Market Challenge - Volatility in raw material prices

Global self leveling concrete market has been facing considerable challenge due to volatility in prices of key raw materials. Raw materials like cement, sand and aggregates constitute over 60-70% of the total cost for manufacturing self leveling concrete. Prices of these commodities fluctuate frequently depending on demand-supply forces in the international markets. In recent years, the prices of cement and aggregates have witnessed an increasing trend due to rising energy costs, tight supply of high quality aggregates, and strengthening of infrastructure activities in emerging economies. This puts significant pressure on the profit margins of self leveling concrete producers. The manufacturers struggle to transfer high raw material costs to the end consumers due to the competitive nature of the industry. Maintaining a balance between costs and product prices remains a major concern for the self leveling concrete market players.

Market Opportunity: Emerging markets in Asia Pacific and Latin America

The self leveling concrete market sees new growth opportunities arising from emerging economies in Asia Pacific and Latin America. In the Asia Pacific region, countries like India, Indonesia, Vietnam and the Philippines are witnessing rapid urbanization and growth in construction spending. Rising disposable incomes and changing preferences towards modern construction finishes are driving the demand for self leveling concrete products. Similarly, nations in Latin America such as Brazil, Mexico, and Argentina offer promising prospects with consistently rising investments in commercial and residential real estate. Major manufacturers are looking at these developing nations as greenfield markets to expand their geographic footprint. By investing strategically in terms of sales and distribution networks in high potential countries, the market participants can capitalize on the opportunities of infrastructure-driven growth in Asia Pacific and Latin American regions.