A new report by market research firm Frost & Sullivan forecasts that demand for cement additives in South Africa and Nigeria will grow at an annualised rate of 71 per cent as companies look to differentiate themselves from their competitors.
"The weak rand and naira are making it expensive for cement additives manufacturers to continue importing products," noted Frost & Sullivan Visionary Science Industry Analyst, Constance Nyambayo. "As cement companies look to novel, cost-effective additives to differentiate themselves, additive manufacturers can drive consumption through technology-led, high-margin products that are locally manufactured."
The market for additives in both countries is dominated by GCP Applied Technologies, Mapei International, Chryso Southern Africa, BASF, Sika South Africa and Unisol, all of whom have long standing supply agreements with key cement manufacturers. Frost & Sullivan predicts that their prominence will grow further as smaller rivals are squeezed out by rising R&D costs.
