Barite Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Market is Segmented by Type of Deposit (Vein, Residual, Bedded, and Other Types of Deposit), End-user Industry (Oil and Gas, Chemical, Rubber, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Barite in revenue (USD million) for all the above segments.

Market Snapshot

barite market - market summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Middle-East and Africa
Largest Market: Middle-East and Africa
CAGR: >4 %

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Market Overview

The Barite market is projected to register a CAGR of over 4% during the forecast period (2021-2026).

COVID-19 has negatively impacted the barite market. The barite market is used in the drilling mud while extracting oil from the ground. The oil demand in 2020 fell by 57%, according to the International Energy Agency. Oil demand declined due to the lockdown and travel restrictions imposed by governments across the world to reduce the spread of the virus. Furthermore, the chemical industries have been shut down due to COVID-19 and resulted in less production of chemicals.​ The restrictions and the lockdowns being lifted across the globe is a positive sign for the barite market.

  • Over the long term, the major factors driving the barite market are the growing demand from the oil and gas drilling activities and its growing usage in the plastics industry.
  • The presence of close substitutes, such as celestite and iron ore, could act as an obstacle to the growth of the barite market.
  • Studies revealing the combination of barite with iodine to help block radiation in diagnostic tests may act as an opportunity for the barite market in the medical sector.
  • Middle East & Africa is forecast to be the largest market for barite, owing to the growing oil and gas industry where barite plays a very crucial role.

Scope of the Report

Barite is a mineral consisting of barium sulfate, typically occurring as colorless prismatic crystals or thin white flakes. Barite is usually used as an additive in drilling mud, as barite increases the hydrostatic pressure, allowing it to compensate for high-pressure zones experienced during the drilling. The market is segmented by type of deposit, end-user industry, and geography. By type of deposit, the market is segmented into vein, residual, bedded, and other types of deposit. By end-user industry, the market is segmented into oil and gas, chemical, rubber, and other end-user industries. The report also covers the market size and forecasts for the barite market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Type
Vein
Residual
Bedded
Other Types
End-user Industry
Oil and Gas
Chemical
Rubber
Other End-user Industries
Geography
Asia-Pacific
China
India
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
United Kingdom
NORDIC Countries
Russia
Other CIS Countries
Rest of Europe
South America
Brazil
Colombia
Rest of South America
Middle-East and Africa
Saudi Arabia
Iran
United Arab Emirates
Kuwait
Nigeria
Rest of Middle-East and Africa

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Key Market Trends

High Demand from the Oil and Gas Industry

  • Barite has huge demand in oil and gas drilling operations as a weighing agent in the drilling mud. It prevents the explosive release of oil and gas during drilling, and it has unique physical and chemical properties such as high specific gravity, chemical and physical inertness, low solubility, and magnetic neutrality.
  • About 80% of the global demand is from the petroleum industry. The worldwide demand for barite would continue till petroleum products are preferred as the chief source of energy, given their importance in the transportation and industrial end-use sectors.
  • The properties like non-corrosiveness, non-abrasiveness, insolubility in water, inertness, and high specific gravity enable barite’s application as a weighting agent in drilling operations to remove the cutting from the bits, transport cutting to the surface to reduce the friction in the drilling string, control pressure, prevent blow-out and at the same time to provide lubrication.
  • The prospectus for the future growth of the petroleum industry suggests that petroleum exploration will continue to grow and simultaneously the consumption of barite. Furthermore, more drilling must be done per unit of oil as hydrocarbon discoveries become less productive with time.
  • Daily global demand for crude oil (including biofuels) in 2019 was 99.7 million barrels per day; this value fell to 91 million barrels per day in 2020 due to the lockdown and mobility impacts of COVID-19 and is anticipated to reach above 96.5 million barrels per day in 2021.
  • Hence, the rising demand for barite from the oil and gas industry globally is expected to drive market growth during the forecast period.
Barite Market Segmentation Trends

The Middle Eastern Region to Dominate the Market

  • The Middle East has the largest market share in the barite market owing to its dominance of over 30% in global oil production. This is due to the presence of some leading oil-producing nations of the world in this region, like Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates.
  • It was estimated that among OPEC’s total oil reserves, the majority was held by the Middle Eastern nations. The proven oil reserves of this region were valued at about 113.2 billion metric ton.
  • As of 2020, Saudi Arabia produced roughly 9.21 million barrels of oil per day, accounting for 15% of the global output, making it the largest oil producer globally.
  • Around 8.5 million barrels per day were produced by Saudi Arabia. According to the United States Energy Information Administration, in the first quarter of 2021, Saudi Arabia produced around 8.49 million barrels, accounting for 31% of the Middle Eastern output.
  • In fact, the Middle East produces one-third of the world’s total oil production, which was estimated to be roughly around 25.98 million barrels per day in 2020.
  • Growth was witnessed in the Middle Eastern crude oil production in the first quarter of 2021, with 26.55 million barrels per day, indicating a growth in demand for barite.
  • Global oil demand in 2021 is estimated to be around 96.5 million barrels per day. This is likely to fuel the production from the oil and gas industries of the Middle Eastern countries, which is expected to increase the consumption of barite in this region.
  • Hence, with the rising demand from various industries, the demand for barite is expected to grow considerably in the Middle East & African region over the forecast period.
Barite Market Regional Trends

Competitive Landscape

The barite market is partially consolidated. Some of the companies in the market include Sachtleben Minerals GmbH & Co. KG, Milwhite Inc., Cimbar Performance Minerals, New Riverside Ochre, and Newpark Resources Inc.

Recent Developments

  • In September 2019, Cleansorb Limited, a UK-based chemicals company that serves the oil and gas industry, was acquired by Newpark Resources Inc. under the fluid systems department of the company.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Rapidly Increasing Demand from the Oil and Gas Industry

      2. 4.1.2 Growing Use in the Plastic Industry

    2. 4.2 Restraints

      1. 4.2.1 Availability of Close Substitutes

      2. 4.2.2 Unfavorable Conditions Arising Due to COVID-19

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Vein

      2. 5.1.2 Residual

      3. 5.1.3 Bedded

      4. 5.1.4 Other Types

    2. 5.2 End-user Industry

      1. 5.2.1 Oil and Gas

      2. 5.2.2 Chemical

      3. 5.2.3 Rubber

      4. 5.2.4 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 ASEAN Countries

        4. 5.3.1.4 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 United Kingdom

        2. 5.3.3.2 NORDIC Countries

        3. 5.3.3.3 Russia

        4. 5.3.3.4 Other CIS Countries

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Colombia

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 Iran

        3. 5.3.5.3 United Arab Emirates

        4. 5.3.5.4 Kuwait

        5. 5.3.5.5 Nigeria

        6. 5.3.5.6 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Andhra Pradesh Mineral Development Corporation Ltd

      2. 6.4.2 Anglo Pacific Minerals Ltd

      3. 6.4.3 ALCOR MINERALS

      4. 6.4.4 Cimbar Performance Minerals

      5. 6.4.5 DESKU GROUP INC.

      6. 6.4.6 Halliburton Energy Services Inc.

      7. 6.4.7 International Earth Products LLC

      8. 6.4.8 Kaomin Industries LLP

      9. 6.4.9 Milwhite Inc.

      10. 6.4.10 Newpark Resources Inc.

      11. 6.4.11 New Riverside Ochre

      12. 6.4.12 Pands Group

      13. 6.4.13 Pulapathuri

      14. 6.4.14 PVS Global Trade Pvt Ltd

      15. 6.4.15 Sachtleben Minerals GmbH & Co. KG

      16. 6.4.16 Schlumberger Limited

      17. 6.4.17 Sojitz Corporation

      18. 6.4.18 Spectrum Chemical Manufacturing Corp.

      19. 6.4.19 The Cary Company

      20. 6.4.20 The Kish Company Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The barite market market is studied from 2016 - 2026.

The barite market is growing at a CAGR of >4% over the next 5 years.

Middle-East and Africa is growing at the highest CAGR over 2021- 2026.

Middle-East and Africa holds highest share in 2020.

Sachtleben Minerals GmbH & Co. KG, MILWHITE, INC., Cimbar Performance Minerals, New Riverside Ochre, Newpark Resources Inc. are the major companies operating in barite market .

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