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Evolution of Construction Material Costs: Forecasts 2025-2030

Evolution of Construction Material Costs: Forecasts 2025-2030
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Editor's Note

This editor’s note highlights the key facts and market implications behind “Evolution of Construction Material Costs: Foreca”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.

Evolution of Construction Material Costs: Forecasts 2025-2030

Construction Materials: What price increases can be expected by 2030? 2025 trends, construction industry strategies, and challenges in the face of the ecological transition.

Review of Material Price Evolution in 2023-2024

A market under pressure since the health crisis. In 2021-2022, material prices soared (+30 to 50% on certain products) due to logistical disruptions and rising energy costs. In 2023-2024, a relative stabilization is observed, but prices remain at high levels compared to 2019. Which materials saw the strongest increases? Steel: +40% between 2021 and 2023, due to demand and rising energy costs. Concrete: 15% increase due to new environmental requirements (low-carbon concrete). Wood: High volatility, with peaks of +60% in 2021, before a return to normal by the end of 2023. Insulation: Continuous increase (+20% on mineral wools) due to the RE2020 thermal regulation.

Key takeaway: Despite a slowdown in 2024, prices remain high and the upward trend is expected to continue until 2030.

What Forecasts for Construction Materials Between 2025 and 2030?

The impact of new environmental regulations. The RE2020 and European standards impose a reduction of carbon in materials. Development of low-carbon concrete, bio-based insulation, and alternatives to PVC. These innovations will lead to a short-term increase in costs (R&D, industrialization). Rising production and transport costs. The price of energy and transport is expected to remain high until 2030, impacting the production of cement, steel, and glass. Transition towards more expensive renewable energies for material production. Shortage of certain raw materials. Copper, lithium, and certain rare metals are becoming critical for building electrification. Access to forest resources will be more regulated, which could maintain high prices for wood. Gradual return to stabilization after 2027? The market is expected to adapt with new recycling streams and technological innovations. Development of short supply chains to reduce logistics costs.

General forecast: Between 2025 and 2030, material prices will remain high with peaks for certain raw materials, before a gradual stabilization towards the end of the decade.

Materials: Steel. Expected evolution: +10 to +20% by 2030. Influential factors: Rising energy costs and low-carbon production. Materials: Low-carbon concrete. Expected evolution: +15 to +25%. Influential factors: New environmental regulations. Materials: Wood. Expected evolution: +5 to +15%. Influential factors: Forest regulation and increased demand for sustainable construction. Materials: Glass. Expected evolution: +10%. Influential factors: Energy transition and manufacturing costs. Materials: Bio-based insulation. Expected evolution: +20 to +30%. Influential factors: Strong demand and high processing costs. Materials: Plastics / PVC. Expected evolution: +10 to +20%. Influential factors: Usage restrictions and increase in ecological alternatives.

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Note: Some traditional materials will see their prices stabilize, while innovative materials (bio-based, recycled) will experience an initial increase before a gradual democratization.

How Can Construction Companies Anticipate These Increases?

Optimize inventory management. Switch to group purchasing to benefit from negotiated prices. Anticipate orders and favor long-term contracts to limit the risk of sudden increases. Bet on alternative and recycled materials. Recycled and bio-based concretes, which will benefit from financial aid. Use of reclaimed materials to reduce costs and carbon footprint. Adopt a more local approach. Favor short supply chains and national suppliers to limit logistics costs. Develop partnerships with manufacturers committed to a circular economy. Integrate cost increases into quotes. Re-evaluate margins and service prices to absorb material inflation. Educate clients about price evolution to avoid misunderstandings.

Tip: Staying informed of market trends and adapting strategic choices helps avoid unexpected increases and improves competitiveness.

What Financial Support to Limit the Impact of Increases?

European and national subsidies. European funds (FEDER, Horizon Europe) to finance low-carbon innovations. MaPrimeRénov’ and CEE aid for energy renovation, facilitating the adoption of new materials. Reduced VAT on certain ecological materials. Reduced rate of 5.5% on energy renovation work. Specific aid for recycled and bio-based materials. Research and development funding. Subsidies for industrialists developing alternative solutions to polluting materials. Tax credits for investments in green and recycling technologies.

Example: Construction startups already benefit from aid to develop low-carbon footprint concretes, which will gradually reduce their cost.

A Market Under Pressure but Opportunities to Seize

Construction materials will remain expensive until 2030, but with a gradual stabilization after 2027. Environmental regulations will reshape the market, with a rise in bio-based and recycled materials. Companies must anticipate these developments by adapting their purchases, diversifying their suppliers, and integrating new trends now. Aid exists to cushion these increases, particularly for low-carbon innovations and energy renovation.

Source: Read the original article | Published: July 24, 2025

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