Report Overview

A spurring demand for ceramic tiles from the thriving building and construction sector and increasing investments in real estate projects are projected to propel the expansion of the India ceramic tiles market during the forecast period between 2023 and 2029.

India Ceramic Tiles Market - Industry Trends & Forecast Report, 2029

India ceramic tiles market size was estimated at USD 5.94 billion in 2022. During the forecast period between 2023 and 2029, the size of India ceramic tiles market is projected to grow at a CAGR of 8.34% reaching a value of USD 10.41 billion by 2029. Major growth drivers for the India ceramic tiles market include an increasing government policy, high disposable income and growing desire to enhance living and working spaces. The demand for hygiene-centric products like touchless bath ware and germ-free tiles is gaining prominence and is expected to continue to do so in the foreseeable future. Government initiatives such as 'Pradhan Mantri Awas Yojana' and 'Smart Cities' further stimulate the Indian real estate market. Additionally, the Real Estate (Regulation and Development) Act (RERA) enhances transparency and efficiency in the real estate sector, positively impacting the ceramic tile market. The residential segment, in particular, is anticipated to experience a surge in demand for ceramic tiles due to increased investments in home improvement projects, reflecting consumers' desire to enhance the aesthetics of their living spaces.

India Ceramic Tiles Market – Overview

The India ceramic tiles market refers to the industry and market segment within India that involves the production, distribution, and sale of ceramic tiles. Ceramic tiles are flat, thin, and often square or rectangular pieces made from clay and other natural materials. They are widely used for covering floors, walls, and other surfaces in residential, commercial, and industrial settings. The Indian Ceramic Tiles Market encompasses various manufacturers, distributors, and retailers involved in the production and supply of ceramic tiles. The India ceramic tiles market is influenced by construction and real estate sectors, changing interior design trends, and government policies impacting the housing and infrastructure sectors in the country.

India Ceramic Tiles Market

Growth Drivers

Rising Investments in Real Estate in India

In spite of economic challenges, the real estate industry remains an attractive and profitable avenue, offering consistent returns over time. As of December 2022, foreign portfolio investments in India's real estate sector reached USD 49.51 billion. Notably, Blackstone emerged as one of the significant private market investors, with a market value of approximately USD 50 billion within the real estate sector by 2021. These augmented investments have translated into a heightened demand for housing in India, accounting for a substantial 70% of the total tile demand in the country. The introduction of Real Estate Investment Trusts (REITs) in India has expanded investment horizons for both institutional and individual investors. REITs provide a means to participate in the real estate market without direct property ownership, offering diversification opportunities. The rising disposable incomes among India's middle-class population have amplified the need for residential properties, retail spaces, and commercial developments. Consequently, developers and investors are keenly capitalizing on this expanding market.

Growth and Expansion of Construction Industry

India ceramic tiles market experiences its primary impetus from substantial growth within the construction sector. This growth is further propelled by various initiatives and investments initiated by the Government of India (GOI) to stimulate infrastructural development. Notably, the GOI's launch of the Pradhan Mantri Awas Yojana, aimed at offering affordable housing to eligible families nationwide, significantly drives the adoption of ceramic tiles. Also, significant investments by major industry players in India focus on product innovations, including the development of germ-resistant, anti-skid, and scratch-resistant ceramic tiles, thereby fostering market expansion. Rising disposable incomes and a growing preference for contemporary residential spaces with visually appealing flooring solutions are other pivotal factors contributing to the market's growth.

Restraints

Fluctuating Raw Material Prices

The fluctuations in raw material prices pose a significant constraint on the growth of the ceramic tiles market in India. The production of ceramic tiles heavily relies on materials, such as clay, feldspar, kaolin, and various minerals. Any instability or sharp increases in the prices of these essential raw materials directly impact the manufacturing costs. Consequently, this leads to price fluctuations for ceramic tiles, potentially discouraging buyers and affecting market growth. Manufacturers are often compelled to absorb these increased production costs or pass them on to consumers, which can deter potential buyers in a price-sensitive market like India. To sustain and boost market growth, strategies to manage raw material costs and stabilize prices are crucial.

Impact of COVID-19 on India Ceramic Tiles Market

COVID-19 pandemic adversely affected the India ceramic tiles market. This setback was concurrent with a substantial decline in India's GDP in 2020, coupled with a 7.3% economic contraction in the April-June quarter of 2021. In March 2020, a nationwide lockdown led to the migration of around 10 million workers to their hometowns, resulting in a labor shortage and project delays for ceramic tile manufacturers. However, as the lockdown gradually eased, the ceramic tile industry displayed remarkable resilience by swiftly recovering from the crisis. As a result, the industry is now expected for robust post-COVID growth, underscoring its ability to overcome pandemic-induced challenges.

India Ceramic Tiles Market

Segmental Coverage

India Ceramic Tiles Market – By Type

Based on type, the India ceramic tiles market is bifurcated into Ceramic and Vitrified segments. The ceramic tile type segment holds a higher share in the India ceramic tiles market. It can be primarily due to their versatility, cost-effectiveness, and wide-ranging applications. They are available in various designs, colors, and sizes, making them suitable for both residential and commercial projects. Additionally, ceramic tiles are known for their durability and ease of maintenance, further enhancing their popularity. Amidst the economic fluctuations and uncertainties, consumers tend to opt for reliable and cost-efficient solutions, which ceramic tiles offer. This, coupled with the growth in construction and real estate sectors in India, cements the dominance of ceramic tiles in the market.

India Ceramic Tiles Market – By Construction Type

Based on construction type, the India ceramic tiles market is bifurcated into New Construction and Renovation & Replacement segments.

India Ceramic Tiles Market – By Application

Based on application, the India ceramic tiles market is split into Floor Tiles and Wall Tiles segments.

India Ceramic Tiles Market – By End User

Based on end user, the India ceramic tiles market is divided into Residential and Non-residential segments. The residential segment holds a higher share in the India ceramic tiles market by end user. This trend is underpinned by the increasing demand for ceramic tiles in the residential construction sector, driven by factors such as rapid urbanization, population growth, and a rising middle-class population. Homeowners and property developers are increasingly incorporating ceramic tiles into interior and exterior spaces to enhance aesthetics and durability. Also, government housing initiatives like the Pradhan Mantri Awas Yojana, aimed at providing affordable housing to eligible families, have further boosted the utilization of ceramic tiles in residential construction projects, contributing to the segment's dominance in the market.

India Ceramic Tiles Market – By Region

Regionally, the India Ceramic Tiles Market is divided into North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India ceramic tiles market include Kajaria, Somany, Prism Johnson, AGL tiles, RAK Ceramics, Simpolo, Varmora, Orient Bell Ceramics, Nitco Tiles, and Sunhearrt Ceramik. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2023 - Somany Ceramics Limited introduced its exclusive collection of luxury tiles, titled "Embrace the Extraordinary - Igniting a New Era of Luxury in Tiles," in Jammu. The collection features nature-inspired designs, including wood finishes, stone textures, fabric patterns, and innovative cladding options. The product lineup comprises various series and sizes, including Glosstra Plus, Vistoso, Marvela, Durastone heavy vitrified tiles, and Polished vitrified tiles, providing an array of choices for discerning customers.

• In August 2022 - Linum Ceramic unveiled its plan to inaugurate one of the most extensive production units in Morbi, Gujarat. This state-of-the-art manufacturing plant, spanning an impressive area of 5.6 lakh square feet, was dedicated to the production of Linum ceramic products.

Scope of the Report

By Type

•  Ceramic

• Vitrified

By Construction Type

• New Construction

• Renovation & Replacement

By Application

• Floor Tiles

• Wall Tiles

By End User

• Residential

• Non-residential

By Region

• North India

• South India

• East India

• West India