South America: Tile demand expected to increase

According to forecast analyses by the MECS Research Center, tile consumption in South America could reach 1,280 million sqm by 2028, with an average annual growth of 4.8%.

According to “Ceramic Tile Market Forecast Analysis. TREND 2024-2028”, the forecast report for the global ceramic tile market, published last November by the MECS-Acimac Research Centre, from 2024 to 2028 the Latin American ceramic industry should maintain a stable share of global tile production at 7.2%, while strengthening its position as a major consumer market.

Ceramic tile production is projected to grow from 1.12 billion sqm in 2023 to 1.28 billion sqm in 2028, with an average annual growth rate of 2.7%. This marks a sharp recovery from the negative trend of the decade 2014-2023 (CAGR -1.5%).

On the demand side, the South American market is poised for even stronger growth, with tile consumption projected to rise by 4.8% annually, from 1.22 billion sqm in 2023 to 1.54 billion sqm in 2028, an increase of 321 million sqm over the five-year period.

In both cases, this anticipated expansion will largely be driven by Brazil, the region’s biggest player and the world’s third-largest tile producer. Brazilian tile production is expected to increase by 2.6% annually from 793 million sqm in 2023 to 903 million sqm in 2028, while domestic demand is expected to reach 896 million sqm (an average annual increase of +5.2%).

This optimistic scenario for the entire South American region marks a significant shift from the previous decade, when demand stagnated (CAGR of -1.7% from 2014 to 2023). The new growth cycle is driven by favourable macroeconomic conditions, with regional GDP projected to expand by 2.6% annually until 2028. Additionally, the construction sector is expected to benefit from public incentives and funding for infrastructure and innovation, factors that are likely to drive investment at an average annual rate of 2.3% over the five-year period.