Global sales of drywall are expected to grow 8.6% annually through 2016, a massive improvement over the 2006-2011 pace, according to a report issued by The Freedonia Group, a Cleveland-based market research firm. Following severe decreases in sales during 2008-2001, drywall demand is expected to rebound sharply in North America and Western Europe. The East European market will also improve.
While advances in the Africa/Mideast region, Asia/Pacific region, and Central and South America are projected to decelerate slightly through 2016, each of these regions is still expected to record impressive growth, according to the forecasts contained in “World Drywall & Building Plaster.”
Nearly 70% of additional drywall demand generated between 2011 and 2016 will be attributable to China and the U.S., Freedonia forecasted. Sales of drywall and plaster products in the U.S. are projected to grow over 12% per year during this period. After declining sharply between 2006 and 2011, the amount of new residential floor space in the country is expected to increase at a double-digit pace. Rapid nonresidential building construction spending gains are also expected to stimulate growth in the U.S. market. In China, demand for drywall is forecast to grow nearly 12% per year through 2016.
Increasing demand for urban housing will drive residential building construction spending and related drywall sales between 2011 and 2016 in numerous industrializing countries, including India, Saudi Arabia, Mexico, Thailand, and Turkey. Going forward, local construction firms will increase their use of modern building materials (such as drywall) at the expense of other products (such as building plaster).
The drywall market in Western Europe is forecast to expand 3.6% per year, a considerable improvement over the 2006-2011 pace. Spain is expected to register the fastest growth during this period, as new residential construction activity begins to recover, even though inflation-adjusted spending in 2016 will be well below the 2006 level. Among the other major markets that are expected to perform well are Italy, France, and the UK. Drywall demand in Western Europe will rise primarily because of increases in new residential construction from a depressed 2011 level.