Engineered Quartz Surface Market Size, Share & COVID-19 Impact Analysis, By Product Type (Press Molding Quartz, and Casting Quartz), By End-User (Residential, and Commercial) and Regional Forecast, 2020-2027

The global engineered quartz surface market size was USD 17.10 billion in 2019. The regional impact of COVID-19 has been unprecedented and staggering, with engineered quartz countertops witnessing a positive demand across the region amid the pandemic. Based on our analysis, the market exhibited a modest growth of 8.1% in 2020. The market is projected to grow from USD 18.50 billion in 2020 to USD 33.50 billion in 2027 at a CAGR of 8.9% in the 2020-2027 period. The sudden fall in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Engineered quartz is a highly-preferred engineered stone for constructing a wide range of cabinetry solutions, as it is capable of levering more pressure. Compared to other materials, engineered quartz surfaces have higher durability and weight-bearing capacity, thus ensuring their reliability among customers and manufacturers. The application of aesthetic construction materials is increasing across the construction and fabrication industry throughout the world. Delivering beautiful aesthetic quartz surfaces is becoming a key factor for manufacturers across Asia Pacific, the Middle East, and European countries, owing to cultural ethics and norms, thereby expanding the regional customer base.

Key manufacturers are pioneering technological developments in order to gain a competitive advantage for sustained success. Artificial intelligence (AI) and machine learning (ML) technologies have revolutionized the quartz manufacturing sector, enabling the use of automated sorting methods. AI and ML identify the characteristics and defects in tiles using a laser sensor and IP camera, thus improving the sorting method for the quartz countertop materials.

COVID-19 to Impede the Construction and Mining Industry, Creating Financial Crisis in the Global Market

The sudden emergence of the COVID-19 pandemic has resulted in a significant decrease in demand for home renovation, remodeling activities, and new residential construction, which in turn has shrunk the demand for engineered quartz surface products. It has adversely affected the countertop business and the operational flow of manufacturing, fabricating, and installation processes around the world.

Moreover, the construction industry is already experiencing a downfall, owing to workers’ unavailability on sites, even when most of the developers have kept the construction work continuing. The unavailability of workers has reduced the expected percentage of global revenue through residential and commercial engineered quartz countertop installations as it is directly proportional to the number of workers working on site. The Associated General Contractors (AGC) of America stated that the COVID-19 pandemic has delayed construction projects for ~28% of the contractors, owing to the shortage of subordinates.

Amidst the COVID-19 pandemic, the legal implications on construction projects vary from country to country and project to project. Many projects across countries such as India, China, the U.S., and others have slowed down owing to supply chain disruptions. In 2019, the growth rate in exports and imports of engineered stones from India, including quartz, slowed down, owing to the lack of policy support and in 2020, it is being further aggravated by the COVID-19 outbreak.

The mining industry is also affected by this pandemic. In the U.S. and the rest of the world, stone quarries and processing units have stopped production as a complete shutdown has broken transportation and supply chains. Hence, modular construction projects have slowed down. It also means a complete lack of demand for mining products, stone aggregates, and dimension stones.

LATEST TRENDS

Rising Inclination towards Aesthetic Mushroom Tops to Fuel Demand for Quartz Countertop

In the current market scenario, engineered quartz surfaces are emerging across several applications, with a wider range of patterns, textures, and slab sizes as required by customers. Owing to this, manufacturers tend towards offering custom countertops, such as mushroom tops, that create an aesthetic floating landscape for stylized interior furnishings. For instance, Caesarstone has successfully collaborated with the world-famous Japanese design studio Nendo. Nendo’s creative director Mr. Oki Sato has designed a wonderful and minimalist space “mushroom tops” from Caesarstone quartz. These mushroom tops are held using a single rod that creates the image of a floating landscape appearance to kitchen worktops, bathroom vanities, etc.

Designing such tops requires seamlessly cutting quartz material into several shapes and sizes that are obtained through automated cutting and sorting methods with the assistance of advanced technologies.

DRIVING FACTORS

Availability of Durable and Aesthetic Engineered Quartz Surfaces to Attract New Customer Base

A countertop is used as a work platform for several applications and hence needs to be constructed using durable, heat-resistant, and stain-proof materials. Owing to the increasing demand for aesthetic worktops, scratch and stain proof surfaces have been introduced in the engineered quartz countertops market, driving the growth of the market worldwide. Progressive growth in the demand for esthetic quartz across the global fabrication and construction industry is expected to witness a rising regional customer base. For instance, Caesarstone is a pioneer in offering the best quality quartz surfaces that constitute 93% quartz, 7% polymer resins, adhesives, and additives mix. This has led to the manufacturing of a highly heat resistant, stain & scratch-proof, non-porous aesthetic countertop material for commercial and residential applications. Hence, the rising availability of durable and decorative quartz countertop materials for commercial and residential applications is boosting the engineered quartz countertops market growth.

RESTRAINING FACTORS

Volatile Organic Compounds and Resin Pooling to Hamper Market Growth

Volatile organic compounds (VOCs) are the major problem with manufactured engineered quartz products as the chemical formulation used to manufacture them may release harmful gases. The United States has laws to regulate which chemicals can be used in kitchen countertops and near food items, considering that formaldehyde is currently being phased out of kitchen countertops and other cabinetry solutions. One of the basic issues associated with quartz countertops is resin pooling, where the inconsistency in the countertop leads to large pools of colored resin surfacing the material unevenly, thus minimizing the benefits of the aesthetic appearance and affecting product demand across the global market.

SEGMENTATION

By Product Type Analysis

Press Molding Quartz Segment to Grow at a Higher CAGR

The product type segment is bifurcated into press molding quartz and casting quartz.

Press molding quartz is a majorly preferred quartz slab type for residential and commercial countertop applications, owing to its features and pocket-friendly prices. The pressing system forms quartz slabs/plates within a high vacuum and high-frequency vibration environment for uniform texture, thus resulting in quartz that is durable, non-porous, has a high weight-bearing capacity, and boasts many other properties. This results in the increasing popularity of press-molded quartz as the best option for countertop and cabinetry solutions amongst consumers.

The casting quartz segment is expected to have moderate market growth as these slabs are useful for more aesthetic applications and interior designing, with low weight-bearing capacity, thus limiting their application.

By End-User Analysis

Residential Segment to Dominate Market Growth  

Based on end-user, the market for engineered quartz surfaces is clubbed into residential and commercial. The residential segment is expected to witness the highest market share, owing to the rising per capita spending. Quartz countertops have a wide range of demand in residential applications, which is attributed to the shift in customer preferences from natural stones to durable and cost-effective quartz countertops. Moreover, evolving customer preferences for aesthetic and spacious kitchens that require larger countertop areas is promoting the growth factors of quartz countertops in residential applications.

On the other side, in the commercial segment, hotels/restaurants are expected to witness the highest CAGR by virtue of increasing interior construction applications, including entry door frames, waiting areas, lounges, aesthetic restaurants, etc.

REGIONAL INSIGHTS

Asia Pacific is expected to experience exponential market growth in the near future, with the upsurge in demand fuelled by the rising standards of living in countries such as China, India, Australia, etc. These countries are aiming at modernizing their existing housing and non-residential building stocks. The improving standards of living across developing Asian countries such as China, India, Vietnam, Malaysia, etc. are increasing the demand for renovation and refurbishment projects across the region. Therefore, the increasing demand for interior designing of kitchen and bathroom spaces is encouraging the adoption of quartz countertop materials.

China to Witness the Highest CAGR with Emerging Local Quartz Manufacturers

China is expected to showcase the highest CAGR due to the emergence of local quartz manufacturers that offer their products worldwide at affordable prices in bulk quantities. China is known as one the largest quartz exporters in the world that trades across developed and developing countries. The availability of a large number of Chinese manufacturers and their wide range of patterned products attract a wide global customer base and is hence expected to augment market growth over the forecast period.

The market in North America is expected to witness progressive growth, owing to the improved standards of living in the last two decades. In the U.S., the single and multifamily housing sector is experiencing strong demand for modular kitchens and spacious washrooms. For instance, the U.S. National Kitchen & Bath Association stated that, in 2019, the U.S. spent nearly USD 700 billion in residential constructions. Considering all these factors, the demand for quartz countertop products in North America is expected to increase in the coming years.

Europe is expected to exhibit steady growth, attributed to the new housing constructions that are increasing the demand for quartz countertop products in countries, including Germany, Spain, etc.

The Middle East & Africa and Latin America have been drastically affected by the COVID-19 pandemic, stalling economic growth in these regions. This will impact almost all sectors, including construction mining, etc. Hence, the pandemic has reduced the capacity of the manufacturers to produce high-quality products and has subsequently impacted the engineered quartz surface market growth in both regions.

KEY INDUSTRY PLAYERS

Caesarstone, VICOSTONE, and DuPont to Emphasize on the Adoption of Product Expansion and Sustainability Strategies

The market companies are aggressively investing in R&D, introducing new products to fulfill the changing customer needs. For instance, in January 2020, Caesarstone unveiled its new product category “OUTDOOR” to its existing quartz surface collection. These surfaces are ideally suited for urban residences as well as hospitality installations including restaurants, bars, and hotels. Prominent players are also associating with regional players to enhance their presence locally in order to cater to untapped market opportunities and create lucrative business contexts.

Key players operating in the market are focusing on residential repairs, remodel activities, and new home construction projects in order to stay competitive in the market. Also, this move will enable suppliers to create a strong brand image and reputation. To sustain in the market, key players are strengthening the profit structure by divesting their existing business segments.

LIST OF KEY COMPANIES PROFILED:

• Caesarstone (Haifa District, Israel‎)


• VICOSTONE (Hanoi, Vietnam‎)


• DuPont de Nemours, Inc. (Delaware, United States‎)


• Wilsonart LLC. (Texas, United States‎)


• Cosentino S.A. (Almería, Spain)


• Cambria (Le Sueur, Minnesota‎)


• POKARNA LIMITED (Secunderabad, India‎)


• STRASSER Steine GmbH (St. Martin im Mühlkreis, Austria‎)


• SodoStone (Xiamen, China‎)


• Macostone (Guangdong, China‎)

KEY INDUSTRY DEVELOPMENT:

• December 2020: Vicostone launched its new product range VICOSTONE BAHIA with creative perspectives combining the exquisite depth of quartzite, classical elegance of marble, and the unique design philosophies of VICOSTONE.

• January 2020: Cosentino showcased a creative plantation-style home at Kips Bay Decorator Show House Palm Beach design, wherein they showcased Cosentino’s ultra-compact Dekton and Silestone quartz surfaces.

REPORT COVERAGE

The engineered quartz surface market research report provides a detailed industry analysis and focuses on key aspects of the market, such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the current market trends and highlights key industry developments that are the result of primary and secondary research studies. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation