Brick and Block Demand to Exceed 12 Billion Units in 2014

Demand for brick and block products is projected to increase nearly twelve percent annually from a weak 2009 base to 12.4 billion units in 2014, valued at $8 billion.  The expected recovery in building construction, specifically residential construction, will drive growth. These and other trends, including market share and product segmentation, are presented in Brick & Block, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Consumption of clay brick products tends to be concentrated in residential markets, reflecting the heavy use of clay brick as a siding material in new home construction.  In 2009, demand for clay brick was very low -- less than one-half the 2004 level -- due to the ongoing severe contraction in new housing construction.  As residential construction (particularly new single-family housing) rebounds through 2014, demand for clay brick will benefit, advancing 15 percent annually to 8.2 billion units in 2014, a considerable improvement over the weak performance of 2009 but still below the record level of 2004.

Demand for concrete brick and block products is projected to increase 6.9 percent annually to 4.3 billion units in 2014.  Although the majority of demand will remain concentrated in nonresidential markets, the most significant growth opportunities will derive from the recovery in the housing market.  This will benefit concrete brick (used in siding, paving and landscaping applications) and concrete pavers.  Much slower gains will occur in structural and decorative concrete block products, which are more heavily reliant on nonresidential construction.

Aggregate brick and block pricing rose sharply in the 2004-2009 time frame, reflecting high energy costs.  While average prices for each product group will rise through 2014, these increases will be less dramatic than in the previous period.  However, because growth through 2014 will be heavily concentrated in lower unit cost clay brick, aggregate prices will remain flat.

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.