Kaolin Market Size, Share & Trends Analysis Report By Application (Paper, Ceramics, Paint & Coatings, Fiber Glass, Plastic, Rubber, Cosmetics), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global kaolin market size was valued at USD 3.80 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030.A majority of countries around the globe designated construction activities among essential industries, thereby opening material demand for products such as paints & coatings, plastic, and ceramics. This brought some relief for the kaolin vendors which observed a significant decline in new order bookings during the first half of FY 2020. The U.S. is among the largest producers of kaolin in the world. As per the stats released by the United States Geological Survey (USGS) in 2022, the production volume of the product declined continuously from 2017 to 2020. Especially in 2020, the production volume decreased by nearly 9.7% owing to the widespread disruption caused by the emergence of COVID-19. In addition, with the lockdown initiation, the downstream demand for the product suffered immensely with key application sectors such as paper, ceramics, and rubber, among others witnessing a negative trajectory.

The domestic paper industry was badly affected by the emergence of COVID-19 and the subsequent work-from-home policy. Owing to the remote working scenario, consumption of printing and writing paper declined significantly in FY 2020. Such downgraded demand led its havoc on the production side as the overall volume of writing and printing paper in the U.S. declined by nearly 7% between 2019 and 2020.

On the consumption side, the slowdown in construction activities during Q2 of FY 2020 dried up the demand for materials such as plastic & paints, ceramic and associated products, plastic, among others. This directly impacted the new order bookings of kaolin and related products.

Despite such sluggish consumption trends, the domestic market space showed signs of improvements from the last quarter of FY-2020 largely due to the full resumption of industrial and construction activities. In addition, the passing of the infrastructure investment and jobs act is likely to open new avenues within the construction sector of the country.

Application Insights

Based on application, paper dominated the market and accounted for a revenue share of nearly 37.0% in 2022. Kaolin coating improves the appearance of paper giving it varied levels of gloss, smoothness, brightness, opacity, and printability. In addition, the product aid in enhancing the printability of paper by providing added ink absorption, ink pigment holdout, lower tinting tendency, and increased roughness. The aforementioned factors contribute to its large share in the paper industry.

Ceramics was the second-largest application segment in 2022 and is expected to witness the highest CAGR of 5.5% in terms of revenue over the forecast period. The use of the product in ceramic manufacturing has been gaining prominence on account of characteristics such as fine particle size, chemical inertness, absorption properties, refractoriness, white burning feature, and high fusion temperature. The aforementioned properties make it suitable for manufacturing porcelain and bone china.

Paints & coatings accounted for a revenue share of over 6.0% in 2022. The use of paints & coating in the construction industry is projected to remain a key driver for the market growth of kaolin. The use of the product to enhance the performance of paints in the form of better suspension properties, rapid dispersion, corrosion resistance, superior water resistance, and reduced viscosities is anticipated to positively aid the market growth.

Rubber was the fifth largest segment with a volumetric share of nearly 3.6% in 2022. The segment is estimated to lose its market share owing to the prevalence of substitutes in the forecast period. The use of calcined products for the production of heavy-duty insulation rubber has gained prominence over the last few years. Thus, directly impacting the penetration of kaolin in this particular application segment.

Regional Insights

Asia Pacific accounted for the largest volumetric share of more than 46.0% in 2022. Economic development and rapid industrialization have stimulated the growth of the kaolin market in Asia Pacific. The region is predicted to exhibit the fastest growth rate during the forecast period. Countries such as China, India, Malaysia, Vietnam, and South Korea are projected to be the major contributors to the growth of the regional industry.

Europe is anticipated to emerge as the second-largest regional space in 2022. The regional economic growth was significantly impacted by the emergence of coronavirus in 2020. The key countries of the region including the U.K., Germany, Italy, Spain, and others showcased lower industrial output throughout the FY 2020.

The sluggish growth in the industrial output directly influenced the dynamics of the product. The regional growth witnessed signs of improvement in 2021. However, ongoing conflicts in the region including the Russia-Ukraine war and surging energy prices are likely to restrain the regional growth over the forecast period.

North America region registered a revenue share of over 12.0% in 2022. The drive of the current U.S. administration to promote the development of green energy sectors is projected to play a key role in uplifting demand for kaolin-associated products. The greater usage or utilization of ceramic and ceramic based fused in the regional solar sector is likely to present new opportunities for the vendors of the industry in the North America region.

Middle East & Africa is poised to attain a CAGR of 3.3% in terms of revenue in the forecast period. The construction industry in the Middle East is expected to expand over the predicted timeline driven by positive developments in regional economic conditions and subsequent improvements in supporting policies and norms. The region completed projects worth USD 130.0 billion in 2019, as compared to USD 100.0 billion in 2016. Such strong momentum in the regional construction market space is likely to aid the development of the kaolin industry.

Key Companies & Market Share Insights

The vendors remained under immense pressure due to the economic disruption caused by the COVID-19 outbreak. The new order bookings and shipments were directly impacted due to the imposed lockdowns and transportation restrictions. Even the mine output suffered in the majority of the cases, due to the partial utilization rate and limited work personnel.

The manufacturers are mostly focusing on keeping the liquidity flow to avoid any further losses. Limited new order bookings pushed the financial revenue earnings for most of the vendors toward a negative trajectory in FY 2020. Trade opportunities declined due to the partial closures of ports around the globe. However, the situation improved in FY 2021 with the price rise announced by the majority of the industry participants. Some prominent players in the global kaolin market include:

• LB Minerals Ltd.

• BASF SE

• Sibelco

• KaMin LLC

• Thiele Kaolin Company

• Imerys S.A.

• I-Minerals Inc.

• Quazwerke GmbH

• Maoming Xingli Kaolin Co. Ltd.

• EICL Ltd.

Recent Developments

• In September 2022, KaMin LLC completed the acquisition of BASF’s kaolin mineral business. The agreement covers four production sites and associated reserves, mines, and two processing plants in Georgia, USA. The co-located refinery catalyst operations are planned to continue to be operated and owned by BASF's refinery catalyst business.

• In July 2021, Thiele Kaolin Company announced that it entered into a strategic agreement with Imerys Performance Minerals. With the help of this transaction, Thiele planned to obtain certain kaolin assets from Imerys that majorly support the paper & board sector.

Kaolin Market Report Scope

Global Kaolin Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global kaolin market report based on application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Paper

  • Ceramics

  • Paint & Coatings

  • Fiberglass

  • Plastic

  • Rubber

  • Pharmaceuticals & Medical

  • Cosmetics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia