Report Overview
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Through 2026, global demand for decorative tile is forecast to increase 4.4% per year to 22.6 billion square meters valued at $280 billion. Market growth will be driven by:
- strong gains in building construction activity in the Asia/Pacific and Africa/Mideast regions, where these tiles are common building products for aesthetic, cost, and religious reasons
- increases in the average size of houses around the world, including larger kitchens and more bathrooms per dwelling, which boosts demand for flooring, interior wall cladding, and countertops and backsplashes
- increasing personal incomes allowing for greater investment long term on housing products such as flooring, wall cladding, siding, and countertops
- advances in digital printing, which have improved the ability of ceramic tile flooring to convincingly mimic the look of higher end materials such as hardwood and marble
- porcelain slab’s rapid inroads in interior building applications throughout the world
India & China Will Continue Market Dominance
China and India are the two largest markets for decorative tile and combined they will account for 47% of absolute gains globally. India, the world’s second largest decorative tile market, is projected to see the fastest growth, with gains of 13% per year. Growth will be driven by robust increases in both residential and nonresidential building construction. In addition, the country’s large decorative tile industry makes these products – especially ceramic tile – inexpensive and readily available to builders.
China, which is by far the largest decorative tile market in the world, is expected to grow at a rate below the global average, but the country will still account for a significant share of absolute gains in both value and volume terms. Despite slowdowns in residential building construction, the country will continue to dominate the global decorative tile industry, supported by a vast nonresidential building construction market that commonly sources low-cost ceramic tile for flooring and wall cladding applications.
Large Format Porcelain Slab Gaining Market Share at Rapid Pace
Large format porcelain slab will be the fastest growing decorative tile product in the world, with demand rising at a rate of 25% annually. This robust rate of growth will be fueled by rising consumer awareness of its favorable performance properties, such as:
- stain resistance in both indoor and outdoor settings, as well as being heat and frost resistant, which makes it a top choice for outdoor kitchens
- greater strength and durability when compared to granite
- absence of discoloration or color change issues
- wide variety of finishes, patterns, and colors available from manufacturers
- ability to be used as backsplashes
- easy-to-clean, hygienic surface
Historical Trends
Decorative tile demand typically tracks construction spending, as construction of new buildings often includes the installation of tile, and rising improvement and repair spending supports renovation projects in tile-heavy rooms like kitchens and bathrooms. However, other factors can also impact sales of decorative tile on an annual basis including:
- regional preferences in building style and decorative surfacing materials
- fluctuations in construction activity in China, as the country accounts for nearly half of global demand
- increases in energy costs – as ceramic tile production is a very energy intensive process – that can greatly increase prices and limit production on a yearly basis, hurting sales in the short term
However, these prices increases can conversely support growth in value terms, as can a shift in product mix to higher value materials.
Regional Trends
Demand by Region
Through 2026, global demand for decorative tile is forecast to rise 4.4% per year to 22.6 billion square meters, supported by strong increases in global building construction activity.
In general, mostly developing areas, such as the Asia/Pacific and Africa/Mideast regions and Central and South America have the highest concentrations of decorative tile demand, as:
- ceramic tile provides low-income consumers with a viable option for flooring and interior wall cladding at a cost much lower than building materials more popular in Western Europe and North America
- decorative tile’s cooling properties are suitable for the warm climates in which much of these regions reside
The Asia/Pacific region, primarily China, is by far the largest market for decorative tile in the world, as there is significant demand for low-cost building materials, such as ceramic tile, in the region’s vast construction market.
The Africa/Mideast region is expected to be the fastest growing region, as construction activity is expected to expand at a strong pace, and as housing stocks improve, supporting demand for formal flooring products such as low-cost ceramic tile.