The global kaolin market size is anticipated to reach USD 5.50 billion by 2026. The market is estimated to expand at a revenue-based CAGR of 3.5 per cent in terms of revenue between 2020 and 2026. Some of the key factors boosting the growth of this market include increasing demand for ceramics in the construction industry given that kaolin is the major raw material used for manufacturing ceramic tiles. With increasing construction activities in developing economies, such as China, India, and Brazil, owing to the rapid urbanization and industrialization along with greater migration of rural population to urban areas, the demand for new housing units is projected to expand. This is expected to positively influence the demand for the ceramic tiles. This, in turn, is expected to propel the market for kaolin.
Furthermore, kaolin is used as a filler or a coating material and hence, rising demand for paper from the packaging industry is likely to augment the growth. Presence of kaolin in paper products enhance smoothness and appearance, brightness and printability, and reducing abrasion. Since paper is an eco-friendly and easily recyclable solution, it is widely used in industries, namely, packaging and print media in the form of paper boards and gloss papers. Increasing awareness, along with stringent regulations regarding environmental pollution caused by non-biodegradable packaging, is anticipated to augment the demand for paper packaging, which in turn is anticipated to drive the market growth in the forthcoming years.
The United States is one of the fastest growing countries in the construction industry. According to the United States Census Bureau, the construction spending in the country increased by 3.3 per cent from 2017 to 2018 as a result of the rising investment in infrastructure development projects. This increasing number of construction projects is likely to boost the need for ceramics and paints and coatings in the country. This, in turn, is expected to boost the demand for kaolin in the upcoming years.
Despite the increasing demand for kaolin, with the increasing availability of numerous substitutes (namely, carbonates, talc, fuller’s clay, and ball clay) the market growth is likely to be hindered over the coming years. These minerals exhibit similar properties as kaolin and can replace the same for filler and coating functions in paper, plastics, paints, refractories and fiberglass industries respectively.
Furthermore, the downturn in paper sector of North American region is expected to lessen the pace of growth of the global kaolin market during the forecast period. This is due to the continuous shift towards digital media platforms for news, advertisements, and marketing. This has, in turn, adversely affected the demand for newsprint media in North America over the last few years.
Some of the key market players of the global kaolin market include: Imerys S.A., KaMin LLC, LB MINERALS Ltd., BASF SE, Sibelco N.V., and Thiele Kaolin Company. Majority of the players focus on raising the kaolin prices to ensure long term business sustainability. The kaolin manufacturers increased prices by 5 per cent to 9 per cent in 2018 for different applications.
Check the report description at: Global Kaolin Market Size, Trends & Analysis - Forecasts to 2026