One of the most important economic pillars in Bangladesh is the cement sector. The nation underwent a dramatic change within the past 20 years.
It has made a name for itself as a significant producer with plans to export regionally. However, the country was dependent on cement imports in the beginning.
All the major cities consist of growing urbanization, massive infrastructure projects, and a booming real estate market. Thus, the demand for high-quality cement is greater than ever.
We go over the most recent developments in Bangladesh’s cement business in 2025 in this blog post. Emphasize its major advancements, difficulties, and prospects as well.
Market Overview (2025)
As of 2025, the country’s cement industry has an estimated production capacity of 60 million metric tons annually. Although the demand is about 35 to 40 million tons. Thus, a massive amount of surplus is produced every year and makes the industry competitive.
Currently, the sector comprises 30+ active companies. It includes Tiger Cement, Shah Cement, LafargeHolcim, Bashundhara Cement, HeidelbergCement, and many more.
Despite the current capacity, the sector receives continuous investment. Also, it has potential for capacity expansion. It is due to an optimistic forecast for domestic consumption and export growth.
The Bangladesh Cement Manufacturers Association (BCMA) projects a compound annual growth rate (CAGR) of 8-9% over the next five years. It will be driven by government infrastructure and urban initiative projects (1).
Key Trends Shaping the Cement Industry in Bangladesh
Expansion of Production Facilities
Major cement companies are scaling up their operation. It is done to address the increasing local and international demand.
For instance, at Tiger Cement, we operate the largest ball mill in Bangladesh. The ball mill has an impressive production capacity of 1.512 million metric tons per year. Thus, these expansions are crucial for continuous supply. It helps to improve production efficiency and maintain the quality of the cement products.
Sustainability and Eco-Friendly Production
In recent years, we have noticed a significant shift toward eco-friendly cement manufacturing practices. As we move forward, this change will be more prominent. Many manufacturers are increasingly utilizing the alternative fuel and raw materials. It includes rice husk, fly ash, and industrial waste.
In the long term, it will help reduce our dependency on fossil fuels. This approach helps the cement companies to minimize the production costs. But, most importantly, reduce the environmental impact around the country.
The World Cement Association highlights that adopting low carbon, sustainable cement production methods can result in substantial reduction. It includes 30% fewer CO₂ emissions (2).
Government-Led Infrastructure Boom
In Bangladesh, many government-led mega projects are under construction. It continues to be the key driver of cement consumption.
For instance, the landmark projects like the Padma Multipurpose Bridge, Dhaka Metro Rail, Karnaphuli River Tunnel, and the Rooppur Nuclear Power Plant require vast quantities of high-quality cement.
Several cement producers are working together to supply in order to meet the demand. These cement brands are certified by reputable bodies like ISO 9001, BUET, and BSTI. As a result, their cement products are high in demand for such national projects.
At Tiger Cement, we have attained such local and international certifications. Therefore, playing an important role in government infrastructure projects.
Growth in Cement Exports
As mentioned earlier, there is an expanding surplus capacity of cement production each year. Hence, it turned into an opportunity to tap into regional export markets. It includes India’s northeastern states, Nepal, and Myanmar.
According to the Daily Star, cement exports from Bangladesh surpassed $15 million in 2024. It has tremendous potential for future growth. But it is only possible if we improve logistics and have better trade agreements (3).
Technological Advancements and Digitalization
Just like any other industry, digital transformation in this industry is another notable trend. We are witnessing cement companies adopting cutting-edge technologies. It includes automation, the Internet of Things (IoT), and Artificial Intelligence (AI). These tools drive efficiencies, improve product quality, and optimize resource management.
At Tiger Cement, we have integrated advanced technologies into our operation. It includes the 4th Generation High Efficiency Classifiers (HEC) and precision grinding equipment. These machines help us maximize energy efficiency and ensure quality consistency in our product.
Challenges Faced by the Industry
- Import Dependency: A significant portion of essential raw materials is primarily imported from Vietnam, India, and Thailand. It includes clinker and gypsum. Any global supply chain disruption can make the industry extremely vulnerable.
- Volatile Energy Prices: The cement manufacturing process is energy intensive. A slight fluctuation in electricity and fuel costs can negatively impact profitability for cement companies.
- Competitive Pressure: In the past decade, the number of players in this industry has significantly increased. Thus, with market competition, it led to pricing pressures. Thus, manufacturers tend to undercut prices to secure construction projects. As a result, it leads to squeezing profit margins for the companies.
- Environmental Compliance: A continuous flow of investment is required to comply with increasingly stringent environmental regulations.
Future Outlook (2025–2030)
Looking forward, the cement sector’s growth remains strong and optimistic.
Bangladesh’s cement demand increased from 31 million metric tons in 2019 to approximately 38 million metric tons by 2024. It will be driven by rural development, increased urbanization, and infrastructure expansion.
This pattern represents a CAGR of 6.7% to 8%. The industry analysts project cement demand may reach 45-48 million metric tons annually by 2030. It is only possible if there is continuous investment in production capacity, tech advancements, and sustainable practices (4) (5) (6).
In 2025 and onwards, the adoption of technology and innovative practices will be crucial. Also, keeping in check with environmental sustainability to stay compliant with regulations.
Last Few Words
The cement industry in Bangladesh is undergoing a dynamic transformation. It is influenced by robust domestic demand, expanding export opportunities, and the adoption of sustainable and technologically advanced production processes.
Cement manufacturers, especially market leaders like Tiger Cement, continue to drive forward industry advancements. Thus, ensuring that Bangladesh’s infrastructure ambitions are met sustainably and efficiently.
References:
- Bangladesh Cement Manufacturers Association (BCMA), “Cement Industry Overview 2024” https://bcma.org.bd/reports/cement-industry-2024-overview/
- World Cement Association, “Sustainability in Cement Production (2024)” https://www.worldcementassociation.org/sustainability/environmental-initiatives
- The Daily Star, “Cement Export from Bangladesh Sees Growth,” January 2025 https://www.thedailystar.net/business/economy/news/cement-exports-bangladesh-rise-2025-3538091
- Emerging Credit Rating Ltd., “An Overview of the Cement Industry in Bangladesh (2023)” https://emergingrating.com/wp-content/uploads/2023/11/An-Overview-of-the-Cement-Industry-in-Bangladesh.pdf
- LightCastle Partners, “Bangladesh Cement Industry Optimistic Despite Challenges (2020)” https://lightcastlepartners.com/insights/2020/10/bangladesh-cement-industry-optimistic-despite-challenges/
- LinkedIn Industry Insight, “Bangladesh Cement Industry Analysis and Sustainability (2024)” https://www.linkedin.com/posts/antarnk_cementindustry-bangladesheconomy-sustainabledevelopment-activity-7265089218010329088-x8aZ