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Further growth in construction materials demand expected in 2025/26
A large number of sectors, regions and major projects will be pushing demand higher over the next 12 months
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Concrete and quarry products have seen consistently rising demand for around five years now, since mid-2020. The HomeBuilder boost to residential building in 2020/21, was followed by a major upturn in road and rail, a renewable energy boom and a surge in some selected building types.
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The May 2025 edition of Macromonitor's Australian Construction Materials Forecasts predicts further growth of around 4% in premixed concrete demand, and around 6% in quarry product demand, during 2025/26. Asphalt demand has not been as strong in the past two years but is expected to rise by around 9% in 2025/26.
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The next edition of these forecasts, incorporating the latest State Government Budgets, and all other project and activity updates, will be published by Macromonitor in early August.
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The drivers of the expected demand growth in 2025/26 will be:
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- The start of another upturn in residential building, due to strong immigration, cuts in interest rates and supportive government policies,
- High levels of road construction, boosting quarry products and asphalt,
- The renewable energy boom, with materials demand particularly benefiting from wind farms and pumped hydro projects, and
- Substantial growth in a selected number of non-residential building segments, such as hospitals, data centres and recreation (including Olympics projects in QLD).
Looking at the road construction segment, key drivers of demand in 2025/26 will include projects such as:
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- Bruce Highway upgrades in QLD,
- Key motorway projects in Sydney (M7 - M12 integration, Western Harbour Tunnel / Warringah Freeway),
- The Third Runway and North-East Link in Melbourne,
- A number of Pacific Highway Upgrades (e.g. Coomera Connector, Coffs Harbour Bypass, Motorway Extension to Raymond Terrace), and
- Some large projects in WA (Roe Highway / Great Eastern Highway Bypass, Tonkin Highway Upgrades and Bunbury Outer Ring Road).
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Macromonitor will be publishing the next edition of our Australian Construction materials Forecasts in early August. Please get in touch with us if you have a need for data or forecasts for the construction materials sector.
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Our most recent reports:
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Australian Construction Cost Trends
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This report examines the outlook for construction costs, in detail be sector and type of input.
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Australian Construction Projects Database
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This latest list of projects corresponds with our fully revised set of forecasts published in November 2023.
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Australian Regional Construction Outlook
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Our latest regional forecasts for residential building and construction have just been released.
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Australian Construction Materials Forecasts
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Our latest forecasts assess the implications for construction materials demand of the current outlook for building and construction.
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Australian Road and Bridge Works
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This report examines the strength and composition of the current upturn, and determines the likely timing of the peak, and subsequent decline.
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