Despite the hit from the pandemic era, the future of the kaolin industry still shows a positive trend. Market reports show rising industry trends where kaolin serves as an important material. New technology such as 3D printing also uses kaolin as a component in its materials, adding to the future value of kaolin based on its application in technology.

Before you decide to invest in kaolin, such as being a supplier or exporter, let us see the current trend, future, and challenges in the kaolin industry.

Current Trend of the Kaolin Industry

Kaolin’s widespread application in various industries still makes it a material in high demand. According to a market analysis report published by Grand View Research, the use of kaolin in the recent years consist of industries such as:

  1. Paper

Paper industry dominated the use of kaolin in 2022, covering nearly 37 percent in total revenue share. Kaolin is used to create levels of smoothness, opacity, and glossiness. Kaolin also creates better paper quality for printing. Commercial businesses also use paper-based packaging, which needs kaolin to make it stronger, more durable, and with better surface quality for printing.

  1. Ceramics

Ceramics gained the second position in the kaolin use trend in 2022. Kaolin is used in the ceramics industry because of its absorption properties and high fusion temperature. Kaolin also provides a beautiful white shade on ceramic surfaces.

  1. Coating and Paint

The future of the kaolin industry is likely to be held by the coating and paint industry, which is widely used in various projects. Mixing kaolin into pain and coating helps reduce corrosion, improve water resistance, and viscosity.

Related: All You Need to Know about Kaolin Clay as Paints & Coatings

  1. Rubber

Kaolin is still used in the rubber industry as a reinforcing material. It makes rubber products stronger and more flexible.

Emerging Trends in the Kaolin Industry

When looking at the future of the kaolin industry, Asia Pacific is poised as the emerging potential region. China, Japan, and India are seen as the biggest contenders in kaolin use. Looking at the industrial growth in the Asia Pacific region, kaolin seems to have a good potential as an investment here.

The global trend of kaolin also shows a positive projection. The estimated value of the global kaolin industry in 2025 is around US$4.1 billion, showing a 5.5% compound annual growth rate compared to 2020. The use of kaolin for the paper industry also shows a huge growth, thanks to the rising trend of online shopping that requires an endless supply of paper packaging.

Opportunities and Challenges

If you are interested in investing in kaolin, make sure you understand the opportunities and challenges that may occur.

1. Opportunities

Currently, the major markets for kaolin not only include Asia Pacific countries, but also Canada, Germany, Czech Republic, Australia, Belgium, and France. Middle Eastern and African countries also see a rise in kaolin use for industries. Kaolin investors can look for various types of partnerships to gain profits.

Manufacturing industries are not the only fields where kaolin investors can thrive. There are other rising industries that use kaolin, including healthcare, selfcare, agriculture, and waste management.

2. Challenges

There are several possible challenges that could hinder kaolin’s market growth, including stricter mining regulations. The high costs that follow, especially with yearly inflation, can also negatively impact the market growth.

The pandemic outbreak had quite disruptive effects on various industries, which still impact investments to this day, including kaolin. While companies are working to recuperate (with positive results), the negative impact of the pandemic still has reverberating effects that investors must consider.

Finally, as you consider future kaolin investment, remember that the rising market trend will also invite other players. You will face more competitions, especially when you are trying to target major industries that use kaolin.

Outlook for Kaolin Industry

Overall, there is a positive outlook for the kaolin industry, which positively impacts kaolin investment. Technological advancement in North America and rising industries in Asia Pacific are the most promising areas for future kaolin investment.

Consider connecting with businesses that produce paper, packaging, and sanitary ceramics, for their products use a large amount of kaolin in their productions. High-quality kaolin in various forms, from powder to lump and noodles, are likely to be in high demand.

Choosing the right partner to target the future market for kaolin is essential. If you are interested in investing, make sure to connect with reliable suppliers, like Yukami. An Indonesia-based kaolin supplier, Yukami is the perfect partner for anyone interested in kaolin investment.

Yukami delivers kaolin in forms of power, lump, and noodles to various regions. With more than 30 years of experience, Yukami has delivered kaolin to various regions, including those with thriving industries such as China, South Korea, Taiwan, Malaysia, and the Philippines. A perfect choice for reliable kaolin supplies for investors.

The future of the kaolin industry shows a positive outlook, with focus on Asia Pacific and North America. While there are challenges and long-term impacts of pandemic to deal with, investors could expect a positive outlook in supplying kaolin to various industries around the world.

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