Bangladesh's ceramics industry must move beyond manufacturing to create lasting value

Bangladesh's ceramics industry stands at an important crossroads. Over the past two decades, it has grown into one of the country's strongest manufacturing sectors, but today it faces a very different set of challenges. Rising gas prices, an unstable energy supply, dependence on imported raw materials, foreign currency pressures and higher production costs have significantly squeezed manufacturers' margins.

Yet I remain optimistic about the industry's future.

With 74 manufacturers operating across tiles, sanitaryware, tableware and ceramic bricks, nearly Tk185 billion in investment and employment for around half a million people, the sector has built a solid foundation. The next phase of growth, however, cannot be driven by cost competitiveness alone. It must be built on efficiency, innovation, superior design and value creation.

One of the biggest changes I have witnessed is in consumer expectations. Manufacturing quality, while essential, is no longer enough. Today's customers want products that reflect their lifestyle and aspirations. They look for innovative designs, trusted quality, sustainability, professional guidance and brands that help them create beautiful living spaces.

At Akij Ceramics, we believe that building a great brand is an ongoing pursuit of perfection. This philosophy has inspired us to introduce innovations such as Akij Ceramics AR Studio, ArchFuture – Design for Tomorrow, and premium experience centres that allow customers to visualise and experience products before making a purchase. Our goal is not simply to sell tiles but to help people shape the spaces where they live and work.

This commitment to innovation, customer experience and design excellence has earned us the distinction of being recognised as Bangladesh's No. 1 ceramic brand for seven consecutive years, alongside two consecutive Superbrands awards and several national recognitions. These milestones reflect the trust consumers have placed in us and encourage us to continue raising the industry's standards. At Akij Ceramics, we don't just manufacture tiles; we strive to deliver our Promise of Perfection.

However, maintaining competitiveness remains a constant challenge because the industry continues to rely heavily on imported raw materials. This dependence exposes manufacturers to exchange rate fluctuations, volatile shipping costs, supply chain disruptions and longer lead times. Companies must therefore focus on smarter sourcing, higher production efficiency, reduced wastage, stronger inventory management and the development of value-added products instead of competing on price alone.

Despite these challenges, I believe Bangladesh has every opportunity to establish itself as a regional ceramics manufacturing hub. We already possess strong manufacturing capacity, a skilled workforce, competitive production costs and growing export experience. To unlock this potential, we need reliable energy supplies, supportive government policies, greater investment in technology and innovation, stronger global branding and better export facilitation. With close collaboration between industry and policymakers, Bangladesh can become a preferred sourcing destination for high-quality ceramic products.

The industry's fortunes remain closely tied to the health of the real estate and construction sectors, particularly for tiles and sanitaryware. When housing, commercial development and infrastructure projects expand, demand for ceramics naturally follows. Conversely, any slowdown in construction immediately affects the industry. This is why manufacturers must diversify beyond new construction by focusing on renovation, replacement demand, premium lifestyle products, architectural solutions and export markets.

Consumer preferences are also reshaping how products are developed. Buyers no longer choose tiles based solely on price or durability. They consider texture, colour, finish, size, surface feel and how the product will complement the overall design of their space. This shift has encouraged manufacturers to invest in larger tile formats, premium finishes, curated collections and digital visualisation tools. At Akij Ceramics, our AR Studio enables customers to visualise products in their own spaces before making a purchase, creating greater confidence in their decisions.

To sustain the industry's long-term growth, several policy interventions are urgently needed. Stable gas and electricity supplies remain the highest priority, alongside rational energy pricing and easier access to foreign currency for importing raw materials. The industry also requires export incentives, support for developing backward linkages, lower financing costs and stronger government-led international promotion.

One particularly important reform would be introducing moisture adjustment during customs assessments, ensuring import duties are calculated on the actual usable raw materials rather than the gross imported weight. Combined with lower duties on essential raw materials, streamlined customs procedures and more favourable tax policies, these measures would significantly improve the industry's competitiveness. At present, high energy costs, dollar shortages and erratic gas supplies continue to pose serious obstacles.

Encouragingly, many leading manufacturers are investing in automation, digital technologies, design innovation and more sustainable production practices. But the pace of investment needs to accelerate if Bangladesh is to compete with the world's leading ceramic producers. Greater emphasis on research and development, energy-efficient manufacturing, waste reduction, water management and environmentally responsible production will be essential.

Looking ahead, I believe the ceramics industry will undergo its biggest transformation yet. The future will no longer be defined solely by manufacturing capability. Success will increasingly depend on design leadership, technological innovation, sustainability and customer experience. The brands that combine world-class quality with modern design, digital tools, efficient production and strong lifestyle positioning will shape the next decade.

For Bangladesh, the opportunity extends far beyond producing ceramic products. We have the potential to become a globally trusted source of refined, design-led ceramic solutions that serve both domestic and international markets. That is the future our industry should strive to build.

The author, Mohammed Ashraful Haque, is the general manager (Sales & Marketing) at Akij Ceramics Limited.