Philippines Cement Market - 2024-2031

Market Philippines cement market is estimated to grow at a high CAGR during the forecast period (2024-2031) to reach a value of US$ YY million in 2031.

The cement demand in the Philippines market is witnessing significant transformation due to strong economic growth and recovery from the COVID19 pandemic. Cement demand for residential construction is likely to witness significant growth during the forecast period, mainly on account of stronger recovery in house sales and government initiatives to boost the supply of affordable public housing.

Philippines foreign direct investment shrank to US$ 9.2 billion in 2022, down 23% from the previous year. A stagnation in foreign direct investment might affect cement demand for commercial and industrial applications. However, investor sentiment remains strong and FDI inflows are likely to strengthen over the coming years thus negating any concerns over cement demand over the long term.

Market Dynamics

Growing construction industry in Philippines

As per Philippine Statistics Authority, 38,263 constructions based on authorized building permits were recorded in the last quarter of 2021, representing an increase of 5.7 percent annually. Similarly, the annual growth rate grew by 6.5 percent in the preceding quarter.

Constructions in residential buildings were the most prevalent. With 27,998 constructions or 73.2 percent of the total, residential construction reported the highest number of constructions during the quarter. Compared to the yearly decline of -5.4 percent in the same quarter the year before, this type of building climbed at a rate of 8.1%, which was quicker. The majority of residential builds (82.7%) were single-type homes. With 15.2 percent or 5,816 of the total number of builds during the quarter, non-residential constructions came in second. When compared to the same from last year, it showed a count increase of 11.0 percent. Commercial buildings made up about 65.9% of the non-residential constructions.

Contact cement or contact adhesive, a rubber glue, creates a bond that is swift, flexible and durable. Although it could be used on almost everything, it works best when joining nonporous materials that other adhesives cannot. Since contact cement can be used to adhere to large surfaces like kitchen and bathroom counters and works best with the best materials such as plastics, veneers, rubber, glass, metal and leather, the application of the same is vital in the construction industry. As construction boosts the demand and sales of contact cement, the growing construction industry in Philippines could be considered a major driver for the respective market.

The growing construction industry in Philippines

91% of the 7.11 Tons of cement imported by Philippines in 2021 or 6.47 Tons, came from Vietnam. According to the Cement Manufacturers Association of Philippines (CeMAP), total imports rose 14% from 6.25Mt of cement in 2020, while imports from Vietnam rose 20% from 5.4Mt to 2020. According to the data, at the start of 2022, cement manufacturers in Philippines boosted their capacity to make 35.CRHt/yr by 23% year over year. A further 55% increase in capacity to 54.8 Tons/yr by the end of 2025 was predicted by CeMAP, against a 66Mt/yr domestic demand for that year.

Additionally, in response to a petition from the Philippine Cement Manufacturers Association, the Department of Trade and Industry (DTI) increased the import duty per 40 kg bag of cement from US$ 0.19 to US$ 0.20 (CeMAP). The petition requested a charge of US$ 0.25 per bag as a practical way to keep domestic cement manufacturing going. The group has attributed rising imports to surpluses in nations like Vietnam. Before October 2019, the DTI put duties on imported cement for three years with a graduated duty reduction.

However, the DTI stated that it would assess the safety net and change the rate if needed.

Market Segmentation

Residential

The Philippines cement market for residential applications was valued at US$ XX Million in 2023 and is expected to reach US$ XX Million by 2031, growing with a CAGR of XX% between 2024 and 2031.

Philippines is one of the most densely populated countries in the world and the country experiences a scarcity of housing, although the saturation in the local real estate market is low. Furthermore, the Philippines residential real estate market has recovered well from the COVID-19 pandemic. The growth in residential construction, especially in major cities, will be a key factor in driving cement demand during the forecast period.

According to CEIC data, house prices in Philippines grew 10.2% YoY in March 2023, following an increase of 7.7% YoY in the previous quarter. Furthermore, demand has accelerated considerably, with nearly 20,000 new luxury condominiums being sold in 2022, representing an increase of 54% from the previous year.

Adjusted for inflation, property prices witnessed a relative decline of 3.84% in 2022, according to data from the Global Property Guide. Slow growth in property prices might affect cement demand for residential construction during the forecast period. However, the growth of affordable housing construction due to various government initiatives is likely to raise cement demand. For instance, the government’s 4PH housing program aims to build nearly 1 million affordable housing units annually to alleviate the chronic shortage of affordable housing in the country

Company Portfolio

The Cement Roadstone Holdings Company, better known by its abbreviation CRH, is a multinational company specializing in the production and distribution of building and construction materials.

The company was established through the merger of two major Irish public companies, namely, Cement Limited and Roadstone Limited.

The company mainly operates in its key markets of North America and Europe. The company has a relatively new presence in Asia-Pacific, mainly in the countries of Australia, Malaysia, Philippines and China through its subsidiaries including Republic Cement

Product Portfolio: Fortune brand cement is an IP type premium cement for general purpose applications. It is ideal for columns, foundations, columns, walls and slabs