Market Trends of Calcite Industry
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 and are 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 residential buildings.
- The construction sector in the Asia-Pacific region is the largest in the world and is increasing at a healthy rate, owing to the rising population, increase in middle-class income, and urbanization. The highest growth for housing is expected to be registered in the Asia-Pacific region, owing to the expanding housing construction markets in China and India. These two countries are expected to represent over 43.3% of the global middle class by 2030.
- The government of India reduced the GST tax on housing from 12% to 5%. This tax redemption may increase the construction market, which will further support the demand for calcite from various building and construction applications.
- The construction industry in China was expanding steadily. The Chinese construction sector is benefiting from rising urbanization. According to the National Bureau of Statistics of China, the output value of the construction works in the country accounted for CNY 27.63 trillion in 2022, compared to CNY 25.92 trillion in 2021.
- Furthermore, India is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, during which it is likely to witness the construction of 60 million new homes. The rate of availability of affordable housing is expected to rise by around 70% in 2024.
- The United States has one of the world's largest construction industries. According to the US Census Bureau, during January 2023, construction spending in the country was estimated at a seasonally adjusted annual rate of USD 1,825.7 billion, 0.1 percent (±0.7 percent) below the revised December estimate of USD 1,827.5 billion.
- Additionally, according to the World Bank, in 2023, the construction sector is predicted to develop at a cost of close to USD 13.8 trillion. This includes real estate developments, both residential and commercial, as well as infrastructural and industrial constructions. Data on construction spending covers labor and material costs, architectural and engineering work, and taxes.
- Such factors are likely to support the demand for the studied market from the building and construction segment.
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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, or ground 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 Office of the Economic Adviser (India), the wholesale price index (WPI) for pulp, paper, and paperboard was 141 in fiscal year 2022.
- 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, which are expected to be completed by 2023.
- Currently, China has numerous airport construction projects that are either in the development or planning stages. The Civil Aviation Administration of China (CAAC) aims to construct 216 new airports by 2035 to meet the growing demand 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.
- Further, China accounts for more than one-fourth of the global coatings market. According to the China National Coatings Industry Association, the industry has been registering a growth rate of 7% in recent years.
- Also, according to European Coatings, there are nearly 10,000 coatings manufacturers located in China. Most of the leading global coating manufacturers, such as Nippon Paint, AkzoNobel, Chugoku Marine Paints, PPG Industries, BASF SE, and Axalta Coatings, have their manufacturing bases in China.
- Moreover, as per the Ministry of Economy, Trade, and Industry (Japan), the production volume of synthetic resin paints in Japan amounted to approximately 1.01 million metric tons in 2021, making up an enormous production volume of paints. Overall, the production volume of paints added up to nearly 1.53 million metric tons in 2021, compared to 1.50 million metric tons in 2020, which is expected to propel the demand for calcite in respective applications.
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.
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