World Kaolin Demand to Reach 24.8 Million Metric Tons in 2013

Global demand for kaolin is forecast to grow 1.7 percent per year to 24.8 million metric tons in 2013, exceeding the growth achieved between 2003 and 2008.  Demand for kaolin in paper production is expected to improve, offsetting an expected slowdown in the ceramics market.  In general, kaolin demand in advanced economies is projected to recover from the declines of the 2003-2008 period, while demand in the faster growing emerging markets will decelerate somewhat.  These and other trends, including market share and product segmentation, are presented in World Kaolin, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Developing countries are becoming increasingly important to global kaolin demand.  Strong demand gains in China and other developing countries in Asia are expected to account for the majority of global kaolin demand in 2013, with China alone accounting for over one-half of the global gain.  China is forecast to surpass the US as the largest market for kaolin by 2013, as its kaolin consumption continues to grow faster than that of any other major national market.  China’s market for kaolin in paper is forecast to lead gains, driven by a rapidly expanding domestic paper industry.  Imports into China are expected to grow especially fast, as the country’s kaolin consumption outpaces production. 

Demand for kaolin in paper -- the largest end use -- is forecast to rebound from its declines between 1998 and 2008.  Over that period, kaolin suffered from competition with alternative materials (notably calcium carbonate), and that competition is expected to moderate in coming years.  By 2008, much of the practical substitution of kaolin by calcium carbonate had already taken place.  In addition, emerging markets such as China are expected to post strong gains as their paper industries expand. 

International trade in kaolin is widespread, with approximately one-half of kaolin being consumed outside of its country of origin in 2008.  This is in part due to the concentration of kaolin production in the US and Brazil.  By 2013, Brazil is expected to surpass the US as the world’s leading exporter of kaolin, gaining market share in Western Europe and Asia at the expense of the United Kingdom and the US.  Brazil boasts sizable deposits of high-quality kaolin, making it economical to produce kaolin there, despite the additional shipping costs. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.