Kaolin Market Set to Witness an Uptick during 2020 to 2027

Posted by Mrudula Anil Karmarkar on January 18th, 2022

The global kaolin market size is expected to reach USD 6.28 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.5% from 2020 to 2027. The increasing popularity of high-grade kaolin within the cosmetics industry is anticipated to propel the growth of the market space over the forecast period.

The use of kaolin in the cosmetics industry has witnessed steady growth over the last few years. As per cosmetics industry experts, the absorbent properties exhibited by kaolin proved to be a key factor in the wide adoption of the product within this application segment. In addition, increasing consumer awareness pertaining to the use of natural ingredients, especially in cosmetic creams and lotions, propelled the adoption of kaolin in the global cosmetics market space.

The emergence of COVID-19 in the first quarter of FY 2020 has directly impacted the construction activities. The slowdown in the construction sector is projected to indirectly influence the dynamics of the global market space. The imposition of lockdown by many countries around the globe have stalled construction activities and caused a severe economic impact. The kaolin expansion projects initiated by market vendors at the start of 2020 have been stalled due to the scarcity caused by the emergence of COVID-19.

Despite the current downturn in economic conditions, the futuristic opportunities for marketspace look lucrative with larger demand coming from ceramics application. An increase in ceramics production is anticipated to positively influence the apparent consumption of the product over the forecast period. Wider adoption of ceramics, especially in décor and interior design, is likely to boost its prospects over the predicted timeline.

Most of the players in the market are focused on devising strategies to limit economic exposure caused due to the breakout of the pandemic and the subsequent slowdown in the demand for the product from key application segments. The market participants are inclined towards maintaining positive liquidity in order to sustain themselves during these unprecedented times.

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The demand for the product in ceramics application is likely to emerge as an influential factor for the industry growth over the forecast period. The use of high-grade water-washed kaolin in ceramics has witnessed steady growth over the last decade owing to the exceptional suspension capabilities of the product. This capability assists in keeping silica, frit, feldspar, and other particles from settling, thereby offering high green strength and very white fired color.

Kaolin Market Report Highlights

• The paper application segment led the market and held over 37.0% share of the global revenue in 2020 owing to increasing demand for paper boards from the packaging industry
• The ceramics application segment is projected to expand at a CAGR of 4.9% in terms of revenue over the forecast period owing to increasing production of ceramic tiles to meet the growing demand from the construction industry, especially in the U.S., China, and India
• The cosmetics application segment accounted for a volume share of 1.1% in 2020 and is expected to emerge as one of the fast-growing segments in terms of volume over the forecast period. The growth is attributed to increasing consumer disposable income, along with the rising demand for skincare products
• Asia Pacific is anticipated to expand at the fastest CAGR in terms of volume as well as revenue over the forecast period, owing to the wide adoption of kaolin within the regional supply chain of the ceramics manufacturing marketspace
• Europe is expected to register a CAGR of 2.3% in terms of volume over the forecast period. The economic disaster triggered by the breakout of the pandemic is likely to restrain the market growth in the region.

The imposed lockdown by the governments around the globe directly impacted the operations of kaolin vendors, especially in the first half of FY 2020. Many of the regional vendors temporarily halted their production owing to the crumbling demand and slowdown in the economic activities. The industry participants are focusing on devising new strategies to battle the economic impact caused by the coronavirus. The market participants are cutting off their financial expenses in order to attain liquidity. Some of the prominent players in the kaolin market include:

• LB MINERALS Ltd.
• BASF SE
• Sibelco N.V.
• KaMin LLC
• Thiele Kaolin Company
• Imerys S.A.
• I-Minerals, Inc.
• Quarzwerke GmbH
• Maoming Xingli Kaolin Co., Ltd.
• Guangdong Highsun Yongye Group Co., Ltd.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.