The demand for dry building mixes in Russia may grow by 10 times by 2010

In order to cover current needs of residential building, the production of dry building mixes (DBM) in Russia should account for more than a half of a total volume of construction mortars.

However, in 2002 DBM production was 840K mt which accounts for 5% of the production of all types of mixes and mortars. As it is stated above, in order to satisfy the Russian construction market with dry building mixes, this parameter should grow to 50%. The demand for DBM may hit 8.4m mt by 2010.

DBM production volume growth rate is likely to stay at the same high level of 50%. As for Moscow and St. Petersburg, the DBM market growth rate in these cities in 2005 stayed at the level of 20-25%. Other regions feature higher rates, since these regions are only commencing to apply dry mixes in construction and finishing works.

The demand is influenced by the economical state in the region rather than by its geographical location. The forecast for DBM consumption growth in Russia is optimistic, since the country tries to reach European standards of living. The European annual consumption of dry mixes per head of population is much higher than in Russia: 30 kg per head in Germany, 20 kg per head in Finland, Sweden and Poland. Russia consumes 2-3 kg per head.

The Russian DBM market has its peculiarities. Tile adhesives account for more than half of consumed dry mix products. In 2003, tiles adhesives absorbed from 30% to 45% of the market. European DBM consumption structure is dominated by plaster mixes, floor leveling products, fillers, while tile adhesives account for only 15% of DBM consumption.

Professional building industry is a major consumer of dry building mixes (DBM). Building and finishing applications account for 75% of DBM consumption.

Profitability of DBM production ranges from 15% to 50% subject to product type and specifications. Profitability of sales activities is equal to 25-35%.

The "Dry Building Mixes Market Research" also features the following information:

• DBM sales strategies;
• DBM market structure in Russia and other CIS countries;
• DBM market state in Europe;
• DBM market news;
• To name only a few subjects

Marina Kulikova

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