Kaolin Market Size, Share & Trends Analysis Report By Application (Ceramics, Plastic, Pharmaceuticals & Medical, Paint & Coatings, Cosmetics, Fiber Glass, Paper, Rubber), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global kaolin market size was valued at USD 5.42 billion in 2018 and is expected to witness a CAGR of 8.8% from 2019 to 2025. Rising demand for ceramic products in housing and construction industry coupled with increasing use of fiberglass in automobile and aerospace applications are expected to drive the market over the forecast period. Ceramic sanitary ware products, such as washbasins, shower plates, toilet bowls, and bathtubs, have characteristics like corrosion resistance, abrasion resistance, and glossy surface finish, which make them a superior alternative to steel and other metallic products.

These products are increasingly utilized in residential and commercial constructions across the globe. Growing population and enhanced standards of living are further expected to fuel the demand for ceramic products. These factors are estimated to result in an increased demand for kaolin, thereby boosting the global market growth over the forecast period.

Fiberglass finds application in automotive and aerospace sectors as it helps reduce the weight of the structure, thus improving efficiency. Usage of fiberglass composite also helps reduce CO2 emission levels from vehicles. Introduction of Corporate Average Fuel Economy (CAFÉ) standards in U.S. has been one of the key reasons for a significant rise in the utilization of lightweight materials like fiberglass.

Initiatives undertaken by the governments of Bangladesh and India to promote literacy are expected to result in high demand for paper, consequently driving the market growth over the forecast period. However, threat of substitution from calcium carbonate for manufacturing paper may hamper the demand growth over the coming years.

Application Insights

Paper application segment led the global industry in 2018. Increasing use of kaolin as filler is anticipated to drive the paper segment over the forecast period as it is cheaper than conventional wood paper filler.In paper industry, it is used as paper coating to improve gloss, smoothness, and printability. As a filler it improves the opacity and ink receptivity to the paper sheet. However, use of ground calcium carbonate as a substitute can critically impact the segment growth. Another key challenge for the growth of paper sector is the rising prominence of electronic news media platforms.

Fierce competition from electronic platforms has diminished the share of print media. Thus, rising prominence of digital or electronic platform among millennials may hinder the growth over the coming years. Digital platforms are attracting significant advertisers and thus, directly affecting the growth of print media, especially in the North America and Europe regions. Thus, reducing demand for paper is likely to affect the demand for kaolin products over the forecast period. The fiber glass application was valued at USD 341.3 million in 2018 and is projected to be the fastest-growing segment from 2019 to 2025. 

Fiberglass is used for the manufacturing of wide range of products as it is lightweight, and extremely strong. Finished fiberglass products are mainly used as reinforcing agents for molded and laminated plastic applications being less brittle and having good bulk strength properties.The automobile industry is the key driver of the fiberglass market, which is expected to fuel the demand for kaolin as it is one of the ingredients used in the manufacturing of fiberglass.

The housing industry caters to the demand for ceramic-based products, which includes sanitary ware and tiles. Kaolin is the key ingredient in the production of ceramic tiles and sanitary ware. Government-led schemes and initiatives are expected to drive the demand for sanitary ware over the coming years. For instance, Swachh Bharat Mission by the government of India, which aims to build nearly 10 million toilets by 2022.

Regional Insights

In terms of revenue, Asia Pacific was the largest regional market in 2018. Growing paper packaging segment in this region is assisting the market development. In 2017, paper packaging segment observed a sales volume of nearly 89.4 billion units in the Asia Pacific region. Thus, steady demand from this sector is likely to drive the demand for kaolin in APAC over the forecast period. In North America, stagnant news print paper sector is likely to affect the regional growth. Shift towards digital media and electronic platforms for information and entertainment is likely to be one of the key restraints.

Digital platforms are attracting significant advertisers and thus, directly affecting the growth of print media in the region. Europe accounted for 27.56% of the global market share, in terms of volume, in 2018. Increasing demand for eco-friendly products in Europe coupled with increasing application scope, is projected to open new growth opportunities for the market over the coming years. Central and South America accounted for 5.80% of the global market, in terms of volume, in 2018. The rebounding construction sector of Brazil and other key regional countries is likely to drive the demand for ceramic products. Thereby, posting stable growth opportunities for kaolin industry.

Kaolin Market Share Insights

Some of the key manufacturers include BASF SE, Sibelco N.V., LB Minerals Ltd., Imerys S.A., KaMin LLC, Thiele Kaolin Company, and EICL Ltd. The primary challenge for local or regional manufacturers is the volatility in the raw material prices. Many industry experts believe that local companies require to establish either strong distribution channels or enter into merger agreement with kaolin mining company to offset the raw material prices and to increasing their profitability margin. Thus, most of the companies are focused on increasing their production capacity and distribution channels. They are also concentrating on long-term investment strategies through increasing the investments.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. 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, 2014 - 2025)

  • Paper

  • Ceramics

  • Fiber Glass

  • Plastic

  • Paint & Coatings

  • Rubber

  • Pharmaceuticals & Medical

  • Cosmetics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Turkey

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central and South America

    • Brazil

  • MEA

    • UAE