The global sales of cement packaging are estimated to be worth USD 5.2 billion in 2024 and anticipated to reach a value of USD 6.8 billion by 2034. Sales revenue of cement packaging industry is projected to rise at a CAGR of 2.9% over the forecast period between 2024 and 2034. The revenue generated by cement packaging in 2023 was USD 5.1 billion. The industry is anticipated to exhibit a Y-o-Y growth of 3.0% in 2024.
Plastic based cement packaging are poised to dominate the global cement packaging market, commanding over 70% market share and are projected to generate an incremental opportunity of over USD 1 billion during the upcoming decade.
Plastic based cement packaging have garnered a significant position amongst users, especially, especially across developing and lesser developed nations here cost is a major factor. Additionally, the durable nature of plastic cement packaging has made them an ideal packaging choice in harsh environments.
Global Cement Packaging Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 5.1 billion |
| Estimated Size, 2024 | USD 5.2 billion |
| Projected Size, 2034 | USD 6.8 billion |
| Value-based CAGR (2024 to 2034) | 2.9% |
Revenues in the plastic segment of the cement packaging market grew a robust 2.7% year over year in 2024. Further, the overall paper cement packaging is projected to expand at a CAGR of 4.1% from 2024 to 2034 and is estimated to hold a market value of USD 4.4 billion by the end of 2034.
By packaging format, the sacks segment is projected to remain the most lucrative segment during the forecast period. The segment is estimated to account for over 50% of the market share in 2024 and grow at a CAGR of 2.6% till 2034. Sacks have always been the preferred format throughout the years owing to their strength and durability while also providing ease of handling and promoting logistical efficiency.
By capacity, the 21 kg - 50 kg segment holds the highest share of the market, with a value of USD 2.3 billion in 2024. This can be attributed to the project needs for construction applications where the size caters to a wide variety of construction applications, from foundations and slabs to bricklaying and plastering. Moreover, 21 kg - 50 kg is a standardized capacity which helps simplify overall operations owing to its mass acceptability.
The cement packaging industry is set to experience upward growth during the forecast period. It is projected to create an incremental opportunity of USD 1.6 billion and is predicted to rise 1.3 times the current market value through 2034.
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The below table represents the expected CAGR for the global cement packaging market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to expand at a CAGR of 2.7%, followed by a slightly higher growth rate of 3.0% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1 | 2.7% (2023 to 2033) |
| H2 | 3.0% (2023 to 2033) |
| H1 | 2.8% (2024 to 2034) |
| H2 | 3.2% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 2.8% in the first half and remain relatively moderate at 3.1% in the second half. In the first half (H1) the market witnessed a decrease of 10 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Growing Demand for Sustainable Cement Packaging Solutions
Sustainability has been the cornerstone for several years now and this trend has slowly penetrated the cement packaging space, with several manufacturers opting to utilize eco-friendly raw materials such as recycled polypropylene and PCR bags among others. For instance, in July 2023, UltraTech Cement, a key Indian manufacturer of cement and ready-mix concrete announced the development of cement packaging bags from recycled polypropylene.
Additionally, government and regulatory bodies all around the world have been enforcing stringent environmental standards which have forced businesses to adapt to environmental friendly materials which can help minimize carbon footprint and promote recyclability. Moreover, staying committed to ESG goals not only helps the manufacturers align with sustainability directives but also enhances their brand image and consequently demand amongst consumers.
Expansion of the Infrastructural Sector Reshaping Cement Packaging Market Growth
The positive growth trend in infrastructure and construction, as well as the regional economic forecasts, are poised to significantly impact the market for cement packaging in the long term. Infrastructure sector was the fastest growing industry globally in 2023 growing at a rate of over 6% y-o-y, as per data from the Chartered Institute of Building (CIOB). Infrastructure projects are one of the key drivers of cement demand, thereby influencing the need for cement packaging materials. Moreover, the shift towards higher growth rates in emerging markets along with already high growth rates in developed markets in the long term, suggests increasing demand for cement and subsequently for packaging solutions in these regions.
For instance, Africa's robust growth forecast at over 30% annually indicates rapid infrastructure development, thereby driving demand for cement and its packaging. Furthermore, the global output is poised to expand at a CAGR of almost 3% annually through 2030, consequently helping the cement packaging market grow in tandem, driven by infrastructure investments, regional economic dynamics, and the ongoing transition towards sustainable packaging solutions.
Growing Consumer Preference for Bulk Handling may Restrict Market Growth
The growing consumer preference for bulk handling can potentially hamper the growth of the cement packaging market. In recent times, construction firms and contractors across developed and certain developing regions have been opting for bulk handling of cement due to its cost-effectiveness and efficiency in large-scale projects. This is owing to the fact that bulk handling not only minimizes packaging waste but also reduces transportation costs, and streamlines logistics, thereby gaining the preference of companies aiming to optimize operations and overall environmental impact.
Consequently, this trend is hampering the potential sales of traditional cement packaging solutions, such as bags and containers, which are considered as less efficient and environmentally friendly as compared to bulk handling solutions. This changing outlook towards cement packaging and growing preference for bulk handling may hamper the market’s growth in the long run.
The global cement packaging industry recorded a CAGR of 2.0% during the historical period between 2019 and 2023. The growth of cement packaging industry was positive as it reached a value of USD 5.1 billion in 2023, from USD 4.5 billion in 2019. The construction boom across several regions which include Asia, Africa, and Latin America was a major driver of the cement packaging market in the historic period.
Additionally, several countries started witnessing rapid economic growth during the historic period, leading to increased investments on infrastructure such as roadways, buildings as well as public facilities, from not only public entities but also from private corporations. This consequently propelled the demand for cement which pulled up the demand for cement packaging.
Several of the above factors have persisted and have become some of the key factors driving the market throughout the forecast period. Additionally, rapid urbanization across both developing and developed nations, as well as advancements in packaging technology are some of the major drivers influencing the cement packaging market. Overall, the cement packaging market is projected to expand at a faster pace during the forecast period (2024 to 2034).
Tier 1 companies comprise market leaders with market revenue of above USD 50 million capturing a significant market share of 10% to 15% in the global market. These market leaders are distinguished by their extensive expertise in manufacturing cement packaging across multiple types of capacities for different packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of products and solutions for multiple industries and have extensive distribution and service networks across the globe. Companies in Tier 1 comprise of Mondi Group Plc., Berry Global Inc. and Bischof+Klein SE & Co. KG.
Tier 2 companies include mid-size players with revenue of USD 10 to 50 million having presence in specific regions and highly influencing the local market. These are characterized by a nominal presence overseas and well maintained market knowledge.
These market players have good technology but not the most advanced one and provide certain types of cement packaging for specific industries. Prominent companies in tier 2 include LC Packaging International BV, Uflex Ltd., ProAmpac LLC, and NNZ Group BV among others.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 10 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the industry analysis for the cement packaging market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Western Europe, Eastern Europe, and others, is provided.
The United States is anticipated to remain at the forefront in North America, with a value share of over 65% through 2034. In South Asia Pacific, India is projected to witness a remarkable CAGR of 5.5% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 1.4% |
| Spain | 2.5% |
| France | 1.9% |
| India | 5.5% |
| UK | 1.2% |
| Japan | 1.5% |
| KSA | 3.9% |
| China | 4.4% |
As per FMI, the Spain cement packaging market is estimated to grow at a CAGR of 2.5% till 2034 along. Growth in the market is attributed to stable consumption of cement across the country. According to data from the Spanish Cement Manufacturers Association (CMA), cement consumption has increased by 11.5% y-o-y in April 2024, which is around 130,000t more than April 2023.
As one of the primary consumers of cement, the growth and expansion of the construction industry has had a significant influence on the demand for cement, and consequently cement packaging. Moreover, the consistent rise in the urban population of Spain has also led to investments in infrastructure projects, residential housing developments, and commercial construction activities, all of which have contributed to the growing demand for cement and thus packaging materials.
The cement packaging market in India is anticipated to grow at a CAGR of 5.5% throughout the forecast period.
One of the most important factors driving the cement packaging market in India is the consistent investments made towards the construction industry in the country. The construction industry in India consists of the real estate as well as the urban development segment.
According to Invest India, under the National Infrastructure Pipeline of India, the country has an investment budget of USD 1.4 Tn on infrastructure. Additionally, real estate demand is forecasted to grow by over 15 sq. ft. by 2025 across major cities. The Government has also allocated over USD 1 billion in the Union Budget 2023 for the construction of urban infrastructure in tier 2 & 3 cities.
Additionally, the construction sector of India is one of the leading recipients of foreign direct investment (FDI) in the country. Between April 2000 and 2023, infrastructure related investments reached almost USD 35 billion across the country with more investments expected in the next 5 years.
The section contains information about the leading segments in the industry. By material, plastic cosmetics droppers are estimated to grow at a CAGR of 3.4% throughout 2034. Additionally, the hair care industry is projected to expand at 4.6% till 2034.
| Material | Plastic |
|---|---|
| Value Share (2034) | 65.3% |
Cement packaging made of plastic dominates the market in terms of revenue, accounting for almost 70% of the market share contributing around USD 1 billion incremental dollar opportunity through 2034.
Cement packaging made of plastic is more resilient as compared to its counterparts and is more resistant to tears, puncture and moisture leakage as compared to paper and jute. Moreover, the lower cost of plastic cement packaging makes it a popular choice amongst customers operating in developing and underdeveloped nations.
However, there is recurrent demand from developed countries as well owing to its lightweight feature which makes them easier to handle during logistics and transportation.
| Packaging Format | Sacks |
|---|---|
| Value Share (2034) | 51.2% |
Amongst the packaging format, sacks is anticipated to account for over 50% of the market share in the cement packaging market by 2034 end. It is also poised to expand at a CAGR of 3.6% across the forecast period.
Sacks made for cement packaging are usually manufactured from strong woven plastic or paper which makes them highly resistant against wear and tear, and also makes them stackable which consequently helps with the economies of scale during transportation.
Additionally, sacks have always been known to be one of the most efficient choice for overall handling. Moreover, familiarity of use amongst construction workers is another factor helping the sacks segment dominate across multiple regions.
The majority of the manufacturers operating in the global market are focusing on the development of cement packaging that can satisfy the regulatory requirements of multiple regions at once. Some of the other key players are aiming to come up with cement packaging which can satiate the ESG goals of customers. Meanwhile, a few other firms are striving for additional capital to broaden their operations and aiming to generate more sales and attract a large customer base globally.
Key manufacturers in the market are focusing on expanding their geographical presence, technological innovations, meeting sustainability goals, performing mergers and acquisitions, and improving customer service to maintain their competitive edge.
Recent Industry Developments in Cement Packaging Market
The global Cement Packaging industry is projected to witness CAGR of 2.9% between 2024 and 2034.
The global Cement Packaging industry stood at USD 5.1 billion in 2023.
The global Cement Packaging industry is anticipated to reach USD 6.8 billion by 2034 end.
South Asia Pacific is set to record the highest CAGR of 5.2% in the assessment period.
The key players operating in the global cement packaging industry are Mondi Group Plc., Berry Global Inc. and Bischof+Klein SE & Co. KG.
In terms of material, the industry is divided into plastic, paper, and jute.
In terms of capacity, the industry is segregated into less than 5 kg, 5 kg - 20 kg, 21 kg - 50 kg, and above 50 kg.
In terms of packaging format, the industry is segregated into bags, sacks, pouches, boxes, and other packaging formats.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and Middle East and Africa (MEA) have been covered in the report.
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Cement Packaging Market
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