tile market & industry in iran
tile market & industry in iran

Tile Market
& Industry In Iran

Consumer markets for export construction materials in Iran

Iranian ceramic tiles have been exported to the market of 48 countries, the most important of which are Iran's neighboring countries such as Iraq, Pakistan, Afghanistan, and Central Asian countries, which had the highest exports (74%) to Iraq with about 131 million square meters, so the largest market Iran's ceramic tile is limited to a small number of neighboring countries. The chart below shows this statistic. Currently, the largest target markets for Iranian ceramic tiles are Iraq, Pakistan, and Afghanistan. Encouraging manufacturers to offer high standard and competitive goods in the global arena is an inevitable necessity and only a comprehensive and comprehensive view of standardization can guarantee the effective role of this important in the balanced and sustainable development of the country. Therefore, in this regard, measures should be considered to prevent the export of low-quality and substandard goods by using new export strategies and to be able to compete with rival countries in the field of ceramic tiles.

On the other hand, due to the severe recession in construction in the country, an important part of the production of ceramic tiles in the warehouse of companies and depot sales agents, which has caused a kind of unhealthy competition in the domestic and export sectors; In this way, some manufacturing companies have reduced the price to sell products and by lowering the quality, have caused the products to deviate from the defined standards, which is considered as a threat to the industry. Also, most companies are operating with lower efficiency due to the recession compared to production capacity, and the consumption of ceramic tiles has decreased due to economic conditions. Therefore, efforts to increase exports as the main and most important way to maintain production and prevent the accumulation of more products should be considered. As a rule, the existence of sanctions, inflation control policy, political developments, and insecurity in the interior of neighboring countries in the region have caused a major crisis in tile exports, so that the dynamic market in the region has become a stagnant market; Therefore, ceramic tile manufacturers became aware that they should not concentrate all their export capacity in one particular market, so they sought to expand their activities to other target markets. This is a strong point for the country's ceramic tile industry because they have the opportunity to enter the markets of the Persian Gulf countries, Armenia, Georgia, and even Africa. Maintaining and developing existing export markets and entering new markets as a managerial and trade union task can certainly serve as an engine and driver for the ceramic tile industry, to solve an important part of the industry problem, including preventing product re-increase in warehouses and continuing the process. Produce and help companies live. Today, China, India, Vietnam, and Indonesia, by creating comparative advantages in this industry, have been able to become serious competitors in the Iranian ceramic tile industry. The most important reason for success for companies that had significant growth in exports, planning to understand the market, developing a professional marketing system with appropriate budget allocation, proper customer needs assessment, and attention to all factors required by the customer in choosing the market, including local conditions. Favorite designs and lifestyles in that country, along with superior product quality. To penetrate domestic and foreign markets, quality must be paramount. As a result, considering the potential and advantages of Iran, especially Yazd province, it is necessary to make macro-level decisions to eliminate obstacles and problems in the export of ceramic tile products and the necessary infrastructure to export this product to maintain and develop this Created the industry. According to the Trade Development Organization of Iran, 30% of the economy of Yazd province is strongly dependent on the domestic and export sales of ceramic tile industries in Yazd province, which means that:
1- The consumer interest in ceramic tile products.
2- The export process in the direction of consumers' tastes and opinions in design and color.
3- Differences in the tastes of neighboring countries north, south, east, and west of Iran
4- Export culture and awareness of international export laws

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iran-tile market

As a result, considering the potential and advantages of Iran, especially Yazd province, it is necessary to make macro-level decisions to eliminate obstacles and problems in the export of ceramic tile products and the necessary infrastructure to export this product to maintain and develop this Created the industry.According to the Trade Development Organization of Iran, 30% of the economy of Yazd province is strongly dependent on the domestic and export sales of ceramic tile industries in Yazd province, which means that:

Its consumer interest is in ceramic tile products.

The export process in the direction of consumers' tastes and opinions in design and color.

Differences in the tastes of neighboring countries north, south, east, and west of Iran.

Export culture and awareness of international export laws.

Covering and meeting the needs of export markets and preventing the entry of competitors.

And this means the high value of metadata in the ceramic tile industry in the Iranian export market.

Powerful Entry of Ceramic Tile Industry to Online Market

The culture of online shopping and the desire of users and customers to achieve a large amount of information for each product has completely changed the methods of marketing and selling goods and services, so much so that if I see a shop without a site or Instagram page today, we will be surprised. One of the major drawbacks of traditional manufacturers and marketers of Iranian tile industry is their lack of colorful presence in online market. Of course, there is a clear reason and a big obstacle in the way: the ratio of weight to the price of ceramic tiles; sometimes due to this high ratio, the cost of sending ceramic tiles is higher than the product itself! This problem has been solved by some creative young Iranians, and we are now witnessing online stores that work around the clock to inform customers, provide transparency in prices, and make it easier for retailers in the industry.

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Powerful Entry of Ceramic Tile Industry to Online Market

Diagram Tile Market & Industry In Iran

The Comparison of Capacity Utilization and Production of Tiles and Ceramic since 2003 to 2021

Despite the U.S.A sanctions and domestic issues, there was an extreme growth in tile and ceramic industry, thanks to the demands in the export markets.
There was a growth of 22% in the production of tiles and ceramic from 2003 to 2021.
The production of tiles and ceramic with the estimation of 500 million square meters had reached its peak in 2013 and 2014.
It had slowed down in 2016 and 2017 due to the lack of funding; however, according to the data published by the Ministry of Industries, Mining and Trade, Iran manufactured 449 million square meters in 2021, which was up 5.5% compared to 2018.
The capacity utilization was in its peak in 2016 with an estimation of 700 million square meters, whereas, the production was about 300 million square meters.
Yet, it ought to be noted that the capacity utilization remained stable from 2019 to 2021 due to the fact that the market and investors were able to manufacture up to 85% of it.

The Statistics of Production and Consumption in Iran since 2003 to 2021

Due to the spread of urbanization and the necessity of housing and building sphere, there was an immense progress in technologies of mass production of raw materials, energy, workforce and most importantly the long-standing production of tiles and ceramic since 1960.
The growth of Iranian tile and ceramic industry matches the needs of both the domestic requirements and the exports of this industry.
In 2019, Iran was ranked the tenth largest consumer of ceramic tiles.
The consumption of tiles and ceramic with an estimation of 375 million square meters peaked in 2012 and 2013; therefore, the investment for construction of new units such as wall tile, floor tile, the porcelain and granite tile with variety of designs and sizes grew tremendously from then on.
In 2021, the manufacture of tiles reached 449 million square meters and the domestic consumption was approximately 220 million square meters.

Iranian Tiles and Ceramic Export Chart from 2003 to 2021

Ceramic tiles market is expanding rapidly with the increasing export value.
Merely around half of tiles and ceramic manufactured in Iran are consumed domestically, the essential goal of the market’s investors is to export the products globally; therefore, tile and ceramic production is targeted to reach 700 million square meters by 2025.
Ceramic tiles exports expanded around 30% from 2003 to 2021.
The market’s exports peaked in 2021 with an estimation of exporting 182 million square meters.
Iraq, Afghanistan, Pakistan, Turkmenistan, Georgia, the UAE, Tajikistan, Armenia, Uzbekistan, and Azerbaijan purchase Iranian ceramic tiles widely, annually.

Capacity Utilization Diagram of Iranian Ceramic Tiles Factories since 2003 to 2021

The capacity utilization grew from 117 million square meters in 2003 to 705 million squares meters in 2021.

The Formation of Iranian Ceramic Tiles from 2003 to 2021

The Iranian tile and ceramic industry with more than 134 valuable manufactures uses the latest technologies and specialized workplace for production of variety of products.
The market grew from 46 factories in 2003 to 134 in 2021.

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