Spanish Ceramic Tile Industry Confronts Challenges With Innovation

Sector Targets Resilience Amidst Adversity

The Spanish ceramic tile industry faced significant challenges in 2023. This was underscored by a contraction in international demand influenced by increasingly assertive global competitors, unprecedented geopolitics, high energy costs, costly decarbonisation initiatives, inflation, and persistently high interest rates.

However, the sector strives to stop treading water by ideating and embracing advanced technological innovation, stepping up marketing activation in key export markets and consolidating domestic ceramic companies, 88% of which are SMEs.

The sector, which employs 14,934, comprises 109 ceramic tile manufacturers, most of which are based in the Castellón cluster in Valencia. It encompasses ceramic tiles, frits, glazes, and machinery.

With three out of every four tiles manufactured in Spain sold abroad and highly valued for their quality, design, and versatility, the Spanish ceramic tile manufacturing industry is currently the second-largest exporter in volume after China, with India at a close third.

Product Segmentation

Spanish ceramic tile market companies are segmented by product (glazed, porcelain, scratch-free, and other products); application (floor tiles, wall tiles, and other applications); construction type (new construction, replacement and renovation); and end-user (residential and commercial).

Led by the top five companies—Aztec Tiles, Halcon Ceramics, Pamesa Cerámica, Apavisa Porcelanico, and Stn Cerámica—the Spanish ceramic tiles market is projected to be worth $1.9 billion in 2024 and is expected to grow to $2.48 billion in 2029, at a CAGR of 5.45% during the 2024-2029 forecast period.

Presenting a detailed and exclusive review of the Spanish ceramic tile industry’s overall performance in 2023 and utilising the preceding year, 2022, as a benchmark for comparison, Vicente Nomdedeu Lluesma, President of ASCER – the Spanish Association of Ceramic Wall and Floor Tile Manufacturers – revealed that the industry witnessed a 14.3% decline in total turnover, amounting to $5.28 billion.

In addition, production fell 21.2% in 2023, equating to 34 400 million square metres, while domestic sales dropped 7.1%, amounting to $1.41 billion.

189 Countries

Exports, a crucial pillar accounting for 75% of sales, indeed faced a downturn, yet underscored Spanish ceramics’ global reach, reaching 189 countries in 2023: Europe (53.2%), North America (15.4%), Asia (14.5%), the Middle East (11.5%), Africa (9.4%), Central and South America (6.3%), the Maghreb (4.6%), and Oceania (1.2%).

Declining Exports

All of the Spanish ceramic tile industry’s top 10 export markets declined in 2023: the United States (-11.6%), France (-5.7%), the United Kingdom (-18.5%), Itay (-4.8%), Germany (-18.1%), Morocco (-11.5%), Israel (-39.3%), Portugal (-3.7%), Saudi Arabia (-38.7%), and Belgium (-22.4%).

“Our sales are not immune to the global fall in demand, registering a 16.6% decrease in value and 22% in volume,” said Nomdedeu. Despite the 16.6% export fall, resulting in $3.87 billion, the industry’s diverse market presence, from the United States to Saudi Arabia, highlights its enduring appeal, Nomdedeu added.

The broader European market, traditionally the Spanish ceramic tile industry’s stronghold, grappled with inflation and high interest rates, impacting demand and against a pervasive energy crisis in 2022.

Nomdedeu made his formal remarks while addressing an international press conference for specialised media (including ‘Middle East News 247’) from 22 countries, held on the sidelines of CEVISAMA 2024 at Feria Valencia.

ASCER, under its Tile of Spain marketing brand, organised the press conference in association with ICEX Spain Trade and Investment.

Position Loss

Despite a significant drop in domestic sales and production volumes, Spain remains the largest ceramic wall and floor tile producer and exporter in the European Union (EU). Nomdedeu states, “Today, Europe only accounts for 8.4% of global production, compared with just 10 years ago, when we led the sector.”

Emphasising that Europe is the Spanish ceramic tile sector’s core market, with six European countries ranking among the top 10 global markets, Nomdedeu stressed: “These are mature, demanding markets that appreciate the added value of Spanish ceramic tiles, yet which over the last year have been severely affected by inflation and the consequent slowdown in the construction market.

“If we consider the EU market plus Spain, which is our biggest customer market, 57% of the total sales are concentrated in the EU, and it is, therefore, essential that we defend our position and lay down a series of ground rules that will enable us to compete under equal conditions,” Nomdedeu added.

“Our products compete on international markets under unequal terms compared with other producers who face less demanding labour or environmental requirements, to give just a couple of examples. It is important to balance the game rules and ensure that our customers demand that their non-EU suppliers comply strictly with the highest standards.”

Ongoing Challenges

Nomdedeu noted that the contraction of demand across European markets and increasing competition from a growing number of countries, such as India, China, Turkey, and the United Arab Emirates, present ongoing challenges to the Spanish sector, comprising approximately 238 companies, 86% of which are SMEs.

On a positive note, ASCER’s president highlighted the Spanish ceramic tile manufacturing industry’s steadfast commitment to decarbonisation and innovation, particularly sustainability. This dedication addresses environmental concerns and champions social and economic sustainability, which is integral to the industry’s ethos.

In this context, Nomdedeu said: “Understanding sustainability goes far beyond natural resources or cutting [greenhouse] gas emissions. We are discussing social sustainability, a commitment to the territory, knowledge generation, and technology transfer. In short, we are referring to economic sustainability and contributing to the well-being of society as a whole.”

Looking ahead, the Spanish ceramic tile manufacturing industry emphasises the critical role of innovation and training in maintaining competitiveness and adapting to changing consumer habits.

New Focus

To thwart fast-rising and intensifying global competition, Spanish ceramic tile producers focus on new functional properties of ceramic tiles, such as decoration, mechanical features, health and hygiene, air cleaning, visual and intelligent signalling, heating, and energy-saving features.

Separately, initiatives such as introducing a new-look ASCER/Tile of Spain website, publishing the second edition of the ‘Ceramic’ book, and a series of catalogues showcasing the versatility of Spanish ceramics are testaments to the sector’s forward-thinking approach.

Furthermore, the commitment to enhancing training for industry professionals (including designers, architects, prescribers and distributors) worldwide underscores a strategic vision to bolster the Spanish ceramic tile manufacturing industry’s resilience and adaptability.

While navigating the tumultuous waters of economic challenges and competitive pressures, the Spanish ceramic tile industry remains resolute in its journey towards innovation and sustainability.

Critical Drivers

The sector’s rich heritage, coupled with a keen eye on the future, positions it well to continue its legacy of excellence on the global stage. As it strides into the future, the industry’s focus on training, innovation, and sustainability will undoubtedly be critical drivers of its continued success and resilience.

The ASCER international press conference, held on February 27, 2024, featured a presentation on the last 40 years of design and trends in Spanish ceramic tiles.

As part of the in-depth presentation, Lutzía Ortiz and Ana Benavente from the Habitat Trends Observatory (OTH), on behalf of the Institute of Ceramic Technology, Ceramic Industry Research Association (ITC-AICE), highlighted the four major design trends—Natural, Minimal, Cultural, and LuxVersal—that are inspiring Spanish ceramic tile products in 2024.

The press conference was followed by the prize ceremony for the 22nd Tile of Spain Awards for Architecture and Interior Design, sponsored by Endesa and PortValencia and supported by Generalitat Valenciana’s Regional Ministry of Finance.

Featured image: Vicente Nomdedeu Lluesma addresses the international press on the sidelines of CEVISAMA 2024 in Valencia, Spain, on February 27, 2024. Credit: Arnold Pinto

Last Updated on 10 months by Arnold Pinto