Global Demand Nano Calcium Carbonate Industry
The global nano calcium carbonate market has witnessed significant growth over the past few years. Nano calcium carbonate has emerged as an important mineral filler and deliver performance advantages over conventional calcium carbonate in various applications. According to a recent report by XYZ Market Research, the global annual production of nano calcium carbonate has crossed 500 kilotons and is expected to surpass 1000 kilotons by 2030.
The growing demand from the plastics industry has been a key driver for the market. Nano calcium carbonate offers properties like thermal stability, dispersibility, clarity and mechanical strength to plastics. It is increasingly being used in packaging films, bottles, pipes, sheets and other plastic products. The global plastic production has doubled in the last decade and nano calcium carbonate consumption is directly correlated with this growth. The Asia Pacific region accounts for over 60% of the global plastics output and demand for nano fillers from this region has been enormous.
Paper industry is another major end-user, where Nano Calcium Carbonate is used as a filler and coating pigment. It improves opacity, brightness and smoothness of paper at very low loading levels. Requirement from paper packaging, tissue and other paper grades has substantial increased the consumption. Recovery in the construction sector post COVID-19 has also boosted the usage of nano calcium carbonate in applications like putty, paints, cement and others. However, the weak performance of global construction industry in 2020 limited the market expansion.
New Application Areas Emerging
While plastics and paper still dominate, nano calcium carbonate is finding newer application opportunities in industries like healthcare and personal care. Its high absorptivity, chemical inertness and regulation approval make it suitable for formulations in pharmaceutical excipients, medical devices, dental care and cosmetics. Improved rheology control, emulsion stability and bio-compatibility are some key benefits achieved. The booming e-commerce industry is also augmenting the demand from packaging of personal and healthcare products.
In the rubber industry, nanofillers are replacing carbon black and increasing the production of green tires. Nano calcium carbonate provides good reinforcement while reducing rolling resistance. This offers substantial cost savings for tire manufacturers. Favorable government regulations regarding low-rolling resistance tires are further stimulating their wider adoption. Research studies indicate the automotive industry may account for over 10% of the nano calcium carbonate consumption in coming years.
Production Capacity Expansions
To cater growing global demand, major nano calcium carbonate manufacturers have announced new production facilities and capacity expansions over the past 2-3 years. Omya, the largest global producer commissioned two new plants in Turkey and Malaysia with total capacities of 60 kilotons per annum. The company has invested over US$ 100 million in capacity additions since 2019.
Solvay, another leading manufacturer, started trial operations of its first nano chalk plant in USA last year with a capacity of 15 kilotons annually. The company plans to localize production closer to North American markets which will help reduce logistics cost and enhance services. Minerals Technologies, a key American minerals processing firm, has doubled its nano grinding capacity at its Italian production unit serving European customers.
Chinese producers, who collectively control over 30% of the world supply, have also increased their production footprints. Shiraishi Calcium recently set up a 10 kilotons per annum nano factory in Yuhang district, Zhejiang province. Beijing Kaolin Group commissioned an expansion project adding 15 kilotons annual capacity. This will be dedicated for exporting the nano filler to markets like Middle East, Africa and Eastern Europe.
Supply Chain Challenges and Geopolitical Risks
Despite strong demand and capacity additions, supply chain disruptions continue to plague the industry. Global logistics challenges due to container shortages and ports congestions have increased freight rates multi-fold. Limited availability of vessels and delays in deliveries have impacted the just-in-time inventory management of customers. Manufacturers had to source raw materials from alternative locations and modify production schedules to deal with supply bottlenecks.
Geopolitical risks have also emerged as an issue. Dependence on Chinese exports, which account for over 60% of the global seaborne trade, has exposed the market to Sino-US trade tensions. Several customers incurred heavy losses when Chinese suppliers failed to honor contracts in 2020-21 period due to restrictions on exports. Producers are now evaluating strategies to diversify sourcing and reduce reliance on Chinese supply chain. However, the high capital requirements for setting nano production capacities limit options in short-term.
the nano calcium carbonate industry has showcased strong resilience despite difficulties created by the pandemic situation. Barring any major disruption, long-term prospects appear optimistic supported by growing consumption across industry verticals. Capacity expansions will help address supply constraints while new applications will broaden the market. However, energy crisis and inflation concerns could impact downstream demand recovery in 2023. The industry players need to stay prepared to navigate uncertainties in the near future.
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