Tk19,000cr ceramics industry gears up for global leap

Bangladesh's ceramic industry has come a long way from the days when the country relied heavily on imported tiles, tableware and sanitaryware. Today, it has grown into one of the country's leading manufacturing sectors, supplying most of the domestic market while steadily expanding its footprint overseas. With total investment reaching nearly Tk19,247 crore, the industry has become an important source of employment, value addition and export earnings. 

According to the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), the country now has 75 manufacturers across four segments—31 tile companies, 20 tableware producers, 20 sanitaryware manufacturers and four ceramic brick producers. Over the past decade alone, investment and production in the sector have grown by 150%, reflecting rising domestic demand and continuous expansion of manufacturing capacity.

The industry has become an important pillar of the economy, directly and indirectly employing more than 500,000 people. Local manufacturers now add around 60% value during production, making ceramics one of Bangladesh's significant value-added manufacturing industries.

The domestic market is increasingly dominated by locally produced ceramics. Bangladeshi manufacturers account for 89.3% of tableware consumption, 81.9% of tile demand, 66.5% of ceramic brick consumption, and 65% of the sanitaryware market. This strong local presence has substantially reduced dependence on imports while giving consumers access to internationally competitive products.

Production capacity has expanded accordingly. Every year, Bangladesh's factories can produce 244 million square metres of tiles, 310 million pieces of tableware, 19 million pieces of sanitaryware, and 103 million ceramic bricks. Tiles remain the industry's largest segment, attracting Tk12,021 crore in investment and accounting for a domestic market worth Tk7,153 crore. Sanitaryware follows with a market size of Tk2,027 crore, while tableware contributes Tk894 crore and ceramic bricks Tk117 crore.

Bangladesh has also established itself as a recognised exporter of ceramic products. Today, locally manufactured ceramics reach more than 50 countries, with major destinations including Italy, Germany, the United States, the United Kingdom, Norway and India. Export earnings recovered to $35.22 million in FY25, up from $33.09 million a year earlier, although still below the record achieved in FY23. Meanwhile, import payments declined to $53.1 million in FY25, indicating the industry's growing ability to serve the domestic market.

Industry leaders attribute Bangladesh's growing competitiveness to several structural advantages. Manufacturers now operate modern production facilities equipped with ISO-standard automated systems, use lead- and cadmium-free glaze and pigments, and benefit from sulphur-free natural gas, competitive labour costs, flexible production volumes and preferential market access under GSP facilities in several export destinations.

Yet the industry's full potential remains untapped. Manufacturers continue to face challenges ranging from energy shortages and high production costs to expensive financing and volatile raw material prices. Export earnings remain relatively modest compared with the industry's manufacturing capacity, suggesting significant room for expansion if policy support, energy security and infrastructure improve.

As Bangladesh's urbanisation accelerates and consumers increasingly prioritise quality, durability and design, demand for premium ceramic products is expected to grow further. Combined with expanding production capacity and rising investment, the industry appears well positioned to strengthen its role not only as a supplier to the domestic construction and housing sectors, but also as one of Bangladesh's next major export-oriented manufacturing industries.

The foundations have already been laid. The challenge now is converting industrial capacity into sustained global competitiveness.