Calcite Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global calcite market is projected to register a CAGR of more than 5% in terms of the forecast period (2021-2026).

The global calcite market is hampered by the COVID-19 pandemic. The construction industry came to a standstill due to the unavailability of raw materials, shortage of laborers, and disruption in the supply chain. Due to prolonged construction inactivity, over 65% of companies in the construction sector have been severely affected. Additionally, the global pulp producers have witnessed a decline in the operating earnings by around 10%, along with a decline in consumption of around 2-4% in the global paper and forest products has impacted the calcite market. However, the condition is expected to recover in 2021, thereby, restoring the growth trajectory of the market studied.

Key Highlights

• Over the medium term, the growth of the calcite market is likely to be driven by the growing demand for the paper and plastics packaging industry and the increasing demand from the building and construction industry.
• The building and construction industry is expected to dominate the global calcite market over the forecast period.
• Asia-Pacific represents the largest market, and it is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.

Key Market Trends

Growing Demand for the Building and Construction Industry

• Calcite mineral is widely used in building and construction, and it is expected to be the fastest-growing market during the forecast period.
• Calcite is abundantly available, primarily as limestone and in metamorphic form as marble. Calcite is formed in the earth’s crust due to the chemical precipitation of calcium carbonate and the transformation of shells, coral, and algal debris into calcite.
• In modern construction, calcite in the form of limestone is used to produce cement and concrete. Marbles impart beauty to the home, which is available in a variety of colors and patterns. The increasing demand for marble flooring, kitchen tabletops, and bathroom countertops is expected to drive market growth. They are used in commercial as well as in residential buildings.
• United States holds the world’s largest construction industry, which recorded an annual expenditure of over USD 1,306 million in 2019 (a decline of 0.1%, when compared to 2018). According to the survey ‘Non-residential building spending to grow through 2020’ by the American Institute of Architects, the overall non-residential sector is expected to increase by 0.9% in 2020 and 1.5% in 2021. However, the construction of hotels is expected to dip by 1% in 2020 and 0.7% in 2021. Moreover, the construction of office spaces is expected to increase by 0.5% in 2020 and further by 3% in 2021.
• In Saudi Arabia, the construction industry is facing a shortage of affordable housing as a result of the growing population and an influx of immigrants. The construction industry contributes to nearly 6-7% of the total GDP of the country. In March of 2020, the Ministry of Housing announced the Sakani housing program, which can provide 120,000 housing units through 70 projects across neighborhoods all over the country.
• Furthermore, the construction industry in India has received a major boost by the investment of USD 1.4 billion, through private equity and venture capital investments, during October 2019. In India, the construction industry in revenue terms is expected to record a CAGR of 15.7% to reach USD 738.5 billion by 2022.
• The growing need for infrastructure development in emerging economies is expected to drive the calcite market during the forecast period.

Asia Pacific to Dominate the Market Studied

• Asia Pacific is expected to dominate the calcite market, during the forecast period, due to the rapid increase in demand from countries, like China and India.
• Calcite as grounded calcium carbonate is mainly used as a filler for papermaking due to its high brightness, light scattering characteristics, abundant availability, and low cost, as compared to kaolin.
• The growing demand for paper packaging and tissue products in countries, like China and India, is expected to drive the market.
• According to the Chinese National Bureau of Statistics, paper and paperboard production increased 8% Y-o-Y to 11.83 million metric tons in November 2020. The country's total paper output increased by 0.5% Y-o-Y to 105.08 million metric tons in the first 11 months of 2020. Additionally, the country's newsprint output witnessed a growth of 13.5% Y-o-Y to 84,000 million metric tons in November 2020.
• Apart from paper, growing infrastructure demands are expected to contribute to the growth of the calcite market. Moreover, according to the National Development and Reform Commission of China, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019, which are expected to be completed by 2023.
• Currently, China has numerous airport construction projects, which are either in the development or planning stage. The Civil Aviation Administration of China (CAAC) aims to construct 216 new airports by 2035 to meet the growing demands for air travel. China had a total of 234 civil airports at the end of October, and this number is likely to hit 450 by 2035. Additionally, the government rolled out massive construction plans for the movement of 250 million people to its new megacities over the next 10 years.
• The Indian government has allocated USD 63 billion for the infrastructure sector in 2019-2020, and it is planning to spend USD 1.4 trillion over the next five years. In the residential segment, the government is pushing huge projects in the next few years. The government’s ‘Housing for All’ initiative aims to build more than 20 million affordable homes for the urban poor by 2022. This is expected to provide a significant boost to residential construction (the market’s largest category), which will account for a third of the industry’s total value by 2023.
• Therefore, the factors mentioned above, coupled with government support, contribute to the increasing demand for the calcite market in Asia-Pacific during the forecast period.

Competitive Landscape

The global calcite market is partially fragmented, with players accounting for a marginal share of the market studied. Few companies in the market include Mineral Technologies Inc., Nordkalk Corporation, AKJ Minchem, Imerys, and Omya AG, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support