Author: Mintel Group Ltd.
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Ceramic Tiles - UK - June 2015
Introduction 
 
Definitions 
All forecasts made in this report are at 2014 prices.

The ceramic tile industry makes a wide range of products for covering floors and walls with applications in private, public and industrial buildings. The tiles can be produced in a variety of shapes and sizes, and can incorporate different patterns.

The ceramic tile market is commonly segmented into: 

●	glazed tiles 
●	unglazed tiles

Glazed tiles represent the largest element of sales. The production process is similar to unglazed tiles, with further processing undertaken. Unglazed tiles are either pressed or extruded from clay in a plastic state, and then fired at high temperatures, which increases durability. Many of these tiles are vitrified since they are often used in heavy wear applications.

Unglazed tiles have both commercial and residential uses and applications including: 

●	facing of walls 
●	hearth places and mantlepieces 
●	floor coverings 
●	paths

Glazed tiles are further covered with a vitreous glaze that can be applied by: 

●	single firing 
●	double firing

Single firing was pioneered in 1974 by Marazzi of Italy. The process now accounts for 65% of global glazed tile production.

Applications for glazed tiles cover both commercial and residential use. Major commercial uses include: 

●	hotels 
●	hospitals 
●	sports and leisure centres 
●	swimming pools 
●	shopping centres 
●	underground and main line stations

Primary residential applications include: 

●	kitchen or bathroom wall tiles 
●	kitchen or bathroom floor tiles 
●	conservatory floor tiles

Further market segmentation concerns the distribution and application of tiles. Contractors dominate commercial and residential applications, and are especially important in the new build sector of the residential market. Tiling is also seen to be the province of the general builder, but only a very small share of tiles are actually distributed through builders' merchants. However, alongside contractors and builders, a wide range of individuals purchase tiles from DIY stores or retail tile specialists, and then install the tiles themselves.

Methodology 
Reports are researched and written by MBD’s in-house, specialist business-to-business consultants. Research is based on both an analysis of official information and on original, trade research, providing both a quantitative and qualitative view of the market. MBD’s unique range of frequently updated reports provide an integrated body of on-going research, enabling deep understanding of the prevailing trends and the drivers of these trends based on trade opinion. 

Abbreviations 
The following abbreviations have been used in this report:

BOE | Bank of England
CBI | Confederation of British Industry
CIF | carried insured freight
CIPS/NTC | Chartered Institute of Purchasing Suppliers/NTC
CPI | Consumer Price Index
DCLG | Department for Communities and Local Government
DTI | Department of Trade and Industry
DIY | Do-it-yourself
EC | European Community
EHCS | English House Condition Survey
FOB | free on board
FSA | Financial Services Authority
GAAP | Generally Accepted Accounting Principles
GDP | gross domestic product
HBF | House Builders Federation
HCA | Homes and Communities Agency
ICAEW | Institute of Chartered Accountants in England and Wales
IFRS | International Financial Reporting Standards
LA | Local Authority
m2 | square metre
MPC | Monetary Policy Committee
MSP | manufacturer's selling price
neg | negligible
n/a | not available
n/c | no change
NHBC | National House Builders Confederation
PAT | Profits After Tax
PPP | Public Private Partnership
PTP | Pre-tax Profits
RHB | Regional Housing Boards
RICS | Royal Institution of Chartered Surveyors
RPI | Retail Price Index
Tel | Telephone
UK | United Kingdom
VAT | Value Added Tax

Market positioning 
The use of ceramic tiles differs depending on the sector.

In the commercial sector, there are a diverse range of applications.

Hospitals only account for a small part of total commercial applications for ceramic tiles. Tiles are generally not used in flooring applications because of the hygiene of the grout between tiles, though some are applied around wash basins. The hospital construction and refurbishment market is strongly influenced by government expenditure and policy, though the health sector is generally protected in times of austerity.

Construction and refurbishment activity in the sports and swimming pools sector has also been a major area of potential development for ceramic tiles, both in the public sector, and private health and fitness clubs.

Shopping centres and retail premises have previously proved very buoyant applications for ceramic tiles. Out-of-town retail developments stimulated market opportunities, but demand has fallen due to shifts in planning restrictions and the economic performance of the retail sector. There has been increased investment in town centre shopping developments in recent years, which has generated demand for ceramic tiles, as the government eases planning restrictions to encourage the development of town and city areas. However, demand from this sector is expected to moderate over the next few years as major schemes have been completed and the recent economic downturn has hit plans for new shopping centres in the short term.

Railway stations, including both mainline, tram and underground stations, also represent an area of demand that is currently strong.

Other public sector building activity is subject to a variety of influences. The sector has been buoyed by lottery funding, but is generally under severe public spending pressure due to coalition austerity measures.

In the housing sector, major applications tend to be in wet rooms – kitchens and bathrooms – for both new construction and refurbishment work, and increasingly the floors of conservatories, which have become a major lifestyle trend and a cost effective method of enlarging a property. Increased demand for ceramic tiles also reflects the development of underfloor heating systems, innovative anti-bacterial grouts and the interior design trend for open-plan kitchen/dining areas. Nevertheless, the UK remains a low per capita consumer of ceramic tiles compared with many continental European countries, especially those in southern areas.

High house price inflation encouraged consumers to invest in their properties pre-recession, but this changed with the more difficult economic conditions following the banking crisis. High levels of house moving activity have, in the past, also been an important influence on general DIY activity. However, house moving activity and credit restrictions have substantially changed again, with significantly more encouraging market factors now suggesting long-term market development in sharp contrast to between 2009 and 2012.

This report addresses the following key questions: 

●	What are the colour, shape and texture trends in ceramic tiles? 
●	What are the driving forces for market change? 
●	What impact are competing materials, such as splash boards and laminates, having on the market? 
●	How do consumers perceive ceramic tiles and what are their expectations for future use? 
●	Is the UK changing its use of ceramic tiles?

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