Kaolin Market

The global kaolin market is projected to witness healthy growth during the forecast period, 2019–2025. The prominent factor favoring the growth of the global market is the increase in demand for kaolin as a coating of paper and as a raw material to produce ceramics. The increasing use of kaolin in the end-use industries such as paper and building & construction and the healthy growth of these industries is expected to support the growth of the global kaolin market during the forecast period. However, the presence of potential substitutes is likely to hinder the growth of the global market during the review period. Nevertheless, the projected rise in the demand for kaolin in the diverse end-use industries such as cosmetics and pharmaceutical are expected to create lucrative opportunities for the players operating in the global kaolin market during the forecast period.

The paper industry is the largest single-user of kaolin globally. Kaolin is extensively used as an additive in the production of papers, especially as a filler and coating. The physical properties offered by kaolin, such as whiteness, opacity, glossiness, large surface area, and low abrasivity, makes it an ideal raw material for paper production. Furthermore, it reduces the consumption of expensive wood pulp and improves the optical properties and printing characteristics of the paper. Kaolin is used for manufacturing different kinds of paper, including paper for magazines, brochures, art paper, cartons, and boxes. Manufacturers offer different grades of kaolin depending on the end-use requirements. For instance, BASF SE, one of the largest global producers of kaolin, offers hydrous kaolin grade for thermal paper applications and ultra-high brightness calcined kaolin for enhancing the brightness and shade of paper and paperboard. Moreover, owing to the ongoing trend of developing and following sustainable practices, the demand for kaolin in the global market has increased. Manufacturers are investing heavily in the kaolin market, owing to its positive growth outlook.

The global paper industry has witnessed tremendous growth in the last few years and is likely to expand by 2.5 times by the end of 2025. The growth in the paper industry is mainly attributed to the growing need for cardboard packaging, which is in line with the increasing manufacturing and e-commerce activities, rising manufacturers' initiatives to develop sustainable packaging solutions, and growing demand for hygiene products. Moreover, kaolin is also used in the coating of thermal paper, which is used in diverse end-use industries such as packaging, printing, and logistics for printing bills, transactional documents, and RFID tags, among others. With increasing advancements in technology and the availability of high-quality paper with enhanced features, the demand for kaolin is likely to increase in the next few years. Thus, the extensive use of kaolin in the paper industry is expected to drive the growth of the global kaolin market during the forecast period.

Kaolin has numerous applications in the paper, ceramics, and paints & coating industries. However, through increased focus on research & development, manufacturers have developed medical and cosmetic grades of kaolin to widen its application areas. For instance, in the pharmaceutical industry, British Pharmacopoeia Light Kaolin (BPLK) and Heavy Kaolin are kaolin-based products that are being manufactured as per requirements by the British and European Pharmacopoeia. BPLK is used in both human and veterinary medicinal products to treat diarrhea. In addition to this, BPLK is found in various dietary products, plasters, foot-powder, and in products for treating lung disorders. Furthermore, kaolin can also be used as an excipient in the personal care and cosmetics industries. It is used as a purifying, whitening, protective, and mattifying agent in hair care. Many manufacturers offer cosmetic grade kaolin. For instance, IMERYS offers ImerCare kaolin range, which is used in color cosmetics, make-up, haircare, and skincare products, Some of the popular skincare products that include kaolin as an ingredient are Kaolin Skin Mask by Rooted, Oil Control Hair Mask by The Earth Collective, and 4-in-1 Face Care Set for Dry Skin by PlumGoodness. Thus, the widening scope of kaolin in the cosmetic and pharmaceutical industries is likely to create a lucrative opportunity for the players operating in the global kaolin market during the forecast period.

Kaolin has wide applications in diverse industries, including paper, ceramic, paints & coatings, fiberglass, plastics & rubber. However, the presence of potential substitutes is likely to reduce the use of kaolin. In the paper industry, extensive research has been carried out for developing technologies to enhance paper surfaces. Other than kaolin, various coating products, including pigments such as calcium carbonate, titanium dioxide, aluminum oxide, and silica, can be used. Furthermore, for applications in food packaging, various regulations issued by government bodies such as FDA and EPA regarding food contact need to be met. Thus, several biopolymers such as starch and cellulose derivatives, chitosan, alginate, and polylactic acid, as well as nanomaterials, are being used for manufacturing food packaging products. Moreover, PVC, acrylic, and laminated tiles have emerged as a potential alternative for ceramic tiles in the global market, which reduces the demand for ceramic tiles in the global market. Furthermore, plastic is considered as an ideal substitute for kaolin-based materials owing to the low raw material prices of ethylene compared to pulps. With the advancement in technologies, various physical properties are being incorporated into plastics so that they can be used in applications such as fiberglass, building & construction, and paints & coatings. Thus, the availability of substitutes is likely to hamper the growth of the global kaolin market during the forecast period.

The global demand for kaolin is expected to reduce owing to rapid digitization and increasing penetration of the Internet globally. The widespread adoption of paperless reading and digital media has led to a decline in the demand for printing and producing papers. In the framework of the online economy age, with the rapid transformation of the media industry into new media and the swift growth of online consumption, thus, the product structure of the paper industry is expected to face pressure in the next few years. According to the Food and Agriculture Organization of the United Nations (FAO), the current land use causes around 50,000 sq. miles of deforestation every year. Hence, governments of various countries have taken numerous initiatives to reduce paper production and increase digitization in their respective regions, which is expected to create an obstacle for the growth of the paper industry. As the paper industry is one of the major contributors in the global kaolin market, the reducing demand for paper due to digitization is expected to create a challenge for the players operating in the global kaolin market during the forecast period.