Allied Market Research

Saudi Arabia Premix Plaster Market is Expected to Reach $3.4 Billion by 2027—Allied Market Research


Report Code : A09425

quote The Saudi Arabia premix plaster market is heading toward an expansion phase. This is mainly attributed to a significant surge in demand from residential and commercial areas for large number of construction projects. Furthermore, favorable government policies, coupled with robust foreign investment is expected to positively impact the market growth. quote

Eswara Prasad
Manager, Material and Chemicals at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Saudi Arabia Premix Plaster Market by Binding Material and End-User: Opportunity Analysis and Industry Forecast, 2020–2027”, 

The Saudi Arabia premix plaster market was valued at $2.3 billion in 2019, and is projected to reach $3.4 billion by 2027, growing at a CAGR of 6.6% from 2020 to 2027.

Premix plaster is used on building material surface to hold bricks or stones together in internal or external plastering. However, some of the plasters, such as lime and gypsum-based plasters, are only used for internal plastering. The application of premix plaster can reduce labor cost of mixing and processing on construction site. Moreover, it does not require materials like sand, aggregates, cement, and water, which further reduces the cost of finding new vendors.

The demand for premix plaster is driven by new construction projects and modernization of existing infrastructure. Premix plaster is widely preferred for large projects to reduce the manpower requirement and storage space for sand, cement, and aggregates. However, premix plaster requires effective transportation between construction site and batching plant, which requires huge amount of capital investment.

Based on binding material, cement-based premix plaster garnered significant market share. This is attributed to growth in demand for exterior, interior, and ceiling application. In addition, cement-based premix plaster is more effective in heavy constructions, owing to high density compared to lime and gypsum-based plasters.

Based on end user, the residential end user is expected to witness significant market growth. This is attributed to rise in foreign direct investment in various social and urban development projects. Initiatives taken by the government including tax concession, low cost of sites is expected to create new opportunities in the market.

Major players have adopted product launch and agreements to sustain the intense market competition. The key players profiled in the report include Saudi Readymix, Saudi vetonit co. Ltd., Unibeton Ready Mix, Saint-Gobain Weber Middle East, Conmix Ltd., and Don Construction Products ltd.

COVID-19 scenario analysis

  • The Saudi Arabia premix plaster market had immediate impact of 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 transportation sector, which is vital for premix plaster service. Furthermore, restrictions on cross border import, disrupted the Saudi Arabia 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 6.8%, in terms of revenue, during the forecast period.
  • By end user, the commercial segment is anticipated to grow with a CAGR of 6.7%, in terms of revenue, during the forecast period.
  • The residential end user dominated the market with around 55% revenue shares in 2019.

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quote Saudi Arabia Premix Plaster Market by Binding Material (Cement, Lime, Gypsum, and Others) and End User (Residential, Commercial, and Industrial): Opportunity Analysis and Industry Forecast, 2020–2027 quote

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