Demand for Asphalt Products to Grow

World demand for asphalt products is projected to increase 2.6 percent per year to 123 million metric tons in 2011, according to a study by Cleveland-based market research firm the Freedonia Group.

Growth prospects for asphalt will vary widely, with the more developed areas (North America, Western Europe and Japan) registering relatively slow gains, while developing economies will post much more robust advances.

North America is the largest regional market for asphalt, accounting for 33 percent of total world demand in 2006. The U.S., with its extensive network of roads and highways and its expenditures on construction activity, represents the largest national market for asphalt, and dominates North American consumption. Western Europe accounted for 21 percent of world demand in 2006. However, both Western Europe and North America are relatively mature markets and will exhibit below average rates of growth through 2011, as will Japan, another highly industrialized, mature market, according to the report.

In contrast, prospects for asphalt are much more robust in the rest of the world, according to the Freedonia Group study. In the Asia/Pacific region, which accounted for 30 percent of total world demand in 2006, growth is being driven by the rapid industrialization being undertaken in developing industrial economies, most notably in China and India, but also in smaller markets such as Indonesia, Thailand and South Korea.

Paving products, which accounted for 84 percent of the world asphalt demand in 2006, will continue to dominate consumption, reflecting improved levels of road building activity. Generally, asphalt emulsions and polymer modified asphalts will post faster gains, while asphalt cement and cutback asphalts will lag. Demand for asphalt roofing products will increase 1.8 percent annually to 16 million metric tons in 2011. Gains will benefit from increasing construction activity and growing market penetration in countries where asphalt roofing currently accounts for a relatively small portion of total roofing demand.

The full report “World Asphalt” is available for purchase through the Freedonia Group at www.freedoniagroup.com.