Azerbaijan’s annual cement demand—currently estimated at around 4Mta is expected to approach 5Mt in the coming years as the country’s construction sector continues to expand, according to the German-Azerbaijani Chamber of Commerce (AHK Azerbaijan).
AHK said Azerbaijan hosts the largest cement industry in the South Caucasus, with four major producers supplying the domestic market. The plants have a combined production capacity of 5.1Mt, sufficient to meet current internal requirements.
Rising domestic consumption, however, is expected to gradually reduce clinker export volumes. Georgia remains the primary export destination, taking 850,700t of clinker in 2024, slightly lower than the 874,600t shipped in 2023. AHK noted that national reconstruction and infrastructure needs will take priority for producers in the medium term.
Azerbaijan’s wider construction materials industry is undergoing rapid expansion and is projected to exceed US$1.2bn in production value in 2025. Output in 2024 reached US$837m—double the 2020 level—with real growth close to 17 per cent. Extraction and processing of raw construction materials reached US$180m in 2024, nearly triple the 2020 value.
Demand is being fuelled by extensive reconstruction works in Karabakh, major infrastructure upgrades across the Baku region, new urban masterplans, continued residential construction growth, rehabilitation of social infrastructure, and renewed project activity in the oil and gas sector.
Despite this sharp increase in output, AHK said the sector’s wider market potential remains underutilised. Strong, sustained demand in both Azerbaijan and neighbouring markets is expected to support continued expansion of the cement and construction materials industries over the medium term.
