Mega projects are pushing Bangladesh's cement demand up

Optimism among Bangladesh cement companies for market growth is strong with government mega construction projects increasing demand.

"Besides the big projects, developments in real estate and commercial and public institutions have also contributed to enhanced cement consumption. Moreover an increasing number of migrants travelling from rural areas to the big cities are boosting real estate business, while the rural individual homebuilders are fuelling consumption of cement," said Mohammad Shahidullah, vice-president of Bangladesh Cement Manufacturers Association (BCMA) and managing director of Metorcem Cement.

Bangladesh's cement consumption in 2018 was the country's highest at 33Mt, a 12 per cent rise on 2017 figures, according to the BCMA.

Mohammad Alamgir Kabir, president of BCMA and managing director of Crown Cement Concrete and Building Products, said: "Every year, the market size of cement is growing. Last year, our sales posted record growth but it is still far below those of many developing countries. So, there is scope for us to grow further."

"Average per capita cement consumption in the world is 500kg while in Bangladesh it is only 190kg as of 2018. According to a global study, per capita cement consumption could be 600kg at best and after that the growth will slow down. So, there is an opportunity to triple the per capita cement consumption in our country. And we the local cement manufacturers are expanding our production units to grab the market."

The growth in Bangladesh's cement sector is also receiving wider attention. According to industry insiders, a Saudi business firm is set to enter the Bangladesh market.