The global attapulgite market size was valued at USD 281.1 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 2.9% from 2020 to 2027. Increasing demand for attapulgite in the oil & gas application is projected to assist in the growth of the market. Attapulgite is a clay mineral consisting of magnesium-aluminum silicate. It is used as drilling fluids in the oil & gas sector, wherein firstly it is coated with a quaternary amine to make it oil dispersible. In addition, suspending agents made using attapulgite is used in saltwater applications, wherein it is used in drilling shaft to surround drill string and drill bit. The U.S. accounted for a revenue share of 49.6% in global attapulgite demand. The steady increase in domestic oil production played a key role in supporting the dynamics of the industry in the U.S. The product is used as an additive and in the formulation of drilling mud, which remained a key application category within the domestic oil & gas industry.
The country’s oil production increased from nearly 11,801 thousand barrels per day in 2014 to 17,045 thousand barrels per day in 2019. Another key end-use industry, which is projected to drive the attapulgite market growth in the U.S. is the regional chemical industry. The use of attapulgite clay to formulate value-added products is likely to gain prominence over the coming years. The use of the product as an additive in the formulation of adhesives, paints, and coatings is likely to gain popularity over the forecast period.
However, the coronavirus outbreak and the rising number of cases in the U.S. are likely to restrain the market transaction over the short term. Moreover, crashing international oil prices is projected to lay their weight on the regional oil & gas sector, thereby lowering the product demand in FY 2020.
The oil & gas was the largest end-use segment and accounted for a share of over 24% in 2019. The segment is likely to grow at a steady CAGR over the forecast period. In the oil & gas industry, attapulgite products are used in applications, such as drilling muds, thickening, suspension and clarifying agents, and absorbers. The products are primarily used in seawater and saltwater drilling operations. Bentonite shows poor performance in saltwater applications; in such conditions, gel-grade attapulgite is very useful.
In the recent past, the global oil & gas industry witnessed a slowdown owing to slow price gains and low crude oil prices. The oil price war between Russia and Saudi Arabia has resulted in higher inventories in 2020, which negatively affected crude oil prices. Amidst the COVID-19 pandemic, the demand for oil products has decreased significantly. The trend is projected to continue over the short-term, resulting in lower product demand.
Attapulgite products are used as binding agents in fertilizers and seed coatings. The use of these products forms suspension, which remains unaffected by salts, and thus improves crop yield in agriculture. It is also used in pesticides, insecticides, slow-releasing agents, animal feed, and many more applications specific to the agriculture industry
North America market accounted for the largest demand share of 895.1 kilotons in 2019 and is projected to expand further at a moderate CAGR from 2020 to 2027 owing to stable demand from the domestic chemicals and pet waste absorbents industries. In the Asia Pacific, China is projected to remain a key regional market over the forecast period. The country’s advancement in the chemicals & agrochemicals sector is projected to drive the product demand.
In addition, the use of the mineral to manufacture value-added products, such as granular & gel form products, is likely to drive the market country. The market in India is also projected to showcase a steady growth, in terms of product consumption. The country’s drive to become self-sufficient is likely to aid market growth.
In terms of volume, the market in MEA is likely to witness sluggish growth over the forecast period. The use of the product in ferrochrome pelletizing was totally replaced by bentonite powder, which resulted in a decrease in demand since 2012. The remaining demand was largely catered by the chemical sector of the country, which remained largely focused on making value-added products.
The market is highly competitive due to the presence of a number of major companies, such as, BASF, Hudson Resources, Geohellas, which are involved in mining, processing, and sales of the products. Among these players, BASF holds a strategic position due to its integration across the value chain. BASF has quality resources of attapulgite, which are further processed and used in various applications. The company has vast experience and a wide presence across the world with operations in 80 countries. It has a reliable supply chain and a wide range of customers in various industries, such as paints & coatings, rubber, plastics, oil & gas, chemicals, and agriculture. Some of the prominent players in the attapulgite market include:
BASF SE
Hudson Resources Ltd.
Tolsa
Active Minerals International LLC
Geohellas
Oil-Dri Corporation of America
MYTA a SAMCA Group Company
Sun Silicates (Pty) Ltd.
Sepiolsa
G&W Mineral Resources
Report Attribute |
Details |
Market size value in 2020 |
USD 248.2 million |
Market volume in 2020 |
1,273.5 kilotons |
Revenue forecast in 2027 |
USD 353.8 million |
Volume forecast in 2027 |
1,687.7 kilotons |
Growth Rate |
CAGR of 2.9% from 2020 to 2027 (Revenue-based) |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative Units |
Volume in kilotons, revenue in USD million, and CAGR from 2020 to 2027 |
Report coverage |
Volume forecast, revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments covered |
End-use, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
The U.S.; Canada; Mexico; Spain; Germany; Russia; China; Japan; India; Bangladesh; Indonesia; UAE; South Africa |
Key companies profiled |
BASF SE; Hudson Resources Ltd.; Tolsa, Active Minerals International LLC; Geohellas; Oil-Dri Corporation of America; MYTA a SAMCA Group Company; Sun Silicates (Pty.) Ltd.; Sepiolsa; G&W Mineral Resources |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global attapulgite market report based on end-use and region:
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Oil & gas
Fertilizer & Agrochemicals
Chemicals
Pet waste absorbents
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Mexico
Europe
Spain
Germany
Russia
Asia Pacific
China
Japan
India
Bangladesh
Indonesia
Central & South America
Middle East & Africa
UAE
South Africa
b. The global attapulgite market size was estimated at USD 281.1 million in 2019 and is expected to reach USD 248.2 million in 2020.
b. The attapulgite market is expected to grow at a compound annual growth rate of 2.9% from 2020 to 2027 to reach USD 353.8 million by 2027.
b. North America dominated the attapulgite market with a share of 61.8% in 2019, owing to its increasing demand from the oil & gas sector.
b. Some of the key players operating in the attapulgite market include BASF SE, Hudson Resources Limited, Tolsa, Active Minerals International LLC, Geohellas, Oil-Dri Corporation of America, MYTA a SAMCA Group Company, Sun Silicates (Pty) Ltd, Sepiolsa, and G&W Mineral Resources.
b. The key factors that are driving the attapulgite market include increasing the use of attapulgite absorbents in oil drilling and new product development for pet litter products.
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