The ceramic industry plays an important role in the economy of Bangladesh as it is one of the fastest-growing manufacturing sectors in Bangladesh providing notable contributions to the country’s export revenue, GDP, and job creation in the economy.
The ceramic industry in Bangladesh mainly produces a wide range of ceramic items such as tableware, sanitary ware, and tiles. These products are exported to various countries including the United States, Canada, and European countries.
The industry which made its journey in the late 1950s is now growing exponentially at around 20% annually in recent years. According to the USAID study, the manufacturing capacity of the ceramics industry in Bangladesh has increased by 200% between 2008 and 2018.
With an approximate USD 1.07 Bn investment in total, 70 ceramic manufacturers are in operation in the country out of which, 32 companies are producing tiles, 20 are producing tableware, and 18 are producing sanitary ware.
According to Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), the demand for ceramic products has seen an increase of 22% in the last five years taking the annual domestic market consumption of ceramics products to USD 905mn ( the tiles industry is around USD 650mn while that of the tableware and the sanitary ware, respectively, are USD 180 mn and USD 75 mn).
Here’s an overview of the Ceramic Sector in Bangladesh
The Ceramic Industry of Bangladesh also carries the utmost potential to become of the largest sources of FOREX earnings for the country. Bangladeshi ceramics products are exported to more than 50 countries including the UK, the USA, Italy, Spain, Norway, France, the Netherlands, and Australia.
Ceramic exports stood at USD 41.31 mn in FY’22 (Source: EPB/EBL Securities)
The growth in export has also indicated a steady increase (especially after the hard pandemic era) to give us an element of understanding about the prospect of our ceramic industry in terms of impacting the economy of Bangladesh.
Although tiles dominate the local market in terms of consumption, tableware dominates the export market being responsible for a staggering 98% of the total export for the ceramic industry.
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According to the report by EBL Securities, the yearly production capacity of the ceramic industry stands as stated below:
- Tiles: 210 in Mn Sqm
- Table Ware: 308 Mn pieces
- Sanitary Ware: 19 Mn pieces
Around 80% of the total tiles demand in the market is dominated by the local manufacturers approximately in the country. The rest is still dependent on imports.
Veteran players like RAK and Akij Ceramics control about 32.32% of the market share for tiles. Each possesses about 16% of the total market share of the tiles market.
Apart from the veteran market players like AKIJ, RAK, etc. BHL Ceramics Co. (a concern of BHL Group) has been one of the rapidly growing(considerably new) ceramic tiles manufacturers in the country. The group which started its ceramic operation in 2018 is growing exponentially under the brands name like BHL Ceramic, KongFu Ceramic & Vinci Ceramic. The group has a manufacturing capacity of 40,000sq.m/day tiles production equipped with modern equipment and technology. So, the new players are also stepping up the game in capturing the local ceramic tiles industry which says nothing but the growth and prospect the industry carries in the future.
Table Ware Market
Shinepukur Ceramics which is a subsidiary of Beximco Group is the market leader of the tableware market with 18% of the market share. The company also exports around 24% of all tableware exports during the 2018-19 fiscal year. Monno Ceramics is the second largest market player in the market with manufacturing facilities of 1.5 Mn pieces of porcelain and bone china each month.
Sanitary Ware Market
RAK Ceramics, a UAE-Bangladesh joint venture dominates the sanitaryware market of Bangladesh with 30% of the Tk 1,200 crore market. The company produces a wide range of goods, including ceramics and porcelain tiles, bathroom accessories, and all types of sanitary ware. The offers a wide variety of designs with 2,500 models. As per NewVision, 18% of the market is controlled by Abul Khair Ceramics.
Sanitaryware has a huge potential to grow due to increasing purchasing power and urbanization which have led to changes in lifestyle.
A lot of local companies are investing in these segments to grab the growing market pie as well. With that intention, BHL group launched Perla Sanitary ware. The company aims to provide the highest quality products with mind-blowing designs at affordable prices. The company has set up a manufacturing unit of 1000 pieces/day at present and 2500 pieces/day capacity in the near future and is looking to become one of the frontrunners in this market.
The ceramic industry grew mainly due to the strong local demand. However, there is huge potential to grow in the export market. Bangladesh manufacturers can grab the global market share as they are able to produce quality products at affordable prices. Hence the growth of the ceramics industry has just started and is likely to be one of the major industry segments of the country.
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