Bangladesh Ceramic Industry Faces Deepest Downturn in Over a Decade
- brg_news_room
- Sep 29
- 2 min read
Bangladesh: Bangladesh’s ceramic industry is experiencing its harshest downturn in more than ten years, with demand for tiles and sanitaryware falling by as much as 30%. The decline, driven by stagnation in the real estate sector, a freeze on government development projects, and a liquidity crunch in the banking system, has left many smaller manufacturers struggling to survive. The crisis has been further worsened by capital flight, inflation, and energy disruptions, leading to intense price wars and rising production costs. According to the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), the country has 62 ceramic companies, comprising 11 tableware, 12 sanitaryware, and 39 tile manufacturers, with a combined annual production capacity of 207 million square metres of tiles, 32 million pieces of tableware, and 1.6 crore pieces of sanitaryware. Local producers meet 87.29% of domestic demand, valued at $633 million for tiles, $180 million for sanitaryware, and $75 million for tableware.
Tiles have been the hardest hit, with demand plummeting by 25–30% over the past two years, forcing producers to sell below cost and offer higher dealer commissions to maintain sales. The sector’s struggles are compounded by a collapse in housing finance, as banks have curtailed lending amid rising non-performing loans. Larger groups have managed to endure losses through diversification, but smaller, tile-only firms face the threat of closure. Even leading manufacturers have reduced operations to about 70% of capacity as construction material demand has fallen by 25%. Production costs continue to rise due to high interest rates, gas shortages, and the depreciation of the taka, while government procurement accounting for around 30% of sanitaryware demand remains paused. Industry insiders believe a recovery depends on political stability and the resumption of public investment following the next election cycle.
Source: Daily Star
