Opportunities in the GCC Ceramic Tiles Market, Forecast to 2020
Opportunities in the GCC Ceramic Tiles Market, Forecast to 2020
Africa is a net importer of tiles. Asia’s production surplus offers strong export potential; GCC can trade through and to Asia
25-Sep-2017
Global
Description
The tiles market in the GCC is one of the most dynamic in the world in terms of the kind of demand it generates. There is high demand for both high quality-high priced tiles and at the same time there is demand for economical and cost effective products.The tiles market in the GCC is currently in the growth stage of the life cycle and is it not expected to saturate in the near future. But as the market progresses a continuous shift is expected in marketing and distribution activities. As the market witnesses increasing competition alongside the rise of the substitutes, suppliers will be forced to look for innovative ways to sustain market conditions. Significant growth across all the countries in the region means vast opportunities for growth. It is, however, important to identify fast growth markets which offer abundance of growth potential.
Table of Contents
GCC snapshot—Demand mainly driven by new construction; extensive variety in size, material required to cater to population needs; tile manufactures to focus on green
Decision maker’s spotlight—Cost optimisation through internal processes and introduction of new designs in-line with needs. GCC can be an export hub for the greater MEA region
Scope & Limitations
Africa is a net importer of tiles; Asia’s production surplus offers strong export potential; GCC can trade through and to Asia
The KSA and the UAE are leading consumers and importers; opportunity for local GCC manufacturing to replace imports
Imports comprise 81% of total consumption, while exports with 55% are limited to the GCC only. Supplies to Africa can be explored
High domestic manufacturing potential to replace imports; raw material availability & rising electricity prices a concern; KSA & UAE to be main markets
The KSA & UAE lead demand and consumption. Production lags demand, though local producers also export; therefore significant potential for new entrant
Ceramic tiles dominate KSA market; domestic manufacturing caters to domestic demand & exports to RoGCC. China is an important player
Ceramic tiles dominate UAE market. China supplies 61% of market, domestic production is a low 13%; high potential for expanding domestic production
Oman market reflects a strong presence of GCC manufactured products; opportunities lie in the potential from import substitution
As with the KSA & UAE, ceramic tiles dominate; local production absent, but country can be catered to by regional manufacturers
Market dominated by imports from China & Europe at 70%. Potential for regional companies challenged by strong import supply chains
As with Qatar, market dominated by imports from China & Europe. Being the smallest GCC market, local production is not viable
Residential, commercial, infra segments are major consumers; bespoke tastes & preferences are equally important as price in driving demand
Mega events, infra, housing & hospitality major demand drivers; can build presence via local manufacturing or increased MNC brand representation
Although ceramic tiles dominate, both types expected to show ~10% CAGR up to 2020; manufacturers should have both in portfolio
An export driven strategy imperative for success when building a tiles business in the GCC. Broader Middle East and Africa major areas to cater to
Companies to focus on building channel & brand loyalty in the region; look at long term not short term gains. Use both the Push & pull strategy
Mega Trends—GenY likely to want online retailing of tiles; evolution of smart tiles that support energy harvesting likely, for e.g. in Nigeria and London
Product customisation to be the norm; optimised production techniques will facilitate costs control; Social media to be important for brand communication
Improvements in brand equity and promotion, customer service and introduction of new designs key to gaining traction and sustain
Maximize opportunities from existing products and markets; systematically explore new products and markets including inorganic Opportunites
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Author | Nideshna Naidu |
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