The global kaolin market trend is projected to reach USD 5,833.5 million by 2027, exhibiting a CAGR of 5.1% during the forecast period. Rising awareness about the benefits of china clay in skincare applications will be a prominent growth determinant for this market, states Fortune Business Insights™.
Restraining Factor
The COVID-19 pandemic outbreak has dealt notable blows to the paper industry as a result of lockdowns, supply chain disruptions, trade restrictions, and economic downturn. According to a study published by North Carolina State University, certain types of paper products have suffered because of the pandemic. For example, the demand for printing paper and copier paper has noticeably shrunk due to the shutdown of colleges and universities worldwide. In India, the Indian Paper Manufacturers Association stated in August 2020 that since March, paper supply chains have undergone widespread upheavals and are still in recovery mode. Moreover, the closure of educational institutions and commercial establishments has further diminished the demand for paper, intensifying the downturn of the domestic paper industry. Kaolin is the most widely utilized mineral in the filling and coating of paper, and with the paper industry getting hit by the coronavirus, the growth of this market will inevitably get stalled.
Regional Insights
Asia Pacific is expected to lead the kaolin market share during the forecast period owing to the remarkable economic growth displayed by countries such as China and India. This growth has augmented the demand for high-end household consumer goods, where china clay is commonly used. The rapid expansion of the middle-class population in the region will also accelerate the growth of the regional market. In 2019, the Asia Pacific market size stood at USD 1,086.9 million.
In Europe, the heightened demand for packaged food and beverage items amid the COVID-19 pandemic has fueled the uptake of kaolin in the region’s food & beverage industry. On the other hand, in North America, technological advancements in the paper and packaging industries will stoke the regional market.
Competitive Landscape
With the demand for high-performance raw materials soaring across various end-user industries, key players in the china clay market are engaged in the development of innovative offerings. However, the costs associated with the production of such materials are escalating worldwide. As a result, several companies are being forced to increase the prices of their products.
Industry Development:
December 2020: KaMin LLC and CADAM SAannounced that they would be increasing the price of their kaolin performance minerals by 4% to 9% in the global markets from January 2021. According to the company, the price rise is unavoidable as it needs to offset the growing costs related to logistics and mining operations and to comply with the environmental requirements.
Source:https://www.fortunebusinessinsights.com/kaolin-market-102352
