Grand View Research Estimates Kaolin Market Size at $5 Billion in 2017

In its recent report, “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,” Grand View Research estimates the global kaolin market size at $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.
 
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 US Food and Drug Administration (FDA), These agencies specify chemical and physical dangers of the product. In addition, presence of regulations in US 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.