Philippines Cement Market Size
The Philippines cement market is estimated to grow at a CAGR of 22.3% during the forecast period (2024-2031) from its current value of US$ 3,619.50 million in 2023 to reach a value of US$ 21,055.81 million in 2031.The cement demand in the Philippines market is witnessing a significant transformation due to strong economic growth and recovery from the COVID-19 pandemic. Cement demand for residential construction is likely to witness significant growth during the forecast period, mainly on account of a stronger recovery in house sales and government initiatives to boost the supply of affordable public housing.
Portland cement had the largest market share in 2022, comprising nearly 85.27% of the market. The large share of Portland cement in Philippine market can be attributed to the cost-competitive nature of the market, where cheaper and more economical Portland cement is preferred over expensive blended cement.
Ball mills had the largest market share among all the cement grinding technologies, corresponding to nearly 53% of the market in 2022. Ball mills require relatively little investment and is mostly preferred by small local players who are unable to undertake capital investment in more expensive forms of cement grinding technologies to produce specialist grades of cement.
Residential construction accounted for the largest share of applications in 2022, accounting for 47.48% of the market. Residential construction has picked up pace in the aftermath of the COVID pandemic, with upper-middle-class and luxury housing witnessing major growth. The expansion of affordable housing programs by Philippine government is also likely to augment demand for cement from residential construction during the forecast period.Philippines Cement Market Scope
| Metrics | Details |
| Market CAGR | 22.3% by 2025-2032 |
| Segments Covered | By Type, By Cement Grinding Technology and By Application |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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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
By Type
Philippines portland cement market was US$ 3,086.19 million in 2022 and is expected to reach US$ 18,876.95 million by 2031, growing with a CAGR of 23.0% between 2024 and 2031. Green building approaches and sustainable building materials are becoming more popular in the construction industry. Low-carbon or environmentally friendly Portland cement variants, such as those using additional cementitious materials such as fly ash or slag, are gaining popularity due to their ability to reduce CO2 emissions during the production.For instance, in June 2023, Holcim Philippines introduced Holcim Optima, a blended Portland limestone cement (PLC), to Philippine market. According to the Business Mirror newspaper, Holcim Optima cement emits 10% less CO2 than standard Portland cement (OPC). Holcim Optimo was formed as part of the company's efforts to decarbonize construction in Philippines, as more Filipino builders shift toward sustainable construction and demand greener choices. It was developed to be a seamless replacement for OPC, the traditional material used for large infrastructure and building projects, but it has an enormous environmental imprint.
In February 2023, Century Peak Cement Manufacturing Corp. (CPCMC), a new player in the cement company, has announced the start of its operations, which include supplying cement to clients in the Visayas. Its followed after it got approval from the Department of Trade and Industry for its Pro (blended hydraulic) and Prime (Portland) cement products' quality standard certification. Century Peak Cement Production Corporation, located in Philippines, is a cement production company that provides premium-quality cement that is durable and cost-effective while also promoting a greener and more sustainable future.
by Cement Grining Technology
Ball mills market for Philippines cement was US$ 1,918.39 million in 2022 and is expected to reach US$ 13,716.58 million by 2031, growing with a CAGR of 24.9% between 2024 and 2031. Cement companies can increase their production capacity owing to improved ball mill technology. Increased throughput and better production rates enable Philippines to meet increasing cement demand, particularly during construction booms and infrastructure projects.
For instance, on June 28, 2022, Impact-resistant compounds and proprietary abrasion, combined with a ball mill overhaul, resulted in improved performance, enhanced mill availability and increased output levels. Weir Minerals designed an innovative mill lining system with Vulco R63 rubber liners for James Hardie Philippines (JHP), a regional manufacturing hub of James Hardie, the global leader in fiber cement manufacture. At James Hardie Philippines, the Vulco mill lining system improves output by up to 44%.
JHP needed to enhance the output of their ball mill, which was processing a mixture of coarse and fine silica, due to a significant rise in demand for their product and to increase the overall throughput of the plant. The existing rubber mill liners simply lasted six to nine months and contributed to a 25% loss in output after only six months of operation.
New cement facilities add to the market's supply. With increased production capacity, cement manufacturers can access new regions and markets within Philippines, increasing their market share and catering to previously underserved areas. It helps to improve the cement supply chain by ensuring more regular and reliable cement availability. Its consistent supply drives market growth by supporting ongoing construction projects and infrastructure development.
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
