If there is one lesson that theItalian ceramic tile industry has learned over the past few decades, is that, even when the ground underfoot becomes uncertain, it is essential to continue to invest – in innovation and quality, of course – to remain competitive and prepare for a rapid recovery as soon as the global scenario allows it.
Italian ceramics are undoubtedly a flagship of Made in Italy, renowned for its beauty, craftsmanship, durability and ability to innovate. Italian tile manufacturers have won over architects, designers and homeowners around the world, becoming one of our country's major exports, with a turnover reaching billions of euros each year. But how have they managed to maintain this success in such a competitive market and in the face of global challenges?
It will certainly be discussed at Cersaie 2024 from 23 to 27 September in Bologna but the answer is simple: continuing to innovate and keep alive a tradition that has transformed Modena e Reggio Emilia — today responsible for 85,5% of national tile production — in most competitive industrial hub in the world for production and innovation.
The global financial crisis of 2008
Il Lehman Brothers Collapse in 2008 profoundly shook the global economy and the ceramic tile industry was not immune to these shock waves. Demand collapsed, financing became scarce, and many industrial sectors threw in their oars. But not the tile industry. Despite the difficult context, Italian companies have continued to invest in research and development, allocating approximately 300 million euros (+0,45% on 2007), equal to 5-6% of their turnover, positioning themselves better for the recovery and demonstrating a resilience that has facilitated a return to growth.
The era of ceramics 4.0: the return to growth
After years of challenges, between 2016 and 2018 the sector experienced a real rebirth thanks to tax incentives of the Industry 4.0 program. Investments took off, rising from 400 million euros in 2016 to a peak of 515 million in 2017, and stabilizing at 508,2 million in 2018, equal to 9,4% of turnover. In five years, investments exceeded 2 billion euros, thanks to fiscal stimuli that incentivized the purchase of advanced machinery and technologies, such as automation and robotics. These advances revolutionized production, improving efficiency and reducing operating costs. The result was the creation of large-sized ceramic slabs and the reduction of thicknesses, expanding their applications and increasing their prestige globally.
The slowdown of the pandemic and the great rebound of 2021
2020 was a difficult year for the Italian ceramic industry due to the pandemic. Despite a dramatic start with a drop in sales and production, the sector has shown signs of recovery, closing the year with a less pronounced decline than expected. Investments, around 200 million euros (4% of turnover), although lower than previous peaks, were crucial to addressing challenges and continuing to innovate.
In 2021, the sector has reversed course and has started growing again. Turnover rose to €6,17 billion (+20% compared to the previous year) and investments increased to €350,6 million (+73% compared to 2020), representing 9-10% of total turnover. This rebound has once again demonstrated the sector's ability to invest in the future and consolidate its global position.
The challenge continues: 2022 and 2023
In 2022, the Italian ceramic industry continued to thrive, with a turnover of 7,2 billion euros (+16,5% compared to 2021) and investments growing to 441,3 million euros (+25,6%), equal to 6,1% of turnover.
After two years of pandemic, the industry was already struggling with Costs energetic doubled and, in some cases, tripled. The escalation of the conflict in Ukraine has worsened the energy crisis and led to the Blocking of clay shipments from Donbass, essential for 25% of ceramic material. The bill, however, came in 2023, with turnover down to 6,2 billion euros and a contraction in exports. Fierce competition from emerging countries, such as India, and more stringent environmental rules, such as the ETS system, added further pressure on costs, while inflation and high interest rates reduced demand.
Nevertheless, Investments have grown by 7,4% in 2023, reaching 474 million euros (7,7% of turnover), demonstrating the resilience and competitive capacity of the sector, which continues to innovate despite the reduction in volumes.
What does 2024 look like?
In 2024, the Italian tile sector faces a mix of challenges e opportunity. The end of the Superbonus could turn the current slowdown into a crisis, especially if foreign markets do not support production. Competition from Asia, especially from India, and logistical problems in the Red Sea are further complicating the situation.
But it's not all negative: the US market offers signs of hope, with an increase in exports and anti-dumping measures that are starting to counteract unfair competition. In Europe, however, duties are still too low, making a regulatory review necessary to ensure fair competition.
Despite these challenges, the industry, strengthened by investments and advanced technologies adopted in previous years, is well equipped to meet these challenges as well.
Sustainability and the evolution of tiles
Despite challenging economic contexts, the Italian ceramic tile industry has always found in sustainability and in 'technological innovation the fundamental levers for increasing one's competitiveness.
A clear example of this evolution is represented by the large slabs ceramic and from stoneware porcelain, which embody the perfect combination of aesthetics and functionality. Thanks to cutting-edge production processes, these materials offer large surfaces with unparalleled aesthetic and technical quality. Advanced technologies, such as high-definition digital printing and numerically controlled machinery, allow the creation of thin but extremely resistant tiles, suitable for multiple applications, from floors to furnishings.
These innovations have not only expanded the possibilities of use of the material, but also reduced the environmental impact of production. In fact, sustainability has become an essential pillar for the sector: Italian ceramic companies have adopted practices that reduce waste and promote the use of recycled materials. The latest generation production plants are powered by renewable energy sources, such as green hydrogen, biomethane, solar and wind energy, and integrate cogeneration solutions to improve energy efficiency.
In an increasingly competitive market, the ability to invest long term, even when economic winds blow against it, has allowed the Italian ceramic tile industry not only to survive, but to thrive. Although it is one of the most representative sectors of Made in Italy, the story behind the scenes often remains less visible. But beneath the surface of a refined Italian ceramic floor lies a story of courage, strategic investment and that determination that distinguishes Made in Italy. And as the industry faces the challenges of 2024, one thing is certain: it will continue to make its mark, tile after tile.
