US demand for decorative tile is forecast to rise 6.7 percent per year through 2017, reaching 3.2 billion square feet. Natural stone will overtake porcelain as the second largest tile type in area demand terms, while ceramic tiles remain dominant. Floors will remain the largest application and will grow the fastest, followed closely by walls.
This study analyzes the 2.3 billion square foot US decorative tile industry. It presents historical demand data for the years 2002, 2007 and 2012, and forecasts for 2017 and 2022 by product (e.g., ceramic tile, porcelain tile, stone tile, tile adhesives), application (e.g., flooring, wall coverings, countertops), and market (residential, nonresidential, nonbuilding and transportation).
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 35 industry players such as Mohawk Industries, Grupo Lamosa, and Internacional de Ceramica.
US demand to rise 6.7% annually through 2017
US demand for decorative tile is forecast to rise 6.7 percent per year through 2017, reaching 3.2 billion square feet. Gains will be driven by a rebound in building construction spending. The new housing market will register double-digit demand advances as housing completions grow from their low 2012 base. Tile demand in nonresidential building construction applications will also increase at a fast pace, spurred by strong growth in office and commercial construction spending and increasing use of tile as a low-cost, low-maintenance flooring alternative to carpets and rugs.
Natural stone to be the fastest growing tile material
Of all tile types, natural stone tile is projected to grow most rapidly through 2017. Natural stone tiles are expected to overtake porcelain to be the secondlargest type in area demand terms by 2017. Gains will be spurred by strong residential demand for natural stone flooring. Homeowners increasingly opt for granite tile flooring because it is an attractive, durable material that increases home values. Moreover, because of its appearance and durability, natural stone flooring is suitable for utilization in nonresidential structures -- such as hotels, high-end resorts, and shopping malls.
Alone among tile materials, porcelain saw demand increases between 2007 and 2012. Porcelain tile demand will expand about nine percent per year thru 2017, gaining share in both residential and nonresidential building markets. Porcelain tiles are durable, slip-resistant materials that can be made to resemble such materials as hardwood and natural stone, but for much less cost. Many homeowners will install porcelain tile flooring as an inexpensive way to enhance the appearance of their homes. Gains will also come from increasing usage of the product in nonresidential structures. Unglazed porcelain tile offers users durability and slip resistance, boosting its use as a flooring material in areas with heavy foot traffic, such as shopping malls, office buildings, and health care and educational facilities. However, more rapid growth will be checked by competition from natural stone flooring, particularly in the residential market, as more affluent homeowners opt for stone based on its more luxurious appearance.
US producers competitive in porcelain tile segment
Foreign trade plays a crucial role in the industry. Such countries as Brazil, China, and Turkey supply large quantities of stone tile, taking advantage of low labor costs and good access to inexpensive raw materials. Italian tile dominates the highend ceramic and porcelain tile market segments, while Mexico and China supply low-cost ceramic tile to US consumers. However, imports of decorative tile in area terms fell from 83 percent of demand in 2002 to 74 percent in 2012. As domestic demand for decorative tile has risen, US manufacturers have worked to expand production capacity, especially in the porcelain tile segment. US producers face intense competition in the ceramic tile segment from low-cost producers, while foreign firms with superior access to stone supplies make it very difficult for US manufacturers to offer low-cost, highquality products. However, greater usage of low-cost shale gas has reduced production costs, making it possible for US-based manufacturers to offer highquality porcelain tile at prices competitive with foreign suppliers.
Profiles for 35 US competitors including Crossville, Florida Tile, Florim Ceramiche, Grupo Porcelanite, and Mohawk Industries
This study covers the US decorative tile industry. Decorative tiles are defined here to include tiles used as a decorative surfacing material. Roofing tiles are not included in the study, as these tiles have protective and structural qualities. Also excluded from the scope of the study are vinyl and carpet tiles. Demand is provided in dollars and square feet and is detailed by product type (ceramic, porcelain, stone, glass, and other varieties) and application (flooring, wall coverings, countertops, and other areas). Also provided is decorative tile demand by market (residential construction, nonresidential construction, and nonbuilding construction and transportation), housing type (single-family, multifamily, and manufactured housing), application (new construction and renovation), area of the home (kitchens, bathrooms, and other rooms), and nonresidential building type (office and commercial, institutional, industrial, and transportation and other). Historical data are provided for 2002, 2007, and 2012, with forecasts to 2017 and 2022.
As used in this study, the term “sales” is synonymous with “demand” and is equivalent to decorative tile production plus imports less exports. Dollar values for decorative tile demand are presented at the manufacturers’ level. In this study, market share is computed on the basis of all of a company’s decorative tile sales, whether the company manufactured the tile itself or was reselling tile sourced from a third party. Tabular details may not add to totals due to independent rounding, and ratios may be rounded for clarity. In addition, major manufacturers of decorative tile are identified and profiled, and the key competitive variables are discussed. The entire study is framed within the industry’s economic, technological, and market environments.