Concrete sector grows despite housing downturn, $3.4bn industry report reveals

Australia’s concrete product manufacturing industry has shown resilience in the face of challenging residential construction conditions, growing at a modest but steady pace, according to a comprehensive market report released on Tuesday.

The IBISWorld report reveals the industry has reached an estimated value of $3.4 billion in 2025, growing at a compound annual growth rate (CAGR) of 0.6 per cent over the past five years, despite significant headwinds in the housing sector.

“The Concrete Product Manufacturing industry’s performance has been constrained by widely divergent trends in its core construction markets,” industry analyst Anthony Kelly told @AuManufacturing.

“A slump in house construction following mortgage interest rate hikes has stifled sales of concrete roof tiles and pavers.”

However, the downturn in residential building has been offset by stronger performance in commercial construction, with sales of structural concrete and commercial products providing stability to manufacturers.

The report identifies that non-residential building activity and a modest recovery in multi-unit dwelling construction have supported the industry through challenging times. Industrial building construction, particularly warehouses and other commercial structures, has emerged as a particularly bright spot.

Victoria has established itself as a critical hub for the industry, with Melbourne serving as a major transport and manufacturing centre. The state houses a heavy concentration of enterprises, including industry leader Civilmart and numerous regional manufacturers.

Looking ahead, the report projects continued growth over the next five years, with concrete bricks, blocks and pavers providing a stable revenue base despite their relatively minor share of the overall brick market compared to clay alternatives.

For businesses operating in the sector, the report highlights that competition hinges on product differentiation, availability and price, with manufacturers competing nationally based on their distribution capacity.

Picture: credit IBISWorld