China Cement Industry Report 2025 | Sustainability and Efficiency to Drive Market Transformation Amid Government Policies - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "China Cement Industry Market Size & Forecast by Value and Volume Across 80+ Market Segments by Cement Products, Distribution Channel, Market Share, Import - Export, End Markets - Databook Q2 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The cement market in China is expected to grow by 4.9% annually to reach US$129.09 billion in 2025. The cement market in the country recorded strong growth during 2020-2024, achieving a CAGR of 5.8%. Growth momentum is expected to remain positive, with the market projected to expand at a CAGR of 4.6% during 2025-2029. By the end of 2029, the cement market is projected to expand from its 2024 value of US$123.03 billion to approximately US$154.78 billion.

This report provides a data-rich, forward-looking analysis of cement industry, covering market size, pricing trends, production, consumption, and segment-level performance from 2020 to 2029. It examines cement demand across key residential, non-residential, and infrastructure sectors alongside granular segmentation by cement type, distribution channel, end-user profile, and city tier.

China's cement industry is entering a transition period marked by a shift from volume-led growth to sustainability and efficiency-driven modernization. The government's dual-control policy on energy intensity and carbon emissions is significantly reshaping production and investment decisions. While the housing market correction has weakened overall demand, infrastructure and green urban development continue to support base volumes.

Leading producers are focusing on intelligent manufacturing, emissions tracking, and blended cement innovation to align with China's 2060 carbon neutrality goal. With export opportunities narrowing and overcapacity still persistent in several provinces, firms must reallocate capacity, digitize operations, and align with evolving green building codes to maintain relevance.

China's cement industry is at a strategic crossroads. With bulk demand moderating, success will come from low-carbon innovation, policy alignment, and efficient regional logistics. The era of unlimited expansion is over; firms must now compete on sustainability, traceability, and digital integration. Firms that adopt AI-driven manufacturing, low-clinker cement design, and carbon disclosure systems will qualify for future state-led infrastructure. Resilience will come from diversified inputs, flexible dispatch capabilities, and close coordination with urban development priorities. With national support for decarbonization and smart urbanization, China's cement sector can shift from quantity to quality delivering climate-aligned growth across the next infrastructure cycle.

Infrastructure and Urban Renewal Provide a Floor to Cement Demand

• Infrastructure Investment Stabilizes Demand Despite Real Estate Weakness: Local governments have increased spending on transportation, water systems, and new energy zones under the central government's stimulus measures. Cement is flowing into high-speed rail extensions, rural revitalization projects, and smart city infrastructure across provinces like Sichuan, Hunan, and Shandong.
• Affordable Housing and Urban Redevelopment Create Targeted Cement Demand: The "urban village" redevelopment scheme in cities like Shenzhen and Guangzhou is generating demand for bagged and pre-cast cement types. Cement demand is more stable in city renovation and public housing than in the commercial property sector, which remains under pressure.
• Real Estate Correction Impacts High-Volume Construction Zones: Major cities and Tier 2 urban clusters have seen slowed cement offtake due to delayed or abandoned residential tower projects. Some producers have reallocated volumes to infrastructure sectors or northern provinces with steady public project pipelines.

Green Innovation and Digital Cement Are Core to Strategy Realignment

• Low-Carbon Cement Development Gains Regulatory and Market Support: China National Building Material Group (CNBM) and Conch Cement are scaling blended cement production using slag, fly ash, and industrial by products. Provinces like Jiangsu and Anhui are updating local procurement standards to favor low-clinker, EPD-certified cement.
• Intelligent Manufacturing and Process Automation Expand Across Plants: Key producers have implemented AI-based kiln management systems, energy consumption tracking, and emission forecasting dashboards. Smart dispatch platforms and digital supply chain integration are helping align cement deliveries with public project schedules.
• Cross-Sector Collaboration Supports Circular Resource Models: Cement kilns are being repurposed as co-processing sites for municipal waste, sewage sludge, and hazardous byproducts. Partnerships between cement firms and local utilities are enabling alternative fuel substitution and waste stream integration.

Production Is Constrained by Policy Controls, Carbon Targets, and Energy Costs

• Dual-Control Policy Limits High-Emission Cement Capacity: Provincial governments are enforcing production caps, especially during peak electricity demand or air pollution seasons. Plants in Hebei, Shanxi, and Inner Mongolia are required to rotate shutdowns to meet energy intensity and carbon targets.
• Clinker Overcapacity and Utilization Gaps Persist in Some Regions: Southern and central provinces continue to struggle with excess capacity, leading to price competition and margin erosion. The government is promoting M&A and capacity swaps to reduce fragmentation and regional imbalance.
• Energy Prices and Carbon Costs Are Raising Operating Pressure: Rising coal and electricity prices, especially in winter months, are impacting margin sustainability. China's national carbon trading market is evolving, and cement has been included under early-stage compliance scenarios.

Moderate Outlook Supported by Green Transition and Public Procurement Reform

• Public Sector Infrastructure Will Support Steady Cement Demand: Investment in water conservancy, rural broadband, and inter-city logistics hubs is expected to drive bulk cement usage through 2025. "New Infrastructure" categories such as electric vehicle charging and data center campuses are also supporting specialty cement variants.
• Green Building Codes Are Reshaping Procurement and Product Design: China's Green Building Evaluation Label (GBEL) and low-carbon procurement pilots in cities like Beijing and Suzhou are influencing cement selection. Firms that supply EPD-backed, low-alkaline, and sulfate-resistant cement are increasingly eligible for public and industrial projects.
• Industry Consolidation and Innovation Will Drive Capacity Rationalization: The Ministry of Industry and Information Technology (MIIT) is promoting digital upgrades and backward capacity elimination. Larger firms are acquiring smaller players to achieve emissions compliance and production efficiency.

Risks Emerge from Demand Volatility, Compliance Costs, and Trade Limitations

• Housing Market Instability and Developer Defaults Remain Key Risks: Slow policy response to housing credit and developer liquidity has delayed project completions and cement order execution. Oversupply and delayed receivables have impacted cash flows in cement-linked supply chains.
• Carbon Compliance and Reporting Standards Are Becoming Stricter: Firms unable to track or report carbon intensity face regulatory penalties or exclusion from low-carbon project lists. Standardization gaps across provinces make compliance costly for multi-regional operators.
• Export Opportunity Shrinking Due to Global Protectionism: Southeast Asian and African markets are applying anti-dumping measures or increasing domestic capacity, reducing China's export competitiveness. Shipping volatility and geopolitical trade risks (e.g., Red Sea, Taiwan Strait) add to cost unpredictability.

Scope

China Cement Industry Overview

• Cement Production KPIs: Volume and Value
• Cement Consumption KPIs: Volume and Value
• Average Cement Price Trends: Tracked at overall and cement-type level

China Cement Market by Type of Cement

• Portland Cement
• Blended Cement
• Specialty Cement
• Green Cement

Blended Cement Market by Subtypes of Cement

• Type IS(X) - Portland-Slag Cement
• Type IP(X) - Portland-Pozzolan Cement
• IL(X) - Portland-Limestone Cement
• Type IT - Ternary Blended Cement

Specialty Cement Market by Subtypes of Cement

• Rapid Hardening Cement
• High Alumina Cement
• White Cement
• Sulfate-Resistant Cement
• Other Niche Specialty Cements

China Cement Market by Key Sector

Residential Construction

• Multi-Family Housing
• Single-Family Housing

Non-Residential Construction

Commercial Buildings

• Office Buildings
• Retail Spaces
• Hospitality Facilities
• Restaurants
• Sports Complexes
• Other Commercial Properties

Industrial Buildings

• Manufacturing Units
• Chemical & Pharmaceutical Facilities
• Metal and Material Processing Plants

Institutional Buildings:

• Healthcare Facilities
• Educational Institutions
• Other Institutional Structures

Infrastructure & Other Construction

China Cement Market by Distribution Channel

• Direct Distribution (B2B Sales)
• Indirect Distribution (Retailers, Dealers)

China Cement Market by End-User

• Ready-Mix Concrete Producers
• Concrete Product Manufacturers
• Individual Consumers (Self-use)
• Other Industrial/Commercial Users

China Cement Market by Location Tier

• Tier-I Cities
• Tier-II Cities
• Tier-III Cities

China Cement Trade Dynamics

• Key Export Destinations
• Key Import Sources

Competitive Landscape: China Cement Market

• Market Share Analysis of Key Players

For more information about this report visit https://www.researchandmarkets.com/r/55qnov

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