Luxury Tiles Market Analysis

Luxury tiles are used to cover floors in both residential and commercial properties. They are made of different materials, including porcelain, ceramic, metal, natural stone, or vinyl. This market research will mainly focus on the vinyl tiles market, but these markets go almost hand in hand. Luxury Vinyl Tiles, or LVT for short, are tiles used to emulate the look of other materials like granite, wood, or any other type of material you may want. These tiles are the most common type of tiles found in the Luxury Tiles Market.

Luxury tiles market on global level has generated revenue worth USD 50.67 billion in 2020 with around 12.39% decline as compare to previous year. However, the global Luxury Tiles market is likely to recover with strong revival of construction activities and projected to reach over USD 95.46 billion by the end of 2027. While incremental growth opportunity is expected to be USD 555 billion between 2021 and 2027.

Interesting Facts about Luxury Tiles Industry-

• Pietra Firma Lux Touch is most expensive luxury tile in the world which can cost up to a million dollar per square meter
• LVT is most commonly used luxury tile
• Gray colour is most widely preferred for flooring
• There are large number of substitutes available for Luxury Tiles such as marble, granite, etc.
• Per Capita Expenditure on Luxury Tiles has been reached all time high in Europe with over USD 35 per head

Impact of Covid-19 on the Luxury Tiles Market

COVID-19 had a significant impact on economies as a whole, and the effect on the luxury tiles market was not any different. There were many concerns about transactions stopping as more and more manufacturing plants closed down because of the pandemic. Lockdown restrictions placed by governments also slowed down this industry a lot during 2020.

Rise in Construction

The luxury tiles market grew substantially before the covid 19 pandemic for a few years and is expected to grow again over the forecasted period. As the construction industry keeps expanding and growing worldwide, the need for new and better tiles keeps growing too. There has been a rise in the global real estate industry which can help sustain the luxury tiles market for the foreseeable future. New commercial and residential projects always require suitable flooring and the tiles industry is there to provide.  

Growing Desire for Luxury Lifestyle

The increase in disposable income of the average consumer resulting in an increase in purchases of luxury tiles for residential purposes is a major driving factor of the luxury tiles market. More and more people are buying better and newer tiles for their own homes as they can afford more.

Luxury vinyl tiles improve the look of buildings as a whole and have many benefits such as high durability, more comfort, and more resistance to different weather conditions. All these benefits are growing this market significantly.  

The use of luxury tiles in commercial projects is the most significant driving factor of this market. Commercial properties like airports, schools, malls, and especially hospitals, where many people walk constantly, require good and durable luxury tiles.  

Luxury vinyl tiles are straightforward to install for the average consumer, easy to maintain, and resistant to different chemicals. All these benefits make them very appealing for use in commercial and residential properties and are expected to grow the demand of this particular market.   

Challenges in Repair and Replacement

The difficulty of repairing and/or replacing luxury tiles is the primary restraint the luxury tiles market is expected to face for the forecasted period. Luxury tiles, once chipped or cracked, cannot be repaired and must be replaced, for which the process can be long and difficult.  

Another restraint this market is expected to face is the rise of environmental concerns about the raw materials that might be getting used to manufacture these tiles. Also, the constantly changing prices of said raw materials can hamper the market’s growth.

LVT to Dominate the Demand for Luxury Tiles

Ceramic, Vinyl, Gypsum, Metal and Mineral Wool are major types of luxury tiles. Among all, luxury vinyl tiles are leading segment of the global luxury tiles market by types with over 35% share in total revenue generated in 2020. While on the basis of application, global luxury tiles market is classified as Wall Tiles, Floor Tiles and Ceiling Tiles. Floor tiles dominated the revenue generation with around 55% share in 2020.