Four major obstacles to the development of the ceramic industry
September 08 23:08:16, 2025
The Chinese ceramic sanitary ware market is currently in a highly unstable and unpredictable state. Although some domestic companies with strong capabilities have emerged in recent years, they still struggle to scale up into large enterprises. Even the top domestic ceramic sanitary brands only have assets in the range of several billion yuan, making it rare to see companies with over 10 billion yuan in assets. If Chinese ceramic companies had the same level of investment as financial giants like China Ping An or real estate leaders like Vanke, the high-end bathroom ceramics market wouldn't be dominated by foreign players.
Today, the Chinese ceramic sanitary ware market is facing multiple challenges. First, European companies are aggressively entering the Chinese market. Well-known international ceramic brands are not only expanding their retail presence but also setting up manufacturing facilities in China, such as in Daxie. This allows them to produce ceramic products more quickly and efficiently, reducing both time and costs. Their strategies go beyond just high-end markets — they are also targeting mid- and low-end segments. According to reports, these foreign firms have developed comprehensive plans to capture the lower-tier market, which will significantly impact the domestic players.
At the same time, the European Union’s actions seem calculated, leading to an unavoidable trade conflict that has severely hurt Chinese exports. Additionally, the U.S. has been pressuring the renminbi to appreciate, which has negatively affected export-oriented businesses. This currency appreciation has cut into the profits of Chinese exporters, while some foreign firms have taken advantage by acquiring domestic sanitary ware companies, further weakening the local industry.
Moreover, the domestic economy is underperforming, and structural reforms are still in progress. Inflation continues to rise, squeezing consumer spending power. With less money in people’s pockets, demand for ceramic sanitary products is declining. The real estate sector is also in turmoil, creating uncertainty for both manufacturers and consumers. If early housing protection policies had been implemented, they could have provided much-needed relief to domestic ceramic companies.
Currently, these four major challenges — foreign competition, currency pressure, economic instability, and a struggling real estate market — are pushing domestic companies to their limits. Without effective intervention, it's hard to imagine how they can survive. Therefore, timely and meaningful measures are urgently needed to support the ceramic sanitary ware industry and help it regain its footing.
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