Friday, July 31, 2026 from Floor Covering Weekly

A third year of decline troubles tile, but doesn’t stall it
By Suzy Krogulski

Affordability issues seem to be harrying every category in FCW’s 2025 Statistical Report, and ceramic and porcelain tile for floor, wall and countertops are no different.

Catalina Research reported that the tile category’s sales declined in dollars and square feet in 2025, albeit a moderate drop. According to the report, ceramic and porcelain tile manufacturer sales decreased 0.6 percent in 2025 to $4 billion. This accounted for 13.1 percent of total U.S. floor coverings sales. Square foot sales could have declined 1.8 percent to 2.9 billion square feet or 11.6 percent of total square foot sales.

Suppliers are reporting that this performance stems from affordability issues. The Bureau of Labor Statistics reported in June 2026 that the annual inflation rate was 3.5 percent. This is coupled by factors such as the war with Iran and no sign of an interest rate cut.

Additionally, tariffs are causing lingering strife, and the housing market has yet to recalibrate after its high during COVID. Still, some suppliers are also noting tile may simply be stabilizing. Its strengths and continued advancement as a product are keeping tile poised to emerge stronger once the tumult ends — whenever that may be.

Treading Water

With the floor covering market seeing a third year of decline, most flooring options are seeing declines. Consumers are stretched and stressed. MSI’s Paulo Pereira, vice president, stated, “2025 results were impacted by factors such as inflation and lower existing home sales due to elevated interest and mortgage rates.”

Indeed, said Danielle Lancianese, product director, hardwood and tile for Shaw, “This decrease in ceramic and porcelain reflects the housing market and economic trends, not of the style or material. Tile is closely connected to new home construction, remodel and renovation. Consumers facing affordability challenges have moved toward lower-cost options that are also faster to install, which saves on labor costs.”

Plus, said Louisville Tile’s CEO Dub Newell, overall affordability issues aren’t helping young adult homebuyers make their stake in the market. “People are locked into their homes — they got their home at a sub-three [percent] mortgage, and for them to move, even if they want to move, they’ll need to give up that sub-three mortgage for a seven percent mortgage. The cost differential in that move is at such a high bar.”

The current median age of a first-time homebuyer, the National Association of Realtors (NAR) reported, is 40 years old.

It’s important to note, said Eric Edelson, CEO at Fireclay Tile and Fox Marble, that these broader challenges trickle down to consumers delaying projects. And, he said, “Tile is often part of a bigger, more considered investment — kitchens, bathrooms, flooring, fireplaces, outdoor spaces — and those projects are more likely to be postponed when there is uncertainty in the market.”

And, said Dave Godlewski, vice president of sales and marketing, Wonder Porcelain, “The labor costs to install tile versus other non-tile products is often a topic of review for consumers. Upfront costs versus life cycle costs are often overlooked as flooring is the last product to be installed, often times when consumers look to save costs, if project total costs have increased during construction.”

Yet tile’s fared well considering these challenges, said Scott Maslowski, executive vice president of SSC sales and operations, Dal-Tile LLC. “The tile business actually held up fairly well relative to the market conditions. The pressure continues to be on the overall residential business with the interest rates continuing to be persistently stuck in the mid-six range. A lot of people are on the sidelines, both from a remodel and a new residential point of view. So that’s really what’s held back the industry.”

This means, Lancianese noted, “The category remains strong in design-driven and higher-end applications — and is well positioned to recover as housing stabilizes.”

In addition to housing recovery, consumer confidence needs to spike. Ongoing obstacles, such as the war in Iran and continued tariff chaos, aren’t helping consumers feel good about big impactful spending like a home or renovation.

Maslowski explained, “The tariffs in the marketplace have added a little bit of confusion to consumer confidence. And really that’s been a driving factor of pressure in the overall industry.”

How the industry accommodated these tariffs, said Maslowski, required maneuvering. He cited that roughly 70 percent or more of tile is imported.

“Tariffs were the big story,” said Michael Ward, vice president of sales, Portobello America. “They shuffled the whole import deck — more tile came in from Spain and Italy, a lot less from India and Mexico.”

Talking Points

Despite this ongoing upheaval, tile hasn’t lost its luster. “Relative to what’s happening in the foreign business, ceramic and porcelain really held up admirably well relative to industry conditions,” said Maslowski.

Adam Wilkes, residential regional sales manager, emphasized that technological development for Crossville, an AHF Products brand, “There’s a natural base that is built into the consumer that is like stone and tile.”

Crossville’s Tom Kettering, vice president, commercial sales, noted that the market may be leveling itself off to pre-COVID levels — “a naturalization of where the market should be,” he reported, noting the uniqueness of the situation.

Indeed, Lancianese said this slighter decrease may be indicative the decline in the category is stabilizing.

And while sales have decreased, the value of tile has not. Edelson shared that even while consumers are being more selective with their spending, they’re starting to think more about durability, maintenance, health, sustainability and design longevity, all of which tile offers.

Tile’s continued evolution has also helped the category. Crossville’s Kettering said, in Crossville’s case, the company’s continued investment into technology and people has helped them weather and overcome market challenges.

Tile’s design versatility was another bolster to its ability to weather difficult times. Fireclay’s Edelson also highlighted a return to heritage as attractive to consumers. “After years of very minimal, often colder interiors, consumers and designers are looking for warmth, texture, color and materials with a sense of history. There is renewed interest in classic formats, mosaics and patterns that feel timeless but can be interpreted in a fresh, modern way.”

What’s to Come

Looking forward, suppliers hope for tile’s value to help overcome consumer hesitation. “2026 YTD is seeing a strong recovery for domestic tile,” said Godlewski. “Tariffs and uncertainty in freight and availability, overall volatility has swung to the positive for domestic manufacturing.” And, he noted, being diversified in commercial and high-end residential during residential fluctuation has been the key for Wonder Porcelain.

Domestic manufacturing was highlighted by Crossville as well. “We’ve had the luxury of having the factory in our backyard, and being able to produce an American-made product, that really appeals to the buyers. To those folks that we’re selling to, to have domestic inventory that they can count on, rely on, it’s been a godsend for us,” said Kettering.

Lancianese noted that Shaw focused on winning where opportunity presented itself. “We also continue to see significant opportunity in tile, particularly in areas where we can expand distribution, fill assortment gaps, and better align our portfolio to evolving builder and retail needs,” she said.

Similarly, Fireclay focused on what they do best to survive 2025, and set itself up for wins in 2026 and beyond. “We have stayed focused on what makes Fireclay different: domestically produced tile, sustainable manufacturing, thoughtful design, made-to-order flexibility and a deep commitment to craft. Rather than chasing short-term trends, we are investing in products, services and capabilities that reflect where the home and the broader surfaces market are going,” said Edelson.

Maslowski highlighted Dal-Tile’s balance of its North American manufacturing as well as its diversification amongst commercial, residential remodel and new residential as what helped them overcome and succeed in 2025.

Product launches, said Pereira, helped MSI remain consequential throughout the tumult.

Moving forward, education, said Newell, and storytelling are what the industry need to double down upon. Education for the installers and storytelling, to promote tile.