India’s growing ceramic footprint

India is the 5th largest exporter of ceramic products, and its exports have grown at a CAGR of 16% over the past five years. This edition of IBT Data Point analyzes the current growth trends and potential for India’s ceramic exports in the world’s leading markets.

BY HIMANSHU RAJ

1.

Top 5 exporters of ceramic products in 2021

4

3 2

5 1

1. China 2. Italy 3. Spain 30.70 6.43 5.15 4. Germany 5. India 4.29 2.31

Source: Trade Map; Figures in US$ billion

India exported ceramics products worth US$ 2.31 billion in 2021. Exports have grown at a CAGR of 16% between 2017 and 2021. The top export markets for ceramics are the US (8.1% share); Saudi Arabia (7.6% share) & the UAE (5.6% share).

Markets witnessing strongest CAGR during 2017-21 are Libya (141%); Indonesia (88%); Russia (67%), Jordan (52%) & Thailand (48%). Notably, India has witnessed a positive CAGR across its top 25 export markets of ceramics products between 2017 and 2021. It also has a positive trade balance with all its top 25 export markets, except for Germany.

2.

Top five importers of ceramic products

9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0

8.37

3.58

2.56 2.21 2.11

USA Germany France UK Vietnam

Source: Trade Map; Figures in US$ billion.

Market-wise, the share of India’s ceramics exports is quite diversified, with the top 10 importing countries accounting for only 13% of its exports. Saudi Arabia, UAE, Iraq and Nepal account for positions 2-5 among India’s top exporting markets, but are nowhere among the global top 10 importers. Only two of the top 10 markets globally - US & UK - figure in India’s top 10 export markets.

The leading markets where India has been unable to mark a significant presence are: Germany, France, Viet Nam, China, Republic of Korea, Netherlands, Japan and lastly Canada.

Vietnam is the fastest growing import market for ceramics among the top 10 between 2017-21, and it has been growing at a CAGR of 113.2%.

3.

India's top five ceramic product exports

2000 1800 1600 1400 1200 1000 800 600 400 200 0

1758

Unglazed ceramic flags and paving...

175 173 125

Ceramic sinks, washbasins, washbasin... Refractory bricks, blocks, tiles... Retorts, crucibles, mufers... Tableware, kitchenware, other...

26

Source: Trade Map; Figures in US$ million; data at HS 4-digit level

5.

Vietnam’s top imports & exports for ceramics HS code Product label Exports Imports

'6907 Unglazed ceramic flags… 13.828 633.579 '6903 Retorts, crucibles, mufflers… 3.641 45.651 '6902 Refractory bricks, blocks… 0.535 108.234 '6910 Ceramic sinks, washbasins… 0.137 697.427 '6911 Tableware, kitchenware… 0.052 340.117 '6914 Ceramic articles, n.e.s. … 0.014 79.081 '6912 Tableware, kitchenware… 0.001 21.96 '6909 Ceramic wares for laboratory,… 0.001 78.83 '6901 Bricks, blocks, tiles… 0 1.127

'6904 Ceramic building bricks… 0 '6905 Roofing tiles, chimney pots… 0 '6906 Ceramic pipes, conduits… 0 '6913 Statuettes and other… 0 27.714

0.996

1.11

72.429

Source: Trade Map; data at HS- 4 digit level in US$ million

4. India's top 5 ceramic export markets

188.0

United States of America

175.3

Saudi Arabia

130.7

United Arab Emirates

90.7

Iraq

88.4

Nepal

Source: Trade Map; Figures in US$ million

FOCUS MARKET: VIETNAM

We have selected Vietnam for a deeper analysis into product groups. Import CAGR (2017-2021) of Vietnam has increased recently to 113.2%. Vietnam’s imports of ceramic products mainly originate from China.

India’s exports account for very little share in Vietnam’s market. It has a great opportunity to export to Vietnam as it’s the third largest exporter following China and Japan. While Vietnam’s imports from the world have grown by 113.2% over 2017-21, India’s growth in exports during the period is just 9.96%.

Vietnam’s top imported products globally are from HS Codes ‘6910, ‘6907 and ‘6911. India’s exports to Vietnam in these categories are very low at US$ 0.14 million, US$13.83 million and US$ 0.05 million. Out of these, HS Codes 6910 and 6907 have been strong for India, as they account for its top 2 global ceramics exports at the 4-digit level. So, these two product segments can be further explored for expansion by India in exports to Vietnam.