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Global Aggregates Production

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Jim O’Brien, President, GAIN, on strengthening the global aggregates industry through collaboration, data sharing and a commitment to sustainability.

GAIN™ is the trade-marked acronym of the Global Aggregates Information Network. Founded in 2010, it is an entirely voluntary network of the major national and regional aggregates associations of the world. The mission of GAIN is to openly share experiences and industry best practices in the interests of promoting the greater sustainability and performance of the aggregates industry globally. GAIN has no commercial interests and vigorously enforces an anti-trust policy.
Starting with just five members in 2010, GAIN now has over 20 members spread across all the six continents, its members representing 75 per cent of global aggregates production of just 39 billion metrictonnes(bnt).
GAIN is uniquely successful in its highly-interactive global membership, thanks to the very positive cooperation of its members. The most recent physical GAIN meeting, its seventh global meeting, was held in Córdoba, Argentina, kindly hosted by the Argentine Association Federación de la Piedra, with most GAIN regions in attendance. The wide-ranging agenda focused on sharing best practice on key industry challenges, and found the industry to be in resilient recovery post-pandemic and poised to address and benefit from future sustainability challenges and opportunities.
The next physical meeting of GAIN is planned for October 19-22, 2025, to be held in Córdoba, Spain, hosted by the Spanish Aggregates Federation. The 2026 physical meeting will be hosted in Shanghai by the China Aggregates Association. In parallel, virtual GAIN meetings are held every two months and are widely attended (including India) across many time zones and these too are marked by lively open exchanges of best practice on specific topics.

Taking stock
One ambition of GAIN is to compile the best annual estimates of aggregates production from data provided by GAIN members, the situation as of April 2025. This data reflects the best estimates available to each region, and while not claiming to be perfect, is probably the best data available anywhere on global aggregates production. The GAIN total of 34.1bnt in 2019 has actually declined to 29.4bnt in 2024, the significant decline of 4.7bnt being due to a combination of the impacts of the pandemic, the economic slowing in China and the wars in Ukraine and in the Middle East. When estimates for non-GAIN countries are added (based on their national populations x their estimated tonne/capita), the global totals of 44.0bnt in 2019 has actually declined by 11.4 per cent to 39.0bnt in 2024, the trend being shown in Figure 2. The estimates given for 2025 must at this stage be regarded as preliminary and are very subject to the unpredictable geopolitics now in play, but point towards 2025 being a similar year to 2024 with 39.0bnt global total aggregates production.
The breakdown by region is illustrated in
Figure 1, still dominated by China at 39 per cent, with India coming second at 15 per cent, followed by Europe at 7 per cent and the USA at 6 per cent, these top four comprise 67 per cent of the global demand. Adding in the other GAIN member countries brings the GAIN total to 75 per cent of global production. It is hoped that many more countries will join GAIN in the coming years, bringing its representation towards 100 per cent of the global aggregates industry. The global average is 4.8t/c; for GAIN members the average is 6.5t/c and the non-GAIN average is 2.6t/c. For any country, the demand in tonnes per capita can be empirically related to GDP per capita – or more precisely, the rate of change in GDP/capita –plus upward adjustments for national terrain ruggedness and local
climatic severity.
Looking ahead towards 2030, assuming a positive global geopolitical outlook with resultant economic growth, coupled with the twin demands of population growth and urbanisation, there is a possibility for global demand to reach 40bnt by 2030. These figures demonstrate that aggregates are indeed by far the most used bulk product on the planet, with the industry having an economic value similar to that of the cement sector, both points often overlooked.
Looking specifically at India, as shown in Figure 2, production suffered a significant decline in 2020 during the pandemic, but is now back into strong growth with an estimated 5.9bnt for 2024, hopefully further rising to 6.4bnt in 2025. That will correspond to a demand of 4 tonnes/capita; while still well below that of developed regions, this can portend significant further growth in the years to come. Overall, India should be proud that it is the second largest and fastest growing aggregates market globally. The current growth is being driven principally by massive infrastructural investments in roads, railways, ports and airports; long may it continue.
The author hopes that India will soon benefit from forming a much-needed fully-fledged national aggregates association, similar to those very professionally representing the Indian cement and concrete sectors. A national aggregates association, benefitting from sharing of international best practices within GAIN, can then bring world class excellence to the aggregates industry in India.

About the author:
Jim O’Brien, President, GAIN, is a veteran of the building materials industry. He has spent 39 years at CRH plc, and has spearheaded the formation of the Global Aggregates Information Network (GAIN), a voluntary liaison network of regional and national aggregates associations around the world. More details on www.gain.ie.

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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