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US Demand for Decorative Tile to Reach 0,3 Billion m2 in 2017
US demand for decorative tile is forecast by Freedonia Group, Inc./US, a Cleveland-based industry market research firm, in its new study „Decorative Tile“ to rise 6,7 % per year through 2017, reaching 0,3 billion m2, valued at USD 5,7 billion.
Gains will be driven by a rebound in building construction spending. The new housing market will see double-digit annual demand growth as housing completions rise from their low 2012 base. Nonresidential demand will also rise at a robust pace, spurred by strong growth in office and commercial construction spending and increasing use of tile as a durable, low maintenance flooring alternative to carpets and rugs. Foreign trade plays a crucial role in the industry. US manufacturers face intense competition in the ceramic tile segment from low cost producers, while foreign firms with superior access to stone supplies make it very difficult for US manufacturers to offer quality products at sustainable profit margins. Ceramic tile accounted for the largest share of decorative tile demand in 2012 and is expected to remain the leading product type in 2017. Ceramic tile demand is supported by its low cost, and perception as a modern, fashionable surfacing material. However, ceramic tile will lose market share going forward to stone and porcelain tile, which are seen as having better aesthetic and performance properties. Natural stone tiles are expected to overtake porcelain tiles as the second largest type in area demand terms by 2017. Gains will be spurred by strong residential demand for natural stone flooring. Homeowners are increasingly opting for granite tile flooring because granite is an attractive, durable material that improves the appearance of a room and increases home values. Porcelain tile demand will advance about nine percent per year through 2017, gaining share in both residential and nonresidential markets. Porcelain tiles are durable, slip-resistant, and can be made to resemble such materials as hardwood and natural stone, but at a lower cost. Homeowners can install porcelain tile as an inexpensive way to enhance the appearance of their homes. Gains will also come from increasing use of the product in nonresidential structures, where un-glazed porcelain tile finds use in areas with heavy foot traffic, such as shopping malls, office buildings, and health care and educational facil-ities. However, more rapid growth will be checked by competition from natural stone flooring, particularly in the residential market, as more affluent homeowners opt for stone because it connotes luxury. (8/2013)
