Market Research Report
India Ceramic Tiles Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)
|India Ceramic Tiles Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 130 Pages
Delivery time: 2-3 business days
India is one of the fastest-growing ceramic tile marketplaces at the global level. Some of the major factors augmenting the growth of the ceramic tiles demand in India are the growing real estate sector coupled with government policies fueling strong growth in the housing sector. In addition, rising disposable income in India and a corresponding desire for beautification of living and working spaces are also driving the need for ceramic tiles in the country. Demand for products like the new touchless and other hygiene-centric products in bath ware and the germ-free tiles will take center stage and will see traction in the forecast period. The government schemes such as 'Pradhan Mantri Awas Yojana' and 'Smart Cities, among others, are likely to provide a further impetus to the real estate market in India.
The real estate sector has benefitted from Real Estate Regulatory Authority, which was implemented on May 01st, 2017. RERA makes the real estate sector more transparent, and process-driven. RERA has a direct implication on the ceramic sector as well. During the forecast period, a surge in remodeling activities is expected to enhance product demand in the Indian ceramic tiles market's residential segment. Consumers are spending a lot of money to improve the appearance of their walls and floors, which will be a major element driving product demand in the residential market in the coming years.
The ceramic tiles market has been showing steady growth over the last few years in India. However, the sector was hit badly amid the COVID-19 pandemic as India's GDP fell drastically in 2020, and furthermore, the Indian economy contracted by 7.3% in the April-June quarter of 2021. In March 2020, after the national lockdown was imposed in India amid the COVID-19 outbreak, an estimated 10 million migrant workers migrated back to their respective native lands. Thus, due to a shortage of labor, the timely completion of projects has become one of the major challenges for ceramic tile manufacturers amid the pandemic. However, once the lockdown started to reverse back, the tile industry was first to emerge out of the crisis stronger than ever, and the recovery in demand in the ceramic tile industry in India is expected to thrive exponentially post-COVID.
India is urbanizing rapidly with the urban share of the population being around 35% by 2020. Furthermore, it is expected to touch 40% by 2030, amounting to approximately 600 million urban inhabitants. The urbanization in India is mainly due to the expansion of cities and the migration of people. Investments are made in housing, road network, urban transport, water supply, power-related infrastructures, smart cities, and other forms of urban management. Urbanization boosts the demand for residential and commercial construction markets in the country, which has fueled rapid growth for the Indian ceramic tiles market. India is witnessing an absolute growth in the urban population, owing to growing income levels of the middle-class and stable democracy. Moreover, people are migrating to the urban area every year in India, which is expected to form new cities with more population.
Despite the economic meltdown, investment in the real estate sector has always been regarded as profitable, yielding positive results over time. The Foreign portfolio investment in the Indian real estate sector was valued at USD 497 million in March 2021. The Godrej Group has forayed into the financial services industry in 2020 with Godrej Housing Finance (GHF), through which it hopes to build a long-term and sustainable retail financial service business in India. Blackstone is one of the largest private market investors in India, holding about USD 50 billion of the market value in the real estate sector as of 2021. These Increasing investments have created higher housing demand in India ad increasing housing demand accounts for 70% of the total demand for tiles in India.
The report covers major international players operating in the Indian ceramic tiles market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.