CALCIUM SULPHATE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The calcium sulphate market size is expected to reach US$ 2.85 Billion by 2030, from US$ 1.91 Billion in 2023, at a CAGR of 5.9% during the forecast period.

Calcium sulphate, also known as gypsum, is a mineral compound that is used in various applications such as building materials, cement additives, agriculture fertilizers, and water treatment among others. The growth in construction activities and increasing agricultural production are the major factors driving the calcium sulphate market growth.

The calcium sulphate market is segmented based on product type, application, end-use industry, and region. By product type, the market is segmented into synthetic, natural, and FGD gypsum. The synthetic gypsum segment accounts for the largest share of the market owing to its low cost and easy availability as compared to natural gypsum.

Calcium Sulphate Market Regional Insights

• Asia Pacific is the largest market for calcium sulfate, accounting for 38% of the global market in 2023. The growth of the market in this region is driven by the increasing demand from the construction industry, which is the major consumer of calcium sulfate. China is the largest market for calcium sulfate in Asia Pacific, followed by India and Japan.
• North America is the second largest market for calcium sulfate, accounting for 25% of the global market in 2023. The growth of the market in this region is driven by the increasing demand from the construction industry and the oil and gas industry. The U.S. is the largest market for calcium sulfate in North America, followed by Canada and Mexico.
• Europe is the third largest market for calcium sulfate, accounting for 19% of the global market in 2023. The growth of the market in this region is driven by the increasing demand from the construction industry and the pharmaceutical Germany is the largest market for calcium sulfate in Europe, followed by France and the U.K. 

Figure 1. Global Calcium Sulphate Market Share (%), by Region, 2023

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Calcium Sulphate Market Drivers

• Growth in the construction industry: The construction industry is one of the largest consumers of calcium sulphate in the form of gypsum plaster and plasterboards. The global construction spending is expected to reach over US$15 trillion by 2030, driven by rapid urbanization and growth in infrastructure projects. Developing economies in Asia Pacific and Middle East & Africa are expected to account for 60% of the global construction spending by 2030. The rise in construction of residential and commercial buildings to accommodate the growing urban population will drive the demand for gypsum-based building materials like plasterboards. This presents significant growth opportunities for calcium sulphate manufacturers.
• Increasing agricultural production: Calcium sulphate is widely used in the agriculture industry as a soil amendment and fertilizer ingredient. It improves soil fertility and conditioning in areas with saline soil conditions. With the growing need to improve agricultural productivity and crop yield to meet the rising food demand, the consumption of gypsum in agriculture is increasing significantly. Gypsum application in soil prevents aluminum toxicity and makes nutrients readily available to plants. The demand for food grains like rice, wheat, corn, etc. is projected to increase by 15-25% by 2030, which will drive the adoption of gypsum in agriculture. For example, as per Food and Agriculture Organization estimates, the area under cultivation of important cash crops like sugar cane rose by 5% in India between 2020 and 2021. Similarly, wheat cultivation expanded in China, Russia, and U.S. during the same period. This has significantly boosted the demand for calcium sulphate from these countries.
• Growth of the cement industry: The cement industry accounts for a major share of the calcium sulphate demand. It is an important additive in the manufacturing of Portland cement where it regulates the setting time and aids the grinding process. According to industry estimates, the global cement production is expected to reach over 5 billion tons by 2030. Developing nations, such as India, Vietnam, and Africa, will drive this growth owing to large-scale infrastructure projects and housing demand. With cement production rising globally, the consumption of gypsum by cement manufacturers will also increase, in turn, fueling the growth of the calcium sulphate market.
• Rising demand from water treatment applications: Calcium sulphate is widely used in municipal water treatment plants for odor control. It is a cost-effective sulfur source and helps remove hydrogen sulfide from water. With deteriorating water quality and growing concerns over the provision of clean drinking water, municipalities are upgrading their water treatment infrastructure. The global municipal water treatment market is poised to grow at over 7% CAGR from 2022 to 2030 on account of rising investments in water treatment projects. This will substantially increase the adoption of calcium sulphate in water treatment applications.

Calcium Sulphate Market Opportunities

• Capacity expansions in Asia Pacific: Asia Pacific is the largest and fastest-growing calcium sulphate market globally. To capitalize on the increasing regional demand, manufacturers are significantly expanding their production capacities in countries like China, India, and Thailand. For instance, in 2021, Yoshino Gypsum announced capacity additions at its factory in Thailand to meet the rising demand. Such capacity expansions provide growth opportunities to calcium sulphate manufacturers in the cost-competitive Asia Pacific market. Local players are also expected to benefit from increasing their production capacities.
• Growing demand for recycled gypsum: Recycled gypsum produced from flue gas desulfurization (FGD) systems of coal-fired plants is gaining traction over natural gypsum. It has similar chemistry and purity as natural gypsum. Gypsum recyclers retrieve waste FGD gypsum from landfills and supply it to cement, agriculture, and gypsum board manufacturers. The availability of recycled gypsum provides cost benefits to end-users. Gypsum recycling also prevents landfilling of this useful material. The global flue gas desulfurization gypsum market is projected to grow at over 5% CAGR from 2023 to 2030, creating significant opportunities for calcium sulphate manufacturers.
• R&D for new product development: Manufacturers are investing in R&D activities to develop improved calcium sulphate products for various applications. For instance, acrylic-based gypsum plaster for enhanced water resistance or gypsum bonder plasters for tile fixing. The use of additives like polymers is being explored to improve product qualities. Manufacturers are also developing gypsum boards with additional properties like fire resistance and moisture control. The launch of such innovative products caters to changing customer needs, thereby presenting growth opportunities for manufacturers.
• Applications in 3D printing: Calcium sulphate hemihydrate, the key ingredient in plaster, has gained interest as a building material for 3D printing in construction. It is being used with naturally occurring minerals to develop 3D printed architectural structures. Calcium sulphate deposits provide uniform print quality and good interlayer adhesion. The global 3D printing construction market is projected to reach US$ 1.50 billion by 2030. The rise of 3D printing in construction creates new revenue possibilities for the calcium sulphate market.

Calcium Sulphate Market Trends

• Increasing use of FGD gypsum: The use of flue gas desulfurization (FGD) gypsum is growing significantly owing to its cost-effectiveness and large availability as a byproduct of coal-fired power plants. FGD gypsum has similar composition as natural gypsum and does not affect the quality of cement. Many countries are promoting the utilization of FGD gypsum in the construction industry to reduce environmental impacts. For instance, China utilizes 100% of its FGD gypsum production amounting to over 30 million tons annually. The rising adoption of FGD gypsum is thus a key trend in the calcium sulphate market.
• Shift towards lightweight construction: Lightweight construction materials are gaining increasing preference driven by the need to reduce building weight as part of green initiatives. Manufacturers are developing lightweight gypsum plasterboards and blocks using additives like polymers and expandable microspheres. This decreases material density while providing desired strength and thermal insulation. For instance, Knauf GmbH offers its Supalight gypsum boards that are 30% lighter than conventional boards. The rising trend towards lightweight construction materials is expected to shape product development in the calcium sulphate market.
• Capacity expansions through brownfield projects: Established calcium sulphate producers are expanding capacities of existing plants through brownfield expansion projects to minimize costs and project timelines. This is preferred over setting up new greenfield facilities. For example, on 11 July 2023 Saint-Gobain invested US$235 million to expand its gypsum board manufacturing capacity in North America through brownfield expansions. Such expansions allow manufacturers to increase output from existing gypsum quarries/operations cost-effectively.
• Rising adoption of recycled gypsum: Recycled FGD gypsum and recycled plasterboards present a promising substitute to natural gypsum. Recycled gypsum is being increasingly adopted in plasterboard production and cement manufacturing. Companies like Knauf Digital GmbH offer recycled gypsum under its REGY brand to promote circular economies. Government policies are also encouraging the use of recycled gypsum. For instance, the European Commission aims to achieve 10% recycled gypsum use across Europe by 2030 under its Circular Economy Action Plan.

Calcium Sulphate Market Restraints

• Environmental impacts of gypsum mining: Gypsum is a non-renewable mineral resource obtained through open-pit mining. Intensive gypsum mining can lead to air pollution, habitat destruction, groundwater table lowering, and soil erosion. Excessive gypsum extraction is not considered environmentally sustainable in the long run. Stringent mining regulations are being implemented in many countries regarding gypsum excavation and processing. Such unfavorable environmental impacts pose challenges for the growth of the calcium sulphate market. For instance, according to a study published by the UN Environment Programme in 2021, 64% of countries reported mining as a cause of increased pollution levels in rivers between 2018 and 2020.
• Health hazards of gypsum dust: Gypsum processing and use can result in exposure to powdered gypsum dust containing silica and sulfate. Prolonged exposure can cause lung diseases like silicosis and lung cancer. Workers involved in mining, crushing, plasterboard cutting are at high risk. Implementation of worker safety regulations in gypsum product manufacturing adds to costs for producers. Health hazards associated with gypsum dust restrict market growth to some extent. For instance, according to the World Health Organization, pneumoconiosis affected around 110 million people globally in 2020 with an annual incidence of 200,000 cases. Pneumoconiosis caused over 40,000 deaths worldwide in the same year.
• Transportation costs: As a mineral-based product, transportation and logistics costs are relatively high for calcium sulphate, impacting the overall cost for end users. It has low value-to-weight ratio. Transportation costs are substantial for companies manufacturing gypsum products at facilities far from gypsum quarries. End-use industries also incur considerable freight costs when calcium sulphate needs to be sourced from distant suppliers. Such high transportation costs hinder the adoption of calcium sulphate to some extent. For instance, according to data from the World Bank, transportation costs account for 10-15% of the total costs for many calcium sulphate producers globally. With fuel prices rising, transportation costs have been increasing annually, further squeezing margins.

Analyst’s Views

The global calcium sulphate market is projected to witness steady growth over the forecast period. The key driver for the market's growth is the rising usage of calcium sulphate in construction activities as a setting regulator for cement and plaster. The booming construction industry, especially in emerging economies, will augment the demand for calcium sulphate. Furthermore, calcium sulphate also finds widespread application as a soil conditioner in agriculture. The growth in global population and rising food demand are anticipated to boost its consumption in the agricultural sector. However, fluctuations in the prices of raw materials, especially gypsum, may act as a restraint for market participants. As gypsum is the primary raw material, any supply constraints or price volatilities will hamper production capabilities. Furthermore, stringent environmental regulations regarding mining activities pose a challenge. Substitute products like limestone and anhydrite also create competitive pressure. The Asia Pacific region, led by China and India, dominates the global consumption of calcium sulphate. Rapid urbanization and infrastructure growth in developing Asian nations will drive the APAC market. North America and Europe are relatively mature markets but are expected to grow supported by recoveries in construction volumes. Countries like Brazil and South Africa are emerging hotspots due to initiatives to boost their respective agricultural industries through soil enhancement programs.

Recent Developments

New product launches

• In January 2022, Knauf Gips KG launched its new product line of ultra-lightweight floor screeds, named Ultraflor. These screeds reduce construction time and costs due to their low thickness and weight. Knauf Group is a multinational, family-owned company based in Iphofen, Germany, well known for drywall gypsum boards, founded in 1932.
• In June 2021, LafargeHolcim launched its new water-repellent construction plaster Systaic AirPlus, which improves indoor air quality through its high moisture buffering capacity. The Holcim Group, legally known as Holcim Limited, is a Switzerland  Swiss multinational company that manufactures building materials. It has a presence in around 70 countries, and employs around 72,000 employees.
• In March 2020, Yoshino Gypsum announced the launch of its new fire-resistant gypsum boards with improved sound absorption and flame retardant properties. Yoshino Gypsum Co., Ltd., founded in 1937 and headquartered in Tokyo, Japan, is a manufacturer and supplier of building materials made from gypsum.

Acquisition and partnerships

• In October 2022, Saint-Gobain acquired Global Gypsum Company, a leading gypsum wallboard manufacturer in Sub-Saharan Africa. This expanded Saint-Gobain’s footprint in the African market. Compagnie de Saint-Gobain S.A is a France-based multinational corporation, founded in 1665 in Paris and headquartered on the outskirts of Paris, at La Défense and in Courbevoie.
• In December 2021, USG Corporation partnered with GE Renewable Energy to develop gypsum products using synthetic gypsum produced as a byproduct of flue gas desulfurization systems. USG Corporation, also known as United States Gypsum Corporation, is a U.S.-based company which manufactures construction materials, most notably drywall and joint compound. The company is the largest distributor of wallboard in the U.S. and the largest manufacturer of gypsum products in North America.
• In January 2020, Etex acquired Pladur, Spain’s leading manufacturer of plasterboards and gypsum products. This strengthened Etex’s position in the European calcium sulphate market. Etex NV (Etex) is a manufacturer of building materials and systems. It manufactures products such as tiles, plaster building boards, paints and coatings, fire protection, slates, roof elements, corrugated sheets, fire-stopping products, exterior building designing materials, and modular building systems. Pladur Gypsum SA is a Spanish company that specializes in manufacturing building materials, particularly gypsum products.The company was founded in 1979 and is headquartered in Madrid, Spain.

Figure 2. Global Calcium Sulphate Market Share (%), by Application, 2023

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Top Companies in the Calcium Sulphate Market

• Knauf Gips KG
• LafargeHolcim
• National Gypsum Company
• Saint-Gobain Group
• Yoshino Gypsum Co., Ltd.
• ACG Materials
• Anhydritec
• BNZ Materials Inc.
• American Gypsum
• Gyptec Ibérica

Definition: The calcium sulphate market refers to the industry and market associated with the production, distribution, and commercial applications of calcium sulphate, also known as gypsum. Gypsum is a soft sulfate mineral composed of calcium sulfate dihydrate found in sedimentary rock formations across the world. It is extracted through mining or as a byproduct from coal-fired power stations. Calcium sulphate is used in various applications such as drywall, plaster, cement manufacturing, agriculture, food additives, water treatment, and others. The calcium sulphate market comprises key players engaged in gypsum mining, manufacturing of gypsum-based products, and distribution to end-use industries like construction, agriculture, food, chemical, paper, water treatment, pharmaceuticals, etc. The growth of the calcium sulphate market  is driven by increasing construction activities, demand from agriculture sector, and rise in consumption by chemical, food, and water treatment applications globally.

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