Synthetic Gypsum Market

Market Outlook of Synthetic Gypsum

The global synthetic gypsum market stands at US$ 1.56 Bn in 2022, and is forecast to climb to a valuation of US$ 2.17 Bn by 2032, registering a CAGR of 3.4% from 2022 to 2032.

Worldwide consumption of synthetic gypsum is likely to grow on the back of its economic and environmental benefits, being an apt alternative to natural gypsum.

Report Attributes	Details
Synthetic Gypsum Market Size (2021A)	US$ 1.52 Bn
Estimated Market Value (2022E)	US$ 1.56 Bn
Forecasted Market Value (2032F)	US$ 2.17 Bn
Global Market Growth Rate (2022-2032)	3.4% CAGR
North America Market Share (2021)	~32%
North America Growth Rate (2022-2032)	~3.5% CAGR
U.S. Growth Rate (2022-2032)	~2.5% CAGR
Market Share of Top 3 Companies	~18%
Key Companies Profiled	USG Corporation Delta Gypsum, LLC National Gypsum Services Company Synthetic Materials Knauf Gips KG American Gypsum Company, LLC PABCO Building Products LLC Saint-Gobain Gyproc Boral Limited FEECO International, Inc. Georgia-Pacific Gypsum LLC Other Market Players

The synthetic gypsum market is likely to witness enhanced growth in the APAC and North American regions, with these regional markets witnessing growth at 3.8% and 3.5%, respectively.

Synthetic Gypsum Consumption Analysis (2017-2021) in Comparison to Market Growth Forecasts (2022-2032)

Synthetic gypsum is the by-product of coal-powered fire plants and industrial processing. It serves as an alternative to natural gypsum and carries the same composition as that of natural gypsum, thereby conserving natural resources. This sustainable by-product is proving to be beneficial from an economic standpoint and is creating additional revenue streams that would normally incur waste management costs.

According to the Gypsum Association, members have been safely and successfully deploying technologies to use FGD gypsum as a prime ingredient in the manufacturing of gypsum panels for more than 20 years. Moreover, the use of synthetic gypsum is more environmentally-preferable as it conserves energy and water, does not need landfills, and also preserves natural resources.

• Short-run (2022 Q2 to 2025): In the short run, demand in the market is likely to grow on the back of enhanced usage of synthetic gypsum as it is an alternative to natural gypsum.
• Medium-run (2025-2028): In the medium term, demand is anticipated to increase because of the unique properties of synthetic gypsum, such as fire-resistant, acoustic, etc.
• Long-run (2028-2032): This period is anticipated to observe moderate growth because of product improvements and enhanced application of synthetic gypsum in several end-use industries.

Fact.MR projects the synthetic gypsum market to witness growth at 3.4% CAGR during 2022 and 2032 in comparison to the CAGR of 2.7% experienced during 2017 and 2021.

Above image delivers an outlook of the analysis of the market share of type, application, and region. FGD gypsum, under type, dominates the demand pie by holding 35.7% market share, as of 2021.

Which Factors are Aiding Synthetic Gypsum Market Growth?

“Increasing Use of Gypsum Products in Home Interiors”

Nowadays, gypsum is widely used for home interiors, where interior surfaces are covered with blocks, plasterboards, or plaster. Plasterboards are used for partitions, lining of roofs, ceilings, walls, and floors, and their properties allow for modifications according to certain requirements such as humidity, fire, impact resistance etc.

Gypsum fiberboards are being used as decorative plaster to create an effective and aesthetically pleasing lining of brick and block walls, as a building plaster for walls and ceilings. Standard gypsum fiberboards offer good performance when it comes to sound insulation, impact resistance, and humidity resistance.

All these factors are poised to increase synthetic gypsum demand 1.4X over the period of 2022-2032.

“Numerous Benefits of Synthetic Gypsum to Fuel Market Demand”

Synthetic gypsum provides multiple economic and environmental benefits. On the economic front, the manufacturing of synthetic gypsum creates additional revenues, which otherwise would have led to waste management costs. The material does not land up in landfills since a valuable by-product is generated, thereby reducing environmental pollution.

Furthermore, augmented creation of synthetic gypsum reduces the need to mine resources, leading to the conservation of natural gypsum. Synthetic gypsum offers numerous benefits of costs and environmental impacts over other natural gypsum products.

This factor is poised to fuel market demand by ~23% of current levels over coming years.

In addition to the above factors, all natural and synthetic gypsum products are considered green because of their recycling capabilities. Gypsum is recyclable and is a rare example of closed loop recycling where product waste is used to make the same product over and over again.

This green property is likely to provide additional 2.3X demand over the forecast years of 2022-2032.

Region-wise Insights

Which Regional Market Accounts for Highest Demand for Synthetic Gypsum?

“North America Synthetic Gypsum Market to Account for One-third Share”

The North America synthetic gypsum market accounts for the largest market share of 32.4%, and is projected to expand at a CAGR of 2.5% during the forecast years.

In North America, the United States holds the largest market share of 87.4% and is set to reach US$ 624.4 Mn by 2032.

Growth of this regional market is attributed to the widespread use of synthetic gypsum owing to its ready availability in different parts of the region. Moreover, the cost of synthetic gypsum is low as compared to mined crude gypsum in the region.

As such, synthetic gypsum consumption is likely to witness an increase by several end-use industries over coming years, according to the study by Fact.MR.

What is the Synthetic Gypsum Market Scenario in APAC?

“APAC Market Flourishing, Dominated by China”

The APAC synthetic gypsum market holds 28.3% of the global market share, and is set to grow at the rate of 2.7% over the assessment period.

In APAC, China dominates the market and holds 44.5% of the overall market share, and is slated to register 4% CAGR during the forecast years.

Growth of the APAC market is mainly attributed to rising infrastructural activities in emerging economies such as India and China. High developmental pace of infrastructure requires faster and cost-effective construction of buildings and other facilities, without compromising on quality, which is supporting demand growth of synthetic gypsum in the Asia Pacific region.

Along with this, augmented investment projects undertaken by governments in the region represents sound growth and revenue potential for the synthetic gypsum manufacturers over the coming years.

Category-wise Insights

Which Type of Synthetic Gypsum Dominates the Landscape?

“Demand for FDG Gypsum to Remain Highest across the World”

By type, the synthetic gypsum market is segmented into FGD gypsum, flurogypsum, phosphosypsum, citrogypsum, and other types. Amongst them, FGD gypsum dominates with 35.7% of the overall synthetic gypsum market share, and is projected to register 3.8% CAGR over the forecast years.

Rising demand for FGD gypsum is attributed to the fact that flue gas desulfurization (FGD) gypsum consumes less water and energy, coupled with avoiding landfills and preserving natural resources. As natural and FGD gypsum share the same chemical composition, more than 50% of the gypsum used in the manufacturing of gypsum boards is synthetic gypsum.

Segments that follow are flurogypsum and phosphosypsum holding 23.6% and 19.0% market shares, respectively, and are projected to grow at 2.5% and 2.2% CAGRs over through 2032.

Which Application of Synthetic Gypsum is Most Popular?

“Drywall Application of Synthetic Gypsum to Be Most Popular”

Under application, the synthetic gypsum market is segmented into drywall, cement, soil amendment, and other applications. The drywall segment holds the largest market share of 56.1% and is projected to increase at a CAGR of 3.9% over the assessment period.

Application of synthetic gypsum in drywall makes for a less energy-intensive product. More than 50% of drywall factories are using synthetic gypsum and are incorporating recycled materials into drywall, leading to enhanced consumption.

Cement and soil amendment applications hold 23.6% and 14.5% market shares, respectively, and are projected to expand at 2.8% and 2.6% CAGRs over the decade.

Competitive Landscape: Top Companies in Synthetic Gypsum Market

The global synthetic gypsum market is highly fragmented and competitive in nature owing to the existence of many domestic and regional players. Various marketing strategies are adopted by key players such as mergers & acquisitions, expansions, collaborations, and partnerships.

Also, new product development, as a strategic approach, is adopted by leading synthetic gypsum suppliers to upscale their market presence among consumers. These strategies have resulted in the growth of synthetic gypsum market.

For instance :

1. USG Corporation was acquired by Knauf in 2019. This acquisition is likely to create a global industry leader in building materials, positioned better to meet consumers’ needs by leveraging its product portfolio and global footprint.
2. Delta Gypsum was acquired by L&W Supply in 2019. This acquisition is likely to support the growth strategy of L&W Supply and expand its geographical footprint in Eastern Tennessee and North Carolina. After this acquisition, the company will operate at more than 170 locations in over 35 states.

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

Synthetic Gypsum Industry Research by Category

• by Type :

  • FGD Gypsum
  • Flurogypsum
  • Phosphosypsum
  • Citrogypsum
  • Other Types

• by Application :

  • Drywall
  • Cement
  • Soil Amendment
  • Other Applications

• by Region :

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