Demand for Roofing in China to reach 70 Billion Yuan in 2012

Demand for roofing materials in China is forecast to rise 4.1 percent per annum to 2.7 billion square meters in 2012, valued at 70 billion yuan.  Gains will be fueled by rising building construction expenditures in both new, and improvement and repair applications, benefiting from China’s ongoing urbanization and industrialization.  However, a moderation in urban real estate markets and export sales will constrain building construction expenditures and industrial sector investment, respectively, restraining related roofing sales in the short term. These and other trends, including market share and product segmentation, are presented in Roofing in China, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Elastomeric and plastic roofing will see the best prospects among the various roofing materials through 2012, increasing at annual rates in excess of six percent.  Growth will derive from supportive government policies and increasing foreign investment, and these roofing materials will continue their inroads against built-up and asphalt roll roofing.  However, concrete and clay tiles, and built-up and asphalt roll roofing will continue to account for the largest portion of roofing materials, representing 85 percent of total roofing demand in 2012.

Roofing demand in the residential segment is expected to rise 3.2 percent annually to 1.5 billion square meters through 2012, trailing average roofing demand as a whole.  Spending decreases in new housing construction due to falling house prices in major Chinese cities and a lack of credit for developers will constrain residential construction spending growth, thus dampening roofing gains.  However, advances will be driven by China’s ongoing urbanization efforts and rising income levels, leading to improved living standards for better housing quality.  In addition,

China’s Flat-to-Slope Conversion Project will further fuel gains for residential roofing.  This project, which is targeted mostly at residential apartment buildings, will continue to be implemented in major cities in China and improves both the building’s function and aesthetic appeal through converting flat roofs to sloped roofs.  Demand for roofing in the nonresidential building market is forecast to increase 5.3 percent annually through 2012, benefiting from sustained government investment in institutional buildings and foreign investment in value added manufacturing facilities, as well as by the growing use of high-end products in many of these applications.

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.