Construction Materials (Russian Market)

Main article: Construction in Russia

Market segments

• Cement (Russian market)

2024: Aerated concrete production plant launched in Karelia for 1 billion rubles

On September 13, 2024, the first autoclave aerated concrete production plant began work in Karelia. The total investment in the project amounted to more than ₽1 billion. The new plant, owned by KSM Gasobeton, was inaugurated as part of the Karelia 20/24 economic forum and will become the only manufacturer of this construction material in the republic. Read more here

2023

Growth in sales of non-metallic building materials by 4.5% to 612.4 million cubic meters

In 2023, sales of non-metallic building materials in Russia reached 612.4 million cubic meters. This is 4.5% more compared to 2022, when the figure was estimated at 586.3 million cubic meters. Such data are given in the BusinesStat study, the results of which were published in mid-October 2024.

Non-metallic building materials include gravel, macadam, natural sand and rubble. It is noted that for maximum profitability, the distance between the place of production of the listed materials and the direct consumer should be minimal. As a result, almost 100% of demand for these products falls on the domestic market, and exports are minimal. LSR JSC was named significant players in the industry. Basic Materials, JSC First Non-Metallic Company, JSC Bashkiravtodor, JSC Kiembaevsky Mining and Processing Plant Orenburg Minerals and JSC Sibagropromstroy.

In 2019, according to estimates, sales of non-metallic building materials in the Russian Federation amounted to 506.6 million cubic meters. A year later, a fall of 4.7% was recorded - to 482.7 million cubic meters. The COVID-19 pandemic and the restrictive measures introduced in connection with it led to a reduction in the pace of construction. In addition, there were problems with the transportation of materials against the background of changes in the operating modes of auto and rail communication.

In 2021, the industry returned to growth: sales of non-metallic building materials rose by 12.1%, reaching 541.2 million cubic meters. And in 2022 there was an increase of another 8.3%. The national projects "Safe and High-Quality Roads" and "Housing and Urban Environment" became the main drivers of the industry in 2021-2023. In addition, since 2022, the demand for building materials from the military sector has increased, which also contributed to higher sales.^[1]

Ceramic brick production in Russia decreased by 5.9% to 5.32 billion units

In 2023, the production of ceramic bricks in Russia amounted to 5.32 billion conventional units. This is 5.9% less than in the previous year, when the volume of the industry was estimated at 5.65 billion units. Such data are given in the BusinesStat study, the results of which were published in mid-September 2024.

The review considers ceramic bricks of various types: ordinary and front, full-bodied and with voids, single, thickened, double and shaped. Significant market players are Ural Steel JSC, Lemax LLC, Sibagropromstroy JSC, Association of Building Materials and Household Appliances LLC, Winner Vladimir LLC, etc.

It is estimated that 5.81 billion ceramic bricks were produced in Russia in 2019. In 2020, a 10.1% reduction was recorded - to 5.23 billion units. The COVID-19 pandemic forced manufacturers to partially suspend operations: companies were in a situation of uncertainty of future demand. In addition, alternative, more budgetary materials, in particular, thermal panels, were increasingly used in mass construction. Due to falling demand and the lack of visible prospects, many manufacturers have completely stopped working or significantly reduced production capacity. In 2021, the volume of ceramic brick production in the Russian Federation increased by 0.2%, amounting to 5.24 billion units. In 2022, an increase of 7.9% followed.

In general, as stated in the study, the brick industry in Russia is in a state of gradual decline, as a result of which more than 50 enterprises engaged in the production of these products were closed. At the same time, ceramic bricks are one of the most common facing materials. However, due to its high cost, it is increasingly losing in comparison with more economical counterparts.^[2]

Sales of tile glue in Russia decreased by 1.4% to 2.11 million tons

In 2023, sales of powdered tile glue in Russia amounted to 2.11 million tons. This is 1.4% less compared to 2022, when the volume of sales was estimated at 2.14 million tons. Market trends are addressed in the BusinesStat survey published in mid-September 2024.

Among the leading players in the industry, the authors of the report name Lab Industries LLC, Cementum Center LLC, Knauf Gips LLC, Knauf Gips Kuban LLC and Knauf Gips Kolpino LLC. According to estimates, in 2019, 2.03 million tons of powdered tile glue were sold on the Russian market. In 2020, due to the COVID-19 pandemic, there was a 7.6% reduction to 1.87 million tons. Then the market began to recover: in 2021, there was an increase of 12.2% with a final result of 2.1 million tons, and in 2022 sales rose by another 1.8%.

But in 2023 there was another decline. It is noted that glue for tiles is a companion product and is rarely purchased separately from tiles. At the same time, ceramic tiles are one of the most expensive finishing materials, and the price of them has increased significantly due to the resulting situation. As a result, Russians began to use other finishing materials more often, and the demand for tiles and related goods, including glue, decreased. In addition, the standards for the use of tile glue have been reduced due to the use of mixtures with innovative additives that reduce the consumption of raw materials. Another factor in reducing sales of glue is the reduction of bathroom and toilet space in new buildings to reduce the total area and cost of housing.

At the end of 2024, analysts estimate the market volume at 2.15 million tons with an increase of 2.1% compared to the previous year. By 2028, sales are expected to decline to 2.09 million tons.^[3]

Reduction of sealant production in Russia by 22% to 12.8 thousand tons

In 2023, about 12.8 thousand tons of sealants were produced in Russia. In relation to 2022, when 16.4 thousand tons of these products were produced, a sharp reduction was recorded - minus 22%. Such data are given in the BusinesStat study, the results of which were published at the end of July 2024.

According to estimates, in 2019 the volume of sealant production in the Russian Federation amounted to approximately 16.7 thousand tons, exceeding the result of the previous year by 10.8%. In 2020 and 2021, an increase in production was recorded by 12% and 27% - to 18.7 thousand tons and 23.7 thousand tons, respectively. This was followed by a rapid decline due to the formed geopolitical situation. In particular, in 2022, production decreased by 31%.

The study said that in 2022, many companies significantly reduced the production of sealants. One of the reasons was the closure of export markets for domestic suppliers and the change of owners of Russian divisions of American and European holdings. Another negative factor is the dependence of the industry on imported raw materials for the production of sealants (this is silicone, polyester resins, etc.) and spare parts for equipment. Many types of components in Russia are not produced at all or are available in a limited range.

Among the leading enterprises in the industry are named Lab Industries, Technoflex Plant, T.B.M., Huntsman-NMG, Severavtodor Group of Companies, Technonikol-Ulyanovsk Plant, Stroysistema, Russian Technical Aerosols, Selena Vostok, Lakra Sintez, NPP Rogneda, etc. It is noted that the largest share of sales on the Russian market are two-component polysulfide sealants, which are characterized by high physical and mechanical properties, convenient to operate and for which errors in dosage are not critical. In addition, one-component acid and neutral sealants are in demand.^[4]

Russian stone wool market grew by 9.1% over the year

At the end of 2023, the volume of the Russian stone wool market increased by 9.1% compared to 2022. Against the background of growing construction, there is an increase in demand for these products. This is stated in a study by the agency Abarus Market Research, the results of which are presented on July 29, 2024.

It is noted that the market for stone wool of the Russian Federation demonstrates unstable dynamics. In particular, in the first half of 2020, demand began to decline amid the COVID-19 pandemic. At the same time, the fall was avoided due to the fact that in the summer and autumn of 2020, the growth in consumption of almost all building materials resumed. In 2021, growth accelerated, there were no sharp changes, and the year ended with an increase of 9.8%. However, in 2022, due to the deteriorating geopolitical situation, a market contraction of 4.9% was recorded. But already in 2023, the industry recovered from the shocks and returned to growth.

Russian stone wool market grew by 9.1% over the year

Despite the unpredictability of market trends, major players are not abandoning plans to build new plants. Some companies, including Smolensk's Hotrock, are upgrading production and expanding capacity. The corporation Technonicol plans to build a new plant (second) in, and Rostov region the Dorhan group announced the creation of production facilities in several Russian regions at once. At the same time, as stated in the study, it is not possible to quickly replace the lost sales markets. The capabilities of the CIS countries have already been practically exhausted, while China they are provided with their own products. Remote countries, such as,,,, Vietnam, and Iraq, Peru Ethiopia Nigeria Burundi large Hong Kong volumes of stone wool do not consume.

It is also said about changing the structure of imports. In 2023, after a long break, Chinese suppliers intensified again. In addition, the Uzbek company Basalt Wool is actively developing the Russian market: in 2023, the volume of imports from Uzbekistan increased by a multiple.^[5]

The production of hand tools in Russia for the year jumped by 64.1% to 37.7 million units

In 2023, approximately 61.8 million units of hand tools were produced in Russia. The growth in relation to 2022, when the volume of such products was 37.7 million units, amounted to 64.1%. Market statistics are provided in BusinesStat materials published on July 23, 2024.

The review takes into account such products as ticks, pliers, passatiges, wrenches, hammers and sledgehammers, files, saws, screwdrivers, saws, cutters, chisels, hammers, cutting and punching tools, devices for drilling, cutting external or internal threads, etc. It is noted that the production of hand tools in Russia depends mainly on the demand for products from domestic manufacturers and the presence of a large assortment of imported analogues on the market.

According to estimates, in 2019 the volume of production under consideration amounted to 20.2 million units. In 2020, an increase of 60% followed - up to 32.3 million units. This jump is explained by the COVID-19 pandemic: instead of planned vacations and other non-home expenses, residents of the Russian Federation got the opportunity to repair their homes. In 2021, a 4.6% decline was recorded with a final result of 30.8 million units. And in 2022, the volume of production rose by 22.4% due to the deterioration in the availability of the instrument of European and American production.

At the same time, in 2023, according to BusinesStat, sales of hand tools with a drive jumped by 34% in Russia, reaching 33.6 million units. We are talking about electrical, pneumatic and hydraulic devices. It is noted that almost all such products on the Russian market are of foreign origin, while their own production is small. In addition, in 2022-2023, the production of these products in the Russian Federation decreased by 80% due to the official departure of a number of Western companies from the country.^[6]

Growth in the production of sandwich panels used in building cladding by 3.2% to 40 million square meters. m

In 2023, about 40 million square meters of sandwich panels were produced in Russia, which are used for lining buildings. Compared to 2022, the volume of output increased by 3.2%. Among other things, growth was facilitated by high demand from the state and its structures. Market analysis is provided in BusinesStat materials published on July 9, 2024.

The study considers sandwich panels of different types: with filler made of mineral or basalt wool, polyurethane foam (PUR), polyisocyanurate (PIR), as well as foam and polystyrene foam. On the one hand, as noted, the Russian market for these products is characterized by a high level of competition. However, on the other hand, the organization of such production requires significant investment, and therefore new serious players practically do not appear. Nevertheless, the struggle for customers between existing suppliers is aggravated. The use of sandwich panels allows you to reduce the period of construction of a building or other structure, therefore such products are widely used in construction in new and border regions of the country.

According to estimates, in 2019, 39.7 million square meters of sandwich panels were manufactured in the Russian Federation. The next year, the figure rose by 3.8% - to 41.2 million square meters. In 2021, an increase of another 5.7% was recorded with a final result of 43.6 million square meters.

However, in 2022, production decreased by 11.1%, amounting to 38.7 million square meters. Against the background of the deteriorating geopolitical situation, Western developers left Russia. The construction of some new buildings and structures was suspended, and some of the projects were renegotiated for cheaper materials and prefabricated solutions. But already in 2023, many sandwich panel manufacturers reoriented to new market segments, and production growth resumed.^[7].

Growth in the production of paving slabs by 61% to 41.1 million square meters. m

From 2019 to 2023, the production of paving slabs in Russia rose by 61%, reaching 41.1 million square meters. Sustained positive dynamics is provided by demand from government customers, developers and the private sector. This is stated in the review of BusinesStat, published on July 8, 2024.

The study takes into account tiles of different types: cast, pressed, ceramic, as well as natural stone and composite materials. Different manufacturing techniques may be used. Among the leading players in the industry are Mostozhelezobetonkonstruktsiya JSC, Bekam LLC, Monolitstroy JSC, Vybor-S LLC and Vinzilinsky Ceramic Gravel Plant LLC.

A feature of the Russian paving slabs market, as noted, is the uneven location of manufacturers: they are mainly concentrated in the Central Federal District. Since transporting such products over long distances is not economically feasible, some companies localize production in regions with sufficient demand. For example, the company "Porevit," having an operating plant in the Tyumen region, organizes the production of products in Yekaterinburg.

According to BusinesStat estimates, in 2019, 25.6 million square meters of paving slabs were manufactured in the Russian Federation. In 2020, production rose by 15.9 to 29.6 million square meters, and in 2021, an increase of another 35.5% was recorded with a final result of 40.2 million square meters. In 2022, an increase of 2.2% was noted - up to 40.9 million square meters. In 2023, an increase of another 0.5% followed.

One of the factors of a steady increase in demand for paving slabs is an increase in the number of landscaped public areas: if in 2019 there were about 7 thousand of them, then in 2023 - 27.7 thousand. In addition, the number of individual residential buildings built is growing, in the territories of which paving slabs are also often used.^[8].

Concrete block sales growth by 9.2% to 16.1 billion notional bricks

In 2023, sales of concrete blocks in Russia reached 16.1 billion conventional bricks. This is 9.2% more than in the previous year, when the volume of sales was estimated at 14.7 billion units. The main source of demand for these products is housing construction, as stated in a study by BusinesStat, the results of which were published on April 19, 2024.

The given statistics include small wall blocks and stones made of concrete, blocks made of cellular concrete, as well as large wall blocks made of concrete. It is said that the needs of the Russian market in these products are almost completely met by domestic manufacturers: the average share of imports in sales in 2018-2022 was 0.9%.

The dynamics of production and sales of concrete blocks in Russia responds flexibly to the state of the construction industry. In 2019, approximately 9.7 billion conventional bricks were sold. In 2020, a 5.8% decline followed - to 9.1 billion units. The COVID-19 pandemic and the forced self-isolation regime had a noticeable negative impact on the new housing market, which contributed to a decrease in demand for concrete blocks. But already in 2021, sales jumped by 36.6% - to 12.5 billion conventional bricks, and in 2022 the increase was at around 17.9% with a final result of 14.7 billion units. At the same time, as noted, in 2022-2023, the needs of the army, border and new regions became additional sources of demand for concrete blocks.

According to BusinesStat estimates, in 2018-2022, the production of concrete blocks in Russia increased by 38.4% - from 9.22 billion to 12.76 billion conventional bricks. The maximum growth in production was noted in 2021 - by 39.2% compared to the previous year. This was influenced by an increase in construction volumes associated with the lifting of coronavirus restrictions and the implementation of the preferential mortgage program. The largest volume of production among all types of products falls on blocks of cellular concrete: in 2022 their share was approximately 88.4%.^[9]

Growth in concrete production by 9.8% to 66.6 million cubic meters

In 2023, 66.6 million cubic meters of concrete were produced in Russia, which is 9.8% higher than a year ago. This was announced in April 2024 by BusinesStat analysts.

According to them, concrete production in the Russian Federation has grown against the background of a record total area of ​ ​ apartment and individual housing houses commissioned in 2023. In addition, the rise in demand for concrete was facilitated by work on the restoration and integration, and LPR DPR Zaporozhskaya Hersonskaya areas - the restoration of infrastructure, the construction of defensive structures.

The following companies are the largest producers of concrete in Russia as of 2023: Aerodorservice, Beaton GK, Monolith Road Construction Company, Kursk Large Panel House Building Plant named after A.F. Deriglazova, Megastroyinvest, "", "", Mostogel concrete constructionNorilsk Support ComplexPermtransjelezobeton"", "" Renstroydetal, Rudstroy"", "", Tyumen House Building Company"" Khotkovsky Auto Bridge, "", Electrical Engineering Company"" "and Erkon others.^[10]

According to the Soyuzcement cement manufacturers association, cement production in Russia in 2023 increased by 3% compared to the previous year, to 62.6 million tons. And the consumption of cement in the Russian Federation during this time increased by 5%, to 64.9 million tons. Cement imports to Russia by 51%, amounting to 3.1 million tons, exports increased by 6% - to 971 thousand tons, the association said.

Sales growth of dry building mixtures by 8.4% to 15.6 million tons

Sales of dry building mixtures (tile glue, sand concrete, floor screed, putty, plaster, etc.) in Russia in 2023 reached 15.6 million tons, which is 8.4% more than a year earlier. Such figures are contained in a study, as a result of which the analytical agency BusinessStat released in April 2024.

According to analysts, the situation in the domestic market for building mixtures has stabilized after large foreign manufacturers, including Henkel and Holcim, announced their departure from the Russian Federation. For a long time, the fate of the Russian business of Henkel and Holcim was in question, and as a result, the companies decided to transfer their plants to local management. At the beginning of 2023, the former assets of Henkel officially passed under the name Lab Industries, and the plants of Holcim - under the brand "Cementum." The remaining foreign concerns continued to work without significant changes.

One of the main catalysts for the growth of the Russian market for dry building mixtures, as well as other building materials, is the high pace of housing construction. So, in 2023, about 465.5 thousand buildings were built with a total area of ​ ​ 175 million square meters. m, 9% higher than a year ago. At the same time, the growth in product prices slowed down due to the optimization of logistics and the gradual replacement of scarce imported components previously supplied from European countries to similar local or from other countries, the researchers note.

According to the results of 2023, the following companies were named the largest producers of dry building mixtures in Russia (their shares are not given):

• Lab Industries LLC;
• LLC "Holsim (Rus) SM";
• Knauf Gips LLC;
• Knauf Gips Kuban LLC;
• Knauf Gips Kolpino LLC^[11]

Growth in sales of building and finishing materials and household goods by 12% to 2.8 trillion rubles. Leaders

The volume of sales of construction and finishing materials and household goods in Russia in 2023 reached 2.8 trillion rubles, an increase of 12% compared to the previous year. This is evidenced by the data of the analytical company NFOLine, released in April 2024.

As Kommersant writes with reference to this study, the top 10 retailers, whose revenue in 2023 increased by 11.2%, included VseTools, Petrovich, Stroitelnaya Dvor, Saturn, Bautsentr, Maksidom, OBI and Megastroy. Leroy Merlin is still the leader. Together, these companies earned about 1.05 billion rubles in 2023.

The volume of sales of construction and finishing materials and household goods in Russia in 2023 reached 2.8 trillion rubles

According to the study, by the end of 2023, online sales in the DIY category increased significantly in the Russian Federation. On the Internet market for household goods and repairs, they grew 2.4 times, to 276 billion rubles. The share of traditional DIY chains in online sales amounted to 43.3%, marketplaces increased their share of sales in this segment to 41.9%.

One of the main problems of the DIY market remains the shortage of personnel. This applies not only to repair teams, but also to the logistics sector. So, according to INFOLine, 10% of freight transport is currently idle due to a lack of drivers. While among consumer trends, on the contrary, the service of ordering materials and turnkey repairs is gaining popularity in one place. INFOLine noted that the younger generation of buyers in this regard is significantly different from the older generation and prefers not to do these works on its own, but to entrust them to specialists.

According to researchers, the key challenges of the industry in 2024 will be increased competition between retailers and marketplaces, as well as different delivery formats. The market will be affected by digitalization, automation, direct and parallel import processes, as well as retail partnerships in supply chains, analysts say.^[12]

Growth of the market for building materials and household goods by 5% to 3.3 trillion rubles

The volume of the Russian market for building materials and household goods in 2023 increased by 5-6% compared to 2022 and reached 3.3 trillion rubles. Leroy Merlin cited such data in his study, published at the end of March 2024.

According to analysts at the retailer, sales in the DIY & Household and Furniture segment (building materials, home goods and furniture) in 2023 increased due to preferential mortgage programs, increased demand for building your own home and increased incomes of the population.

The volume of the Russian market for building materials and household goods in 2023 increased by 5-6%

In addition, the growing interest of citizens in the improvement of the house, summer cottage and garden, as well as the development of additional complex services for buyers (design, design, construction, installation, etc.).

The fastest growing segments of the market are:

• construction materials (an increase of 16% compared to 2022);
• carpentry (+ 12%);
• instruments (+ 10%);
• flooring (8%).

Wildberries estimated the volume of the Russian market for building materials and household goods at 1.4 trillion rubles at the end of 2023. Furniture sales amounted to 444.9 billion rubles, which is 37% more than in 2022, according to the Association of Furniture and Woodworking Enterprises of Russia (AMDPR).

As noted in the Leroy Merlin study, offline stores are still the main channel for buying household goods and repairs, but there is a trend towards an increase in the share of online sales in this segment. This applies primarily to decorative items and accessories, as well as goods for construction. According to analysts at the retailer, in 2023, the share of online sales in the home goods market exceeded 30%, and by 2025-2026. it will amount to more than 50%. At the same time, the Housing & Furniture segment (+ 56% yoy) showed the most dynamic growth in 2023 in the online channel against the background of the DIY segment dynamics of +^[13]

2022

In Russia, the production of construction metal structures increased by 13.4% - up to 8.5 million tons

The production of construction metal structures in Russia in 2022 reached 8.5 million tons, which is 13.4% more than the previous year. This is stated in a study by the analytical company BusinesStat, which was published in December 2023.

It follows from the analytical report that in 2022, relative to 2018, the volume of production of metal structures for construction purposes soared by 68.6%. The rise followed an increase in demand for metal structures in the domestic market. The most significant increase in output was noted in 2021-2022, when a large number of projects were implemented in the field of construction, repair and construction of buildings in the state and commercial sector. The growth of output was also facilitated by the state exchange rate for import substitution, within the framework of which significant funds were allocated for the modernization and expansion of production of domestic companies, according to the study.

According to analysts, Russian metal structures annually occupy more than 95% of sales in the Russian Federation. Thus, Russian manufacturers almost fully cover the needs of the domestic market. The decrease in the share of imports was mainly facilitated by the country's provision of its own raw materials, and in 2022 the sanctions of Western countries on the import of metal structures into Russia were added to this. The reduction in foreign supplies of metal structures allowed domestic manufacturers to expand their presence in the market, researchers say.

Steel structures are used as frames of buildings, wall skins or roof panels, as well as for strengthening foundations, erection of bridges, mine construction, hydraulic structures, power lines, etc.^[14]

7% reduction in home insulation production

The volume of the Russian market for mineral (stone) wool used for thermal insulation of buildings decreased by 7%, and the export of these products from the Russian Federation decreased even more - by 7%. Such data are given in a study by Abarus Market Research, published in November 2023.

According to analysts, domestic demand for stone wool sank due to the expected overheating of the new housing market, and foreign trade fell due to sanctions. Many large players have been actively working for export for several years, but in 2022 Western sales markets began to close for them.

Kazakhstan remained the largest foreign market for Russian mineral wool in 2022, the share of which increased from 33% to 39%. Experts note the growth of Finland's share from 10% to 17% and attributed this to the fact that Finnish consumers were stocking up on Russian insulation for future use, on the eve of an almost complete ban on supplies.

At the same time, the shares of Western and Baltic countries decreased sharply, each of them in 2022 took less than 1% in the total mass of exports, while earlier Latvia accounted for 4-5%, Poland - about 3-4%, Estonia - 2-3%, Ukraine - more than 2%. Also, importers of Russian stone wool previously included Lithuania, Sweden, Serbia, Romania, the Czech Republic and other European states, but in 2022 supplies there practically stopped.

In 2022, there were rumors that the Technonikol holding could buy the Finnish Parok plant and thereby increase its market share from 44% to 47% at once, as well as begin construction of two new plants. But the Parok enterprise was bought by Rosatom Corporation and returned to the Tver plant its former name - Isoplit (Umatex Termo brand). The value of this deal was not disclosed.^[15]

Decrease in the export of roofing tiles by 2 times

The export of roofing tiles from Russia in 2022 halved due to the introduction of Western sanctions after the start of the Russian military special operation in Ukraine. Analysts at ABARUS Market Research reported this in October 2023.

According to experts, before the sanctions crisis, 31-33% of all shingles produced in Russia were sent abroad, and in 2022 this share fell to 16%. Researchers call the companies TechnoNICOLE (Shinglas), Doke Pie, Tegola and IPC KRZ (Roofshield) the largest exporters of these products.

Flexible tiles from Russia are supplied mainly to neighboring countries: to Ukraine, Belarus, Kazakhstan, Moldova, Azerbaijan, Kyrgyzstan, the Baltic countries and some other states. The main market for Russian flexible tiles for a long time was Ukraine - from 60% to 80% of all exports until 2022 went there. Kazakhstan's share was 10-12%. Belarus has become an active consumer of Russian flexible tiles in the past three years, according to a study published in October 2023. European countries also eagerly purchased a domestic product, but now this direction is banned.

According to experts, in 2021, the production of flexible tiles in the Russian Federation amounted to more than 30 million square meters. m, but in 2022 it seriously decreased. According to a study by ABARUS Market Research, the market volume fell by 9.9% over the year, in 2022 it amounted to about 23 million square meters. meters, which means that flexible tiles occupy almost 10% of all materials for pitched roofs.

Among the manufacturers of flexible tiles in Russia, there are few players - only five (for comparison, in the metal tile market - more than 200), but for this segment this is more than enough, analysts emphasize.^[16]

Growth in sales of plastic pipes for utilities by 57.4% to 1.04 million tons

Sales of plastic pipes for utilities in Russia in 2022 continued to grow. This is evidenced by the data of the analytical company BusinesStat, released in September 2023.

According to the study, the market size of pipes, pipes, hoses and their fittings made of plastics in the Russian Federation in 2022 reached 1.04 million tons, which is 13.3% more than a year earlier, when the market growth rate was measured by 29.9%.

According to analysts, the largest growth rates in sales fell on 2021 and 2022 - 29.9% and 13.3%, respectively. This was thanks to the national gasification program, as well as federal programs to replace dilapidated and emergency housing and communications. There was also a growing demand for industrial and commercial housing. In addition, in recent years, there has been a large influx of funds into the development of domestic infrastructure and housing projects, the analytical report notes.

The share of imports in the domestic market of pipes, pipes, hoses and their fittings made of plastics is small and tends to decline: according to BusinesStat estimates, in 2018-2022 it decreased from 15% to 10%. As part of the eighth package of sanctions introduced in October 2022, the European Union banned the supply of polymer engineering products to Russia. This led to a 7.2% reduction in imports of pipes, pipes, hoses and their plastic fittings to Russia in 2022.

Researchers predict that 2023 billion rubles will be additionally allocated for infrastructure projects in the housing and communal services sector 250 year. This will further increase sales of pipes, pipes, hoses and their plastic fittings in Russia. The share of Russian products in the market will continue to grow, and foreign products will decline, according to BusinesStat experts.^[17]

The production of heating radiators in Russia in 4 years increased 2.3 times to 14.2 thousand megawatts

The production of heating radiators in Russia in 2022 reached 14.2 thousand megawatts, which is 2.3 times more than in 2018, when the indicator was measured 6.1 thousand megawatts. This is evidenced by the data of the analytical agency BusinesStat, released in August 2023.

According to the researchers, the total capacity of heating radiators produced in the Russian Federation in 2022 increased by 11% thanks to a measure of state support for the construction industry. Thanks to this pandemic (we are talking about the COVID-19 coronavirus pandemic), the period was passed almost without losses - the growth rate of production in 2020 only decreased to 6.9%, but the volume of radiators produced continued to grow, analysts say. The growth in population demand for suburban construction and apartment repairs in 2020-2022 also had a positive effect on the Russian production of heating radiators.

Another factor in the growth of domestic production in recent years has been an increase in the shipment of radiators for export. If in 2018 exports amounted to 0.6 thousand megawatts, then in 2021 - already 1.5 thousand megawatts. As a result, in 2018-2021 the share of heating radiators shipped for export increased from 9.4% to 12.1% of total production. In 2022, due to the crisis and sanctions, export volumes decreased, amounting to 1.4 thousand megawatts or 9.8% of domestic production.

In 2023, it is expected to increase the production of heating radiators relative to 2022, as before, the bulk of the produced products will be supplied to the domestic market, less than 10% of the output will be exported. The high rates of commissioning of residential real estate and the need to restore new regions of the Russian Federation will positively affect the volume of products produced.^[18]

The volume of consumption of facing ceramic tiles per capita in Russia reached a record of 690.25 rubles/person.

The volume of consumption of facing ceramic tiles per capita in Russia in 2022 reached a record value of 690.25 rubles/person, which is 28.7% more than a year earlier. Such data in August 2023 were published by analysts of the market research agency GuideMarket.

According to experts, the Russian ceramic tile market continues to develop, despite some fluctuations in consumption volumes. According to the study, the average annual increase in consumption is 9.7%.

According to the researchers, one of the noticeable trends in consumer preferences in the market is the growth in demand for natural and environmentally friendly materials. Consumers are increasingly paying attention to the environmental safety and sustainability of materials, and ceramic tiles, with their natural composition and durability, meet these requirements.

Another trend, analysts called the growing interest in design and diversity. Consumers are looking for unique and stylish solutions for their interiors, and ceramic tile manufacturers are responding to this demand by offering a wide range of colors, textures and formats.

The next trend is the growing demand for decorative elements and ceramic tile mosaics. In addition, there has been an increase in interest in innovative technologies and new materials in the production of ceramic tiles. Manufacturers are introducing new processing and coating methods, creating tiles with improved characteristics, such as resistance to scratches, stains and moisture. Finally, analysts note the growing popularity of large tile formats. Large tiles create a space effect and minimize the number of stitches, making the interiors more modern and stylish.^[19]

Imports of ceramic tiles decreased by 53.7%, exports - by 79.9%

The volume of exports of ceramic tiles and porcelain stoneware from Russia amounted to 5.5 thousand square meters. m, which is 79.9% less than a year earlier. Imports of these products also decreased significantly - by 53.7%, to 25 thousand square meters. m. This is evidenced by data from a study conducted by NeoAnalytics. Some excerpts from this report were published in July 2023.

According to the study, sales of ceramic tiles and porcelain tiles in Russia in 2022 exceeded 200 thousand square meters. m, which is 3.7% less than a year ago. The peak of sales in retrospect of the period 2018-2022 occurred in 2021, when deferred consumer solvent demand was implemented after the pandemic (we are talking about the COVID-19 coronavirus pandemic) 2020. In addition, in 2021, a positive trend in the volume of housing construction continued.

In 2022, negative dynamics was observed in all three segments: production, import and export. However, if domestic output decreased slightly, then export-import supplies fell significantly, both in kind and in value. The share of domestic production prevails in the structure of the ceramic tile and porcelain stoneware market volume, which in 2022 was about 90%.

Domestic production of ceramic tiles and porcelain tiles in physical terms in 2022 decreased by 0.3% compared to the same indicator a year earlier. In the structure of importing countries, the leader has changed - Italy, which in 2021 ranked first, a year later dropped to second. Who in 2022 is located on the first line, NeoAnalytics does not specify.

The average retail cost of ceramic tiles in Russia in 2022 increased by 1.9% compared to 2021 - to 789.2 rubles.^[20]

Sales of self-cutting screws in Russia decreased after an increase of 40.1% - to 111.4 thousand tons

In 2022, 111.4 thousand tons of self-cutting vehicles were sold in Russia, which is 24.8% less than a year earlier, when the market volume showed 40.1% growth. This is evidenced by the data of analysts at GuideMarket. Excerpts from their study were published on July 12, 2023.

According to experts, the volume of the Russian self-cutting market has multidirectional dynamics in physical terms. This is due to fluctuations in import volumes and high demand for self-cutting screws.

In 2021, the market volume reached a maximum value of 148.08 thousand tons, while the share of imported products amounted to 95.9%. In 2020, the market volume fell to 105.69 thousand tons due to a reduction in imports and domestic production due to the COVID-19 pandemic and the closure of borders.

According to the study, in 2022 the volume of self-cutting in Russia amounted to 10,387 tons, which is 4.4% more than a year ago. Experts emphasize that the dynamics of production volumes does not always correlate with the dynamics of the volume of the domestic self-cutting market. To a greater extent, the volume of the market depends on the volume of imports and its fluctuations. A more detailed examination of the import and export indicators shows that the share of exports in the production of self-cutting screws is significant.

State support measures and import substitution programs contribute to the development of domestic production. In April 2022, NLMK-Sort (part of the NLMK group) announced that the issue of localizing the production of self-cutting screws in Russia is more acute than the production of nails, since 85% of self-cutting screws on the Russian market are imported. The company pointed out that with a low volume of investments in production and the availability of sufficient raw materials, entrepreneurs do not go to this segment of the market due to cheaper and less high-quality imports.^[21]

Production of heat and insulation materials in Russia decreased by 8.3% (to 78 million cubic meters) after an increase of 30.9%

The production of heat and insulation materials and products in Russia in 2022 turned out to be equal to 78 million cubic meters, which is 8.3% less than in the previous year, when there was an increase of 30.9%. Such data in June 2023 leads BusinesStat analysts.

According to them, the sanctions crisis, on the one hand, led to a decline in sales within the country, on the other, to a loss of buyers from abroad, and, consequently, a decrease in exports of products.

According to the study, heat and insulation materials of domestic production prevail on the Russian market, and the production structure as a whole repeats the sales structure. In 2018-2022 the share of mineral insulation averaged 57% of all-Russian production, the share of polymer insulation - 23%, the share of fiberglass-based products - 20%.

From the report published in June 2023, it also follows that in Russia the last 7 years have not opened new enterprises for the production of mineral fiber, which experts attribute to the high cost of equipment and the long payback period of new plants, as well as the lack of finished infrastructure. Market participants note that the capacity for the production of mineral insulation was almost completely loaded at the end of 2020, and in 2021 there were difficulties with meeting the new round of demand. As a result, some consumers reoriented to other types of isolation.

In 2018-2022 imports of heat and insulation materials and products to Russia decreased by 31.8%: from 0.43 to 0.30 million m3. This was mainly influenced by the decline in 2022 (-34.2%). The sanctions affected only mineral isolation: the EU and the United States imposed a ban on its supply to Russia. However, many European partners refused to cooperate with Russia: in 2022, imports from the European Union and the United States decreased by 3.7 times: from 0.19 million m3 in 2021 to 0.05 million m3 in 2022.^[22]

Russian ceramic tile market sank 49.3% to 2.85 million units

The volume of the Russian ceramic tile market in 2022 amounted to 2.85 million pieces, which is 49.3% less than a year ago. The decline came after an 11.8 percent increase in product sales in 2021, according to analysts at BusinesStat (their study was released in June 2023). According to them, the market sank due to the following factors:

• slowdown in construction amid sanctions;
• reduced assortment due to limited availability of imported products. The countries EU Great Britain imposed a ban on the export of ceramic tiles to, Russia as a result, the supply of products from manufacturers such as Roben,,, BRAAS Wienerberger Erlus and others was suspended. Due to the lack Russia of shingles in the established serial production, stocks decreased to a critical level, individual brands and colors of shingles were inaccessible, or delivery times increased significantly;
• the rise in price of ceramic tiles associated with an increase in transport and logistics costs, interruptions in supplies due to sanctions.
• reducing purchasing power and changing consumer behavior of the population. In the context of an increase in the cost of construction, Russians were inclined to save money and made a choice in favor of more budgetary building materials: metal tiles, cement-sand tiles, soft roofs.

In 2022, the export of ceramic tiles fell sharply and amounted to only 0.18 thousand units. The current situation was associated both with a reduction in the export of tiles to Azerbaijan, and with the suspension of supplies to Ukraine against the background of a breakdown in diplomatic and trade relations between the countries. In 2022, sales of ceramic tiles in Russia decreased by 49.3% and amounted to 2.85 million units. The port of ceramic tiles from Russia is extremely small compared to imports, mainly in the nature of unsystematic transactions, so the dynamics of the indicator is unstable, analysts say.^[23]

Production of dry building mixtures in Russia jumped by 61.5% to 15.4 million tons

In 2022, the production of dry building mixtures in Russia reached 15.4 million tons, an increase of 61.5% compared to 5 years ago. The high growth rates of the market are explained by the consistently high demand for products within the country, as well as the fact that domestic mixtures successfully compete with foreign counterparts, BusinesStat analysts said in May 2023. According to them, the demand for dry building mixtures grew under the influence of the following factors:

• In recent years, there has been a tendency to reorient demand from sand-cement mortars towards dry building mixtures, which are produced at the factory (and not at the construction site), which ensures the stability of the specified properties and the quality of the mortar. Dry building mixtures are often more preferable, since their use increases labor productivity, reduces the cost of materials, and due to mineral and polymer additives, it allows solving specific problems.
• Programs of preferential and rural mortgages, maternity capital stimulated mass housing construction.

The lowest growth rate in the production of dry building mixtures was observed in 2022 (+ 6.6%). The main problem for the industry in 2022 was the almost complete disconnection from Western technology. According to experts, 80% of the equipment for the production of dry mixtures is imported.

In 2022, first, the termination of investments in Russia, and then the departure was announced Henkel and, Holcim but their factories continued to work. At the end of the year, Henkel and Holcim transferred the management of Russian assets to local management, now the products will be produced under new brands. However, there was high competition in the market, which could not weaken the departure of foreign manufacturers.^[24]

2019: The rise of the market on state programs

In 2019, the renovation program and other state programs contributed to a sharp increase in demand for building materials.

Russia remains one of the largest importers of building materials, but in recent years the authorities have been making efforts to replace imports.

Over the previous few years, the volume of production and sales of gypsum board, sinus slabs, reinforced concrete, dry building mixtures has significantly increased, paints, varnishes and many other types of building materials.

See also

• Construction equipment (Russian market)

Notes