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The Tile Industry in South Africa 2015

  • July 2015
  • 128 pages
  • Who Owns Whom
Report ID: 3343864


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The Tile Industry: This report focuses on the manufacture, wholesale and retail of tiles in South Africa. The tile sector is a sub-sector of the construction and building materials market which has a wholesale value of approximately R97bn per annum. As far as retail is concerned, tiles form part of the hardware, paint and glass category, which is valued at approximately R58.1bn per annum.

Challenges and Opportunities: The tile industry is reliant upon the construction industry, the success of which is influenced by the roll-out of government’s R847bn infrastructure programme. This has been slow because of the sluggish economy. In an attempt to boost local manufacturing, additional product designations for local procurement of building and construction materials, which include tiles, were announced by the Department of Trade and Industry in May 2015. If State-owned companies comply with the directive, 645 infrastructure projects across the country valued at R3.6-trillion will have to procure the designated building materials from local manufacturers. However, current weak domestic growth prospects of 2% mean that South African-based tiling companies are likely to focus on countries in the rest of Africa where higher growth is expected. Growth of 4.4% for sub-Saharan Africa during 2015 rising to 5.1% in 2016 and 5.6% increasing to 6.7% in 2016 for East Africa are predicted.

Report Coverage:
The report on the Tile industry describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles 22 South African companies, including retailer Cashbuild Ltd which owns 215 stores and employs 4,687 people, and Marley South Africa (Pty) Ltd, a manufacturer and wholesaler of tiles that employs 300 people at its four factories and seven warehouses.

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