Organophilic Clay Market

Organophilic Clay Market Growth Outlook (2023 to 2033)

The global organophilic clay market is set to estimate a valuation of US$ 1,071.4 million in 2023 and it is anticipated to grow at a CAGR of 3.2% to reach US$ 1,468.1 million by the end of 2033.

Organophilic clay is used in nanotechnology applications, such as in the development of nanocomposites. The unique properties of organophilic clay, such as its high surface area and ability to form intercalated structures, make it an ideal material for use in nanotechnology. Further, organophilic clay is considered to be an environmentally friendly material as it is derived from natural sources and is biodegradable.

With the increasing demand for sustainable materials, the market for organophilic clay is expected to grow in the coming years.

Report Attributes	Details
Market Size (2022A)	US$ 1,045.7 Million
Estimated Market Value (2023E)	US$ 1,071.4 Million
Forecasted Market Value (2033F)	US$ 1,468.1 Million
Global Market Growth Rate (2023-2033)	3.2%
North America Market Share (2023)	28.6%
East Asia Market Share (2023)	22.4%
Key Companies Profiled	CHANGXING GUANGDA NEW MATERIALS CO., LTD Cutch Oil & Allied Industries ICMC IDIC Specialty Drilling Chemicals Schlumberger Limited Sino-Holding Chemicals Co., Ltd

Historic and Future Path for Organophilic Clay Market

Organophilic clay is a type of clay that has been treated with organic compounds, which makes it highly effective at adsorbing and removing impurities from water. Organophilic clay is highly effective at removing oil and other hydrocarbons from water. Organophilic clay removes free hydrocarbons from wastewater as well as dissolved hydrocarbons such as benzene, toluene, ethylbenzene, and xylene. It is commonly used in oil refineries and petrochemical plants to treat wastewater and remove oil and other pollutants.

Organophilic clay finds its major application in the drilling fluid, paints & coatings formulation, and wastewater treatment industries. Increasing energy demand has pushed the extraction of oil & gas from natural resources.

• Short Term (2023-2026): Growing use of organophilic clay in the paints & coatings industry and increased consumption of organophilic clay in drilling fluids will drive the market.
• Medium Term (2026-2029): Asia Pacific and North America are anticipated to witness high organophilic clay demand on the back of increased investment in wastewater treatment plants along with rising oil and gas exploration activities.
• Long Term (2029-2033): Growing use of organophilic clay in niche applications such as cement manufacturing, lubricants and grease formulations, adhesives and sealants production will drive organophilic clay consumption in the long term.

Over the 2018-2022 historical period, the global organophilic clay market registered a CAGR of 2.4%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 3.2% CAGR between 2023 and 2033.

Market share analysis of organophilic clay based on clay type and region is provided in a nutshell in the above image. Under the clay type segment, the bentonite segment dominates with an 67.9% market share in 2023.

Market Dynamics Overview

“Growing Organophilic Clay Use in Paints & Coatings Industry to Bolster Market Growth”

Organophilic clay is used as a rheology modifier in paints and coatings. Owing to its anti-settling and anti-sagging properties, it is employed in paint and coatings to prevent sedimentation during long-term storage. Organophilic clay is widely used to influence the thixotropy performance of paint coatings, which is an important aspect of the product. When organophilic clay is used in paint formulations, the paint gains pigment sag resistance, flawless thickening ability, strong thixotropy, and reproducible rheology features.

The global paints and coatings market reached a valuation of US$ 184 billion in 2021, which is around 20% larger than the market value in 2019. The US paints and coatings industry was valued at over US$ 26 billion in 2021.

The market is anticipated to increase as a result of the rising demand for paints and coatings from both the residential and commercial sectors. Other than this, the demand for paints from the marine, automotive, and aerospace industries is also anticipated to increase which will help to drive the demand for organophilic clay around the world over the forecast period.

“Depletion of Organophilic Clay Reserves to Hamper Growth”

Bentonite is a natural material that is mainly produced in mines across the globe. Various governments across the world have levied restrictions on the trans-continental trade of bentonite due to the depletion of bentonite reserves in the respective regions. As a result, end-use industries in regions with low reserves of bentonite are focused on the adoption of alternatives to bentonite. This is projected to adversely affect the market to a certain extent.

Along with this, the rise in crude oil prices and a shift towards green renewable energy due to the growing awareness of the harmful effects of fossil fuel extraction and usage are likely to hamper the organophilic clay demand.

Country-wise Insights

Will the Growing Oil & Gas Exploration Systems Boost Organophilic Clay Consumption in U.S.?

The United States holds one of the world's prominent crude oil and natural gas exploration systems.

• The United States has one of the greatest crude oil and natural gas exploration systems in the world. The country produces the most oil per day (11.7 mb/day).

Over the past few decades, U.S. petrochemical and oil & gas companies have witnessed positive results in terms of investments, industry GVA, and increased industrial production index, leading to a growing demand for a wide range of substances such as organophilic clay.

• The U.S. currently has more than 1,600 wastewater treatment plants. In August 2022, the U.S. Department of Agriculture (USDA) announced an investment of US$75 million in critical infrastructure improvements to ensure clean drinking water and sanitary wastewater systems for years to come.

The United States organophilic clay will expand at a CAGR of 3.5% over the projected period to reach a valuation of US$ 344.0 million by 2033.

How are Investments in Water Treatment Plants Supplementing Organophilic Clay Market in China?

The Chinese government has been actively investing in water treatment infrastructure for many years.

• In 2021, the Chinese government announced its 14th Five-Year Plan, which includes a focus on environmental protection and sustainable development.
• The plan includes targets for reducing water pollution, increasing investment in water treatment infrastructure, and improving water conservation and management.

Water treatment activities in China are extensive due to the country's large population and rapid industrialization. organophilic clay is a versatile and effective water treatment material that has numerous applications in China's water treatment industry.

Its unique properties make it an ideal choice for removing impurities from water, and its use is expected to continue to grow in the coming years as water treatment becomes an increasingly important issue in China.

Category-wise Insights

Why is Bentonite Clay Preferred for the Production of Organophilic Clay?

Bentonite is a clay mineral that is commonly used in the production of organophilic compounds, which are used in a variety of industries including cosmetics, paints, and drilling fluids. Organophilic bentonite is a modified form of bentonite that has been treated with an organic compound, typically a quaternary ammonium salt, to make it hydrophobic and more compatible with organic solvents.

The use of bentonite in the production of organophilic compounds has been a key driver of the growth of the organophilic market. Bentonite is a natural and abundant resource, making it a cost-effective and sustainable option for manufacturers. Additionally, bentonite has unique properties that make it well-suited for use in organophilic compounds, including its ability to absorb and hold large amounts of water and its high cation exchange capacity.

Will Market Growth Be Led by the Growing Oil Drilling Fluid Systems Demand?

Organophilic clays are used as a thixotropic agent in drilling fluids. The clay in the fluid cools and lubricates the cutting tool while protecting it against corrosion. They are often used in geotechnical engineering to aid in the drilling process of boreholes. Drilling fluids play an important role during the extraction and exploration of oil and gas and help to carry out efficient and effective drilling processes. These drilling fluids can also be used for simple drilling such as water wells.

• The demand for oil and gas is constantly on the rise due to global economic growth leading to a rise in energy demand. According to International Energy Forum, the oil and gas upstream expenditure increased to US$ 499 billion in 2022 which is expected to reach US$ 640 billion by 2030.

Owing to the above-mentioned facts, the demand for organophilic clay for oil drilling fluid systems is expected to rise at a CAGR of 3.8% during the forecast period

Competitive Landscape

Prominent organophilic clay manufacturers are Camp-Shinning, CHANGXING GUANGDA NEW MATERIALS CO., LTD, Cutch Oil & Allied Industries, ICMC, IDIC Specialty Drilling Chemicals, Mineral Technologies, Rheo Minerals, Schlumberger Limited, and Sino-Holding Chemicals Co., Ltd.

The world’s leading manufacturers of organophilic clay are focusing on increasing their production capacity. Manufacturers in the organophilic clay market are currently implementing horizontal integration through acquisitions of companies to increase their market share and expand their core market and growing geographies. Players are focusing on maintaining long-term relationships with raw material providers to easily procure the raw material even in unfavorable conditions.

Fact.MR has provided detailed information about the price points of key manufacturers of organophilic clay positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Organophilic Clay Industry Research

• By Clay Type :

  • Bentonite
  • Sepiolites
  • Hectorite

• By Function :

  • Viscosifiers
  • Rheological Modifiers
  • Fluid Control Loss
  • Gelling Agent

• By End Use :

  • Oil Drilling Fluid Systems
  • Paints & Coatings Formulation
  • Lubricating Grease Formulation
  • Cement Manufacturing
  • Waste Water Treatment

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA