Globally, the cement market stands as a behemoth, valued at over US$363.4 billion, as found by Expert Market Research’s Global Cement Market Report and Forecast 2023-2028. Within this landscape, Bangladesh has emerged as a strong contender. The country's cement industry reported export revenue of US$3.67 million from July to November 2022, primarily from exports to Asian nations. This figure marks a robust 9.23% year-on-year growth, up from US$3.36 million in the corresponding period the previous year.
With such a trajectory, Bangladesh has not only achieved self-sufficiency in cement production but also positioned itself as a potential powerhouse in the global cement market.
The composition of Bangladesh's cement industry
The construction industry in Bangladesh is primarily propelled by infrastructure developments, encompassing both small and large-scale projects, and the rapid urbanisation in the country. Such growth inevitably spikes the demand for essential raw materials like steel and cement products.
In the cement sector, understanding the driving forces and key players is crucial. The cement factory landscape in Bangladesh is dotted with renowned names like Shah Cement, Premier Cement, Bashundhara Cement, and LafargeHolcim. These titans establish the country as a heavyweight in cement production.
Market fragmentation is evident, with multiple brands vying for supremacy. Such brands not only dictate ranking but also influence the cement price in Bangladesh, offering a range of options for consumers. From those touted as the best quality cement in Bangladesh to others known for their cost-effectiveness, the spectrum is vast.
Even with many cement companies in Bangladesh, the country's production matches the global demand well. Bangladesh has gone from just using cement to possibly exporting it, thanks to its surplus production.
Growth factors in the cement industry
Several factors underpin the surging momentum of the cement industry in Bangladesh. The country's prowess in manufacturing cement, coupled with an abundance of raw materials, has cemented its self-sufficiency. But what are the opportunities on the horizon?
The international appetite for cement is voracious, and with its self-reliant model, Bangladesh stands poised to tap into this lucrative market. An analysis of the cement industry in Bangladesh reveals that while domestic consumption rates are commendable, they're still dwarfed by usage rates in countries with massive infrastructural projects.
According to the Bangladesh Cement Manufacturers Association (BCMA), the annual sales of the cement industry in Bangladesh totalled US$3 billion. In comparison, the global cement market is projected to grow from US$340.61 billion in 2022 to US$481.73 billion by 2029, showcasing a Compound Annual Growth Rate (CAGR) of 5.1% from 2022 to 2029, as reported by Fortune Business Insights. This disparity signals an exciting opportunity: with strategic market penetration efforts, Bangladesh could significantly boost its cement exports.
