Freedonia Market Research Analyzes Global Cement Industry

World demand for cement is forecast to grow 5.3 percent per year to 3.6 billion metric tons in 2012.  Gains will be driven by strong increases in cement consumption in the developing countries of the world, fueled by rising income levels and a focus on infrastructure development.  Additionally, a rebound in cement demand in industrialized markets such as the US, Japan and Germany will further boost advances. These and other trends, including market share and company profiles, are presented in World Cement, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Gains in global cement demand will slow considerably from the 2002-2007 period, which was characterized by double-digit increases in demand in China.  Since the country accounts for such a large portion of the market -- nearly half of global cement demand in 2007 -- China is the primary driver of the world cement industry.  Product demand in India, the second largest national market for cement (though far smaller than first-place China), will climb at the fastest rate of any major country.  Although comparatively small, cement demand in Indonesia, Malaysia, Nigeria and Vietnam is expected to record gains of seven percent per year or more.

In the developed areas of the US, Japan and Western Europe, cement sales increases will lag the global average, although improvement over the 2002-2007 period is expected.  In the US, for example, the market will benefit from a recovery in residential building activity, as well as strong government spending on highway and road construction.  In Western Europe, a rebound in construction activity will benefit cement markets in countries such as Germany and Portugal.  A pickup in construction spending in Japan following an extended period of decline will help bolster overall cement market growth.

Demand for straight portland cement, which currently accounts for 63 percent of all cement sales worldwide, will be spurred by increases in global construction spending and further advances in manufacturing technology.  However, sales of blended cements will climb at a faster pace through 2012, driven by their relatively low cost and favorable environmental profile.  Ready-mix concrete is expected to be the fastest growing market through 2012, increasing its position as the largest outlet for cement.  Consumer demand for cement will also expand at a healthy pace, stimulated by overall market increases in developing areas, where consumer sales can account for half or more of all cement demand.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.