this, favourable government initiatives promoting sanitation and expanding infrastructural development are creating a favourable outlook for market expansion.
Moreover, there is an increased consumer awareness regarding hygiene and aesthetics, leading to a preference for quality and well-designed products. In addition to this, the easy availability of finance and globalization trends have made imported and premium products more accessible, aiding in market expansion. Furthermore, ongoing product advancements and innovation, such as the introduction of smart and sustainable products made from eco-friendly materials and designs, aligning with global sustainability goals, are presenting remunerative opportunities for market expansion.
The Government of India (GOI) has launched numerous initiatives to improve housing and sanitation, such as the Pradhan Mantri Awas Yojana (PMAY), the Swachh Bharat Mission, the Housing for All, and the Smart Cities Mission. These programs promote the construction of affordable housing and sanitation facilities, leading to an increased demand for tiles, sanitary ware, and bathroom fittings. The government plays a vital role in driving this market by incentivizing and funding these projects. Apart from this, India’s economic growth, industrialization, and increasing consumer purchasing power all contribute to the market’s expansion.
The competitive landscape of the Indian tiles, sanitary ware, and bathroom fittings market with a blend of organized and unorganized players striving to capture diverse consumer segments has served as a great impetus to business and innovation. Besides this, ongoing technological advancements have elevated the industry, introducing smart features and sustainable materials. Consequently, competition has extended to innovation and sustainability as brands strive to differentiate themselves in a crowded market.
The upcoming years present a very optimistic forecast as the Indian ceramic industry holds the potential to become the largest producer in the world. The industry is looking to almost double its turnover by 2024.
Shri Brijesh Bhai Merja, Minister of State, Labour, Skill Development, Employment, Panchayat, Rural Housing and Rural Development, Govt. of Gujarat has recently highlighted, “Since Morbi is the hub of ceramic industry, Govt. of Gujarat has proposed a budget of 400 crores to build an International Ceramic Park, thereby boosting the ceramic manufacturing companies in the region”.
The industry is showing great preparedness in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses and this signals some very good years in the future.
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