Industry Insights
The Indian tiling adhesives and grouts market is expected reach a value of USD 68.5 million by 2017. It is anticipated to expand at a CAGR of 8.7% from 2017 to 2024. Increasing standard of living, disposable income of the Indian customers and high preference for aesthetics, enriched with good quality construction chemicals are anticipated to propel market growth.
India Tiling Adhesives & Grouts Market by product, 2014 - 2024 (USD Million)
India, being a developing nation and a potential market for new and innovative products, is experiencing rapid economic development and is attracting huge number of international players. These international players are expected to make huge investments in various sectors and are projected to establish their subsidiaries in the country. This is expected to fuel growth of the construction segment in the country.
The Indian government has approved 100% Foreign Direct Investments (FDI) in real estate, which is projected to boost construction activities. India is expected to become an attractive investment destination for multiple international players due to increasing number of FDI in the real estate segment.
With a capital flow of USD 5.7 billion in 2016 from all over the world, the Indian real estate sector has seen an investment of around USD 32 billion in private equity. The government has undertaken a number of initiatives to develop the real estate sector - residential and commercial. For instance, H.B. Fuller has invested USD 20 million in the tile adhesive business in Pune, India in 2017. This has fueled the consumption of tile adhesives in the past few years, which is expected to grow over the forecast period.
Construction activities in rural India have increased as a part of government initiatives to provide 40 million houses in rural and 19 million houses in urban areas by 2022. Development of the commercial segment is well accompanied by the growing corporate environment and increasing demand for office spaces and semi-urban and urban accommodations. This is expected to drive the market for construction chemicals such as tile adhesives.
Segmentation by Product
• Cementitious
• Epoxy
• Dispersion
• Tiling Sealants
• Others
With increasing disposable income of the middle class families in India, there is a shift in customer preferences in terms of quality. Customers demand decorative interiors, outlays, and flooring for their houses. They are more inclined towards international brands when it comes to flooring, which is an important part of house construction and it instantly uplifts overall look of the house. End users have also become aware about the use if tile adhesives to protect the tiles and to extent the tile life.
Cementitious tile adhesives are used on wall and ceramic floor tiles. The segment is anticipated to hold the largest market share during the forecast period due to increased use of polymer modified and water-resistant cements for both external and internal tile applications. These adhesives are used for various purposes such as wall coatings, textured building finishes, pavements, and flooring in places such as warehouses, factories, stairways, hospitals, garages, airport runways, and railway platforms. As compared to epoxy and dispersion, cementitious tile adhesives are cheaper and have high bonding properties. This will help the India tiling adhesives and grouts market grow over the projected period.
Segmentation by End User
• Residential
• Commercial
Consumers prefer attractive and appealing interiors. Tile grouts, adhesives, and sealants play a vital role in providing finishing touch and enhancing the tile colors making them look vibrant and striking. Tile adhesives have started to gain popularity in residential sector due to increasing disposable income of the middle-class families in India and awareness regarding the use of tile adhesives for decorative and surface protection purposes.
Commercial segment accounted for the highest market share and is projected to grow over the forecast period. Economic development and increase in commercial infrastructure such as multinational companies, international brand subsidiaries, metro stations, and real estate are anticipated to bode well for the growth in near future.
Indian government has amended the Companies Act, and provided office spaces of more than 54 million sq. ft. to different companies. This is projected to fuel growth of the commercial segment over the forecast period. Furthermore, policies such as infusion of private equity investments, which allow corporates to expand and open up more subsidiaries, are expected to drive the construction market. This factor is anticipated positively influence market for tile adhesives over the forecast period.
Segmentation by Distribution Channel
• Direct
• Retail
Based on distribution channel, the India tiling adhesives and grouts market is categorized into direct and retail. Retail sales are expected to emerge dominant as a result of increasing buyer preference. Sales of tiling adhesives through retail channels accounted for more than 70.0% of the total market in 2016. This is attributed to rigorous efforts of manufacturers and producers towards sales and marketing activities along with provisions for heavy discounts. Retail distribution is expected to witness a CAGR of around 8.9% over the forecast period. On the other hand, direct distribution accounted for a market share of around 27.3% in 2016. This distribution pattern is followed on a very small scale and is quite labor intensive.
Competitive Landscape
The companies and businesses in the Indian tiling adhesives and grouts market include CHRYSO India Private Limited, Sunanda Speciality Coatings Pvt. Ltd., Fosroc, PERMA Construction Aids Pvt. Ltd. and Saint-Gobain India Pvt. Ltd. These companies are often challenged by the international brands. These Indian companies suffer due to lack of quality standards for production, manufacturing, and usage of construction chemicals.
Manufacturers have now started focusing on the best practices to effectively compete with their international counterparts. This has also resulted in improvement of working conditions and plant infrastructure, which in turn has improved the output quality and has lured more consumers. Companies are taking strategic initiatives such as product developments, mergers, and expansions to increase their market share. For instance, in October 2016, Roff launched 20 new experience centers in Kerala to spread awareness and educate end-users regarding the latest solutions and benefits of using construction chemicals especially for stone and tile installation.
