US demand for cement and concrete additives is forecast to increase at nearly double-digit rates through 2014 to $2.8 billion. A rebound in the housing market will promote growth, as will solid levels of highway and street spending. Demand will also benefit from a rising utilization of industrial byproducts in concrete for economic and environmental reasons, as well as a greater focus on the production of durable concrete structures through the use of chemical and fiber additives.
Chemical additives will remain the largest product segment, comprising 46 percent of total market value. Growth will be supported by overall increases in the use of chemical additives per ton of concrete, as users more frequently turn to high performance, easy-to-place concrete made possible by chemical augmentation. Superplasticizers are finding additional use in concrete production based on their ability to provide more workable concrete with uncompromised performance standards. Gains will also be boosted by a shift in the product mix favoring higher value formulations at the expense of commodity products such as lignosulfonates, calcium chloride and vinsol resins.
Mineral additives will benefit as waste materials -- such as coal fly ash and blast furnace slag -- are increasingly used as a partial replacement for portland cement in concrete. Demand will be boosted by the positive environmental profile of these types of additives, both as recycled materials and through their ability to reduce pollution and energy consumption associated with cement production.
Demand for fiber additives will be driven by a greater acceptance of these products among concrete producers. Synthetic fibers, for instance, will benefit from their expanded use as secondary reinforcement, as these are used in much higher dosages per cubic yard of concrete. Synthetic fibers are being promoted for their ability to combat shrinkage-induced cracking in concrete.
Highways and streets were the largest outlet for cement and concrete additives in 2009, consuming about one-third of total demand. Gains will benefit as it is expected that federal funding for transportation projects will remain strong through 2014. In the short term, for instance, some road construction will be funded via the American Recovery and Reinvestment Act of 2009.
The residential building market will offer the strongest opportunities for growth. Cement and concrete additives will see increases as new residential construction expenditures come off of a depressed 2009 base and new single-family homes experience a rebound through 2014. Nonetheless, additive use in the residential market will remain less widespread than in other markets, as concrete is subjected to less demanding environments than in bridges, roads and nonresidential applications.
Growth in the nonresidential building market will achieve the slowest growth through 2014. Demand gains will be checked by lower construction spending in the industrial sector and a slowdown in the lodging sector, including such cement and concrete-intensive businesses as manufacturing plants, warehouses, refineries and hotels. However, solid construction spending in the institutional sector will offset declines, as more hospitals, nursing homes and schools are built.
Cement & Concrete Additives is a new Freedonia industry study presents historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019 by product and market. The study also considers market environment factors, evaluates company market share and profiles 38 US industry competitors.