The market for cement - Germany

1.2 The global market

The global cement market is constantly evolving and plays a central role in the construction industry worldwide. To analyze this market, we first consider cement sales forecasts from **** to ****. This is shown in Figure *.

Cement sales forecasts World, ****-****, in billions of US dollars

The cement sales forecast shows a steady increase from US$***.** billion in **** to a projected US$***.** billion in ****. This growth reflects increasing demand for building materials in different parts of the world.

A closer look at global cement production provides a better understanding of global market share by region. Figure * illustrates the share of global cement production by different regions in ****.

Share of global cement production by region World, ****, in million tonnes

China dominates the market with a share of **.* million tonnes, followed by India with * million tonnes. The Asia-Pacific region (***) and the European Union also make significant contributions to global cement production. These data highlight the geographical distribution and key players in the global cement market.

To provide some historical context, we examine the evolution of cement production in the European Union (***) from **** to ****. The data in Figure * illustrate this evolution.

Cement production trends EU**, ****-****, in million tonnes

Cement production in the EU** fluctuated over ...

1.3 The German market

The cement market in Germany has shown an interesting trend in cement industry sales in recent years. The following graph shows the sales trend from **** to ****:

Sales of the German cement industry Germany, ****-****, in millions of EUR Source: ****

As can be seen from the graph, the sector recorded sales of *,*** million euros in ****. The following years were marked by fluctuations, with a marked increase in ****, when sales reached *,*** million euros. However, from **** onwards, there was a slight decline, which continued until ****. Interestingly, despite these initial fluctuations, sales remained relatively stable from **** to ****.

From **** onwards, a positive trend began and continued until ****. Sales rose steadily, finally reaching a maximum of €*,*** million in ****. This positive trend could be due to various factors, such as an increase in construction activity, infrastructure projects or greater demand for cement-based products.

It is important to stress that sales are influenced not only by demand, but also by external influencing factors such as economic conditions, environmental regulations and construction projects. In the context of this market analysis, we will examine other factors in order to build up a complete picture of the German cement market.

1.4 Foreign trade in cement

Foreign trade plays a decisive role in Germany's cement industry and has a decisive influence on economic dynamics. The graphs below illustrate the development of foreign trade in cement between **** and ****.

Cement foreign trade Germany, ****-****, in millions of USD Source: ****

The graph shows the values of cement exports and imports in Germany from **** to ****. It can be seen that exports remained stable at *** million USD from **** to ****, before rising to *** million USD in ****. In ****, however, they fell slightly to *** million USD. Imports, on the other hand, fluctuated between **** and ****, falling from *** million USD in **** to *** million USD in ****. The coverage rate, which represents the ratio of exports to imports, peaked in **** at ***.**%.

Main cement exporting countries Germany, ****, in millions of USD Source: ****

In ****, the Netherlands was the leading destination for German cement exports, with an export value of *** million USD. Austria followed with ** million USD, followed by Belgium (***). These countries contributed significantly to Germany's total export volume.

Main cement importing countries Germany, ****, in millions of USD Source: ****

In terms of the main importing countries in ****, France accounted for the largest share of Germany's cement imports, with an import value of ** million USD. The Czech Republic (***) were also important import partners ...

2.1 Customer structure in the cement industry

The structure of buyers in the German cement industry plays a decisive role in market analysis. The graphs below show the share of the various buyer groups in domestic cement sales for the years **** and ****.

Buyer structure in the cement industry Germany, ****-****, share of domestic sales Source: ****

These charts clearly show that ready-mix concrete producers hold the largest share of domestic cement sales, with a slight drop in this share to **% in ****, from **.*% in ****. This could indicate changes in the construction sector or other external influences affecting demand for ready-mix concrete.

Manufacturers of precast concrete elements hold the second largest market share, down slightly from **.*% in **** to **.*% in ****. However, this group remains a major purchaser of cement and plays a decisive role in the construction industry.

An interesting development can be observed for other silo cements, whose share of domestic sales has risen from **.*% in **** to **.*% in ****. This increase could point to specific trends or requirements in certain sectors that are increasingly relying on silo cement.

Finally, the bagged cement sector shows a slight increase from *.*% in **** to *.*% in ****. Although the share is relatively small, this could nevertheless indicate specific applications or increased demand for bagged cement products.

Changes in ...

2.2 Breakdown of cement consumption by construction sector

The breakdown of cement consumption by construction sector in Germany in **** presents a balanced picture, with cement consumption split between residential construction, non-residential construction and civil engineering. This is reflected in the following diagram:

Breakdown of cement consumption by construction sector Germany, ****, in Source: ****

The graph shows that non-residential construction accounts for the largest share of total consumption (***).

Although the residential sector accounts for a slightly smaller share of total consumption, it continues to play a central role in the cement market. This could be explained by sustained activity in the residential construction sector, perhaps driven by strong demand for housing or public assistance programs.

On the other hand, non-residential construction accounted for the highest percentage. This could indicate increased development of infrastructure, commercial or industrial construction projects, which are increasingly dependent on cement.

Civil engineering, which also accounts for a large share, could indicate stable demand due to the construction of roads, bridges and other infrastructure projects.

Analysis of this breakdown provides an overview of the different sectors driving cement consumption in Germany. This information is crucial for companies active in the cement industry in order to adapt their strategies to the needs of the various construction sectors and to ...

2.3 Cement consumption by construction sector

Cement consumption in Germany is closely linked to the various construction sectors, as the market can be divided into three main segments: residential construction, non-residential construction and civil engineering. The breakdown of cement consumption in these sectors in **** is shown in Figure *.

Breakdown of cement consumption by construction sector Germany, ****, in Source: ****

The graph shows that non-residential construction accounts for the largest share of cement consumption, at an impressive **%. This segment includes a wide range of structures such as commercial buildings, industrial facilities and infrastructure projects. Strong demand in this sector reflects the continuing growth of the economy and infrastructure projects in Germany.

The residential sector, for its part, absorbs **% of cement consumption and remains an important market sector. This sector includes both single-family homes and apartment buildings, as well as housing developments. Solid demand in the residential construction sector could be due to factors such as population growth, urbanization and government support.

Figure * also shows that civil engineering plays an important role, with a **% share. This segment includes roads, bridges, tunnels and other infrastructure projects in the fields of transportation and water management. The strong demand for civil engineering reflects ongoing government investment in improving transport infrastructure and modernizing water ...

2.4 Construction conditions in 2023

Construction conditions in **** will be shaped by a number of factors influencing the building materials market and the construction industry. Looking back, the year **** initially gave positive signals, as order books recovered and supply chains got back on track. Sales in the main construction sector were expected to increase by around *.*%.

However, this positive trend was interrupted by the war in Ukraine and the ensuing sanctions against Russia. This led to supply chain disruptions and drastic increases in energy prices. Material costs in the building materials market remained at historically high levels, particularly for energy-intensive building materials such as bricks, cement and concrete.

Rising material costs also pushed up prices for construction services. In residential construction, prices in August **** were some **. *% higher than a year earlier.

For ****, the construction economy is expected to continue to be influenced by high material costs and rising prices for construction services. The framework conditions for the construction sector have deteriorated, which could lead to job losses.

In the housing sector in particular, there has been a dramatic fall in new-build activity due to rising construction prices, the cost of living and deteriorating financing conditions. In the commercial construction sector, demand trends are ambivalent, with warehousing ...

2.5 Commercial Construction

Commercial construction plays a decisive role in the German cement market, and has shown a steady increase in demand in recent years. The following graph illustrates the development of demand in different segments of commercial construction between **** and ****.

Building permits in the commercial construction sector (***) Germany, ****-****, in billions of €. source: construction industry

The development of these sectors in commercial construction can provide important information that should be taken into account in the overall analysis of the building materials market. Here are the data mentioned in this context:

Office and administrative buildings:

- This sector showed a remarkable increase in demand between **** and ****, rising from *.** million square meters to **.** million square meters. This could indicate an increase in investment in commercial and office real estate in Germany. This increase in demand could have an impact on the increased demand for building materials and construction materials.

Commercial buildings and warehouses:

- The retail and warehouse sector has also seen a significant increase in demand, particularly in **** and ****, with *.** and *.** million square meters respectively. This could be due to retail growth and the need for larger storage spaces, leading to increased demand for building materials.

Factory and workshop buildings:

- Although this sector ...

3.1 Cement plants in Germany by Land

The distribution of cement plants in Germany by state plays a decisive role in the structure of the cement industry. The following graph shows the number of cement plants in the various German Länder in ****.

*. North Rhine-Westphalia tops the list: With a total of ** cement plants, North Rhine-Westphalia tops the list. This could be explained by the region's industrial structure and demand.

*.Baden-Württemberg and Bavaria: these two southern German Länder also have a strong presence, with Baden-Württemberg boasting * cement plants and Bavaria *. This may be linked to the region's construction industry and infrastructure.

*. Regional disparities: It is striking that some Länder, such as Hamburg, Saarland, Saxony and Schleswig-Holstein, have no cement plants at all. This could be explained by differing economic priorities or geological conditions.

The regional differences are clearly visible and provide an insight into the geographical distribution of cement production in Germany. This information is crucial for companies active in the construction sector, as they can adapt their supply chains and market orientation accordingly.

3.2 Employees in the cement industry

The employment situation in the German cement industry from **** to **** is shown in Figure *. The number of employees over this period shows a slight downward trend. In ****, *,*** employees were recorded, while this figure falls to *,*** in ****. A slight rise is recorded in **** with *,*** employees, followed by a further increase to *,*** in ****.

Number of employees in the cement industry Germany, ****-****, Source: ****

This development could be due to various factors, including automation, efficiency gains or structural changes in the sector. The chart therefore illustrates the dynamic nature of employment in the cement industry and provides an overview of possible trends, which will be examined in greater detail in the remainder of the market analysis.

It is important to emphasize that the number of jobs is an important indicator of the cement industry's economic health and competitiveness. For this reason, the remainder of this analysis will look at how these figures relate to other economic indicators and market conditions.

3.3 Use of raw materials by the German cement industry

The composition of raw materials plays a decisive role in the German cement industry. In ****, the following graph shows the percentage share of the various raw materials in the total use of cement production:

Raw materials used by the German cement industry Germany, ****, in Source: ****

The dominant raw materials in cement production are limestone, marl and chalk, which together account for an impressive **.*%. These primary components form the backbone of cement production and are of vital importance to the quality and properties of the final product.

Alternative raw materials are another key aspect of raw materials use, accounting for **.*%. These materials play an increasingly important role in the sustainable development of the cement industry, helping to reduce environmental impact.

Sand, clay, natural gypsum and anhydrite are also important components, together accounting for *.*%. These raw materials not only contribute to the structure of cement, but also influence its physical properties.

Other raw materials such as oil shale, iron ore, trass and "bentonite, kaolinite" play a comparatively less important role, but are nonetheless essential for certain cement variants. Their combined share is *.*%.

The graph clearly shows that the German cement industry relies on a varied range of raw materials to meet the different ...

4.1 Cement sales by type of cement

A detailed examination of cement sales by type of cement provides a more precise understanding of the specific trends and preferences of the German cement market. The following graphs show cement sales in thousands of tonnes for different types of cement in **** and ****.

Cement sales by type of cement Germany, ****-****, in thousands of tonnes Source: ****

The graph shows significant changes in cement sales by type of cement. The different types of cement are analyzed in more detail below:

Portland oil shale cement/limestone cement/composite cement

Sales of Portland oil shale cement, Portland limestone cement and Portland composite cement have increased from *.* million tonnes in **** to **.* million tonnes in ****. This positive development could be a sign of increased construction activity or changes in construction project requirements.

Portland cement

By contrast, Portland cement sales are on a downward trend, from *.** million tonnes in **** to *.** million tonnes in ****. It is possible that there will be a shift in the construction sector towards other types of cement or alternative building materials.

Blast furnace cement

Sales of blast furnace cement rose from *.** million tonnes to *.** million tonnes during the period under review. This could indicate increased use in specific construction projects or increased demand ...

4.2 Cement producer price index

The producer price index for cement in Germany rose significantly between **** and ****, as shown in the accompanying graph (***). In ****, the index started at ***.* and rose to ***.* in ****, indicating continued price trends in the cement sector.

Producer price index for cement Germany, ****-****, **** = index *** Source: ****

The increase in the cement producer price index can be attributed to a number of factors. One of the main influencing factors could be the increase in demand for building materials due to construction projects and infrastructure development in Germany. Rising production costs, whether energy costs or raw material prices, could also have contributed to this price rise.

The years **** and **** show more moderate increases in the index, which could possibly be due to some stabilization of market conditions or cost-control measures introduced in the sector.

It should be noted that the cement producer price index is an important indicator of cement producers' profitability. A steady increase can have an impact on the total cost of construction projects, and therefore on the construction sector as a whole.

Given this trend, it is essential that companies in the construction and related sectors adapt their budgets and cost estimates accordingly, in order to remain competitive and minimize the potential ...

4.3 Waste and recycling of building materials

The construction industry is one of Germany's biggest waste producers. In ****, around *** million tonnes of mineral waste were produced, such as rubble, road cuttings or slag and ash. This corresponds to around ** percent of total waste production in Germany.

Most of this waste is used in road construction. Around *** million tonnes are used as aggregates, such as sand, gravel and chippings. A further ** million tonnes are used as recycled building materials in earthworks, for example in the production of embankments.

The recycling rate for construction waste in Germany has risen sharply in recent years. While it was still **.*% in ****, it has risen to **. *% in ****. This increase is due in particular to legal requirements and target quotas. In ****, for example, the federal government set the target ofincreasing the recycling rate for construction waste to ** percent by ****.

To achieve these targets, further measures are required. For example, those involved in the construction industry need to be made more aware of the importance of recycling. In addition, the general conditions for recycling construction waste need to be improved. These include uniform standards for recycled building materials and financial incentives for the use of recycled building materials.

Opportunities for increasing the recycling rate of construction ...

5.1 Laws and regulations

The German building materials market is governed by a large number of laws and decrees. These laws and regulations are designed to ensure that building materials meet the required quality standards, and that construction work is carried out safely.

Among the most important laws affecting the building materials market are :

The Construction Products Regulation (***): The BauPVO regulates the requirements for construction products used in Germany. The regulation stipulates that construction products must meet certain quality standards before being made available on the market[***] Model Building Ordinance (***): The MBO is the most important regulation for the execution of construction work in Germany. It defines the requirements to be met by construction work in order to guarantee the safety and health protection of people.[***] Energieeinsparverordnung (***): the EnEV regulates energy efficiency requirements for buildings. The decree stipulates that buildings must meet certain requirements in terms of thermal insulation and energy efficiency[***]

In addition to these general laws, there are also a multitude of other laws and decrees that affect the building materials market. These laws and regulations govern, for example, the use of hazardous substances in construction, the disposal of construction waste and the approval of construction products.

The multitude of laws and decrees ...

6.1 Segmentation

• Holcim
• HeidelbergCement
• Vicat Groupe
• Imerys
• EQIOM Bétons (CRH Group)
• Dyckerhoff
• Hornbach
• Obi
• Bauhaus