U.S. Ceramic Market: A market under pressure finds strength in value, not volume – May 2026

By Meg Scarbrough

After four consecutive years of contraction, the U.S. ceramic tile market continues to navigate a difficult environment shaped by housing softness, elevated interest rates and persistent cost pressures. Yet beneath the topline declines, a more nuanced story is taking shape, one defined less by broad-based demand and more by a shift in how and where consumers are choosing to spend and tariff-driven price increases. Last year, U.S. ceramic tile consumption, floor and wall, fell 0.8% to an estimated $3.715 billion, according to analysis by Market Insights, but in terms of volume, the market was down 4.9% to 2.57 billion square feet.

“Even though the square footage has gone down, the prices have gone up,” says Eric Astrachan, executive director of the Tile Council of North America. “That reflects the reality of the market right now.”

That reality is being shaped by a convergence of macroeconomic pressures. Affordability constraints, elevated mortgage rates and inflation continue to weigh on consumer confidence, while tariff uncertainty and ongoing supply chain challenges have added another layer of complexity for manufacturers, importers and distributors alike.

“The category continues to face macroeconomic pressure, including energy costs, tariffs, trade dynamics and ongoing supply chain disruptions,” says Scott Maslowski, executive vice president of sales and operations at Dal-Tile. “These factors are impacting commercial, residential remodel and new residential segments.”

MARKET CONDITIONS REMAIN UNEVEN

While the broader trajectory of the market remains downward, performance across segments is far from uniform.

New residential construction continues to be the most challenged, constrained by affordability issues and interest rates that continue to hover between 6% and 7%. Entry-level housing has been particularly affected, as cost-sensitive buyers delay purchases or opt for lower-priced flooring alternatives. 

“New construction softness and affordability constraints are suppressing volume, particularly in entry-level housing,” says Paulo Pereira, vice president of MSI.

Commercial, by contrast, has provided a more stable base—though not without its own variability.

“Education continues to be strong for us—it’s always been the backbone,” says Fred Reitz, senior vice president of commercial at AHF Products, which owns Crossville. “Healthcare is solid, and mass retail is holding up, but Quick Service Restaurant (QSR) and automotive have been weaker.”

Residential remodel has produced some pockets of strength, particularly in higher-end projects, helping to offset broader declines in volume.

PRICING, PRODUCT MIX AND THE VALUE SHIFT

If the market’s headline numbers tell one story, product mix tells another.

Across the industry, manufacturers and suppliers report a clear shift in consumer behavior: while fewer projects are moving forward, those that do are increasingly skewing toward higher-end, design-driven products. In many cases, the total square footage of a project may be smaller, but the value per square foot is rising.

“Customers are more selective, but when they do spend, they are trading into better design and quality,” Pereira says.

This dynamic is playing out across product categories and applications. Large-format porcelain slabs and statement wall features are gaining traction, as consumers invest in fewer but more impactful design elements. Expansive showers, full-height backsplashes and feature walls are becoming focal points within the home, driving demand for premium materials.

At Emser Tile, that shift has translated into growth, even as the broader market remains flat.

“We’re seeing double-digit growth in high-end luxury products,” says Randall Sheehe, vice president of national accounts for Emser. “In many cases, the price of the tile is not the deciding factor; it’s the design, the look and how it fits into the overall project.”

That emphasis on design is also reshaping how consumers allocate spending within the home. As carpet continues to give way to hard surface flooring in many areas, tile is benefiting from a broader share of the floorplan, particularly in primary living spaces where performance and aesthetics intersect.

At the same time, advancements like radiant floor heating are helping expand tile’s appeal, addressing traditional concerns around comfort and further supporting its use beyond kitchens and baths.

The result is a market increasingly defined not by volume growth, but by strategic, targeted investment. Rather than a broad-based recovery, suppliers point to growth concentrated in specific segments—those that combine performance, design and differentiation.

“Growth is being driven more by mix and targeted segments than a broad market rebound,” Pereira says.

TARIFFS, IMPORTS AND SUPPLY CHAIN DYNAMICS

Even as demand remains under pressure, the structure of the ceramic market—particularly its reliance on imports—continues to shape both risk and opportunity across the category.

Imports account for more than 70% of U.S. tile consumption by volume, according to the Tile Council of North America, making global trade dynamics central to pricing, availability and competitive positioning. In 2025, that landscape continued to shift, with Spain reclaiming its position as the top exporter to the U.S. (in volume), followed by Italy, while imports from countries like India, Brazil and Mexico declined amid changing tariff conditions and cost pressures.

At the same time, uncertainty around tariffs—particularly those tied to India—has created an added layer of unpredictability. Ongoing legal challenges and delayed rulings mean that duties could ultimately be applied retroactively, exposing importers to unexpected cost increases on product that has already entered the market.

“For anyone importing, there’s a significant risk of retroactive tariffs,” says Eric Astrachan. “The government hasn’t made a final determination, and when it does, those duties could be applied to past entries.”

That uncertainty has forced companies to adapt in different ways. For global suppliers, flexibility has become critical. “We’re sourcing from North America, Europe and Asia, and we adjust based on tariffs, raw material costs, and other factors,” says Sheehe. “The key is maintaining consistency in quality and supply, even as those inputs shift.”

Others are leaning on inventory strategy to maintain stability. “By maintaining a strong and well-balanced inventory, we can ensure consistent supply and predictability for our customers,” says Pereira. “That’s a competitive advantage in a market where availability and reliability matter.”

For domestic manufacturers, however, tariffs are creating a different kind of dynamic—one that may work in their favor.

“Tariffs are reinforcing our value as a U.S.-based manufacturer and creating opportunities for us to be more competitive versus imported products,” says Scott Maslowski of Dal-Tile, noting that more than 85% of the company’s tile is produced in North America.

That positioning is even more pronounced in the commercial segment, where project timelines and pricing commitments leave little room for disruption.

“In commercial, about 95% of what we sell in porcelain we manufacture,” Reitz says. “We’re not nearly as exposed to tariffs as importers.” 

In those environments, reliability often outweighs sourcing origin. “They want it to show up on time, and they want it to show up at the price they agreed to,” he adds.

That advantage is being amplified by ongoing investment in domestic production. Manufacturers are expanding capabilities and flexibility within U.S. facilities, enabling them to bring more design-forward products to market without the same exposure to global trade volatility.

Still, even with those gains, the reality remains that domestic production alone cannot fully supply the U.S. market. Imports will continue to play a critical role, ensuring that the category maintains the breadth of style, format and price points required to meet demand across segments.

OUTLOOK: PRESSURE PERSISTS, BUT
DEMAND IS BUILDING

Looking ahead, most industry participants expect 2026 to remain challenging.

High mortgage rates, continued affordability constraints and geopolitical uncertainty are likely to keep pressure on both new construction and large-scale remodeling projects. Commercial investment, while more stable, is also expected to remain uneven.

“We expect continued headwinds in 2026,” Maslowski said. “Interest rates, energy costs and overall uncertainty are all impacting consumer confidence and delaying projects.”

“There is significant pent-up demand in the market,” Maslowski added. “As conditions improve, that demand will come back.”

Rather than a sharp rebound, however, the recovery is expected to be gradual and uneven, driven more by targeted segments than by a broad-based surge in activity. “We expect growth to come from mix and specific opportunities, not from an immediate return to high volumes,” Pereira says.

In that environment, success will depend less on scale and more on strategy—on the ability to align with shifting consumer preferences, maintain operational flexibility and deliver products that stand out in an increasingly selective market.

THE TOP FIVE

Perennially the market leader, Mohawk’s Dal-Tile continued to leverage its scale, domestic manufacturing footprint and broad product portfolio to maintain its position at the top of the category. It finished 2025 with approximately $1,403 million in sales, per Market Insights data.

While the company did not meet all internal expectations in 2025, it reported performance that compared favorably to industry benchmarks in a challenging environment. With more than 85% of its products manufactured in North America, Dal-Tile has been particularly well-positioned amid ongoing tariff uncertainty, using its domestic base to reinforce its competitive advantage versus imported products.

“Tariffs are reinforcing our value as a U.S.-based manufacturer and creating opportunities for us to be more competitive,” says Maslowski.

The company has continued to invest in its U.S. operations, expanding manufacturing flexibility and capabilities to bring more design-forward products to market domestically, he adds. These investments are enabling the production of “Italian-style” designs, colors and formats within the U.S., helping bridge the gap between global aesthetics and local production. 

Dal-Tile also emphasized a balanced approach across price tiers, introducing new products at multiple levels to communicate the value of tile to a broader customer base. Looking ahead, the company expects ongoing headwinds but points to significant pent-up demand that could drive a rebound as macroeconomic conditions improve.

Emser reported modest growth in 2025, outperforming the broader category as it capitalized on a shift toward premium products and expanded its position as a full-solution provider. It finished the year with an estimated $450 million in sales.

“We were up modestly in 2025, with some segments and regions performing better than others,” says Sheehe.

The company has broadened its portfolio beyond tile to include installation products, accessories and adjacent categories, positioning itself as a more comprehensive partner to its customers. Initiatives like its EMS Essentials line and expanded luxury offerings reflect that strategy.

At the same time, Emser continues to benefit from a broader share shift toward hard surface flooring, particularly in residential applications. Growth has been strongest in higher-end segments, where consumers are investing in design-forward products despite overall market softness.

“We’re seeing double-digit growth in high-end luxury products,” Sheehe said, noting increased demand for large-format tile, expansive showers and statement wall applications.

Emser’s global sourcing model has also provided flexibility in navigating tariffs and cost pressures, allowing the company to adjust production across regions while maintaining consistency in quality and supply.

MSI Surfaces continued to focus on disciplined growth and product mix improvement in 2025, navigating the down cycle while positioning itself for long-term gains. It finished last year with $446 million in estimated sales, down a few points from 2024.

The company emphasized protecting customer profitability and maintaining strong service levels, supported by a robust inventory strategy that has helped mitigate the impact of tariffs and supply chain volatility.

“By maintaining a strong and well-balanced inventory, we can ensure consistent supply and predictability for our customers,” says Pereira.

Like others in the category, MSI is seeing growth concentrated in higher-end, design-forward segments, including large-format tile, porcelain slabs and differentiated visuals. While overall demand remains under pressure, the company reports that customers who are actively refreshing assortments and leaning into innovation are outperforming.

Central to MSI’s strategy is a focus on “product vitality”—a steady pipeline of new and updated offerings designed to capture evolving consumer preferences. Collections such as its TileTouch line are gaining traction as buyers seek more distinctive and elevated design solutions.

Anatolia continues to be a major player in the ceramic tile category, with a strong focus on large-format porcelain and slab products. For 2025, the company saw $445 million in sales, down from $450 million the previous year.

Operating primarily as an importer and distributor, the company leverages a global sourcing network to maintain a broad and flexible product portfolio. That structure allows it to adapt to shifting cost pressures and tariff dynamics while offering a wide range of formats and price points.

In recent years, Anatolia has leaned further into slabs and large-format tile, categories gaining traction across both residential and commercial applications. These products are increasingly used beyond flooring, extending into walls, countertops and other vertical surfaces where seamless visuals and reduced grout lines are key.

The company’s positioning reflects a broader shift toward integrated surface solutions and design continuity across spaces. Its sourcing capabilities support access to advanced manufacturing technologies required for larger formats, while ongoing investments in logistics help manage the added complexity of handling and transporting these products.

The performance of AHF Products’ Crossville in 2025 largely tracked with broader market conditions, with the company reporting a single-digit decline for the year, followed by a return to growth early in 2026. The company ended the year at $210 million, down from $217 million the year prior.

The company’s strength continues to be rooted in its commercial business, particularly in institutional segments such as education and healthcare, where demand has remained more stable than in other areas of the market, says Reitz.

A key differentiator is Crossville’s domestic manufacturing footprint. With the majority of its commercial porcelain produced in Tennessee, the company is less exposed to tariff volatility and better positioned to meet the timing and pricing demands of specification-driven projects.

At the same time, Crossville is evolving its go-to-market strategy, expanding beyond tile to offer a broader portfolio of products aimed at capturing a larger share of each project. That approach is helping to offset softness in certain segments while strengthening relationships with commercial customers.