According to a new report published by Allied Market Research, titled, “Egypt Premix Plaster Market by Binding Material and End-User: Opportunity Analysis and Industry Forecast, 2020–2027”,
The Egypt premix plaster market was valued at $1.5 billion in 2019, and is projected to reach $2.4 billion by 2027, growing at a CAGR of 7.1% from 2020 to 2027.
Plaster is a workable paste that is prepared by adding required amount of water to a mixture of binding material and aggregate. These are used on building material surface to hold bricks or stones together. The premix or ready mix plasters are used for internal or external plastering. Due to premix nature, this type of plaster reduces labor cost and equipment cost for plaster mixing.
The proliferating demand of ready mix plaster in new construction projects is anticipated to boost the market growth. In addition, ready mix plaster is widely preferred for construction projects to reduce the manpower requirement and storage space for sand, cement, and aggregates. Ready mix or premix plaster requires only water during its application on concrete and brick surface. Furthermore, reduced mixing time and curing time of premix plaster lead to reduced overall project cost.
Based on binding material, the cement-based premix plaster garnered significant market share. This is attributed to growth in demand for exterior, interior and ceiling application. In addition, premix plaster shows low rebound during plaster work and reduces labor requirement on site for material mixing.
Based on end user, the residential end user is expected to witness significant market growth. This is attributed to rise in disposable income and foreign direct investments influencing the residential end user market growth. The ready mix concrete is widely used in single and double-story extension, reinforced and un-reinforced foundations, reinforced and un-reinforced house floors, garage and septic tank bedding.
Major players have adopted product launch and agreements to sustain the intense market competition. The key players profiled in the report include Lafarge Egypt, Saint-Gobain Gyproc Egypt, United Paints and Chemicals Drymix S.A.E, CEMEX S.A.B. de C.V., Hassan Allam Holding, Saveto Egypt, and Araco Admixture and Construction Material.
COVID-19 scenario analysis
- The Egypt premix plaster market had immediate impact of the COVID-19 breakdown. The industry has been persistently challenged by huge number of labor shortage.
- In addition, contractors are expected to witness significant challenges, owing to operational uncertainties. Nation wise lockdown and social distancing norms negatively impacted the transportation sector, which is vital for premix plaster service. Furthermore, restrictions on cross border import, disrupted the Egypt premix plaster supply chain.
- The delay in upstream and downstream activities led to increase in inventory carrying cost, which further impacted overall project cost.
- Moreover, discretionary spending on non-essential home items is pressurized for last six to eight months, which further restricted the demand for plastering services.
- However, implementation of IoT and automation may improve the market scenario reducing the need of labors wherever possible.
Key findings of the study
- Lime-based premix plaster market is projected to grow at the highest CAGR of approximately 7.3%, in terms of revenue, during the forecast period.
- By End-User, the commercial segment is anticipated to grow with a CAGR of 7.2%, in terms of revenue, during the forecast period.
- The residential end user segment dominated the market with around 55% revenue shares in 2019.