Dublin, July 07, 2025 (GLOBE NEWSWIRE) -- The "United Kingdom Cement Industry Market Size & Forecast by Value and Volume Across 80+ Market Segments by Cement Products, Distribution Channel, Market Share, Import - Export, End Markets - Databook Q2 2025 Update" report has been added to ResearchAndMarkets.com's offering.
The cement market in United Kingdom is expected to grow by 6.2% annually to reach US$757.7 million in 2025. The cement market recorded strong growth during 2020-2024, achieving a CAGR of 7.0%. Growth momentum is expected to remain positive, with the market projected to expand at a CAGR of 5.8% during 2025-2029. By the end of 2029, the cement market is projected to expand from its 2024 value of US$713.5 million to approximately US$949.2 million.
This report provides a data-rich, forward-looking analysis of cement industry, covering market size, pricing trends, production, consumption, and segment-level performance from 2020 to 2029. It examines cement demand across key residential, non-residential, and infrastructure sectors alongside granular segmentation by cement type, distribution channel, end-user profile, and city tier.
The UK's cement industry is operating within a challenging economic environment marked by energy cost volatility, tightening environmental regulation, and shifting construction demand. While infrastructure and public retrofitting projects continue to support volume, the slowdown in private residential construction and Brexit-related logistical complexities are impacting market dynamics.
To maintain competitiveness and comply with the UK's legally binding net-zero targets, cement producers are investing in carbon capture technologies, SCM integration, digital efficiency platforms, and circular construction models. Despite persistent inflationary pressures and policy uncertainties, the industry remains positioned to benefit from public procurement reforms and infrastructure spending under the National Infrastructure Strategy.
The UK cement industry is evolving toward a low-emissions, infrastructure-supportive, and innovation-driven future. With public procurement favoring green-certified materials and infrastructure investment set to continue, cement producers must now prioritize decarbonization and digitalization to maintain relevance.
Firms that lead in CCS deployment, circularity partnerships, and low-carbon product certification will be best positioned to align with government targets and construction sector trends. Meanwhile, managing cost volatility, SCM logistics, and regulatory complexity will remain central to operational resilience. With strategic foresight and policy support, the UK's cement sector can anchor a more sustainable and digitally integrated construction landscape.
Public Works and Retrofit Programs Are Sustaining Cement Demand
- Government Infrastructure Programs Continue to Anchor Bulk Cement Consumption: Projects like HS2 (High Speed 2), Thames Tideway Tunnel, and major regional transport upgrades are sustaining demand in central and southern England. Cement supply is concentrated around key logistics hubs such as Tilbury and Avonmouth to support efficient bulk delivery.
- Building Safety and Energy Retrofitting Are Driving Urban Cement Demand: Refurbishment of public housing, schools, and hospitals under the UK Building Safety Programme and Social Housing Decarbonisation Fund is boosting cement use in non-new-build applications. Major firms like Hanson and Breedon Group are prioritizing dispatches of specialty cement blends for low-carbon retrofit projects in cities like Manchester and Birmingham.
- Private Residential and Commercial Construction Remain Pressured: High interest rates, material inflation, and tightened mortgage lending have dampened residential starts, especially in London and the South East. Commercial construction is limited to logistics hubs and green data center expansions, while office and retail builds remain sluggish.
Partnerships and Green Technology Investments Are Shaping Sectoral Shifts
- Carbon Capture and Storage (CCS) Is Advancing Through Strategic Alliances: Hanson is leading the UK's largest cement CCS pilot at its Padeswood plant in Wales, in partnership with Heidelberg Materials and government-backed HyNet North West. The project is designed to reduce the plant's emissions by 800,000 tonnes of CO2 annually by 2030, aligning with the UK Industrial Decarbonisation Strategy.
- Blended and Low-Carbon Cements Are Expanding Product Portfolios: Cement producers are increasing production of CEM II and CEM III types using GGBS (ground granulated blast-furnace slag) and fly ash. Tarmac and Breedon are offering certified products under BES 6001 (Responsible Sourcing Standard) to meet demand from BREEAM and PAS 2080-compliant projects.
- Circular Construction and Waste Partnerships Are Scaling: The UK Green Building Council is supporting pilot schemes using recycled concrete aggregates (RCA) and low-carbon precast units. Cement producers are partnering with local authorities to incorporate construction and demolition waste into supply chains.
Production Is Pressured by Energy Prices, Regulatory Costs, and Import Dependencies
- Electricity and Fuel Costs Remain Elevated Despite Recent Stabilisation: Volatile natural gas prices and the phase-out of energy subsidies have continued to raise operating costs for cement kilns. Plants are increasingly shifting to off-peak production and investing in energy recovery, such as WHR (Waste Heat Recovery) systems.
- Environmental Regulations Are Increasing Operating Complexity: Under the UK ETS (Emissions Trading Scheme), cement firms face annual carbon allowance compliance, with penalties for over-emission. Compliance with the Climate Change Agreements (CCA) and pollution prevention guidelines is increasing reporting and audit obligations.
- Import Reliance for SCMs and Alternative Fuels Creates Risk: The UK imports much of its GGBS and fly ash from continental Europe, particularly from the Netherlands and Germany. Brexit-related customs delays and port congestion have made SCM procurement more expensive and less predictable.
Sector Outlook Is Positively Tied to Net Zero Policy and Infrastructure Continuity
- Government Spending on Infrastructure Will Sustain Medium-Term Demand: The UK's National Infrastructure and Construction Pipeline outlines £600 billion in public and private - investment over the next decade. Cement will remain critical in transport, energy, and flood defense projects, with firms pre-qualifying under the Construction Playbook.
- Green Public Procurement Standards Will Influence Product Strategy: The UK's Procurement Policy Note 06/21 promotes carbon measurement and reduction across public contracts. Producers offering EPD-certified products and lifecycle emission transparency are gaining advantage in public tenders.
- Innovation Funding Will Accelerate Cement Decarbonisation: The Industrial Energy Transformation Fund (IETF) and Net Zero Innovation Portfolio are providing support for process electrification, hydrogen fuel use, and cement-alternative development. Companies receiving grants are expected to lead technology adoption and emissions transparency in the next 3-5 years.
Risks Stem from Cost Exposure, Policy Ambiguity, and Structural Imbalances
- Inflation and Interest Rate Sensitivity Continue to Suppress Private Demand: Reduced consumer spending and developer caution are extending timelines for residential and commercial projects. Short-term overcapacity risks may emerge if infrastructure projects stall or are reprioritized.
- Carbon Compliance Costs May Disadvantage Smaller Players: The UK ETS and future carbon tax schemes may disproportionately affect mid-sized and independent producers unable to absorb or pass on increased costs. Firms without carbon-reduction pathways risk exclusion from both public procurement and green finance eligibility.
- Brexit-Linked Import Constraints Are Impacting SCM Availability: Custom delays and post-Brexit paperwork are affecting imports of key materials like slag and clinker, especially through ports like Felixstowe and Southampton. Disruption risk is highest for firms lacking diversified import contracts or local blending infrastructure.
Scope
United Kingdom Cement Industry Overview
- Cement Production KPIs: Volume and Value
- Cement Consumption KPIs: Volume and Value
- Average Cement Price Trends: Tracked at overall and cement-type level
United Kingdom Cement Market by Type of Cement
- Portland Cement
- Blended Cement
- Specialty Cement
- Green Cement
Blended Cement Market by Subtypes of Cement
- Type IS(X) - Portland-Slag Cement
- Type IP(X) - Portland-Pozzolan Cement
- IL(X) - Portland-Limestone Cement
- Type IT - Ternary Blended Cement
Specialty Cement Cement Market by Subtypes of Cement
- Rapid Hardening Cement
- High Alumina Cement
- White Cement
- Sulfate-Resistant Cement
- Other Niche Specialty Cements
United Kingdom Cement Market by Key Sector
Residential Construction
- Multi-Family Housing
- Single-Family Housing
Non-Residential Construction
Commercial Buildings
- Office Buildings
- Retail Spaces
- Hospitality Facilities
- Restaurants
- Sports Complexes
- Other Commercial Properties
Industrial Buildings
- Manufacturing Units
- Chemical & Pharmaceutical Facilities
- Metal and Material Processing Plants
Institutional Buildings:
- Healthcare Facilities
- Educational Institutions
- Other Institutional Structures
Infrastructure & Other Construction
United Kingdom Cement Market by Distribution Channel
- Direct Distribution (B2B Sales)
- Indirect Distribution (Retailers, Dealers)
United Kingdom Cement Market by End-User
- Ready-Mix Concrete Producers
- Concrete Product Manufacturers
- Individual Consumers (Self-use)
- Other Industrial/Commercial Users
United Kingdom Cement Market by Location Tier
- Tier-I Cities
- Tier-II Cities
- Tier-III Cities
United Kingdom Cement Trade Dynamics
- Key Export Destinations
- Key Import Sources
Competitive Landscape: United Kingdom Cement Market
- Market Share Analysis of Key Players
For more information about this report visit https://www.researchandmarkets.com/r/u32epi
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