India is one of the leading markets for tiles due to various factors and the industry is growing at high rates every year. It is the third largest manufacturing hub in the world which caters to the needs of consumers. The Indian tile manufacturing industry has seen a healthy CAGR of 9.5% by overtaking China and other countries. However, Covid-19 affected the growth and the industry is expected to grow in the future markets.

An Overview of the tile manufacturing industry in India 

The tile manufacturing companies in India offer tiles for floors, walls, and other purposes. On the other hand, floor tiles account for a major market share in India. Moreover, it is replacing other flooring materials that boost the growth rate. The residential sector represents a high tile market share which is followed by the commercial sector. Ceramic tiles are the fast-selling tiles in Indian markets because they provide several advantages to users. The Western region In India is the leading tile manufacturing zone that supplies various products. At the same time, the industry is facing some challenges that can hinder its growth rate. 

What are the future growth prospects of the tile manufacturing industry in India?

1. Rapid urbanization will influence the growth rate

Rapid urbanization is the main key factor that will drive the growth of the tile manufacturing industry in India. The cities are expanding day by day in India and the demand for tiles may increase further. Huge investments are being made in housing, shopping malls, hospitality, and other sectors. Moreover, the introduction of smart city projects by the Indian Government will propel the growth rate in future markets. 

2. The emergence of new trends will influence the future markets  

Emerging tile trends will boost the growth of the tile manufacturing industry in India. Printed ceramic tiles, germ-free tiles, 3D tiles, and visually stimulating mosaic tiles are some trends to watch out for in the markets. Digitally printed tiles are becoming a popular choice of consumers because they provide ways to improve the aesthetic appeal of a house or office space. Similarly, customers are becoming hygiene conscious and they prefer germ-free tiles for this purpose. 

3. Exports will continue the upward trend 

The tile manufacturing industry in India is witnessing a huge growth in exports and it will continue the upward trend. Most manufacturers will invest money in the latest technologies to improve the quality and other things. 

4. Make in India and other Government schemes will trigger the growth 

The Government of India is introducing Make in India and other schemes for middle-class families in urban areas. This will trigger growth rates in future markets that can generate more income and profits. 

5. Constant need for infrastructure will boost the growth rates

India’s hospitality sectors and retail segments are expecting a high growth rate in future markets. As a result, the demand for tiles may increase which will add more business. 

6. Tire 2 and Tier 3 locations will see a huge growth 

Tire 2 and Tire 3 locations will see huge growth in future markets because many companies are setting up their showrooms. Moreover, the state governments are likely to develop them to reduce overpopulation in metropolitan cities and large cities. 

What are the challenges faced by the Indian tile manufacturing industry?

1. High cost of raw materials 

The cost of raw materials is increasing over recent years and manufacturing units had to spend more money on them. Since the costs of tiles are going up, many consumers look for cheaper options. Besides, rising costs are destabilizing the supply chain and making it difficult for manufacturers to sustain themselves in the competitive market.

2. Stringent environmental laws pose a challenge 

Stringent environmental laws may pose a challenge to the tile manufacturing industry in India. The industry requires regulations on various things that may hamper production. Furthermore, tile industries have to follow the best practices in the manufacturing process. 

3. Shortage of skilled laborers 

The tile manufacturing units require skilled laborers to accomplish their goals. However, the shortage of skilled laborers is increasing and the manufacturers have to spend more money on training new people. 

4. High competition 

The tile industry is facing high competition in the markets because good tiles are available at various price points. As a result, manufacturers have to reduce their prices which will affect the profit margins.  

5. The penetration of low-quality tiles 

Low-quality tiles are now entering the Indian markets because they are not organized. They may pose a challenge for manufacturers because they have to convince customers and build trust among them. 

6. Distribution and other expenses are high 

Tiles need protection from damage and other problems significantly. Hence, manufacturers have to spend more on transport and other things while delivering products to customers which may affect the growth rates.