Stucco Market Expected to Reach $17.8 Billion by 2033

According to a new report published by Allied Market Research, titled, “stucco market" was valued at $12.7 billion in 2023, and is projected to reach $17.8 billion by 2033, growing at a CAGR of 3.4% from 2024 to 2033.

Stucco is a versatile, durable plaster material used as a finishing coat on building exteriors and interiors. Composed primarily of cement, sand, and lime, stucco is applied in multiple layers to create a strong, weather-resistant surface that protects buildings from the elements. Often chosen for its aesthetic appeal, stucco is textured or colored to complement architectural styles, offering both functional and decorative benefits. It is valued for its insulating properties, energy efficiency, and low maintenance requirements. Common in Mediterranean and southwestern architecture, stucco is also adaptable for various climates and design preferences worldwide. 

The stucco market has experienced robust growth, largely influenced by government initiatives in infrastructure and construction, with statistical backing highlighting its expansion across various regions. In many countries, governments prioritize sustainable building practices and energy-efficient materials, driving demand for stucco as a favored exterior finish. For example, in the U.S., the Department of Energy reports that buildings consume 40% of the country’s energy, prompting initiatives such as tax incentives for energy-saving building materials. The insulating properties of stucco help reduce energy consumption, making it a key material in green building projects. In addition, policies such as the U.S. Energy Independence and Security Act support using materials that lower heating and cooling costs, enhancing stucco market potential. 

Government investment in construction of both residential and commercial facilities further bolsters stucco demand globally, especially in emerging economies. In India, the Ministry of Housing and Urban Affairs has set ambitious targets under the Pradhan Mantri Awas Yojana (PMAY), aiming to build over 20 million affordable houses by 2022. Stucco, with its durability, affordability, and ease of application, aligns well with this goal. The India government supports green building practices through subsidies, encouraging the adoption of eco-friendly materials such as stucco. Similarly, the European Union’s Green Deal aims to make buildings carbon-neutral by 2050, emphasizing sustainable construction materials. As stucco enhances energy efficiency and reduces environmental impact, these initiatives significantly drive its demand in regions actively pursuing sustainable construction goals. 

In China, where urbanization continues at a rapid pace, the government’s focus on infrastructure and housing development drives the expansion of the stucco market. The National Bureau of Statistics reports that urbanization in China reached 64.7% in 2021, with ongoing investment in residential and commercial construction. To curb environmental impacts, China has introduced green building regulations, which promote using materials such as stucco that improve energy efficiency and contribute to sustainable urban development. Overall, government policies, sustainability initiatives, and the shift toward energy-efficient construction are key drivers that position the stucco market for continued growth globally. 

However, concerns over moisture retention and susceptibility to cracking, particularly in humid climates, deter widespread adoption. Many governments have established standards to ensure exterior materials resist moisture and prevent structural damage; for instance, Canada’s National Building Code requires stringent moisture resistance testing for exterior coatings. Stucco, when improperly applied or in areas with heavy rainfall, absorbs moisture and develops cracks, leading to water infiltration issues. . As a result, stricter building codes and environmental standards, combined with labor and material costs, pose significant restraints to the growth of the stucco market globally. 

On the contrary, the stucco market presents significant opportunities, particularly driven by government initiatives promoting sustainable construction and energy-efficient materials. As governments worldwide prioritize green building practices, stucco stands out due to its insulating properties, which contribute to energy savings. In the U.S., the Department of Energy reports that residential buildings account for approximately 20% of the nation’s energy consumption, prompting incentives for energy-efficient materials. Programs such as the Energy Star certification encourage builders to use materials that reduce energy usage. The surge in emphasis on sustainability aligns perfectly with stucco’s benefits, providing manufacturers with an expanded market as they respond to government-driven sustainability initiatives. 

Segment Highlights 

The stucco market is segmented into construction activity, product, insulation type, end-use vertical, and region. By construction activity, the market is classified into new and renovation. By product, the market is segregated into traditional three-coat stucco, exterior insulating & finish systems, and newer-one coat stucco. By insulation type, the market is divided into insulating siding and non-insulated siding. By end-use vertical, the market is categorized into residential and non-residential. Region-wise the market is studied across North America, Europe, Asia-Pacific, and LAMEA. 

The major players operating in the stucco market include Elementis PLC, Asian Paints, BASF SE, MAPEI S.P.A., RPM INTERNATIONAL, SIKA AG, GCP APPLIED TECHNOLOGIES INC., HEIDELBERG CEMENT, Dow Inc., and CEMEX S.A.B. DE C.V. Other players in the stucco market include Kanish Plasters, TESUQUE STUCCO COMPANY, LLC, Miami Stucco Company, Stucco Supply Co., Burgio Stucco, Donnelly Stucco & Exteriors, and so on.