The UK market for floor and wall tiles grew by an estimated 4% in 2014, underpinned by rising demand from a combination of growth in housebuilding activity, home improvements and commercial applications. The market had been in decline as a result of a fall in demand during the recessionary period from 2009 onwards, and reached a low point in 2010 which was followed by a period of only marginal growth in 2011-2013. Ceramic & porcelain tiles dominate the mix in 2014 with estimated value share of over 75%. There has only been slight change to the mix since 2012 with the others sector gaining marginal share at the expense of ceramic & porcelain.
Changes and trends evident within the UK tile market identified in the last edition of this report have continued into 2013-14. The main trend has been a gradual switch into the mid-upper market sectors, particularly in the domestic sector, which has been dominated by stone effect porcelain & ceramic as well as natural stone. In terms of decorative trends, fully or ¾ tiled bathrooms remain a key trend but with stone effects and natural stone continuing to take share from plain tiles. Although neutrals continue to dominate the sector, there has been a trend for greater use of colour through Mediterranean and North African inspired designs and through the use of feature tiles, such as pop art panels, single tile motifs etc.
The trend for design breaks within a tiling scheme has become more prevalent, with combinations of tile sizes, shapes, textures and colours now used to create borders, frames, etc., for both wall and floor tiling installations. The stone tiles sector, and slate in particular, has undoubtedly benefited from the recent trend for texture in tiles, with growing demand for more riven products, particularly for texture walls. However, developments in the ceramic & porcelain sector in terms of texture have meant that stone continues to face stiff competition and price pressure in the middle sectors of the market.
The outlook is positive with the medium-term forecast related to the strength of the economic recovery, which in Q2 2015 remains generally positive, and continued recovery in the new housebuilding sector, as well as higher output for key private commercial construction sectors such as offices and leisure. In addition, both consumer and business confidence have continued to improve, but with a certain amount of caution still evident. For the tiles market, this indicates potential for good short-term gains followed by steadier rates of annual growth into the medium-term. The overall tiles market is likely to be characterised by price competition into the medium-term and beyond, as competition between tile types and other wall and floorcoverings is forecast to continue into the medium-term and imports will remain a significant feature of the market into the longer-term due to the limited number of UK based large volume producers.
(SOURCE: www.prnewswire.com)
