Kaolin Market Size, Share & Trends Analysis Report By Application (Paper, Ceramics, Paint, Fiberglass, Rubber, Metakaolin), By Region (North America, CSA, Europe, APAC, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global kaolin market size was estimated at USD 5.04 billion in 2017. It is projected to expand at a CAGR of 8.8% over the forecast period. Kaolin increases gloss, smoothness, brightness, and paint absorbency of paper. All these factors improve surface printability. These properties are expected to have a positive impact on product demand from paper and packaging industries.

Growing demand for ceramic products is expected to be one of the primary market drivers. In addition, rapid industrialization in emerging economies from Asia Pacific, Central and South America, and Middle East is expected to fuel product demand across numerous applications over the forecast period.

Kaolin is used in a variety of applications such as paper, ceramics, paint, fiber glass, rubber, and metakaolin. Rapid infrastructural development in emerging economies such as India and China, on account of rising government spending, has resulted in the growth of the construction industry. This, in turn, is expected to propel demand for the product over the forecast period.

Kaolin is increasingly being used in the cement industry owing to its favorable properties. It helps increase durability of cement and makes it efflorescence-free.Enactment of regulations such as the Global Warming Solutions Act 2006 in California requires industries to reduce their carbon footprint. To comply with such regulations, cement companies have been using Supplementary Cementing Materials (SCM), which require less energy during production process, and other materials that do not produce CO₂ as a by product.

Rising energy costs have resulted in kaolin manufacturers increasing prices of their products as energy is consumed at every step, from extraction to manufacturing the finished product. Moreover, demand for calcined kaolin and metakaolin is growing significantly. Both these products are manufactured at high temperatures. Furthermore, companies have been focusing on advancements in technology and on tapping unexplored applications such as printing inks.

Kaolin mining is known to have adverse impact on the ecosystem. Such issues are associated with tailings and removal of top soil. In addition, improper management of mining activities can have adverse socio-economic impact. Thus it is of paramount importance that these issues are addressed. Mining activities obstructs movement of animals due to formation of large open pits and waste rock piles. To counter these, several regulatory bodies have imposed stringent regulations.

The regulatory framework for kaolin is governed by the Workplace Hazardous Materials Information System (WHIMS) and the U.S. Food and Drug Administration (FDA), These agencies specify chemical and physical dangers of the product. In addition, presence of regulations in U.S. including the Clean Water Act and Surface Mining Act for ecological preservation is expected to hamper market growth to a certain extent. However, unavailability of direct substitutes for kaolin has resulted in its substantial demand over the past few years. This trend is expected to continue over the forecast period.

Application Insights

In 2017, the paper application segment dominated the global kaolin market in terms of revenue. The product is combined in wood pulp to generate substantially more paper filler, thereby leading to increased production volumes. In addition, it plays an important role in filler and coatings as it provides added strength to paper. However, market share in the paper industry is expected to decrease owing to availability of efficient substitutes such as Ground Calcium Carbonates (GCC) and Precipitated Calcium Carbonates (PCC). These products replicate the properties of kaolin at much lower costs.

Ceramics is likely to witness the fastest growth over the forecast period, owing to increasing requirement for kaolin as a partial replacement for the base material. The product is used in sanitaryware products, tiles, tableware, refractories, and insulators. Apart from improving optical properties of white ware product, kaolin gives it a smooth and strong finish. In addition, kaolin based ceramics are being used as a metal substitutes in aerospace. Addition of kaolin also results in enhancing durability, whiteness, and smoothness of the finished ceramic products.

Regional Insights

In 2017, Asia Pacific was the leading segment in terms of revenue and is expected to continue its dominance over the forecast period. Rise in demand for packaging paper due to new and stringent government regulations is the primary regional driver. This has led to a high penetration and dominance of products manufactured using kaolin.

Furthermore, rise in consumer disposable income, need for products such as rubber and paints, and increasing construction activities are some of the key market growth contributors. Countries such as China, India, Japan, Malaysia, Vietnam, Indonesia, and South Korea are projected to be major contributors to regional market growth.

Europe accounted for a significant market share in 2017. Increasing need for environment-friendly products in Europe owing to stern regulatory policies, coupled with expanding application scope, is expected to open new growth avenues over the forecast period. In addition, investments being made in Germany owing to upcoming construction projects is expected to impact product demand in paints and metakaolin applications.

Kaolin Market Share Insights

The market is characterized by the presence of various major players catering to global demand. A few of these companies are engaged in business of extraction, processing, and refining of kaolin.Such strategies help in saving cost of exporting or purchasing mined products from suppliers.

Additionally, major companies plan to initiate exploration in various untapped regions, especially in the Asia Pacific region. Some of the key manufacturers present in the industry are LB Minerals s.r.o., BASF SE, Kaolin AD, AKW Ukrainian Kaolin Company, Sibelco N.V., KaMin LLC, and Thiele Kaolin Company.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a global, regional, and country level and provides an analysis of 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

  • Paint

  • Fiber glass

  • Rubber

  • Metakaolin

  • Others

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

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE