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CERAMIC·BATHROOM October 18-21,2018

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Turkey Ceramic Tile Industry Analysis

Time:2017.08.22  Views:

  Often termed as the “land of ceramics”. due to the rich tradition of ceramic manufacturing, which has been carried on by various civilizations that have evolved in the Anatolian region, Turkey is known for the prowess of its ceramic manufacturing industry. The country has emerged as one of the top ten global ceramic products manufacturers.

Recent progress

  Turkish ceramic tile industry experienced two very different semi-period in year 2016. On the back of recovery in economic activity and economic growth in the domestic market, ceramic tile producers experienced a great fist half. But the coup attempt on July 15 and the subsequent conditions caused the economy to begin to lose performance, which affected ceramic tile producers for most of the second half of the year. Though, these factors didn’t limit the exports volume, but domestic consumption in the year was less than the year 2015.

   Recent data released by Turkish Statistical Institute and Turkish Ceramics Federation(SERFED) shows that overall production decreased by 3.5%. Exports of ceramic tiles from the country in 2016 increased by around 5% as compared to year 2015. However, the profit margins of exporters have taken a severe hit in last few years.

   According to the association, Turkish producers could have recorded better exports numbers, but, slowdown the EU economy and the political instability in neighboring countries such as Syria, Iraq and Egypt have limited the exports to many countries. Also, exports were also hit by the strong competition from Iran in countries such as Georgia and Azerbaijan.

  Despite, a lot of positives going for Turkish ceramic tile producers, there are a number of mitigating factors, which if addressed properly could make the ceramic tile industry in the country even more competitive.

  Some of these factors are unfair competition in a number of foreign markets, high energy and transportation costs and high taxes on employment. Turkish ceramic tile producers and their association have made various representations to the government for liberation of the energy market so as to cut gas and electricity prices and ensure greater supply consistency. Ceramic association has also requested the government for investments in developing a well-concerned railway network throughout Turkey to link ceramic production plants to the main ports used for exports.

  An export powerhouse

  Ceramic tile exports from Turkey achieved a scale of 512 million USD in 2016. While, Israel is the largest importer in terms of volume, Germany holds the destination of top value export destination with an export value of 79 million USD, while the United States is the second with 59 million USD and Israel is the third with 54 million USD.

Exports numbers for the year 2016 also put a stop to the declining trend of exports volume from the country. In years 2013, 2014 and 2015, exports volume had witnessed a drop in absolute numbers when compared to previous years.

  Though, these declines were not very steep, but ceramic tile producers from Iran, Egypt, China and India have been able to gain a lot of foothold in some of the key Turkish exports markets. Many Turkish ceramic tile producers have expressed their concerns on rising share of export ceramic tiles from these countries in some of their key markets.

  In 2015, ceramic tile exports from Turkey had generated a turnover of 451 million Euros. In 2015, the top two markets for Turkish tiles in terms of volume were Israel with 9.82 million square meters and Germany with imports of 9.32 million square meters of ceramic tiles. United Kingdom with imports of 8 million square meters and the USA with 7.8 million square meters were third and fourth largest importer of ceramic tiles from the country.

  Ceramic tile exports to lucrative USA market from Turkey have seen a quantum jump in recent years. Turkey Ceramic tile producers have put special emphasis on tile exports to one of the most lucrative market in recent years.

  Though, in absolute terms a figure of 81.8 million square meters(export figures for 2016)doesn’t look very intimidating, But, when considered that exports of ceramic tiles from the country are about 25% of total domestic production, the figure looks quite promising. In fact, in terms of this ratio(export/domestic production), Turkey is much ahead of even the largest ceramic tile producers and exporters in the global arena. The country is placed third after two European powerhouses, Italy and Spain.

  Industrial Advantage

  Turkish ceramic producers have been able to become a major force in export markets on the back of high quality products. Huge investments by a number of ceramic tile producers in recent years by a number of players have enabled the industry to achieve economies of scale and high quality products.

  Though, there are looming threats on the horizon due to low cost producing countries, but higher quality of products and proximity to key European markets is likely to keep Turkish producers in a more competitive position as compared to these countries for next few years, at least.

  Another factor, which has worked in favor of Turkish ceramic tile producers is their association with some of the best names in global tile designing industry. Turkish producers have worked closely with some of the world’s best known and talented designers in order to create exciting new products that are both beautiful and functional.

Obviously, it takes mutual effort to realize the ceramic tile industry prosperity between Turkish government and Turkish ceramic tile producers. Fully taking advantage of what your industry have and enhancing the industrial competition, we believe that it will be a promising industry among Turkey.

  This article is quoted from Asian Ceramics.

Production, consumption and exports  (million m2)

Year

2011

2012

2013

2014

2015

2016

Production

266

281

327

322

329

317.48

Domestic consumption

178

189

229

223

236

243

Exports

87.3

91.7

87.8

84.7

77.2

81.8


 

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