Rise in Construction of New Buildings to Drive the Non-metallic Minerals Market in Bulgaria Until 2020, Reports Technavio

Technavio analysts forecast the non-metallic minerals market in Bulgaria to grow at a CAGR exceeding 8% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the non-metallic minerals market in Bulgaria for 2016-2020. To calculate the market size, the report considers the revenue generated through the sales of non-metallic mineral products in Bulgaria by manufacturers. The report also provides data on the different segments of the market, based on the type of product, which include:

• Glass and glass-based products
• Porcelain and ceramic products (excluding ceramic tiles and flags)
• Clay-based building materials
• Stone-based products
• Refractory products

The non-metallic minerals market in Bulgaria is witnessing healthy growth. The market was valued at USD 1.65 billion in 2015. The market is highly fragmented with the presence of large number of regional and international players. There are more than 120 manufacturers operating in the market.

“International manufacturers are providing tough competition to regional manufacturers in terms of innovative products. They compete on the basis of price, quality, and variety. To gain a foothold in the market, manufacturers are offering customized products, as well as after-sales and maintenance services,” says Chandrakumar Badala Jaganathan, a lead analyst at Technavio for research on metals and minerals.

Technavio research analysts highlight the following three factors that are contributing to the growth of the non-metallic minerals market in Bulgaria:

• Rise in construction of new buildings
• Strong macroeconomic growth
• Increased focus on home décor

Rise in construction of new buildings

There has been a resurgence in construction activity post the EU crisis of 2008-2013. According to the NSI, in Q3 of 2015, municipal authorities of Bulgaria issued more than 1,000 permits for the construction of over 4,000 residential buildings. Also, construction permits for the construction of more than 30 commercial buildings were issued in the same time period. Expansion by existing companies and rise in urban population are the major factors propelling the construction of new buildings in the country. For instance, in September 2015, Xoomworks, a technology outsourcing company, set up a new branch in Bulgaria. Similarly, in March 2015, Google set up a new branch in Bulgaria called Google Bulgaria. All these factors are expected to contribute to increased demand for non-metallic mineral products such as flat glass, solar control glass, and ceramic tiles.

Strong macroeconomic growth

Bulgaria is witnessing strong economic growth as a result of growth of the manufacturing sector and rise in exports. In October 2015, IMF revised the growth rate of real GDP in Bulgaria to 1.7% for the year 2015, and also predicted the growth of the economy by 1.9% by 2016. This rapid economic growth reduced the unemployment rate to 10.3% in 2015, and this is likely to reach 9.7% by 2016, as a number of manufactures are likely to set up production facilities in the country.

Increased focus on home decor

Consumers are spending more on home decor because of the rise in employment opportunities. This is resulting in a rise in the demand for glass-based products such as ceramic tiles. Consumers have a wide variety of options in terms of colors, textures, and patterns to choose from, and this is also having a positive impact on manufacturers in the market.

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