Shares of porcelain and natural stone will grow but ceramics remain dominant / Italian companies are market leaders in high-end-products
US demand for decorative tile is forecast to increase 3.5% annually to 3.1 billion square feet (almost 288 million square meters) in 2020, valued at US-$ 6.1 billion. Ceramics remain the most popular type of tile yet they will continue to lose market shares going forward to higher value alternatives made of porcelain and of natural stone. These and other trends are presented in the new study „Decorative Tile“ from The Freedonia Group, a Cleveland-based industry research firm.
The advances will be driven by growth in building construction expenditures. The residential market is expected to record faster gains than the nonresidential market, bolstered by strong increases in housing completions and continued interest in kitchen and bathroom renovation projects.
Ceramic tile will continue to account for by far the largest share of decorative tile demand. They remain the most popular type of tile in both residential and nonresidential applications because of affordability and low maintenance requirements. Alternatives with higher value will gain bigger market shares due to their superior aesthetic and performance properties.
The study also states that ceramics are getting better everyday in copying e.g. natural stone.
Flooring is the predominant application for decorative tile, and demand is expected to grow faster than any other application through 2020. In the residential market, gains will be boosted by consumer interest in tile flooring in kitchens, bathrooms, dining rooms, and foyers, both in new housing and in renovation projects.
Imports as a percentage of demand are expected to fall, as many foreign producers expand their manufacture of decorative tile inside the US in order to fulfill domestic orders more quickly and to create products specifically tailored to the tastes of US consumers.
The high-end decorative tile market is expected to remain dominated by Italy, as imported tile from this country is perceived to be stylish and modern.
The study „Decorative Tile“ (published 03/2016, 278 pages) is available for $5200 from The Freedonia Group.
(15.04.2016, USA: 04.15.2016)