Aggregates markets to return to 2007 levels in 2020

Current demand still nearly 20% lower than 10 years ago, according to new report from BDS Marketing

AGGREGATES markets in Great Britain are forecast to get back to the levels seen in 2007 by 2020, while current demand is nearly 20% lower than 10 years ago. These are some of the conclusions of a new report by BDS Marketing on the aggregates industry entitled: ‘The primary aggregates producing industry in Great Britain – Its structure, markets and prospects’.

The author of the report, Andy Sales, said: ‘The aggregates industry can expect encouraging market growth for the next few years, yet by 2020 this will only bring the industry back to 2007 levels, which, at the time, was regarded as a fairly typical year.’

The new 47-page report brings together in one document, an analysis of the current market and trends. The aggregates industry, says the report, represents a market of around £2 billion and is key to the Government’s plans to boost infrastructure spending.

BDS have also identified the importance of added-value asphalt and concrete markets to aggregates companies. More than 40% of aggregates are now sold into these sectors.

There have also been noticeable trends within individual aggregates sectors. Markets for lower-grade materials have largely been lost to recycled and secondary aggregates, while difficulties in replenishing aggregates reserves have seen volumes of concreting gravel decline. These have been replaced by increasing sales of crushed rock concreting materials.

Despite the growth in alternative materials, BDS estimate that primary aggregates continue to represent more than 70% of the total aggregates market.

‘We do not expect this to change materially,’ said Mr Sales. ‘Most demolition and construction waste is already being recycled, and while there are some exciting developments taking place with secondary aggregates, these will have only a limited impact on total aggregates demand.’

The BDS report also reviews the current market position of the six largest aggregates companies and assesses how these businesses are likely to develop. Information is also provided on company market shares and the current reserves situation of the industry.

For further details, contact Andy Sales at BDS on tel: (01761) 433035; or email: andy.sales@bdsmarketing.co.uk