Synthetic Gypsum Market

Synthetic Gypsum Market Analysis and Forecast by Type, Application, Region, and Country, 2023-2033

Synthetic Gypsum Industry: Harnessing Sustainable Growth in Construction and Agriculture with Waste-Derived Solutions

Category: Chemicals & Materials Published Date : Oct-23 ID: CVC01120 Format: PDF Pages: 300


Over the past few years, there has been a moderate upswing in the synthetic gypsum market. Anticipated factors propelling the demand for synthetic gypsum include the burgeoning construction activities in emerging economies, the rise in urban population, and the diverse applications within the agriculture sector.

Additionally, the incorporation of synthetic gypsum as a filler in the cement production process is augmenting the industry growth. This demand for synthetic gypsum is rooted in the quest for environmentally friendly and high-quality alternatives to natural gypsum, which is typically a byproduct of industrial processes.

Notably, the synthetic gypsum market has seen significant development in recent decades, especially as industry players have invested in finding synthetic methods for gypsum production from waste sources. 

Key Findings

  • In 2022, the industry achieved revenue of approximately $ 1,935.6 Mn.
  • Forecasts indicate that the synthetic gypsum industry is poised to secure a market share of $ 3,108.3 Mn by 2033, marking an increase from $ 2,020.8 Mn in 2023.
  • Throughout the forecast period, the synthetic gypsum market is expected to progress at a moderate Compound Annual Growth Rate (CAGR) of 4.4%.
  • In terms of applications, the sub-segment related to drywall is projected to command a 38.5% market share by 2033.
  • North America is anticipated to assert its dominance in the industry, capturing a market share of 26.1% by the conclusion of the forecast period.

Escalating Construction Industry Demand

The construction sector has experienced a mounting need for synthetic gypsum. Within this industry, synthetic gypsum serves as a valuable filler material in cement and plaster, enhancing their durability while reducing concrete setting times. Furthermore, it finds application in crafting decorative panels and plaster of Paris. A specific category of synthetic gypsum known as FGD gypsum is particularly prominent in construction, being a key ingredient in cement, drywall, and plaster of Paris production. Notably, FGD gypsum’s recyclable nature makes it a favored choice among manufacturers.

The increasing demand for decorative panels, structures, and sculptures within the construction field further fuels the synthetic gypsum market demand. Moreover, many developing countries’ governments are actively prioritizing infrastructure development, and introducing regulatory reforms aimed at bolstering the real estate and construction sectors. These measures are expected to exert a positive influence on the construction industry, driving the demand for synthetic gypsum in the foreseeable future.

Growing Adoption of Gypsum Products in Residential Interior Applications

Gypsum finds extensive use in residential interior applications, where it is employed to cover interior surfaces with blocks, plasterboards, or plaster. Plasterboards, in particular, serve various purposes such as partitioning, lining roofs, ceilings, walls, and even flooring. Their inherent properties enable customization to meet specific requirements, including factors like humidity, fire resistance, and impact resilience.

Gypsum fiberboards are utilized as decorative plaster, effectively enhancing the aesthetics of brick and block walls, and as a building plaster for wall and ceiling finishes. Standard gypsum fiberboards excel in areas such as sound insulation, impact resistance, and resistance to humidity.

The Myriad Product Advantages to Propel Synthetic Gypsum Market Growth

Synthetic gypsum offers a multitude of economic and environmental advantages. From an economic perspective, the production of synthetic gypsum generates additional revenue streams, effectively mitigating potential waste management costs. The material mitigates environmental pollution by diverting valuable by-products away from landfills.

Furthermore, the increased production of synthetic gypsum reduces the necessity to extract natural resources, contributing to the preservation of natural gypsum reserves. When compared to other natural gypsum products, synthetic gypsum stands out for its cost-efficiency and reduced environmental footprint.

Potential Impediments to Gypsum Market Growth Due to Substitute Availability

Within the construction industry, gypsum faces competition from various substitutes that could potentially impede the expansion of the gypsum market. For applications like stucco and plaster, alternatives such as cement and lime can replace gypsum. Similarly, wallboard can be substituted with materials like brick, glass, metal, plastic panels, or wood.

It’s worth noting that when it comes to the production of Portland cement, gypsum remains irreplaceable. Synthetic gypsum, generated through diverse industrial processes, including the flue gas desulfurization (FGD) of smokestack emissions, plays a crucial role as a substitute for naturally mined gypsum in wallboard manufacturing, cement production, and various other applications. The increasing availability of substitutes for synthetic gypsum may pose limitations on the growth of the gypsum market in the foreseeable future.

Growth Opportunities

  • Product Innovations

Continuous dedication to research and development is poised to yield a new wave of sophisticated gypsum-based products, broadening the horizons of the market. These innovations hold the potential to revolutionize the industry and drive expansion.

  • Emerging Markets

The construction upsurge in emerging economies unfolds significant prospects for synthetic gypsum producers. With burgeoning construction activities, these markets offer substantial room for growth, making them prime targets for market expansion efforts.

  • Recycling Initiatives

Persistent commitments to recycling and waste reduction endeavors are set to stimulate greater utilization of synthetic gypsum. This eco-friendly approach not only aligns with sustainability goals but also encourages the wider adoption of synthetic gypsum, further fueling its growth.

Category-wise Analysis

Cultivating the Popularity of Synthetic Gypsum in Drywall Applications

Among the various application areas, the synthetic gypsum market is segregated into drywall, cement, soil amendment, and other uses. Notably, the drywall category takes the lead with the largest market share, accounting for 38.5%.

Forecasts indicate a steady growth trajectory for this segment, characterized by a respectable Compound Annual Growth Rate (CAGR) during the assessment period.

The integration of synthetic gypsum into drywall production significantly contributes to the creation of more energy-efficient and environmentally friendly products. An encouraging trend is that over 50% of drywall manufacturing facilities have transitioned to using synthetic gypsum and have adopted the practice of incorporating recycled materials into their production processes. This transition fosters greater utilization and promotes sustainability in the drywall sector.

The Economic Advantage of Flue Gas Desulfurized Gypsum Opening Doors to Fresh Growth Prospects

One of the most prominent segments within the synthetic gypsum market is expected to be FGD gypsum. As environmental regulations continue to tighten, there is a notable surge in demand for FGD gypsum as a sustainable substitute for natural gypsum, particularly in the construction and manufacturing sectors.

The flue gas desulfurized gypsum, a specific type of synthetic gypsum, finds favor in various production processes for construction materials like Portland cement and plaster, among others. Its ease of production and cost-effectiveness have propelled the flue gas desulfurized gypsum variant to the forefront, accumulating the highest BPS points when compared to other synthetic gypsum product types.

Synthetic gypsum, with a primary focus on flue gas-desulfurized gypsum, holds a commanding market share, surpassing 90%. This rapid growth trajectory suggests that natural gypsum may be largely supplanted within a relatively short span.

Country-wise Analysis

North America’s Dominance in the Synthetic Gypsum Market Driven by Research and Sustainable Materials Focus

In the regional context, North America has emerged as a highly lucrative market for synthetic gypsum, and the region is projected to get hold of 26.1% market share on the global level by 2033.

The pursuit of novel revenue streams is underscored by extensive research aimed at enhancing the manufacturing processes of synthetic gypsum, particularly with advancements in FGD production. Manufacturers are increasingly dedicated to meeting end-user demands by offering materials with higher purity specifications and significantly reduced trace metal content.

Additionally, the growing emphasis on environmentally friendly construction materials has elevated the revenue potential, especially within the United States. Notably, a substantial number of synthetic gypsum manufacturers are based in the U.S., contributing to the regional market’s revenue prospects.

The United States, as the world’s second-largest gypsum producer following China, plays a pivotal role in the industry. In 2020, the United States was estimated to have mined approximately 22 million tons of gypsum, as reported by World Mining Data. Drywall and plasterboards are commonly used for interior space division in the U.S., making the country the world’s leading consumer of these products. The country’s abundant gypsum reserves and significant by-product production position it as a key player in the global market.

Government Investments and Population Growth Fuel Construction Boom in Asia-Pacific

The Asia-Pacific region is currently witnessing a significant surge in construction activity, primarily attributed to substantial government investments in infrastructure and construction development. Furthermore, the burgeoning population in countries like China and India is poised to drive an increase in per capita construction spending. Notably, the Indian government, in its Union Budget for 2019-2020, allocated a substantial $1.4 trillion towards infrastructure projects, encompassing transport, railways, energy, power generation, and more. These substantial investments in infrastructure development have the potential to catalyze growth within the construction industry, consequently leading to a positive impact on the synthetic gypsum market.

Competition Landscape

Various nations have been dedicating substantial investments to research, process optimization, and the adoption of cutting-edge gypsum processing technology, aiming to establish a competitive advantage. Within the synthetic gypsum market, numerous industry participants provide value-added solutions to meet the evolving needs of end users. In the construction sector, gypsum boards have gained significant popularity over the years, owing to their attributes such as fire resistance, easy installation, non-toxicity, and impressive sound insulation capabilities.

Leading gypsum manufacturers are strategically expanding by setting up new production facilities, thereby augmenting their manufacturing capacities and expanding their distribution networks, to broaden their customer base.In the synthetic gypsum industry, prominent companies include National Gypsum Company, Knauf Gips KG, Continental Building Products, FEECO International, Delta Gypsum, and Synthetic Materials LLC.

Recent Developments in the Industry:

  • In 2019, Knauf’s acquisition of USG Corporation aimed to establish a dominant presence in the global building materials industry. This strategic move enabled the combined entity to enhance consumer satisfaction by harnessing an extensive product range and a widespread global presence.
  • L&W Supply’s acquisition of Delta Gypsum in 2019 was a pivotal step in bolstering the growth strategy of L&W Supply. This acquisition effectively expanded the company’s geographical reach in Eastern Tennessee and North Carolina. As a result, L&W Supply’s operations extended to encompass over 170 locations spanning more than 35 states.

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1.1. Global Market Outlook

1.2. Technology Roadmap

1.3. Supply and Demand Side Trends

1.4. Strategic Success Factors

1.5. Analysis and Recommendations

2.1. Market Taxonomy

2.2. Market Definitions

2.3. Inclusions & Limitations

3.1. Supply Side Overview

3.2. Demand Side Overview

4.1. Macroeconomic Factors

4.2. Forecast Factors

4.3. PEST Analysis

4.4. Porter’s Five Forces

4.5. Value Chain Analysis

4.6. Market Dynamics

4.6.1. Drivers

4.6.2. Restraints

4.6.3. Opportunities

4.7. Patent Analysis

4.8. Trade Analysis

4.9. Investment Feasibility Matrix

4.10. Challenges for New Entrants

4.11. Regulations Overview

4.12. Covid-19 Impact Assessment

4.12.1. Economy/Cluster Projections

4.12.2. Covid-19 Economic Assessment

4.12.3. Potential Impact on Target Market

4.12.4. Recovery Scenario

5.1. Historical Value ($ Mn) and Future Market Value ($ Mn) Projection Analysis

5.2. Demand Y-o-Y Growth Rate Analysis

5.3. Total $ Opportunity Analysis

5.4. Historical Volume (Tons) and Future Market Volume (Tons) Projection Analysis

6.1. Regional Pricing Analysis By Type

6.2. Regional Price Forecast

6.3. Profit Margin Analysis

6.4. Future Price Impact Factors

7.1. Introduction

7.2. Market Trends

7.3. Historical Market Analysis and Market Forecast Analysis

7.3.1. Flue Gas Desulfurization Gypsum

7.3.2. Citrogypsum

7.3.3. Fluorogypsum

7.3.4. Phosphogypsum

7.3.5. Others

7.4. Market Attractiveness Analysis

8.1. Introduction

8.2. Market Trends

8.3. Historical Market Analysis and Market Forecast Analysis

8.3.1. Cement

8.3.2. Drywall

8.3.3. Plaster

8.3.4. Soil Amendments

8.3.5. Others

8.4. Market Attractiveness Analysis

9.1. Introduction

9.2. Market Trends

9.3. Historical Market Analysis and Market Forecast Analysis

9.3.1. North America

9.3.2. Latin America

9.3.3. Europe

9.3.4. East Asia

9.3.5. South Asia & Oceania

9.3.6. Middle East & Africa

9.4. Market Attractiveness Analysis by Region

10.1. Introduction

10.2. Key Market Trends

10.3. Pricing Analysis

10.4. Historical Market Analysis and Market Forecast Analysis

10.4.1. By Country The U.S. Canada

10.4.2. By Type

10.4.3. By Application

10.5. Market Attractiveness Analysis

10.5.1. By Country

10.5.2. By Type

10.5.3. By Application

10.6. Market Participants Presence Mapping

11.1. Introduction

11.2. Key Market Trends

11.3. Pricing Analysis

11.4. Historical Market Analysis and Market Forecast Analysis

11.4.1. By Country Brazil Mexico Rest of L.A.

11.4.2. By Type

11.4.3. By Application

11.5. Market Attractiveness Analysis

11.5.1. By Country

11.5.2. By Type

11.5.3. By Application

11.6. Market Participants Presence Mapping

12.1. Introduction

12.2. Key Market Trends

12.3. Pricing Analysis

12.4. Historical Market Analysis and Market Forecast Analysis

12.4.1. By Country Germany Italy France U.K. Spain BENELUX Nordics Rest of Europe

12.4.2. By Type

12.4.3. By Application

12.5. Market Attractiveness Analysis

12.5.1. By Country

12.5.2. By Type

12.5.3. By Application

12.6. Market Participants Presence Mapping

13.1. Introduction

13.2. Key Market Trends

13.3. Pricing Analysis

13.4. Historical Market Analysis and Market Forecast Analysis

13.4.1. By Country China Japan South Korea

13.4.2. By Type

13.4.3. By Application

13.5. Market Attractiveness Analysis

13.5.1. By Country

13.5.2. By Type

13.5.3. By Application

13.6. Market Participants Presence Mapping

14.1. Introduction

14.2. Key Market Trends

14.3. Pricing Analysis

14.4. Historical Market Analysis and Market Forecast Analysis

14.4.1. By Country India ASEAN ANZ Rest of SAO

14.4.2. By Type

14.4.3. By Application

14.5. Market Attractiveness Analysis

14.5.1. By Country

14.5.2. By Type

14.5.3. By Application

14.6. Market Participants Presence Mapping

15.1. Introduction

15.2. Key Market Trends

15.3. Pricing Analysis

15.4. Historical Market Analysis and Market Forecast Analysis

15.4.1. By Country GCC Countries Turkey South Africa Rest of MEA

15.4.2. By Type

15.4.3. By Application

15.5. Market Attractiveness Analysis

15.5.1. By Country

15.5.2. By Type

15.5.3. By Application

15.6. Market Participants Presence Mapping

16.1. Market Concentration Analysis

16.2. Tier Structure Breakdown

16.3. Market Share Analysis

16.4. Production Capacity Analysis

16.5. Key Strategies Adopted by Top Players

16.6. Start-up Ecosystem

16.6.1. New Player Entry

16.6.2. Strategies Adopted by New Players

16.7. Company Footprint Analysis

16.7.1. Vehicle Type Footprint

16.7.2. Regional Footprint

16.8. Competitive Dashboard

17.1. United States Gypsum Co

17.2. PABCO® Gypsum

17.3. LafargeHolcim Maroc

17.4. Delta Gypsum

17.5. Georgia-Pacific LLC

17.6. Synthetic Materials


17.8. National Gypsum Company

17.9. Libyan American Gypsum Company

17.10. Constantia Building Products AG