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

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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

Opportunities in the GCC Ceramic Tiles Market, Forecast to 2020Frost & Sullivan AdvisoryGCC snapshot—Demand mainly driven by new construction; extensive variety in size, material required to cater to population needs; tile manufactures to focus on greenDecision 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 regionScope & LimitationsScope & LimitationsGlobal and Regional BriefAfrica is a net importer of tiles; Asia’s production surplus offers strong export potential; GCC can trade through and to AsiaThe KSA and the UAE are leading consumers and importers; opportunity for local GCC manufacturing to replace importsMarket Outlook: the GCCImports comprise 81% of total consumption, while exports with 55% are limited to the GCC only. Supplies to Africa can be exploredHigh domestic manufacturing potential to replace imports; raw material availability & rising electricity prices a concern; KSA & UAE to be main marketsThe KSA & UAE lead demand and consumption. Production lags demand, though local producers also export; therefore significant potential for new entrantCeramic tiles dominate KSA market; domestic manufacturing caters to domestic demand & exports to RoGCC. China is an important playerCeramic tiles dominate UAE market. China supplies 61% of market, domestic production is a low 13%; high potential for expanding domestic productionOman 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 manufacturersMarket dominated by imports from China & Europe at 70%. Potential for regional companies challenged by strong import supply chainsAs with Qatar, market dominated by imports from China & Europe. Being the smallest GCC market, local production is not viableResidential, commercial, infra segments are major consumers; bespoke tastes & preferences are equally important as price in driving demandMega events, infra, housing & hospitality major demand drivers; can build presence via local manufacturing or increased MNC brand representationAlthough ceramic tiles dominate, both types expected to show ~10% CAGR up to 2020; manufacturers should have both in portfolioAn export driven strategy imperative for success when building a tiles business in the GCC. Broader Middle East and Africa major areas to cater toCompanies to focus on building channel & brand loyalty in the region; look at long term not short term gains. Use both the Push & pull strategyThe Industry going ForwardMega Trends—GenY likely to want online retailing of tiles; evolution of smart tiles that support energy harvesting likely, for e.g. in Nigeria and LondonProduct customisation to be the norm; optimised production techniques will facilitate costs control; Social media to be important for brand communicationImprovements in brand equity and promotion, customer service and introduction of new designs key to gaining traction and sustainAnnexure: Our ServicesMaximize opportunities from existing products and markets; systematically explore new products and markets including inorganic OpportunitesGrowth Consulting – Service OfferingsLegal Disclaimer




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