BISMUTH MARKET ANALYSIS

Market Challenges And Opportunities

Global Bismuth Market Restraints:

• Availability of substitute products: Global bismuth market has been facing strong competition from substitute products which is proving to be a major restraining factor for its growth. Bismuth is mainly used as a non-toxic replacement for lead in products like cosmetics, pharmaceuticals, and ammunition. However, there are other non-toxic metals which can effectively replace lead without using bismuth. For example, materials like zinc have been increasingly used in place of lead in ammunition manufacturing. For instance, according to data provided by the National Shooting Sports Foundation, the use of non-toxic zinc cores in ammunition increased from 25% in 2012 to over 75% in 2020.
• Fluctuations in bismuth ore prices: Fluctuations in the prices of bismuth ore have significantly restrained the growth of the bismuth market over the past few years. Bismuth is extensively used across different industries such as metallurgical, chemical, pharmaceutical, electronics, and rubber for various applications. However, as bismuth is a by-product obtained during extraction of other metals such as lead, its supply heavily depends on the production of primary metals. Any disruptions or fluctuations in the production of primary metals indirectly impacts the availability of bismuth ore. For instance, according to the United States Geological Survey (USGS), between 2020 and 2022, average prices of bismuth ore fluctuated between US$5 and US$8 per kilogram due to temporary closure of mines in China and Central Asia Pacific amidst the pandemic.
• Counterbalance - The development or increased availability of substitute materials with similar properties could decrease the demand for bismuth. If these alternatives are cheaper or more readily available, they could be preferred over bismuth in certain applications.

Global Bismuth Market Drivers:  

• Growth in pharmaceutical industry applications of bismuth compounds: The pharmaceutical industry is increasingly using bismuth compounds in various applications which is positively impacting the growth of the bismuth market. Bismuth subsalicylate which is commonly known by its trade name Pepto-Bismol, is a vital bismuth compound that is widely used in over-the-counter gastrointestinal drugs to treat diarrhea, indigestion, and upset stomach. It works by secreting mucus and acting as an adhesive in the stomach to coat lesions and protect the gastro-intestinal lining. In the past few years, there has been a rise in consumption of Pepto-Bismol across global markets...
• Rising demand from cosmetic industry: The cosmetic industry has witnessed tremendous growth over the past few years with increased expenditure on skincare and makeup products globally. Bismuth has several properties that make it highly useful for the cosmetic industry. It is non-toxic and hypoallergenic thereby providing a safe alternative to other metals in cosmetic formulations. Bismuth also has skin calming and soothing properties, thus making it an active ingredient in many skincare products targeted for sensitive skin...
• Emerging applications in automotive industry:The automotive industry has been increasingly utilizing bismuth in recent years and this trend is likely to accelerate further in the coming decades. Bismuth finds wide usage in manufacturing automotive components that require high melting point and low thermal conductivity properties...
• Potential in optics and optoelectronics domain:The optics and optoelectronics sector are witnessing significant growth globally driven by increasing demand for fiber optic cables, optical sensors, Light-Emitting Diode (LED) lighting, and displays. Bismuth has certain properties like high refractive index, non-toxicity, ductility which make it suitable for applications in this domain. It can replace traditionally used materials like lead and provide environmentally friendly solutions...