First publishedon www.AggBusiness.com
The global market is predicted to grow by 4.7% (CAGR) from 2018-2023
The Chinese market for cement and concrete additives was the single largest overall in 2016, but will experience slower than average demand growth through 2023.
Those are among the findings in a new study from The Freedonia Group which predicts a 4.7% compound annual growth rate (CAGR) for the global market between 2018 and 2023.
China accounted for more than 25% of overall cement and concrete additive demand in 2018 in value terms, making it the leading worldwide market for these products. This is expected to hold through 2023, even as sales grow at a comparatively slow annual rate for the forecast period.
The study attributes this sluggishness to several factors. Firstly China has a large, low-cost labour pool, which makes construction less expensive and reduces the necessity for faster setting, additive-fortified concrete.
In addition, growth in the Chinese economy – and, as a result, construction activity – held back potential gains between 2015 and 2018.
Finally China is home to a significant number of unoccupied housing stock and nonresidential facilities, limiting the need for new buildings that might spur additional additive demand.
While sales in China are not expected to grow as quickly as regional neighbours like India, the study found that there are still ample opportunities for advancement. Projects like the New Silk Road trade corridor – intended to connect China with regions such as Central Asia, the Middle East and Europe – will spur construction of new roads and bridges, which should boost the need for additives as well.
The Freedonia Group adds that ongoing modernisation in the Chinese construction industry ought to pave the way for growth in additives that provide improved performance and environmental benefits.