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The ceramic tiles market was
estimated to be worth an estimated £441 million in 2007, though
2008 has seen a significant decline of around 6% - particularly in
the second half of the year.Current indications are for a
short-term decline of around 15% in the 2008-10 period, before
recovering in 2011-12 when the market is expected to be worth
around £416m.
The ceramic tiles market is now a more mature
market that remains highly fragmented with increasing competition
from imports. In 2007, the market performed well, benefiting from a
more buoyant economic climate, but 2008 has seen a decline as a
result of current uncertainty surrounding key drivers such as the
housing market and consumer confidence levels.
The medium term prospects for the market remain
uncertain with current indications of a sustained downturn in
2009-10 followed by reasonable recovery in 2011-12. The main factor
influencing future performance is the current uncertainty and
volatility of the short-term economic climate that makes it
extremely difficult to forecast in the medium term.
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Ceramic tiles have grown strongly over the last decade due
to a range of positive underlying factors. A strong housing and home
improvement market has helped underpin the sector, but consumer
preferences have also changed in favour of tiles – both in wall and floor
applications. Floor tiles have enjoyed the strongest growth in recent
years and now account for over 30% of the market by value, having
benefited from the general trend towards hard floorcoverings and, in
particular, the growing acceptance of underfloor heating which has
undoubtedly widened the appeal of tiles.
In
addition, the contract sector has been more buoyant and now accounts for
over 35% of the market and is also likely to remain stronger in the
short-medium term. In particular, the Olympics will provide some good
opportunities reflecting the focus on sporting and catering facilities
where tile usage will be high.
Imports
of ceramic tiles account for over 75% and are likely to increase their
rate of penetration into the UK market resulting in greater pressures for
UK based manufacturers. The market experienced a trade deficit of £331
million in 2007 with a gradual switch away from traditional sources such
as Spain and Italy in favour of countries outside the EU - in particular
from China.
The dominance of distributor showrooms, independents and
multiple tile specialists, with over 60% share, has been a feature of the
ceramic tiles distribution in recent years and is expected to continue.
DIY multiples and builders merchants have not gained market share in this
sector, though bathroom and kitchen specialists are increasingly offering
ceramic tiles as part of their overall product package.
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