The price of construction aggregates have increased significantly in the United Kingdom in 2022. Prices of bituminous mixtures based on natural and artificial stone grew at a slower rate until 2021, after which a significant growth rate in prices was observed in 2022. The price of gravel, sand, clay, and kaolin, including levy in 2022 was nearly 53 percent higher than in 2015.

In 2023, approx. 1.5M tons of gravel and crushed stone were imported into the UK; with an increase of 34% compared with the year before.

Material costs for new non-residential construction in the United Kingdom grew by almost 67 percent between 2015 and June 2022. The annual average prices of construction materials used for repairs, new housing, and other new construction work increased at a similar pace during that period. By June 2022, the aggregate prices of materials soared for all types of construction work.

Gravel, sand and clay extraction revenue is forecast to climb at a compound annual rate of 4.5% over the five years through 2025-26 to £3.6 billion, while the average industry profit margin is set to reach 3.7%. This is mostly the result of price inflation, with subdued demand from residential and commercial construction limiting demand for sand, gravel and clay for construction projects. However, the growing use of sand and gravel for flood defences is elevating sales and offsetting the dip in demand from construction. Revenue is forecast to inch up by 0.8% in 2025-26, thanks to lower inflation and improved consumer and business confidence supporting construction activity.In 2022-23 and 2023-24, high borrowing costs and the cost-of-living squeeze damaged construction output, dampening quarries’ revenue. While construction output improved in 2024-25, driving up demand for gravel, sand and clay, persistently low business and consumer confidence and high interest rates continued to limit growth opportunities for quarrying companies. In 2025-26, trade uncertainty caused by the US’s new “Liberation Day” tariffs is likely to dampen short-term growth as uncertainty limits investment in major construction and manufacturing projects.Gravel, sand and clay extraction revenue is projected to climb at a compound annual rate of 1.5% over the five years through 2030-31 to £3.9 billion. Continued government investment in major infrastructure projects, like the Road Investment Strategy 3, is set to propel demand from key construction markets. However, the mounting emphasis on using recycled aggregates made from materials previously used in construction, due to their lower carbon footprint and cost-effectiveness, will likely eat into sales of gravel, sand and clay. Extractors pivoting to more high-specification products and more sustainable practices are set to fare better in the coming years.

Annual and quarterly low-level aggregates of UK output gross value added (GVA) on a constant- and current-price basis.

Discover the latest trends in the UK gravel, pebbles, and crushed stone market. Get insights on market performance and forecasted growth for the period from 2024 to 2035.

Forecast: Operation of Gravel and Sand Pits; Mining of Clays and Kaolin Labour Cost Per Employee FTE in the UK 2024 - 2028 Discover more data with ReportLinker!

Revenue is forecast to contract at a compound annual rate of 4.7% over the five years through 2024. COVID-19 caused significant disruption to the construction sector, the industry’s largest market, resulting in weaker demand for aggregates and materials used in the production of construction inputs. Although activity has since risen in line with the easing of lockdown restrictions, poor economic conditions have stifled any significant recovery, continuing to weigh on the industry’s revenue performance. In 2024, revenue is expected to tumble by 3.5% to €43.7 billion. Pandemic-induced supply chain disruptions were worsened by disruption caused by the Russia-Ukraine conflict, contributing to significant inflationary pressures. In response to rampant inflation, central banks have made retaliatory hikes to the base rate of interest, though this has increased the cost of borrowing for consumers and businesses, hurting activity in the housebuilding and commercial construction markets. This has weighed on demand for quarried materials and reduced revenue prospects for quarry operators. Over the five through 2029, revenue is forecast to grow at a compound annual rate of 2.6%, to €49.6 billion. Economic conditions are likely to remain fairly weak in the short to medium term as inflation remains above the universal 2% target. The elevated rate of inflation will ensure central banks delay any reductions in the base rate, keeping the cost of borrowing high for would-be home buyers. Weaker demand for houses will contribute to weak price performance and disincentivise developers from increasing production, weighing on activity levels in the construction sector.

Producer Price Index: Aggregates Levy (AL); Input: All Products data was reported at 156.400 2000=100 in Aug 2008. This records a decrease from the previous number of 162.200 2000=100 for Jul 2008. Producer Price Index: Aggregates Levy (AL); Input: All Products data is updated monthly, averaging 100.700 2000=100 from Jan 1986 (Median) to Aug 2008, with 272 observations. The data reached an all-time high of 162.800 2000=100 in Jun 2008 and a record low of 87.700 2000=100 in Jul 1986. Producer Price Index: Aggregates Levy (AL); Input: All Products data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.I018: Producer Price Index: SIC 2003: 2005=100: Input.

Learn about the projected market trends for gravel, pebbles, and crushed stone in the UK, with an expected increase in consumption over the next decade.

Quarterly estimates monitoring the changes in prices charged for services provided to UK-based customers for a range of industries.

(CDID: EVNT) Quarter - Producer price inflation time series (MM22) Producer Price Indices (PPIs) are a series of economic indicators that measure the price movement of goods bought and sold by UK manufacturers.

In 2023, the amount of pre-coated aggregates exported from the UK dropped to 97K tons, shrinking by -7.5% on 2022 figures.

Revisions triangle (quarterly and annual) for aggregate gross sector services producer price inflation (SPPI) for selected UK services sectors.

Aggregate weights information used in the production of the Price Index of Private Rents (PIPR) for the UK, and Index of Private Housing Rental Prices for Northern Ireland.

Exports of gravel, pebbles and crushed stone for concrete and road aggregates from the UK dropped sharply to 3.8M tons in 2023, shrinking by -20.2% against 2022.

Revenue is forecast to inch up at a compound annual rate of 0.9% over the five years through 2024-25 to £4.4 billion. Ready-mixed concrete (RMC) is the principal material input for infrastructure, building foundations and panels cast on-site. Commercial, residential and civil infrastructure construction activity levels that reflect the state of the UK economy directly determine industry performance. The industry offers a variety of products to cater to the diverse needs of downstream clients, from standard RMC to high-performance and rapid-setting ranges. The COVID-19 outbreak significantly depressed demand from the UK construction market. Temporary site closures, frozen projects and tumbling developer confidence took a toll on demand for most types of concrete. Although site restrictions were short-lived, UK construction output has remained somewhat weak since, slowing the industry's rate of recovery. The steep rise in input costs, including energy, cement and aggregates, due to supply chain disruptions from the Russia-Ukraine conflict, has significantly reduced profitability. Nevertheless, strong UK government investments in infrastructure and engineering projects have supported industry performance. With inflation slowing, the Bank of England's interest rate cut in August 2024 renewed investor confidence, thereby stimulating construction output and enhancing income opportunities for concrete manufacturers. Revenue is forecast to expand by 2.9% in 2024-25. Industry revenue is forecast to climb at a compound annual rate of 3% over the five years through 2029-30 to £5.1 billion. Lower inflation and interest rates in the medium to long term will incentivise many construction companies to start projects, boosting revenue growth. Strong UK government funding commitments for roads, railways and 5G networks will also drive growth in demand for concrete products. Concrete manufacturers will also ramp up their investments in low-carbon solutions to increasingly offer environmentally friendly products to businesses and consumers.