Kaolin Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Process (Dry Processing, Wet Processing), By Application (Paper, Paints & Coatings, Ceramics, Rubber, Plastic, Others), And By Geography - Forecasts From 2022 To 2027

The kaolin market is expected to grow at a CAGR of 4.31% over the forecast period to reach a total market size of US$5.999 billion by 2027, increasing from US$4.465 billion in 2020.

Kaolin serves as a coating that increases the smoothness, brightness, and gloss of paper, ceramics, paints, and other products. The market is expected to grow due to rising demand for ceramic products and increased use of kaolin in the cement industry.  However, the mining of kaolin is acknowledged to have a negative impact on the environment, which is expected to hinder the growth of the market during the forecast period.

Increasing construction activity is driving the demand for kaolin

Rapid industrialization in developing economies is expected to fuel the demand for kaolin in construction and other industries. Kaolin is considered an important raw material used in the manufacturing of ceramic tiles, and with the increasing construction activities, the market is anticipated to grow at a significant rate during the forecast period. Investment in the development of infrastructure is expected to increase, more specifically, in emerging and developing countries like India, China, and Vietnam, among others. For instance, India and China have been growing at above 6% per annum for the last couple of years, which is an indication of the development of infrastructure and growing urbanization. Moreover, in the United States, construction spending has increased from US$1,627,985 million in June 2021 to US$1,762,317 million in June 2022 (source: United States Census Bureau), while a similar trend has been noticed in Europe. Thus, the growing investment in the development of infrastructure is expected to continue to drive the growth of the kaolin market in the coming years.

Increasing application in paper, ceramics, and paint and coatings, among others, is expected to drive the market

By application, the global kaolin market has been segmented into paper, ceramics, rubber, plastic, and paint & coatings, among others. Paper holds a significant share in the market and is expected to grow at a substantial rate owing to the rising demand for kaolin in the paper packaging industry. Kaolin is used as a component to provide paper with a smooth surface and enhance paper qualities such as brightness, opacity, and printability. The ceramic segment is anticipated to witness exponential growth over the forecast period. Increasing construction activities and rising investment by big market players is driving the market for the ceramics segment in the coming years. Furthermore, expanding the automotive industry also propels the demand for paints, coatings, and rubber, which are widely used in the manufacturing of automobiles, which drives the demand for kaolin in the automotive industry. For instance, according to the International Organization of Motor Vehicle Manufacturers, automotive production in India has increased from 3,394,446 units in 2020 to 4,399,112 thousand in 2021, showing a growth of more than thirty percent.

The Asia-Pacific region is estimated to hold a significant share of the market

By geography, the global kaolin market has been segmented as North America, South America, Europe, the Middle East and Africa, and Asia Pacific (APAC) regions. The Asia Pacific accounts for a significant share of the global kaolin market and is projected to remain at its position throughout the forecast period. This growth is attributed to the strong presence of key players in the region and established the paper industry. Also, the region is experiencing a significant increase in construction activity, which is further driving the growth of the market over the forecast period. Also, the increasing number of construction projects in the countries like China especially megaprojects like Beijing Daxing International Airport is one of the largest infrastructure projects initiated by the country with an aim to process 72 million passengers a year, which is expected to have four runways by 2025, is expected to drive the scope of demand for kaolin during the forecast period. Besides, increasing population density in urban areas coupled with rising investment in residential projects has been increasing the demand for kaolin over the last few years and this trend is expected to continue in the coming years. Due to growing ceramic production and consumption in Europe, the market is growing at a substantial rate. Similar trends have been noticed in the North American region, which is witnessing exponential growth on account of the expanding paper packaging industry coupled with increasing investment by market players.

Key Developments

• KaMin LLC. and BASF have signed an agreement to sell the Kaolin Minerals business owned by BASF to KaMin LLC. in November 2021. The acquisition is a transformative step by KaMin, to further diversify the company into growth-oriented markets and elevate the overall manufacturing and technical capabilities of KaMin.
• In July 2021, Thiele Kaolin Co. acquired certain clay assets of Imerys Performance Minerals. Thiele Kaolin co. acquired mineral resources along with certain manufacturing assets of Imerys as they were strategically situated near other Thiele assets. Through this acquisition, Thiele intends to expand their ability to deliver tailored mineral solutions.

COVID-19 Impact on Kaolin Market

The pandemic has significantly affected the Kaolin market, as major industries such as paper, paint, and coatings, which utilize Kaolin halted their manufacturing processes during the pandemic. Furthermore, the demand from end-user industries such as paper, paint, and so on had decreased owing to the worldwide shutdowns of offices and schools. For instance, International Paper company recorded a loss of US$107 million and the end of the fourth quarter in 2021. Owing to the disruptions in the supply chain the company experienced a loss during the pandemic.

Kaolin Market Scope:

Report Metric	Details
Market Size Value in 2020	US$4.465 billion
Market Size Value in 2027	US$5.999 billion
Growth Rate	CAGR of 4.31% from 2020 to 2027
Base Year	2020
Forecast Period	2022–2027
Forecast Unit (Value)	USD Billion
Segments Covered	Process, Application, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	EICL Ltd., Quarzwerke GmbH, Int SCR-Sibelco NV, I-Minerals Inc., Kamin LLC., Thiele Kaolin Company, Ashapura Group, Imerys, CHOKO CO., LTD.
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Process
  • Dry Processing
  • Wet Processing
• By Application
  • Paper
  • Paints & Coatings
  • Ceramics
  • Rubber
  • Plastic
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • South Korea
    • India
    • Indonesia
    • Taiwan
    • Thailand
    • Malaysia
    • Others

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Frequently Asked Questions (FAQs)

Q1. What will be the global kaolin market size by 2027?
A1. The kaolin market is expected to reach a total market size of US$5.999 billion by 2027.

Q2. What are the growth prospects for the kaolin market?
A2. The global kaolin market is expected to grow at a CAGR of 4.31% over the forecast period.

Q3. What is the size of the global kaolin market?
A3. Kaolin Market was valued at US$4.465 billion in 2020.

Q4. Which region holds the largest market share in the kaolin market?
A4. The Asia Pacific accounts for a significant share of the global kaolin market and is projected to remain at its position throughout the forecast period.

Q5. What factors are anticipated to drive the kaolin market growth?
A5. Rapid industrialization in developing economies is expected to fuel the demand for kaolin in construction and other industries.

EICL Ltd.

Quarzwerke GmbH

Int SCR-Sibelco NV

I-Minerals Inc.

Kamin LLC.

Thiele Kaolin Company

Ashapura Group

Imerys

CHOKO CO., LTD.