Kaolin Market Analysis and Forecast Study for 2017-2025

Kaolin Market: Snapshot

Kaolin is a clay material used in several industries due to the aesthetic and structural benefits it provides to the finished product. Key industries making use of kaolin in their manufacturing processes include the fiberglass industry, which has been driven by the rapid growth and diversification of the telecommunication industry in recent years, the paper industry, which has exhibited steady demand despite a drop in demand coming about due to the rise of the online publishing industry, and the ceramics industry, which has benefited from the construction industry boom in developing Asia Pacific and Latin American countries.

The construction industry boom has been a vital driver for the kaolin market, as the increasing disposable income of consumers in developing regions has led to rising demand for premium housing utilities such as ceramics floors. The growing ultra high net worth demographic in Asia Pacific, in particular, has driven the demand for premium construction options. The sustained growth of economies such as India, China, South Korea, Thailand, Indonesia, Malaysia, and Singapore is thus likely to drive the construction industry at a steady rate in the region. This is likely to be a key driver for the kaolin market in Asia Pacific in the coming years.

On the other hand, the kaolin industry has had to adapt in recent years to cope with the decline in demand for paper publishing. The rise of online publishing avenues has opened the doors to a new era of publishing, where paper has become secondary to digital options, which present several benefits in terms of clarity, relevance, and quality of outreach. The rising ebooks industry and the growing support environment developing around it is thus likely to hinder the global kaolin market’s growth to some extent. On the other hand, the growing demand for decorative paper could go some way in relieving the economic burden of the publishing industry.

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Global Kaolin Market: Overview

Also known as ‘China clay,’ kaolin is used at a sweeping rate in a variety of industrial applications, including paper, fiberglass, rubber, and ceramic. Much of the demand for kaolin can be accredited to its value added features which have attracted end-users from a host of different sectors. The surging business growth of the global kaolin market is prophesied to be complemented by the amplifying demand for tire manufacturing in the automotive parts sector along with construction materials.

Global Kaolin Market: Key Trends

The recent trend in the polymer and plastic industry favoring light weight instead of steel and metal products is prognosticated to set the tone for the world kaolin market. The quality of plastic can be fairly improved on the parameters of strength, durability, and electrical performance with the application of kaolin. Other industries such as adhesives, paints, and ceramics are at the mercy of kaolin in a gamut of applications, owing to its non-abrasive texture, chemical inertness, and grander opacity.

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With almost half of the total kaolin consumption accounted by the paper industry, the declining usage of paper as a result of digitalization is expected to affect the global kaolin market. However, kaolin industry vendors can find bankable opportunities in other sectors such as construction which augments the usage of ceramics in the residential domain besides mortar and concrete.

Global Kaolin Market: Market Potential

In an article published after the victory of Chief Rotimi Akeredolu as the governor of the Ondo State in Nigeria, it was reminded of kaolin as a lucrative mineral resource that the state is blessed with. Nigeria is not one of the richest economies in the world while Ondo is under a dire need to address its urgent and complex issues. However, with precious minerals such as kaolin along with upmarket forest products and dominant oil and crop production, the Africa region is expected to find new hopes. Players in the global kaolin market can cash in on this opportunity to penetrate the untapped African markets and spread their prominence across the continent.

Opportunities in the world kaolin market is not limited to only penetration. With companies such as Altech Chemicals looking to take charge as a ruling provider of 99.99% high purity alumina (HPA), industry players can give weightage to their presence in the kaolin market. In a recent press release, Altech is preparing to engage its proposed HPA plant for processing raw kaolin which is mined and shipped from its totally owned kaolin deposit in Western Australia.

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Global Kaolin Market: Regional Outlook

With the construction industry in emerging nations such as Japan, China, and India on the rise, the kaolin market in Asia Pacific is projected to scale up its focus toward a commanding growth between 2017 and 2025. The swelling industry size of the Asia Pacific region could also be attributed to maturing end-user sectors such as automotive and consumer lifestyle dynamics bettering at a telling rate.

Announcing its supremacy in the international metakaolin market in 2015, North America is predicted to gain an upper hand in the midst of an optimistic growth environment post the economic turbulence in 2008. In respect of their superlative characteristics, graceful elegance, and easy installation, ceramic tiles are foreseen to strike a considerable growth for the kaolin market as the consumer focus loses sight of wood floors.

Global Kaolin Market: Competitive Landscape

Top companies in the worldwide kaolin market could take to strategic positioning of their processing divisions and vital acquisitions and mergers to see themselves strong in the run. Such strategic moves are envisioned to also help vendors gain a competent share in the global market. Some of the key contributors in the market are I-Minerals Inc., Daleco Resources Corporation, Imerys SA, BASF SE, and Kaolin AD.

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