Kaolin resources in Asia-Pacific, including kaolin in Philippines, along with import activities from other prominent regions worldwide, are capable of providing much of the regional to global kaolin demand. Some particular sectors even increasingly offer market opportunities for several years to come.
Asia-Pacific Kaolin Market
Recent research analyses have shown that the kaolin market in Asia-Pacific is gradually returning and steadily growing. A forecast allows the market to expect a compound annual growth rate (CAGR) of over 5% by 2029.
A. The Scope
The kaolin market scope in Asia-Pacific is commonly divided into grade or type, process, and use (application). There are five segments of the kaolin market by grade or type: calcined, hydrous, delaminated, surface treated, and structured.
Kaolin classification based on the process is water-washed, airfloat, calcined, delaminated, and surface-modified and unprocessed. Meanwhile, for application, common industries that use kaolin are paper, ceramics, paint and coatings, fiberglass, plastics, rubber, pharmaceuticals and medical, cosmetics, and the like.
B. Industry Trends and Insights
Industry trends and insights refer to several key driving factors for the Asia-Pacific kaolin market growth, such as,
- the increase in construction activities regionally and globally
- kaolin’s favorable chemical and physical properties – such as medicinal products of surgical pads, mouthwashes, drying agents, etc
- the growing demand for kaolin from diverse end-user industries
- the rise in adoption of kaolin as a coating additive
There are also some emerging trends based on the above key drivers that increasingly affect the kaolin-related industry dynamics. One of them includes the increased infiltration of kaolin in so-called non-traditional applications – such as personal care, plastic, pharmaceutical, cosmetic, and agriculture.
The Kaolin Trade Activities in the Philippines
The Philippines is one of the biggest importers of regional and global kaolin. In 2020, this country imported kaolin for $5.55 million, mainly from China, the United States, Chinese Taipei, Thailand, and Japan. As for export, the Philippines exported $8.32k of kaolin in 2020 to China as the main destination.
A. Top Kaolin Import Categories
The top 3 kaolin import product categories in this country are 1) category 1 – kaolin clay, kaolin filler powder, calcined kaolin, etc.; 2) category 2 – kaolin and other kaolinic clays whether or not calcined; and 3) others – kaolin extra pure, kaolin lumps, etc.
B. Where Kaolin is Commonly Found
Where can we mostly find kaolin in Philippines? Some regions that have kaolin reserves are, among others, Luzon, Albay, Samarine Sur, North Cotabato, and Calatagan.
The Bright Ahead – The Philippines’ Kaolin Coated Paper
Kaolin-coated paper had total global trade of $23.6B in 2020. The paper industry has put the greatest demand on kaolin-based pigments used for coating and filling papers and boards. Moreover, it is also one of the kaolin trade activities in the Philippines.
The Philippines kaolin coated exports were up to $3.8 million in 2020 and $212k in 2021. At the same time, the import activities sum up to $219 million in 2020 and $20.7 million in 2021. The average tariff for kaolin-coated paper in the Philippines was 0.95%.
B. Markets and Growth
Some export destinations for the Philippines’ kaolin-coated paper were primarily South Korea, Papua New Guinea, Indonesia, Brunei, and China (2021). Also, in the same year, this country imported kaolin mostly from China, South Korea, Indonesia, Chile, and Japan.
The growth in kaolin-coated paper exports can be explained by the increased demand from South Korea of about 18% in 2021. Meanwhile, there were also increases in imports from China (27.9% or $1.74 million), Indonesia (197% or $945k), and Chile (85.4% or $821k).
Indeed, the future of the global kaolin market seems quite promising, especially for end-user industries, including paper, ceramics, paint and coating, fiberglass, rubber, cement, and other applications.
Narrowing it down to the Asia-Pacific region, the kaolin market scope has been commonly categorized into three segments – grade, process, and application. The ability to analyze the growth among these kaolin segments will allow valuable market overview and forecast that leads to strategic decisions of applications. It is also true with kaolin in Philippines. This country shows a steady and potential growth of trade kaolin activities, both exports and imports. The extensive application of kaolin in diverse industries has driven the growth of the domestic kaolin market. In this case, for pursuing a more high-quality kaolin supply, PT. Yukami can be one of the best future solutions and partners, regionally and globally.