Gypsum Market Outlook
The global gypsum market is projected to reach US$ 4.3 Bn in 2022. The global demand for gypsum expect to increase by 6.2% CAGR by 2032, reaching US$ 7.8 Bn. Global gypsum market is supposed to be driven by the rising construction of various global projects. The annual growth rate from 2018 to 2023 is anticipated at 4.0%, increasing to 8.2%for 2023-2028. According to a report, Gypsum production is increasing in recent years, and it is suppose to contribute about 2% to 3% to the global mineral output
The key barometer used to predict the economic state of the gypsum industry is the construction industry. If the construction industry is an expansive market, the demand for gypsum products also increases. Increasing demand for construction materials such as drywall, plasterboard, cement, and others suppose to raise demand for Gypsum. Sales in its market show 11.5% of the global construction chemicals market.
Key factors affecting the Global Gypsum Market Growth
In the upcoming years, the key factors specified below expects to affect the industry growth and use of gypsum in different end-use applications:
- Regulatory trends
- Recycling and sustainability
- Regional trends
New demands in construction will lead to the developing of gypsum products and see companies diversify their product portfolios. This will create a price premium for higher-performance products that offer superior durability and environmental performance. At the top of the market, there will be some scope for plasterboards with smart functionality, such as monitoring moisture content.
End users will demand more durable gypsum products to resist impact and water damage in response to more demanding building regulations. Therefore this will require refinements in gypsum production to optimise these products.
The International Energy Conservation Code (IECC) and International Green Construction Code (IgCC) will directly impact the plasterboard’s future potential. Of course similar codes are there in other countries too. A change in the building code often is a catalyst for innovation and product development. Laws in many jurisdictions will require closer monitoring of materials used in construction. This will require closer monitoring of supply chains and exact disclosure of product composition.
The energy codes have fostered product development as there is now a requirement for the exterior walls to incorporate an air barrier. Environmental regulations are also having a big effect on the market. Concern over greenhouse gas emissions and global climate change is forcing the market to consider greener options.
Recycling and sustainability
There is increasing pressure to recycle building products after their useful life. Part of the pressure comes from end-use influencers, architects, and part of it is regulation changes on how much material can be landfilled. As a result, a new industry is rising around the recycling of gypsum, specifically plasterboard products. Some plasterboard manufacturers are promoting program to recycle plasterboard products that went to construction sites.
Government regulations and green building initiatives will develop a catalyst for distributors to explore value adding services that divert used gypsum from land filling. Clearly the main focus will be for greater emphasis on gypsum recycling and its conversion into a new form of construction materials. In the US, standards are being developed to help guide the practice of recycling. However these guidelines include defining what materials undergo recycling, how to segregate the waste at construction sites and the proper marking for these materials.
Many transition economies will see more demand for gypsum as urbanization is booming and adopt plasterboards as an alternative to wet construction techniques employing cement and plaster. The adoption of plasterboard in developing countries is truly gaining traction. Countries that traditionally used wet trades (plaster, cement) and technology are moving more and more into plasterboard construction. When a new product is introduced into a region, it is typically manufactured elsewhere and imported to the new market. As the supply chain to support local production simply does not exist at an early stage. As the product becomes established, so does demand, creating the impetus for local production.
Italy is a good example of this in that for many years, and it did not have any local plasterboard manufacturing facilities.
Panelisation for prefabrication
The desire to reduce construction time while increasing quality has led to a renewed emphasis on panelisation. As builders continue to move towards greater pre fabrication and panelisation, gypsum suppliers require to develop plasterboards and other products that can be adapted to these construction methods. Small companies are emerging that specialize in panelizing specific components on commercial projects. Forward-thinking contractors are setting up divisions simply focused on panelisation. While penalization is nothing new, what is driving it is incorporating building information modelling (BIM) into the process.
Driving factor of Gypsum Market-U.S
“High Consumption of Gypsum for the Production of Drywall in the U.S. Will Fuel Growth“
In 2021, the demand for Gypsum in the U.S. market grew by 4.9% each year and suppose to be about 50 Million Tons in 2022. The U.S. is the second largest producer of Gypsum, following China. According to world mining data, the total production of crude Gypsum across the country was recorded at about 22 Mn Tons in 2020.
High demand for drywall and plasterboards from the building & construction departments in the U.S. makes it a basic trader of Gypsum and its products. In addition the rising demand of PoP in the interior dezigning sector boost sales over the judgement duration.
Driving factor of Gypsum Market-China
“Increasing Usage of Plasterboard in the Residential Sector in China Will Spur Demand”
China is the key producer and consumer of Gypsum. About 78% of the overall gypsum utilization will be in East Asia in 2022. The high demand in the country makes China a lucrative market for gypsum producers.
According to World Mining Data, China expect to be the predominant producer of Gypsum, followed by America, Iran, and Turkey. Moreover, in China, the total production of natural Gypsum is expected to be recorded at 25 Mn tons in 2020.
Consistent growth in the country’s construction industry is fuelling the demand for construction materials. Since gypsum is an essential constituent in producing various vital construction materials like cement, gypsum board, plasterboard, Plaster of Paris, Gypsum plaster and numerous others, and is getting traction.
Indian Gypsum Market in India
“The high demand for gypsum plaster in India will contribute to the industries’ growth.“
The increasing expansion in India’s building & construction sector expects to fuel Gypsum sales at a 7% CAGR over the assessment period.
It is increasing the construction of various projects across urban cities in India, bolstering Gypsum’s demand. Moreover, consistent growth in the production of cement also expects to boost growth in the gypsum market.
It is the Most Preferred Product Type in the Market
“ Natural Gypsum to Remain High in Adoption”
Considering the product type, natural gypsum suppose to dominate the Gypsum market. As per FMI, sales of natural gypsum seems to file each year at a growth of about 5.8% .
The natural segment suppose to gain high BPS points over the forecast duration owing to high usage in diverse end use in various firms, whereas synthetic sector has obtained traction after analyzing for period of 2017 – 2021 owing to high demand for tailored gypsum commodities.
Construction Industry is Fueling Gypsum Consumption
“ Usage of Gypsum in Cement Production Results in Increasing Demand”
Consumption of gypsum for cement production suppose to rise at a CAGR of 6.6% over the forecast period. Gypsum finds usages in various end use industries, with high utilization in cement, plaster, and drywalls.
Through mergers, acquisitions, and collaborations, leading gypsum manufacturers are expanding their production plants. As a result, they are also investing in research and development to gain a competitive edge.
In September 2021, in line with its May 20, 2021 announcement, a market lead announced that it had completed the acquisition of a leading global gypsum market player in the construction chemicals market, thanks to its comprehensive additives solutions for sustainable construction. This acquisition, perfectly in line with the strategy to position itself as a world leader in sustainable construction, allows to strengthen the presence in the growing construction chemicals market while benefiting from cost and sales synergies.