Bentonite Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing Construction and Infrastructural Activities – The excellent performance and properties of bentonite as well as the rising demand for bentonite slurries in the construction industry due to its high stabilization is driving the demand for bentonite. The rapidly growing construction industry is anticipated to boost global bentonite market growth. Besides, according to the World Bank, value added by industry (including construction) was 26.63 trillion in 2021 which experienced an increase of 19.6% over 2020.
- Growing Demand for Bentonite from Pharmaceutical Industry Backed Market Growth –The pharmaceutical industry is expected to grow at a rapid rate due to the increasing use of bentonite as a filler in pharmaceuticals namely calamine lotions, industrial protective creams, and anti-irritants for eczema owing to its strong absorption/adsorption functions, and this is a key factor that is expected to contribute to the bentonite market revenue growth. According to the India Brand Equity Foundation, exports of drugs & pharmaceuticals were valued at USD 2,052.78 million in September 2022 and secured a share of 6.29% in the total monthly exports. Besides, according to Invest India, the pharmaceutical industry in India is estimated to attain USD 65 Billion by 2024 and to USD 130 Billion by 2030. Moreover, the investment in research & development of the pharmaceutical industry in the UK was worth USD 6.4 billion in 2021.
- Rising Use in Landscaping Application- The rising use of bentonite in landscaping applications because of its excellent water retention property.
Challenges
- Health Risks Associated with Bentonite Affect Bentonite Market Growth- Bentonite contains a high level of lead, which can pose a health risk by causing serious damage to the central nervous system, immune system, and kidney. For instance, in March 2016, the United States Food and Drug Administration published a warning against the utilization of a product of Best Bentonite based in Guthrie, Oklahoma which is "Best Bentonite Clay”. The FDA confirmed that the product contains extremely high lead levels and may pose serious health risks. Therefore, this is predicted to restrain the market growth of bentonite.
- Limited Availability of Bentonite
- Stringent Regulations by the Regulatory Bodies
Bentonite Market: Key Insights
|
Base Year |
2022 |
|
Forecast Year |
2023-2026 |
|
CAGR |
3.6% |
|
Base Year Market Size (2022) |
USD 5.17 Billion |
|
Forecast Year Market Size (2026) |
USD 5.96 Billion |
|
Country Wise Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
Increasing construction activities across the world and increasing healthcare expenditure are the major factors driving the market growth.
The market is anticipated to attain a CAGR of 3.6% over the analysis period, i.e., 2022 – 2026.
The major players in the market are Imerys, Clariant Ag, Minerals Technologies Inc., Stephan Schmidt Group, AromaChimie, Bentonit Company Limited, Kemira, and others.
The sodium bentonite segment is anticipated to garner the largest market size by the end of 2026 and display significant growth opportunities.
The market in Germany is projected to hold the largest market share by the end of 2026 and provide more business opportunities in the future.
