Kaolin Market Size, Share & Trends Analysis Report By Application (Paper, Ceramics, Paint & Coatings, Fiber Glass, Plastic, Rubber, Cosmetics, Pharmaceuticals & Medical), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global kaolin market size was valued at USD 4.76 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.5% from 2020 to 2027. 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.

In the U.S., the total production of kaolin was evaluated around 5,500 kilotons in 2019 as per the stats released by the United States Geological Survey (USGS) in 2020. Since 2015, mineral production in the country observed slight volatility in terms of output. For instance, in 2015, the total production was around 5,810 kilotons, which decreased down to 5,290 kilotons by 2016 and then bounced back to 5,560 kilotons in 2017.

A large part of the kaolin production in the U.S. was exported as paper fillers, components of ceramic bodies, extender in rubber products, and paint fillers in 2019. Kaolin was mainly exported to few destinations, including China, Japan, and Mexico, as per the stats published by the USGS in 2020. However, rising tensions with China are likely to slow down the kaolin export volumes in FY 2020. This is likely to cause a significant gap in the supply-demand balance, thereby creating a great challenge for the local vendors of kaolin in the U.S.

The apparent consumption of the product is projected to observe a sharp downturn due to the outbreak of coronavirus in the country. The number of coronavirus cases in the country has witnessed steady growth with the total number of cases reaching more than 5.5 million in August 2020. This, along with the economic disruption, directly affected the dynamics of the market space in the U.S.

Despite these unprecedented times, the economic conditions in the U.S. are expected to rebound by the first or second quarter of FY 2021. The upcoming presidential elections in the country are also projected to play a key role in determining the anticipated economic rebound.

Application insights

The paper application segment dominated the market and accounted for over 37.0% share of the global revenue in 2019. The paper industry widely utilizes kaolin as a filler due to its extravagant characteristics, such as superior gloss, brightness, opacity, and smoothness. The paper industry of Asia Pacific is projected to play a key role in fueling the product demand over the forecast period. However, the declining paper manufacturing, especially in North America, is a worrisome trend for the vendors of kaolin.

The ceramics application segment is estimated to remain the second-largest category in terms of volume as well as revenue. This segment is projected to expand at the fastest CAGR of 4.9% in terms of revenue over the forecast period. The use of the product in ceramic body components manufacturing is likely to remain a key factor for the segment growth.

The cosmetics application category captured a volume share of 1.1% in 2019 and is projected to witness promising growth over the forecast period. The use of the product in natural cosmetic manufacturing is expected to witness tremendous growth in terms of its inception. Additionally, the rising prominence of naturally-derived facial products, especially among the millennial population, is anticipated to push the usage of kaolin in the cosmetics sector over the forecast period.

The paints and coatings application segment is projected to witness a sharp decline in terms of demand in FY 2020. The imposed lockdowns, coupled with the crumbling demand for paints and coatings owing to the slump in the key end-use sectors such as construction and automotive, are likely to restrict kaolin consumption over the short term.

The rubber application segment is projected to lose its market share to its counterparts. This trend is largely influenced by the replacement of kaolin with calcium carbonate in natural rubber reinforcement. In addition, the current downturn of the automotive sector is projected to negatively impact the dynamics of the rubber industry. Owing to these factors, kaolin demand from the rubber industry is likely to witness sluggish growth over the forecast period.

Regional Insights

Asia Pacific dominated the global market space and accounted for 40.7% share of the global volume in 2019. The regional market is largely driven by manufacturing powerhouses, such as China, India, and Vietnam. In addition, the industrial development in the region is likely to reach its full potential, thereby creating significant demand for kaolin-based products over the forecast period.

Another key factor pushing the market growth in the region is the ceramics sector. The development of ceramic clusters, especially in countries such as China and India, has greatly boosted the consumption of the product over the last few years. The ceramics manufacturing sector of India has witnessed steady growth with the development of seven major clusters across the country. Among these, the Morbi cluster in the state of Gujarat produces nearly 90% of the domestic ceramic products. The development of such ceramic clusters is anticipated to play a key role in augmenting the product demand over the forecast period.

North America is projected to register the second-highest growth rate in terms of volume as well as revenue. The economic rebound in the U.S. is likely to play a key role in determining the regional success of the market space over the forecast period. The ceramics manufacturing capacity in the U.S. is projected to increase as the government of the country pushes financial budgets to revamp its infrastructural facilities.

Europe is likely to witness stagnant growth, as compared to the other regions. The economic disruption caused by the pandemic, coupled with the uncertainty around Brexit, is likely to directly impact the dynamics of kaolin consumption in the region. In addition, the larger conflict arising due to the economic turmoil is projected to negatively affect market growth over the short term.

The Middle East and Africa accounted for a small volume share in the market in 2019. The region is still under great scrutiny in terms of stability. The conflict around Iran and the U.S., civil unrest in the African countries, and the ongoing battle in Syria are likely to negate new investments in the region. The regional growth is largely attributed to a few countries such as UAE, Oman, Ethiopia, Saudi Arabia, and Qatar. The construction boom in the aforementioned countries is likely to present lucrative opportunities for the vendors of the kaolin industry.

Key Companies & Market Share Insights

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.

Kaolin Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global kaolin market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Paper

  • Ceramics

  • Paint & Coatings

  • Fiber Glass

  • Plastic

  • Rubber

  • Pharmaceuticals & Medical

  • Cosmetics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • 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