Ceramic Raw Materials (Russian Market)

2023: Domestic products share in ceramic raw materials market reaches 98.7%

The market for ceramic raw materials in Russia in 2023 shows explosive growth. The most pronounced increase in indicators is demonstrated by the kaolin clay segment. At the same time, the share of domestic products on the market, according to experts, reached 98.7%. This is evidenced by data from a study conducted by Simpreal, a Russian manufacturer of kaolinite ceramic raw materials, and IndexBox. Simpreal representatives shared the results of the study with TAdviser on November 1, 2023.

As experts found out, the most dynamically developing market segment for 2023 is the production of kaolinite raw materials. Its consumption in Russia over the past three years has increased by more than 60%. If in 2019 domestic ceramics manufacturers purchased 1.95 million tons of products, then in 2022 the figure was already 3.1 million tons. In 2023, volumes not only continued to grow, but also reached a historically record level.

According to the researchers, the increase in the consumption of kaolinite raw materials is due to several reasons at once. The industry development driver is the expansion of the use of raw materials and the improvement of its composition. A similar trend is observed not only in Russia, but throughout the world. No less significant factor is the development of the construction industry - the main consumer of products. The pace of housing construction in Russia is steadily increasing. According to data, in Rosstat 2022 the volume of housing commissioning to the country amounted to a record 102.7 million square meters. meters.

The consumption of kaolinite raw materials was significantly influenced by the withdrawal from the domestic market of foreign manufacturers of finished ceramic products - tiles, porcelain stoneware, etc. To compensate for the losses and prevent the formation of a deficit, Russian companies had to quickly increase the volume of production of finished products, and the need for raw materials increased accordingly.

According to experts, by the end of 2023, the level of consumption of kaolin clays in the country will amount to 5.1 million tons. In 2024, the market expects a sharp decline - up to 4.5 million tons, which in 2025 will be replaced by sustainable growth. According to forecasts, by 2030 the volume of product consumption will reach 5.3 million tons per year with an average annual growth rate of 1.5-3%.

In parallel with the increase in the need for raw materials, the volume of its production is also growing. The main challenges for domestic producers of kaolinite raw materials in 2023 were the restoration of inventory and the closure of market needs, taking into account a sharp drop in imports. In 2023, the volume of raw materials should be 5.1 million tons. For comparison, in 2019 the figure was 1.5 million tons, and in 2022 - 3 million tons. In 2024, production is expected to decrease to 4.4 million tons, after which production volumes are synchronized with consumption volumes and by 2030 will amount to 5.24 million tons.

The share of imported products in the market of kaolinite raw materials in Russia over the past four years has decreased by more than 20%. If in 2019 foreign raw materials accounted for 22.7% of the market, then in 2023 - only 1.3% of the market. The leading positions in the production of kaolinite raw materials are occupied by the Volga and Ural federal districts.

In addition to maintaining high production rates, Russian manufacturers are also faced with the task of expanding the assortment and improving the physical and technical characteristics of raw materials, the researchers noted.

"The production of kaolinite raw materials does not stand still: new formulations appear, existing varieties are being improved. To keep up with the times, it is important for market players to increase the manufacturability of production, primarily through research work. It is not enough just to have a field and a processing shop at your disposal. Success in the industry today is forged in laboratories where they study the possibilities of creating new varieties, experiment with recipes, study the possibilities of additional enrichment, "says Yulia Pikovskaya, head of the marketing and wind farm department of PJSC Simpreal.

Another task for manufacturers is to contain selling prices for products while maintaining high quality. Here the solution is to create new varieties.

The coming years will be held for the market of kaolinite raw materials under the flag of import substitution. Experts are confident: domestic companies are quite able to close the needs of manufacturers of ceramic products in the required volumes of raw materials. At the same time, the quality of products should increase in parallel with the growth of production rates. The emergence of new high-quality and affordable varieties of raw materials will ensure stable market growth and fully mitigate the consequences of the departure of foreign players.