The plaster market - France (2024)

1.2 The global gypsum market

The global gypsum market is highly specialized by country. The main exporters are located in North America, Western Europe and Asia (***).

Source: ****

Thanks to its excellent insulating properties and its growing ability to save energy, plaster is an increasingly popular material worldwide. What's more, while the repair of existing infrastructure is more dynamic than the new-build market, gypsum is ideally suited to renovation, and should therefore benefit from this new trend [***].

The typical plasterboard market is expected to grow by *. *% over the period ****-****, from sales of US$*.** billion to US$**.** billion [***].

gypsum wallboard market sales trend World, ****-****, US$ billion Source: ****

1.3 Domestic market

The gypsum sector can be divided into *: the market for the manufacture of gypsum elements, and the market for plasterwork. These * segments are described below:

Manufacture of plaster elements

The market for the manufacture of plaster elements for construction in France has grown significantly between **** and ****, with sales rising from *.** billion euros excluding VAT in **** to *.** billion euros excluding VAT in ****.

Market for the manufacture of plaster elements for the construction industry France, ****-****, in billions of € ex VAT Source: ****

Plasterwork :

The same trend can be observed in plasterwork. Sales of plastering work will rise from €*.** billion in **** to €*.** billion in ****, after a sharp decline of -*.*% in ****, as a direct consequence of the cancellation of works during the first containment period.

gypsum plastering sales by value France, ****-****, € billion Source: ****

Growth in the building market is driven in particular by the improvement-maintenance of existing buildings, but also by incentives for energynovation, such as the Crédit d'Impôt pour la Transition Énergétique and the zero-rate eco-loan [***].

The position of French plaster production within the EU :

Nil or near-nil data and data from before **** were not taken into account

Belgium, Norway, the UK, Ireland and Austria were ignored for lack ...

1.4 Foreign trade

Exports

In ****, the main countries importing French gypsum were Belgium, Spain and Portugal, accounting for **.*%, **.*% and **.*% of total exports respectively. This distribution highlights a high concentration of exports to neighboring European countries, probably due to geographical proximity and close trade links.

Main French gypsum importing countries France, ****, % of total Source: ****

Imports

In ****, the main countries exporting gypsum to France are Germany, Spain and Belgium, accounting for **.*%, **.*% and **.*% of total imports respectively. This distribution highlights a significant dependence on European suppliers, suggesting close trade relations and possible logistical advantages.

Main countries exporting gypsum to France France, ****, % of total Source: ****

Trade balance

Between **** and ****, France's foreign trade in gypsum grew steadily, with exports increasing from ** million US dollars in **** to ** million in ****, while imports also increased, but more moderately, from US$** to US$** million over the same period. This growth has led to a steady improvement in the trade balance, from US$** million in **** to US$** million in ****, indicating increased competitiveness on the international gypsum market.

foreign trade in gypsum France, ****-****, US$ million Source: ****

1.5 A market heavily penalized by Covid-19: the shortage of raw materials

In ****, growth in the construction market was hampered by a shortage of materials. The sector has recovered its **** level of activity, but the shortage is lengthening lead times. The sectors with the most worrying delays are wood and glass, but gypsum is also a cause for concern [***].

**% of companies in the sector said they were facing supply difficulties, the main consequence of which is delays on building sites [***].

Consequences of supply difficulties France, ****, % of total Source: ****

by way of comparison, the **** financial crisis caused a similar cataclysm in the construction market, but for different reasons: "In ****, we had materials, but not building sites. Now we have building sites and not materials", explains Benoit Cuvelé, a building contractor.

However, the crisis is benefiting the major groups supplying materials, including gypsum, with Saint-Gobain posting "record" figures for the first half of ****, thanks to rising prices [***].

Subsequently, the war in Ukraine didn't help matters. The conflict triggered a rise in energy prices in Europe, which has a direct impact on the price of plaster, whose production involves a high-temperature firing stage, requiring high energy consumption. In ****, the gypsum price index was up *.*% on the previous year [***].

2.1 A relatively dynamic renovation market threatened by stagnation

France, ****-*****, by units sold **** : (***) Source: ****

Trends in the number of real estate transactions in the older housing segment have a direct influence on activity in the gypsum sector. This is because transactions in older homes are a catalyst for demand for renovation work, including false ceilings, coverings, moldings, partitions and other decorative elements, as well as insulation work.

Between **** and ****, there will be continued growth in the volume of sales of older homes, with an average increase of *.**%. However, from **** onwards, various factors such as rising loan interest rates and falling household purchasing power, linked to inflation, caused a steady decline in the sale of older homes. In July ****, the volume of transactions suffered a noticeable drop and even reached a level similar to that recorded five years earlier, in ****. It is projected to continue declining in ****, with a forecast figure of ***,*** units sold.

Gypsum offers a number of advantages that make it a preferred choice for building professionals. Its ease of use means that work can be carried out quickly and cleanly, with detailed finishes. What's more, plaster is a stable, hard-wearing material offering excellent thermal and sound insulation. Its composition also makes it flame-resistant, releasing only water vapor ...

2.2 The French and renovation

Plasterboard, for partitions, or plasterboard, applicable to any smooth surface, are essential for interior renovation, allowing great freedom in rearranging the rooms of a house. These materials can be used for walls and ceilings, but also for interior decorations such as cornices and moldings. They are compatible with all types of covering [***].

Gypsum is therefore frequently used for building improvements: the demand for gypsum should therefore follow the dynamics of home improvement work. This demand has grown with the Covid-** crisis, since the French, having experienced various episodes of confinement since ****, have been keen to increase their comfort at home [***]

Percentage of French people who have carried out renovations, by respondent profile France, ****, % of respondents Source: ****

In addition, one of the main growth markets in the building sector is that of energy renovation, encouraged by government subsidies, the most important of which is MaPrimeRénov', and for which the French are extremely enthusiastic. However, this work requires the installation of counter partitions, the core of which is plaster, and for external insulation, the installation of external thermal insulation systems (***) under plaster, plasters often made from plaster [***].

To ensure that energy savings get off the ground, ** million homes will have to be ...

2.3 A declining new-build market

The volatility observed in the multi-family and residential construction sector, as well as the overall long-term downward trend, have a direct and negative impact on the gypsum market. The structural decline in the number of square meters built reduces demand for gypsum, putting pressure on gypsum suppliers. Companies in the gypsum sector are facing a reduction in their order book, which may compromise their profitability and their ability to maintain business at an optimal level. In addition, the volatility of monthly figures makes long-term planning and resource management difficult for gypsum suppliers, increasing uncertainty and risk in this business sector.

Multi-family and residential housing

Insee defines collective housing as: "[***] part of a building in which more than two separate dwellings are superimposed, some of which do not have private access".

Number of multi-family and residential units under construction (***) France, **** - ****, in thousands of units Source: Insee, Insee *first * months of ****, over ** sliding months

Number of multi-family and residential units under construction (***) France, **** - ****, in thousands of units Source: ****

Between **** and ****, building permits and housing starts for multi-family and residential units generally increased, reflecting sustained demand for this type of housing in France. However, between **** and **** , there is some volatility in building ...

2.4 New markets for the plaster industry

In a difficult context for the construction industry for more than a decade, David Morales, President of UNA Métiers et techniques du plâtre et de l'isolation (***), foresaw the need, as early ass ****, the need to promote the plaster industry's skills in new markets, including acoustic insulation, the Eco-Artisan label promoted by the Capeb and Handibat standards [***].

On a global scale, acoustic insulation is expected to grow by more than *% over the period ****-****, from around $** billion in **** to almost $** billion in ****. Aesthetics and fire resistance are highly sought-after properties in this market. Growth in this market is not assured in Western countries, but has good prospects in Asia-Pacific [***].

growth in acoustic insulation sales World, ****-****, € billion Source: ****

While this type of insulation is often produced using glass wool or polymers, for example, there are good opportunities for plasterboard, as demonstrated by Saint-Gobain's marketing of anti-noise partitions [***].

The Eco-Artisan label was developed by the CAPEB (***) to guarantee the skills of building professionals in the energy-saving market. This includes plasterers. These craftsmen now have a role as advisors, guiding their customers towards the most energy-efficient solutions [***]. This "new profession" should benefit greatly from the energy renovation craze.

Finally, Handibat is also ...

3.1 Value chain and typologies

Table summarizing the stages in the gypsum value chain:

Responsible plaster manufacturing: quarrying

Gypsum manufacturing involves the regulated exploitation of gypsum quarries. Industrialists in the sector carry out impact studies before obtaining authorization from the prefectoral authorities to exploit a deposit. Two extraction methods are used: open-cast mining, when the gypsum layer is not too deep, and underground mining, used for deep deposits[***].

Responsible gypsum manufacturing : In-plant processing

Once extracted, gypsum is transformed into gypsum powder, essential for the manufacture of plaster and its derivatives. This powder is used either in the factory by manufacturers, or on site by contractors and craftsmen. Plasterboard and plaster tiles are made in factories from plaster molded between two sheets of recycled cardboard, while plaster coatings, staff and stucco are produced in factories from plaster molded between two sheets of recycled cardboard.plaster , staff and stucco are made directly on site by mixing plaster powder with other materials such as lime, marble powder and fibers[***].

3.2 The manufacture of plaster for construction: highly localized production

Growth in the number of companies in the manufacture of plaster elements for the construction industry France, ****-**** Source: ****

Between **** and ****, the number of companies in the plaster elements for construction sector in France remained relatively stable, hovering around ** establishments. However, despite this stability, there has been a slight decline in the number of employees, from **** in **** to **** in ****, perhaps suggesting process optimization or market consolidation.

Geographical distribution of main production sites

The Syndicat National des Industries du Plâtre groups together the majority of market players, corresponding to **% of national production, representing no fewer than ** quarries in operation, scattered across France. Gypsum, a sedimentary rock composed of horizontal strata, is extracted.

Source: ****

Once the gypsum has been extracted, it is partly dehydrated by a firing process, to produce plaster. This process is carried out in the twenty or so specialized plants that dot the region.

Source: ****

3.3 Distribution: the role of the merchant or how each player makes the most of the game

Gypsum plasterboard: the right format for supplying a high-demand market

In the construction industry, the supply of plasterboard is essential for finishing work. Professionals are looking for reliable suppliers capable of meeting their needs on time. Plasterboard, also known as "drywall", offers a flexible and practical solution for interior finishing and insulation work. Available in different types, such as waterproof or soundproof, they can be adapted to a variety of applications. Their ease of installation and ability to conceal electrical cables make them a popular choice. Partnerships with suppliers who carry large stocks and offer on-site delivery services are therefore essential to ensure continuity on construction sites[***].

Manufacturers' strategies

Nicolas Bretault, head of operational marketing at Placo-Isover, stresses the continuing importance of paper-based media for reaching craftsmen, to complement the development of digital tools. In addition to its regularly updated catalog, Placo offers condensed documents, such as"Les Essentiels", to quickly provide customers with crucial information. These materials highlight the advantages of Placo's products and prioritize solutions according to craftsmen's needs. At the same time, a varied range of accessories is available for self-service to reinforce the visibility of the Placo brand at points of sale.

Siniat places particular emphasis on ...

3.4 Employment structure in the plastering sector

According to figures gathered byUrssaf, companies operating in the"Manufacture of plaster elements for construction" sector (***) was **,***, with **,*** employees.

Companies carrying out plastering work are also divided according to their activities, which are organized into veritable sectors.this is illustrated by the emergence of the plasterer's trade, and the development of labels guaranteeing energy insulation skills.

Growth in the number of companies in the plastering sector France, ****-**** Source: ****

In France, between **** and ****, the number of establishments rose from *,*** to **,***, while the number of employees also increased, reflecting continued growth in activity in this field.

Despite the age of the data below, the inertia of the gypsum trades' transition makes them still valid today. There is a significant dominance of plasterboard-related activities, accounting for **%, closely followed byinsulation with **%. Traditional plastering also accounts for a significant share, with **%. However, the staff and modular ceilings business appears relatively marginal, together accounting for just **% of the breakdown. This analysis highlights the diversity of areas of intervention in this sector, with significant variations according to specialization.

Breakdown of "Gypsum and insulation trades" by activity France, ****, % Source: ****

3.5 The importance of the building trades

In the building sector, craftsmen are still the most important players, accounting for **% of companies, **% of sales and **% of employees, while **% of plastering companies with fewer than ** employees are sole proprietorships [***].

However, in the fourth quarter of ****, the building crafts union Capeb recorded a slowdown in activity in all regions, although its intensity varied (***) [***].

Year-on-year,all trades saw their activity decline. The slowdown is once again most marked this quarter for masonry (***) companies, as these are more present in the new-build market. In Q* ****, craft businesses of all sizes saw their volume of activity decrease by *.*% compared to Q* ****, marking a further slowdown.

Hiring/dismissal forecasts in the construction sector France, ****-****, in % of companies Source: ****

Between the first half of **** and the first half of ****, hiring intentions in the building trades generally increased, peaking at **% in the first half of ****, but showing a slight decline thereafter. In contrast, redundancies or non-renewals of contracts remained stable until the first half of ****, before rising noticeably from *% to *% in the first half of ****.

4.1 Market prices

Prices for gypsum-based products vary widely, depending on the type of product required and its quality.

Plaster installation rates also vary, depending on the nature of the operation.

All in all, the average budget for plasterwork is €**** [***].

4.2 Rising plaster prices

In ****, the price of gypsum rose sharply, and continued to do so in ****. This trend can be observed by tracking INSEE price indices.

cement, lime and plaster price index trends France, ****-****, index base *** **** Source: ****

It can be assumed that the main factor weighing on this price is the rise in energy costs, which play a central role in obtaining gypsum from gypsum, which has to be fired at very high temperatures.

This increase is also reflected, albeit less visibly, in the cost of gypsum products, as shown in the graph below.

trend in the price index for concrete, cement and gypsum products France, ****-****, index base *** **** Source: ****

These costs can also rise as a result of raw material shortages and delays on construction sites.

5.1 Taxation depending on the nature of the work

The RGE label(***) is awarded by organizations that have signed an agreement with the French government. It ensures that the craftsman's service meets two requirements:

Standard NF X**-*** or equivalent: qualifications which relate to the company's technical capacity to ensure the required quality NF EN ISO/CEI *****standard or equivalent: certifications covering the ability to carry out energy renovation work

Only this label is eligible for financial aid and tax reductions [***].

6.1 Segmentation

• Knauf
• Etex France Siniat
• Ile-de-France Plâtrerie
• Werey Stenger
• Saint-Gobain Groupe
• Placoplatre (Saint-Gobain groupe)