Kaolin Market

Market Overview

The global kaolin market size was valued at USD 4.31 billion in 2021, and is projected to reach USD 5.86 billion by 2030, registering a CAGR of 3.47% from 2022 to 2030.

The market for paper and ceramics is expanding rapidly due to developments and research aimed at minimizing the environmental risks associated with paper manufacturing and the health risks associated with mining operations. A new market has formed to overcome these fundamental issues, capitalizing on the disadvantages of conventional paper manufacturing techniques and establishing its share. This market is the Chinese-born Kaolin market, which principally trades in paper and ceramic goods. The market for Kaolin is anticipated to grow at a constant rate because of the increasing demand for paper and ceramic products and the growing public awareness of the environmental risks associated with paper manufacture. Kaolin is well-liked due to its many features, such as solid ink receptivity, the ability to make the paper smooth, and excellent opacity for the paper industry.

Due to its moulding capabilities, strength, and dimensional stability, Kaolin has obtained a substantial market share in the ceramics industry, making it suitable for producing whiteware items, insulators, refractories, etc. The Asia-Pacific region is anticipated to contribute a sizeable chunk of the market share due to the region's increasing demand for Kaolin. The application-based category is anticipated to generate the highest returns, comprising around 40 % of the market. The market is exhibiting indications of recovery, with global construction activities advancing throughout the second half of 2021. Most countries worldwide have recognized the building as a vital industry, creating a demand for materials such as paints and coatings, plastic, and ceramics. This comforted kaolin suppliers, whose new order bookings declined significantly during the first half of the fiscal year 2021. The United States is one of the world's top producers of Kaolin.

Market Dynamics

Global Kaolin Market Drivers

Enhancing the demand for kaolin-made items

Numerous important forces favouring Kaolin and raising demand for kaolin-manufactured items have contributed to the market for Kaolin's consistent expansion on the global scale. In the paper sector, where the demand for Kaolin has been on the rise due to its advanced qualities and diverse applications, Kaolin is mainly utilized as a coating for paper because of its smooth texture and adequate opacity. Secondly, Kaolin has been utilized in the ceramics sector, which is particularly popular for its moulding capabilities. It is also employed in producing hardware, sanitarywares, and tiles and has been used extensively as a direct cement substitute. In recent years, Kaolin has also been utilized in the cosmetics industry. It has emerged as an emerging trend in the kaolin market as the demand for naturally derived products among millennials has increased the kaolin market.

Globally observable construction activity advancements

The market is exhibiting indications of recovery, with global construction activities advancing throughout the second half of 2021. Most countries worldwide have recognized the building as a vital industry, creating a demand for materials such as paints and coatings, plastic, and ceramics. This comforted kaolin suppliers, whose new order bookings declined significantly during the first half of the fiscal year 2021. The United States is one of the world's top producers of Kaolin. According to statistics published by the United States Geological Survey (USGS) in 2022, the manufacturing volume of the product steadily decreased. Due to the extensive disruption caused by the introduction of COVID-19, the production volume significantly declined by about 10 % in 2021. In addition, as a result of the implementation of the lockout, the demand for the product in downstream application sectors such as paper, ceramics, and rubber, among others, experienced a steep decline.

Global Kaolin Market Restraints

The digitalization and growth of the Internet

Even though kaolin market trends have been gaining widespread acceptance globally, several vital factors hinder Kaolin's market share. One of these factors is the digitization and development of the Internet, which have hurt the kaolin market. The demand for paper and products has decreased significantly, disrupting most large-scale manufacturers. Secondly, there have been assertions that mining kaolin results in various environmental and health risks, which has led to a wrong perception of the usage of Kaolin and the migration of consumers to other products. The high costs involved with the production and acquisition of Kaolin have also contributed to a decline in market share and act as a barrier to expanding the kaolin sector.

Market Key Opportunities

Increasing Cement and Glass Demand in the Kaolin Market

The rise of India's cement sector will generate significant growth potential. Cement is utilized in constructing roads, highways, airports, bridges, and other infrastructure; therefore, rising investment in the country's building and construction sector will raise cement demand. Cement production uses Kaolin as a raw material; hence, growing cement demand will favour the market. The market will benefit from the increased glass production due to rising demand from the automotive, building, and remodelling industries. The usage of flat glass in buildings, window panels, and cars are on the rise. Kaolin is utilized to produce glass and fibreglass, tying its demand to glass consumption. In addition, container glass is utilized for packaging food and pharmaceuticals, as well as the lining of reactors, insulation, fibreglass tanks, and pipes. This is also anticipated to generate market momentum.

Regional Analysis

Asia-Pacific accounted for the most significant volumetric share in 2021, exceeding 41 %. Asia-kaolin Pacific's market has expanded due to fast industrialization and economic development.

The region is anticipated to experience the highest growth rate over the projection period. China, India, Malaysia, Vietnam, and South Korea are anticipated to be the leading contributors to the expansion of regional markets. In 2021, Europe was predicted to become the second-largest regional space. The introduction of coronavirus has a substantial impact on the regional economy's growth. Throughout, the primary nations of the area, notably the United Kingdom, Germany, Italy, and Spain, demonstrated a decline in industrial output. The sluggish development in industrial output directly impacts the product's dynamics. In 2021, the regional economy showed signs of improvement. Nonetheless, persistent hostilities in the region, such as the Russia-Ukraine conflict and rising energy prices, are projected to constrain regional growth over the forecast period.

In 2021, the North American area recorded a revenue share of about 13.4%. The current U.S. administration's efforts to stimulate green energy sectors' growth are anticipated to boost the demand for kaolin-associated products significantly. The improved use of ceramic and ceramic-based materials in the North American solar industry is projected to create new opportunities for industry suppliers in the region. In terms of volume, the Middle East and Africa region are projected to have a CAGR of roughly 3.5% over the projection period. Positive advances in regional economic conditions and consequent enhancements to supporting laws and norms are anticipated to boost the expansion of the Middle Eastern construction sector throughout the forecast period. The region completed investments totalling 130 billion dollars, compared to 100 billion dollars. Such robust momentum in the area building sector is projected to facilitate the growth of the kaolin industry.

Segmental Analysis

In 2021, the paper led the market with a volumetric share of about 39.1 %. The paper's appearance is enhanced by kaolin coating, which imparts varying gloss levels, smoothness, brightness, opacity, and printability. In addition, the product improves the printability of paper by increasing ink absorption, pigment retention, tinting resistance, and surface roughness. These characteristics lead to its substantial market share within the paper industry. In terms of volume, ceramics is anticipated to become the second-largest application category with the most significant compound annual growth rate of around 4.6% throughout the projection period. Due to tiny particle size, chemical inertness, absorption properties, refractoriness, white burning feature, and high fusion temperature, the product's application in ceramic manufacture is gaining popularity. The qualities mentioned above make it appropriate for porcelain and bone china production.

In 2021, paints & coatings represented about 6.2% of the market's revenue. The use of paints and coatings in the construction industry is anticipated to continue to be a key growth factor for the kaolin market. Shortly, the usage of the product to improve the performance of paints through enhanced suspension qualities, quick dispersion, corrosion resistance, more excellent water resistance and lower viscosities is expected to influence market growth positively. In 2021, rubber was anticipated to be the fifth largest market with a volumetric share of almost 2.1%. The category is anticipated to lose market share during the projection period due to the availability of replacements. In recent years, the use of calcined materials in producing heavy-duty insulation rubber has gained popularity. Consequently, affecting the market penetration of kaolin in this specific application category.

Recent Developments

• In June 2022, Confoil and BASF cooperate to develop certified compostable dual ovenable paper tray for packaging of ready-to-eat meals.
• In June 2022, Optimized grade of BASF’s Ultramid polyamide enables more sustainable painting of automotive parts.
• In May 2022, Sibelco has entered into exclusive negotiations for the planned sale of its abrasive’s activities.
• In June 2022, Thiele kaolin company enters into agreement with Imerys performance minerals to acquire certain kaolin clay assets in north America.