The bentonite market is expected to grow at a CAGR of 6.5% from 2023 to 2033 assessment period. The bentonite market has witnessed substantial growth in the last few years. The market is projected to reach a valuation of US$ 3.8 billion in 2033.
This growth is projected to continue over the assessment years, starting from 2023 to 2033, due to the increasing use of bentonite in diverse industries across the globe. Bentonite finds application in the drilling fluid, binders, absorption/adsorption, clarification agent, and other sectors. As such growth in end-use industries is creating lucrative prospects for suppliers of bentonite. The global Bentonite market is projected to reach US$ 2.1 billion in 2023.
How do the Historical and Future Outlooks for Bentonite Market Match Up?
On account of increasing energy requirements, the bentonite market is witnessing substantial consumption in oil & gas drilling operations. Furthermore, various applications of bentonite in end-use industries such as construction, Foundry, pharmaceuticals, and among others causing a spike in demand in the last couple of years and are expected to dominate the same in the near future.
The capitalization of infrastructure is increasing in developing and emerging markets across the globe, which is attracting major investments in construction activities. This in turn is benefiting the raw material industry such as construction aggregates and bentonite.
Bentonite is used in construction mainly for sealant applications owing to its swelling property. Growing construction activities across the globe are projected to bolster the demand for bentonite during the forecast period. Future Market Insights expects the global bentonite market to expand at a CAGR of 6.5% between 2023 and 2033.
How are Diverse Applications Driving Bentonite Market Sales?
Bentonite is used in various applications, such as drilling fluid, binder, adsorbent/absorbent, clarification agent, and others. The demand for bentonite is increasing due to growing end-use industries such as oil, construction, food, pharmaceutical, and others.
Increasing demand for the bentonite applications such as sealants, clarification agents, and adsorbents/absorbents in the end-use industries like construction, food, and pharmaceutical industry will be key driving factors for the bentonite market.
Why is R&D Key to Market Consolidation?
Across the globe, key manufacturers are planning to increase their market share by introducing innovative applications in the bentonite product portfolio. Meanwhile, key players and academic institutions are collectively working on innovating new applications through research and development.
Some of the key players are investing around 3-5% of their revenue in R&D to innovate the new application range for end-use industries. Moreover, various manufacturers are entering the market by acquiring local existing players and globalizing its portfolio.
What is the Regulatory Impact on the Bentonite Market?
Governments and regulatory authorities across the world have imposed restrictions on the trans-continental trading of bentonite in some of the bentonite producing regions sowing to the depletion of bentonite reserves.
However, end-use industries in these regions are focusing on alternatives or substituting for bentonite. This could restrict growth opportunities for the market to an extent.
Country-wise Insights
Why Does the China Dominate the Global Bentonite Market?
Increasing infrastructure activities along with commercial and industrial development in the country are expected to boost the bentonite market. Increasing investment in industrial activities from the other regional key players in China is anticipated to boost the bentonite market in the coming future.
Capacity expansions undertaken by leading players are expected to have a considerable impact on prospects in China. For instance, Imerys bentonite operations in the country announced its plans for increasing production capacity following the surge in sales in 2018.
What is driving Bentonite Sales in the United States?
The United States is experiencing lucrative growth in the global bentonite market owing to increasing investment in manufacturers intended at expanding the production capacities of bentonite. increased oil & gas exploration activities are expected to reduce energy dependency on other countries.
This is further expected to spur bentonite sales in the near future. Its high viscosity property also increases borehole stability during the process. The United States is projected to dominate the North American market, accounting for over 80% of the North American market through 2033.
What are Market Projections for Germany?
In Europe, Germany holds around 1/4th of the total share, in terms of value. However, owing to the effect of the COVID-19 outbreak, the market scenario is expected to be negatively impacted in the country. But, notable developments in end-use industries are expected to help the region to recover from the pandemic crisis in the coming quarters.
How is the Market Scenario in Brazil?
Brazil is anticipated to account for around half of the market value share in Latin America. Sales in Brazil are forecast to increase considerably owing to increasing industrial activities in the country.
In Brazil, prominent manufacturers of oil drilling and foundry application, are estimated to contribute to the growth of the bentonite market in the country. Based on incremental $ opportunity, Brazil is expected to create a US$ 51 million opportunity in between the forecast period.
What are the Factors Driving Bentonite Sales in India?
India’s bentonite market is driven by application in a wide range of industries including foundry, pharmaceuticals, and food. The demand for bentonite in the country is primarily meted by imports from countries such as China. India is expected to reach a value of US$ 145 million by the end of 2033.
Bentonite production in India is expected to pick up pace in the near future, thanks to the rising demand for oil clarification. Bentonite is often required in civil engineering and environmental applications as a sealant and adhesive. Bentonite was also identified as one of the exportable materials in the Indian Minerals Yearbook 2015. These factors are indicative of lucrative opportunities for bentonite sales in India.
