Stucco Market Size, Share & Trends Analysis Report By Construction Activity (New, Renovation), By Product (Traditional Three-coat Stucco, Exterior Insulating and Finish Systems, Newer-one Coat Stucco), By Insulation Type (Insulated Siding, Non-insulated Siding), By End-User (Residential, Non-residential) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global stucco market size was valued at USD 12.13 billion in 2022. It is estimated to reach an expected value of USD 17.5 billion by 2031 and is anticipated to grow at a CAGR of 4.3% during the projected period (2023–2031). The anticipated growth of the construction sector is predicted to significantly affect the demand for the stucco market.

Aggregates, a binder, and water are the components of stucco, a building material. In architecture, stucco is a sculptural and creative material and an appealing coating for walls and ceilings. Stucco is a plaster from Portland cement materials, sand, lime, water, and various raw materials mixed to form a plaster. It covers the inside and outside surfaces of walls, ceilings, and floors and makes cornices, moldings, and other decorative elements. It is appropriate for hot and cold climates because it requires little maintenance and can tolerate harmful sun rays.

Stucco plaster is widely used because of its attractive appearance, low cost, and low maintenance requirements. Stucco has many desired qualities, including its handiness, fire resistance, strength, and ability to keep paint color after drying. Stucco plaster also has the ability to transport moisture, making it porous so that water that penetrates the plastered surface can escape. As a result, the plaster can be used in any climate, regardless of whether it's humid, dry, hot, or cold.

Market Dynamics

Market Drivers

High Purchasing Power of End-Users

The Asia-Pacific region has witnessed rapid industrialization and strong GDP growth in recent years. In 2017, India's GDP was officially worth USD 2.611 trillion, making it the world's sixth-largest economy by market exchange rates and the world's third-largest by purchasing power parity, as reported by the International Monetary Fund (IMF). Emerging urban clusters drive economic impetus. Therefore, more consumers with higher disposable income boost the economic prospects of developing countries such as India and China. The rise in per capita income of the middle class has increased the purchasing power, which has increased the number of new constructions. The expected expansion of the construction industry is projected to substantially impact the demand for stucco.

Market Restraint

Low Consumer Awareness Toward the Availability of Stucco

The current level of stucco penetration is moderate because of a lack of awareness among end-user sectors regarding the long-term advantages of this compound compared to more affordable alternatives. The profit margins in the building industry are minimal, leading many contractors to prioritize using cost-effective chemicals to mitigate construction expenses. Products of high value have a restricted level of demand and are mostly utilized by prestigious building enterprises. Such factors hamper the market growth.

Market Opportunities

Increasing Demand from Emerging Economies

The rapid expansion of industries can be attributed to the economic development observed in emerging economies. The African mining industry has experienced significant expansion, while numerous foreign nations have directed their investments towards the industrial sector in the Asia-Pacific region. Therefore, the increase in industrialization has boosted the demand for stucco, the major ingredient for infrastructure development. In a similar vein, the growth of urbanization and population in emerging nations has contributed to an increased requirement for sustainable and environmentally conscious infrastructure. This has, therefore, driven the demand for stucco and created lucrative prospects for market advancement.

Regional Analysis

Region-wise, the global stucco market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global stucco market shareholder and is expected to grow at a CAGR of 5.1% over the projected period. In Asia-Pacific, India is predicted to grow at the highest rate in the Asia-Pacific stucco market, owing to industrial growth promoting the demand for stucco. The expected rise in urban population and the corresponding demand for enhanced infrastructure are projected to be key drivers of growth in the stucco industry. The Asia-Pacific construction industry is also anticipated to experience a surge in demand for stucco due to an anticipated rise in infrastructure spending by the Government of China.

The North American stucco market is analyzed across the U.S., Canada, and Mexico. The US and Canada collectively accounted for around 87.2% share in 2018, with the former constituting around 73.2%, attributed to infrastructure development, which is increasing demand for stucco, particularly in the non-residential application. An increase in the use of stucco in concrete admixtures, waterproofing and roofing, and flooring is expected to drive the market's growth. The necessity of dams, bridges, roads, and domestic housing facilities in North America and the increase in purchasing power parity of consumers are expected to present lucrative opportunities for market growth.

Europe's stucco market is analyzed across Russia, Germany, France, Turkey, the UK, and the rest of Europe. An increase in construction activities and development in infrastructure projects are expected to propel market growth in Europe. In Europe, the rise in urbanization and climatic change majorly drive the market for stucco. Hence, construction processes are required to be sustainable. The European Union has several policies regarding construction methods to promote the use of construction materials such as stucco, which significantly contribute to the market's growth. Furthermore, the continuous development of industrial and rehabilitation operations fuels market growth. A rise in demand for stucco from small enterprises and an increase in urban construction activities are expected to provide a growth opportunity for the European stucco market.

LAMEA is the premier region in the stucco market due to the high demand for residential construction and infrastructure development. Emerging markets in LAMEA are expected to grow significantly, which will fuel the growth of the construction industry. This, in turn, is expected to drive the demand for stucco in LAMEA. The emergence of new markets in the LAMEA region has boosted construction schemes and improved the lifestyle. In addition, the increase in urbanization rate is also responsible for the growth in residential structures, as the need for residential buildings is constant. Therefore, the rise in the necessity of new residential infrastructure and an increase in GDP boost the growth of this market.

Segmental Analysis

The global stucco market is segmented into construction activity, product, insulation type, and end-user.

Based on construction activity, the global stucco market is classified into new and renovation construction. 

The new segment is the highest contributor to the market and is predicted to exhibit a CAGR of 4.1% during the forecast period. Stucco is utilized in modern buildings as an artistic and sculptural material in architecture, as well as a decorative covering for walls and ceilings. Stucco offers durable, attractive, and weather-resistant wall coverings, which fuels its demand for new construction activities. The modern use of stucco as an exterior cement plaster for wall covers has increased considerably in the construction industry.

Additionally, stucco can be used as a single base or multiple base layer. Its properties can be enhanced by mixing it with fiber and synthetic acrylics, which makes it flexible and strong. The development of the construction industry in emerging economies has augmented market growth owing to increased government policies for habitation. Moreover, the demand for superior finishing and aesthetically pleasing spaces has grown, which has boosted the use of stucco and its modified variants, thereby driving market growth.

Based on product, the global stucco market is segregated into traditional three-coat stucco, exterior insulating and finish systems, and newer-one coat stucco. 

The traditional three-coat stucco segment owns the highest market share and is predicted to exhibit a CAGR of 3.8% during the forecast period. Traditionally, stucco is applied in the brown coat, three coats: the scratch coat, the brown coat, and the finish coat. The finish coat contains color and is applied to get texture form. The brown coat is smoother than the scratch coat. It is gritty to the touch but enhances the aesthetical appearance of the scratch coat. Stucco is combined with reinforcement lattice and lath and attached between the structural supports. It is applied by increasing the thickness and number of layers, which helps control damage, thus driving market growth.

Exterior insulating and finish systems are the second largest. The synthetic stucco, also known as the exterior insulating and finishing system (EIFS), is a type of non-load-bearing building cladding that provides an integrated composite material system with an insulated and water-resistant finished surface to safeguard outside walls. EIFS acts as a blanket wrapped over a building, offering insulation. It provides superior thermal insulation and reduces energy costs. Moreover, EIFS is durable and resistant to deterioration, which fuels its demand in the construction sector.

Based on insulation type, the global stucco market is fragmented into insulated and non-insulated. 

The insulated siding segment dominates the global market and is predicted to grow at a CAGR of 3.9% during the projected period. Insulated stucco is a plaster-like exterior finish popular as a siding material. It is tough, durable, and offers superior thermal insulation with the added benefit of reduced energy costs. EIFS is an important insulated siding stucco that offers insulation to homes and building structures in regions that experience extremely cold or hot weather. Any improvement in the wall insulation is important in terms of energy conservation. Moreover, stucco, when applied on the exterior of the building, acts as a blanket wrap, which offers insulation from the outside heat. Furthermore, it prevents energy loss through the wall. Thus, the benefits offered by stucco propel its demand, thereby augmenting the market growth.

Based on end-user, the global stucco market is bifurcated into residential and non-residential.

The residential segment owns the highest market share and is predicted to grow at a CAGR of 4.01% during the projected period. Stucco is a versatile, cost-effective, and durable construction material. It can be applied in various forms, such as smooth, rough, or patterned. It can be customized by adding stones or other aesthetic features. Hence, its use in residential construction activities has increased considerably. It also offers a long-lasting finish and aesthetically enhances the appearance of residential buildings. Therefore, with growing residential construction, the demand for stucco is expected to increase significantly, which drives the growth of the global market.

Furthermore, stucco offers both insulated and non-insulated options to the end users. Stucco is resistant to fire, fungus, rot, and insects, which propels its demand in residential construction activities. Moreover, synthetic stucco's enhanced thermal insulation property is a key factor driving the global market.

The non-residential segment is the second largest. Non-residential stucco uses are mostly in government institutions, office buildings, and architectural buildings (temples and churches). Stucco offers enhanced flexibility for aesthetical purposes and prolonged durability. Development of the non-residential sector in emerging countries is expected to drive the global stucco market. Moreover, stucco can be used as an aesthetic material as many architects opt for it in constructing large structures such as museums, buildings, monuments, and state-of-the-art sculptures in the non-residential sector, thus driving the market growth.

Recent Developments

• April 2023- Mapei is committed to fostering a more environmentally conscious construction industry. It envisions a time when experts, designers, and clients can opt to use long-lasting, high-performing goods that have carbon dioxide emissions completely offset over their entire life cycle. The new Zero line has been extended with the introduction of nine new products for the building sector, whose CO2 emissions measured throughout their life cycle in 2023 have been offset by acquiring certified carbon credits in support of renewable energy and forestry protection projects.
• April 2023 - BASF announced that it had received the International Sustainability and Carbon Certification (ISCC) PLUS for certain grades of plastic additives produced at its manufacturing sites in Kaisten, Switzerland, and McIntosh, Alabama, United States. This certification will enable BASF to offer more sustainable grades of its core plastic additives with a reduced Product Carbon Footprint (PCF) by using renewable raw materials in a mass balance approach.