The United States cement market is forecasted to grow 1.6% yearly over the next decade, according to a new report by research firm, IndexBox. The country’s market value will reach an estimated $50 billion by 2030. Cement is an important binding agent in the construction industry and its demand is dictated by the growth in infrastructure spending and housing starts.
The Cement Market in the United States
The cement market growth is being driven by a number of factors, including the increasing use of concrete in construction and the growing popularity of do-it-yourself home improvement projects.
Concrete is one of the most widely used materials in construction, and its popularity is only increasing. This is due to a number of factors, including its durability, its versatility, and its low cost. As construction activity continues to increase in the United States, so too will the demand for concrete.
Do-it-yourself home improvement projects are also becoming more popular, as homeowners look for ways to save money on renovations and repairs. Concrete is an ideal material for many of these projects, as it is relatively easy to work with and can be very durable. As more homeowners undertake these projects, the demand for concrete will increase.
Last year, the U.S. cement market expanded to $10.2B, picking up by 3.2% against 2020, according to IndexBox data. The market value increased at an average annual rate of +2.9% over the period from 2015 to 2021; the trend pattern remained relatively stable, with only minor fluctuations in certain years. The growth pace was the most rapid in 2016 when the market value increased by 6.6% against the previous year. Cement consumption peaked in 2021 and is expected to retain growth in the immediate term.
Market Forecast to 2030
The U.S. cement market is being driven by a number of factors, including:
Increasing Construction Activity: The construction industry in the United States is expected to grow significantly over the next decade, driven by a number of factors, such as population growth, economic expansion, and the need to replace ageing infrastructure. This will lead to higher demand for cement and other building materials, driving market growth.
Recovery from Economic Downturn: The U.S. economy has recovered from the recession of recent years, with GDP growth forecast for the next decade. This will lead to increased construction activity and higher demand for cement and other building materials.
Infrastructure Development: The United States government has committed to a significant investment in infrastructure development over the next few years, which will lead to increased demand for cement and other construction materials.
Growing Population: The U.S. population is expected to grow over the next decade, reaching nearly 350 million people by 2030. This will lead to increased construction activity and higher demand for cement and other building materials.
Driven by increasing demand for cement in the United States, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.6% for the period from 2021 to 2030, which is projected to bring the market volume to 140M tons by the end of 2030.
U.S. Cement Industry 2015-2021
The United States is a major producer of cement, with over 100 plants operating across the country. The majority of production takes place in the Midwest and South, where there are large deposits of limestone, the main raw material used in cement manufacture. Several leading companies, such as Cemex and LafargeHolcim, have a strong presence in the U.S. market.
In 2021, production of cement in the United States declined to 102M tons, remaining stable against the previous year. The total output volume increased at an average annual rate of +1.5% from 2015 to 2021; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years.
In value terms, cement production reduced modestly to $8.5B in 2021. The pace of growth appeared the most rapid in 2016 when the production volume increased by 5.4%. Cement production peaked at $8.6B in 2020, and then contracted modestly in the following year.
U.S. Cement Exports in 2021
In 2021, approx. 1.1M tons of cement were exported from the United States; surging by 10% compared with 2020 figures. Over the period under review, exports, however, continue to indicate an abrupt shrinkage. Over the period under review, the exports attained the maximum at 1.6M tons in 2015; however, from 2016 to 2021, the exports stood at a somewhat lower figure. In monetary terms, cement exports surged to $173M in 2021.
Exports by Country
Canada (990K tons) was the main destination for cement exports from the United States, accounting for a 87% share of total exports. Moreover, cement exports to Canada exceeded the volume sent to the second major destination, Mexico (51K tons), more than tenfold.
From 2015 to 2021, the average annual growth rate of volume to Canada stood at -2.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Mexico (-6.0% per year) and Bahamas (-7.5% per year).
In value terms, Canada ($138M) remains the key foreign market for cement exports from the United States, comprising 80% of total exports. The second position in the ranking was taken by Mexico ($13M), with a 7.5% share of total exports.
From 2015 to 2021, the average annual rate of growth in terms of value to Canada amounted to -2.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Mexico (-13.0% per year) and Bahamas (-0.3% per year).
Export Prices by Country
In 2021, the average cement export price amounted to $151 per ton, picking up by 9.3% against the previous year. Overall, the export price, however, showed a relatively flat trend pattern. Over the period under review, the average export prices attained the maximum at $153 per ton in 2015; however, from 2016 to 2021, the export prices failed to regain momentum.
There were significant differences in the average prices for the major external markets. In 2021, the country with the highest price was Mexico ($255 per ton), while the average price for exports to Canada ($139 per ton) was amongst the lowest.
From 2015 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Bahamas (+7.9%), while the prices for the other major destinations experienced mixed trend patterns.
The future of the cement market in the United States looks positive with an expected annual growth rate of 1.6%. This is due to increasing construction activity, as well as a growing economy and population. So if you’re in the cement business, or thinking about getting into it, now is a good time to do so.