Ready Mix Concrete Market Trends

Ready Mix Concrete Market Trends

In 2022, global consumption of ready-mix concrete dropped by about 5.46% from the previous year, due to lower demand in the residential and commercial construction sectors. The residential sector saw a 1.05% decrease in new floor area in 2022 compared to 2021, due to issues like inflation and supply chain problems. However, a recovery was expected in 2023, with global demand predicted to rise by around 5.06%. In 2022, the residential sector was the largest consumer of ready-mix concrete, making up 36.96% of global consumption. This demand driven by rapid urbanization, government policies, and investments in housing. For example, Germany planned to build 4,000 new housing units by 2024, and Malaysia aimed for 500,000 affordable units by 2025. These plans and the growing need for housing are expected to increase ready-mix concrete consumption in the residential sector by 32.39% by 2030 compared to 2023.
 

Meanwhile, the commercial sector expected to grow the fastest in the ready-mix concrete market, with a compound annual growth rate (CAGR) of 6.34% during the forecast period. This growth driven by the demand for commercial spaces like shopping malls and office buildings. For instance, India's grade A office market in its top seven cities expected to grow to about 1 billion sq. ft by 2026 and further to 1.2 billion sq. ft by 2030. As a result, ready-mix concrete consumption in the commercial sector forecasted to increase by 394 million cubic meters by 2030 compared to 2023. These trends show a steady recovery in the ready-mix concrete market, especially as the commercial and residential sectors gain momentum, supported by government initiatives, urban development, and investments in infrastructure and housing.