Kaolin Market Size, Share & Trends Analysis Report By Application (Paper, Ceramics, Paint & Coatings, Fiber Glass, Plastic, Rubber, Pharmaceuticals & Medical), By Region (Europe, North America), And Segment Forecasts, 2024 - 2030

Kaolin Market Size & Trends

The global kaolin market size was estimated at USD 3.98 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2030. Increasing investment in the construction and infrastructure industry is propelling demand for paints & coatings, ceramic-based products, and cement, which is driving market growth. The global construction industry is expected to witness lucrative growth over a shifting inclination towards green construction, which in turn is expected to provide a significant growth opportunity for the market. For instance, according to the World Bank’s new IFC report, green construction is anticipated to make investment opportunities worth USD 1.5 trillion for emerging markets.

Investments in construction, infrastructure development, and automotive production are expected to contribute to market growth over the forecast period. Growth of the construction industry in the U.S. is a key factor contributing to demand for kaolin in the country. According to the U.S. Census Bureau, total construction spending (residential and non-residential) grew by 3.5% in June 2023 on a y-o-y basis. The spending on single-family housing increased by 2.1% and multi-family housing by 1.5%.

Growing demand for painting due to rising investments in construction is leading companies to engage in strategic measures such as mergers & acquisitions, which are expected to influence the market demand positively. For instance, in November 2021, GDB International, Inc., a producer of paints & coatings, acquired a paint manufacturing plant in Illinois, U.S. This plant has a production capacity of 5 million gallons per year and can produce both water and solvent-based paints.

Growing investments in the medical industry are another driving factor for the market. For instance, in December 2021, Pfizer announced that it would acquire Arena Pharmaceuticals for about USD 6.70 billion. This deal was completed in March 2022 and is expected to help advance its presence in treatment of several immuno-deficiency diseases. Such developments indicate healthy growth for the country’s pharmaceutical and medical industries. This is anticipated to have a positive impact on demand for kaolin in the pharmaceuticals and medical application segment.

Market Dynamics

Increasing demand for plastics from construction and packaging industries, especially in China, and India is proving fruitful for kaolin. In the construction industry, plastics are used in façade panels, exterior covering, and carpentry. The industry is anticipated to witness an inclined growth due to increasing number of nuclear families and a rising focus on industrial infrastructure, which, in turn, is likely to fuel utilization of plastics. The aforementioned factors are likely to drive the market growth over the coming years.

Market growth however faces obstruction due to stringent regulations against mining. Several kaolin mines are located in close proximity to biodiversity hotspots, which leads to introduction of large quantities of suspended particles into air and water bodies. Settling dust particles on plant surfaces can hamper floral growth. These particles cause respiratory disorders in humans and animals. Introduction of suspended solids into water bodies can alter pH level of water, which can have a negative impact on aquatic flora and fauna.

Application Insights

Based on application, the paper segment dominated the market and accounted for a revenue share of nearly 37.0% in 2023. Kaolin coating improves appearance of paper giving it varied levels of gloss, smoothness, brightness, opacity, and printability. In addition, the product aids in enhancing printability of paper by providing added ink absorption, ink pigment holdout, lower tinting tendency, and increased roughness. The aforementioned factors contribute to its large share in the paper industry.

The ceramics was the second-largest application segment in 2023 and is expected to witness the highest CAGR of 5.4% over the forecast period. Use of product in ceramic manufacturing has been gaining prominence on account of characteristics such as fine particle size, chemical inertness, absorption properties, refractoriness, white burning feature, and high fusion temperature. The aforementioned properties make it suitable for manufacturing porcelain and bone china.

The paints & coatings is another lucrative segment. Its use in the construction industry is projected to remain a key driver for market growth. Kaolin helps to enhance the performance of paints in form of better suspension properties, rapid dispersion, corrosion resistance, superior water resistance, and reduced viscosities.

Rubber is estimated to lose its share owing to the prevalence of substitutes across the forecast period. Use of calcined products for production of heavy-duty insulation rubber has gained prominence over the last few years. Thus, directly impacting penetration of kaolin in this particular application segment.

Regional Insights

Asia Pacific accounted for the largest revenue share of more than 47.0% in 2023. Economic development and rapid industrialization have stimulated growth of the market in the Asia Pacific. The region is predicted to exhibit the fastest growth rate during the forecast period. Countries such as China, India, Malaysia, Vietnam, and South Korea are projected to be major contributors to growth of the regional industry.

Europe is anticipated to emerge as the second-largest regional space in 2023. Regional economic growth was significantly impacted by the emergence of coronavirus in 2020. Key countries of the region, including UK, Germany, Italy, Spain, and others showcased lower industrial output throughout the FY 2020.

Sluggish growth in industrial output directly influenced dynamics of the product. Regional growth witnessed signs of improvement in 2021. However, ongoing conflicts in the region including the Russia-Ukraine war and surging energy prices are likely to restrain the regional growth over the forecast period.

The North America region registered a revenue share of over 11.0% in 2023. Drive of the current U.S. administration to promote development of green energy sectors is projected to play a key role in uplifting demand for kaolin-associated products. Greater usage or utilization of ceramic and ceramic-based fuses in the regional solar sector is likely to present new opportunities for vendors of the industry in North America.

Middle East & Africa is poised to attain a CAGR of 3.0% in the forecast period. Construction industry in Middle East is expected to expand over the predicted timeline driven by positive developments in regional economic conditions and subsequent improvements in supporting policies and norms. The region completed projects worth USD 130.0 billion in 2019, as compared to USD 100.0 billion in 2016. Such strong momentum is likely to aid development of the kaolin industry.

Key Companies & Market Share Insights

The market is characterized by the presence of multiple manufacturing companies engaged in production of kaolin coupled with a concentration of end-use companies in the global market. These prominent manufacturers compete with each other on the basis of product quality and prices. Countries such as the U.S., China, India, and other Asian countries are some of the leading exporters of Kaolin in the world.

Companies undertake various strategic initiatives such as new product development and launch, acquisition, and geographical expansion, among others to establish their dominance in the global market. For instance, in March 2022, Thiele Kaolin Company acquired the U.S. kaolin assets of Imerys. With the help of these valuable strategic assets, the Thiele Kaolin Company is better equipped to supply customized mineral solutions that are highly valuable to its clients.

Kaolin Market Report Scope

Global Kaolin Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global kaolin market report based on application and region:

• Application Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • Paper

  • Ceramics

  • Paint & Coatings

  • Fiberglass

  • Plastic

  • Rubber

  • Pharmaceuticals & Medical

  • Cosmetics

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia