Iran is a major producer of tiles and ceramics in the Middle East.
A total of 450 million square meters of ceramics and tiles were produced in the fiscal 2021-22, of which 182 million square meters were exported to 52 countries, according to the director of the Trade Association of Tiles and Ceramics Manufacturers.
“The production capacity of the tiles and ceramics industry increased from 500,000 square meters in the fiscal 1957-58, when the first production unit was built, to over 720 million square meters at present,” Behnam Aziz-Zadeh was also quoted as saying by IRIB News.
Currently, 145 production units are active in Iran with an overall investment of $50 billion, he added, noting that 450,000 people are working in this industry, directly and indirectly.
In 2021-22, Iraq was the main destination of Iranian ceramics and tiles as the neighboring country accounted for 70% of total exports.
“Iraq meets 84% of its tile and ceramic demand from Iran,” he said.
In addition to neighboring countries, American and European countries are also among Iran's export destinations for tile and ceramic, he noted.
Earlier, the official put the value of Iran’s ceramic and tile exports in the fiscal 2021-22 at $700-800 million. He also said part of Iran’s exports to Iraq are reexported to third countries.
“Some of our tiles and ceramics production is bought by Turkish exporters and sold at higher prices in the global market,” he said.
“Since Iran's tiles and ceramics industry enjoys the latest technology in the world, access to raw materials and cheap energy, it has significant competitive advantage. We produce the widest range of products to cater to the global demand in terms of variety and quality.”
According to Aziz-Zadeh, Iran was ranked fifth in the world in terms of export and sixth in the production of tile and ceramic last year.
Despite Iran's capacity and good position in the industry throughout the Middle East, competitors are trying to take over the regional markets.
“In the market of regional countries, especially Iraq, we have fierce competitors such as China and India, and if we cannot adopt a good strategy for the development of exports in Iraq, in the near future, the Iraqi market will be taken over by our competitors.”
Referring to recession in the ceramic and tile market in recent years, the official said, “The recession in the construction industry has caused a recession in ceramic and tile production. As a result, we have not been able to use all the production capacity in recent years. Due to restrictions on exports for various reasons, part of the production capacity has remained idle.”
Aziz-Zadeh stressed that Iran’s capacity in production of tiles and ceramics is now three times the domestic consumption.
Import of tiles and ceramics into Iran is banned, although products are smuggled from China and Italy.
“The volume of these smuggled products is not high and our domestic products can compete with them in terms of both price and quality,” he said earlier.
Dedicating half of the domestic production of tiles and ceramics to itself, Yazd Province is the production hub of these products in Iran.
Global Market
The global ceramic tiles market is expected to reach $656.25 billion by 2030, expanding at a CAGR of 7.1% during the forecast period, according to ResearchAndMarkets.
Increasing demand for aesthetic improvement in the flooring and walling is anticipated to support the demand for ceramic tiles during the forecast period.
High production capacity, coupled with a wide distribution network of prominent players, is likely to fulfill the demand for construction applications across the globe. As a result, increasing new constructions for residential and non-residential buildings in major economies due to industrial development, coupled with rapid urbanization, are likely to create a scope for market growth.
The durability and enhanced lifespan offered by these tiles are likely to increase their utility in high-traffic commercial construction applications. Technological advancements in the manufacturing process have introduced customization options in color, size, texture and dimensions, which will find wider use in residential and commercial building renovation projects.
Key players in the market such as Tarkett, Mohawk, RAK Ceramics and Johnson Tiles are engaged in the development of ceramics and tiles with superior durability and customization options. In addition, compliance with the green building codes by major economies is expected to have a positive impact on demand as these products are environment-friendly and can be recycled.
The demand for porcelain ceramic is expected to witness a CAGR of 7.6% over the estimated time, owing to its wide applications in residential flooring applications and benefits, such as durability and enhanced aesthetics.
In Europe, the revenue for glazed ceramic tiles in 2021 stood at $20.56 billion and is projected to witness a CAGR of 5.8% during the forecast period on account of the increasing popularity of eco-friendly building materials with high aesthetic value.
In 2021, commercial flooring applications dominated the global market with a share of around 67% on account of the high penetration of ceramic tiles in office construction driven by superior aesthetics and durability offered by the product.
The Asia-Pacific market is expected to witness a CAGR of 8.2% by revenue from 2022 to 2030 on account of the wide acceptance of the ceramic product in flooring applications.
Industry participants focus on achieving long-term contracts to gain a competitive advantage. Small-scale players in the market are also adopting such strategies to increase their penetration in the competitive market.
According to Statista, China was by far the leading ceramic tile manufacturer worldwide in 2020, producing roughly 8.47 billion square meters of ceramic tiles that year. India was the second largest producer, at 1.32 billion square meters that year.
In addition to being the world’s leading manufacturer of ceramic tiles, China was also the leading ceramic tile exporter in 2020. It exported 3.9 million tons of porcelain and pottery (for domestic use) in 2019. The value of these exported porcelain goods amounted to nearly $15 billion. Since China and India are the two largest ceramic tile manufacturing countries, it is not surprising that Asia is the largest tile and ceramic producing region in the world.
