The country's cement sector witnessed a slight recovery in the last calendar year (2025) following a continuous decline for the previous three years (2022-2024).
Approximately 40 million tonnes of cement were sold last year, marking a nearly 5.0-percent increase from 2024, when the amount of sales was slightly below 38 million tonnes.
Cement sales stood at nearly 39 million tonnes in 2021. Since then, the sector went on witnessing a slight negative growth every year, as sales remained just above 38 million tonnes in 2022 and 2023 before slipping below 38 million tonnes in 2024, according to industry sources.
Sector insiders note that rural infrastructure development led by the private sector has been a key driver of the growth, even as mega projects and new investments across the country have slowed.
When contacted, President of Bangladesh Cement Manufacturers Association (BCMA) Mohammed Amirul Haque said the sector had been under pressure due to a weak demand amid an economic slowdown and political uncertainty before showing a sign of recovery last year.
"When discussions for holding the national election began last year, people started gaining confidence that an electoral government would be more responsible and accountable to the country and its people," said Mr Haque, who is also the Managing Director of Premier Cement Mills.
"We started seeing some improvement in demand as people gained confidence that an elected government would come, and construction activities gradually resumed."
Though developments of mega projects are not going on in full swing, rural infrastructure development has remained buoyant in recent years, sustaining demand for the construction materials.
With the financial backing of family members or relatives abroad, rural people are opting for concrete structures for their accommodation instead of traditional ones, he said.
He also expressed the hope that the newly-elected government will create an enabling business environment leading to an increased number of infrastructures.
"We are hopeful that the sector will recover further. Demand is already improving and it may increase even more in the coming months, particularly in April and May."
He, however, expressed concern over the Middle East conflict which may impact adversely on the overall economy through disruption in energy supply.
According to sources, though it witnessed a growth of nearly five per cent last year, the factories are still running much below their production capacity of nearly 86 million tonnes per year.
Currently, around 40 companies, including seven listed ones, are operating in the country. The sector has created direct employment for 60,000 people, while indirect employment amounts to over a million.
Bangladesh's per capita consumption was estimated at 223 kg in 2025 while global average consumption is nearly 600 kg.
Industry operators say the gap between installed capacity and actual demand reflects the challenging business environment the sector has faced in recent years.
Besides, the sector faces heavy tax burden on import of raw materials, as well as on earnings.
Bangladesh depends on import of all raw materials -- clinker, slag, limestone, fly ash, and gypsum -- for cement production, making the industry vulnerable to fluctuations in global commodity prices and freight rates.
saif.febd@gmail.com
© 2026 - All Rights with The Financial Express
