Barite Market is Expected to Reach $2.4 Billion by 2027

According to a new report published by Allied Market Research, titled, “Barite Market: Opportunity Analysis and Industry Forecast, 2020–2027,” 

The global barite market was valued at $1.4 billion in 2019, and is projected to reach $2.4 billion by 2027, growing at a CAGR of 7.3% from 2020 to 2027.

Barite is a mineral composed of barium sulfate, BaSO4. It is usually colorless or milky white, but can be almost any color, depending on the impurities trapped in the crystals during their formation. Barite is relatively soft, measuring 3-3.5 on Moh’s scale of hardness. It is unusually heavy for a non-metallic mineral. 

The high density is responsible for its value in many applications especially in offshore oil & gas drilling application. Barite is chemically inert and insoluble. It occurs as a vein filling and as a gangue mineral in silver, zinc, copper, nickel and lead ores. It is colorless or white, often tinged with yellow, red, brown, or bluish. Barite is also used in the production of wallpaper and asbestos goods as well as in the manufacture of white paint.

Rise in production of oil & gas around the globe, coupled with surged consumption of barite in drilling fluids, is a key factor expected to boost the market growth during the forecast period. The outbreak of the COVID-19 pandemic in 2020 is expected to affect the demand of barite negatively as oil producers are crippled with excess supply and diminished demand. 

In addition, the barite market is expected to grow significantly during the forecast period, owing to its increasing applications in the healthcare industry. It is largely used in various medical devices, owing to its ability to absorb X-rays and gamma rays. Some other medical applications of product include, usage for filling and fixing of plaster. The healthcare industry is growing across the world at an unprecedented rate. It is due to increasing investment in the industry, growing access of healthcare to a larger population and advancement in various medical fields. These factors are expected to drive the growth of the global barite market during the forecast period.

However, factors such as substitution of barite for other minerals are expected to hinder the growth of the barite market. In addition, untapped oil reserves in emerging oil-producing regions such as Africa and the Pacific Ocean; therefore, offer lucrative opportunities to the players manufacturing barite-based weighting agents used in the oil and gas industry. This is expected to provide lucrative opportunities for barite market to grow in the near future.

Based on form, the barite market size is categorized into lumps and powder. Powder form is the leading segment that dominated the global market with more than half of the global barite share in 2019. This is due to its increase in consumption in plastic industry, owing to surge in demand for plastics across various industry verticals such as construction, automotive, and electrical electronics.

Based on grade, it is divided into up to grade 3.9, grade 4.0, grade 4.1, grade 4.2, grade 4.3, and grade above 4.3. The grade 4.2 segment generated the highest revenue in 2019, with more than one-fourth of the total market share, followed by grade 4.3 segment. Grade 4.2 of barite is widely used as filler in various end-use industries such as paints & coatings, rubber, and plastics. 

Based on color, it is divided into white & off-white, grey, brown, and others. Grey barite segment generated the highest revenue in 2019, with more than half of the total market share, followed by white & off-white segment. Grey barite is widely used in oil & gas drilling industry and its demand is expected to surge significantly during the forecast period due to rise in offshore oil & gas exploration activities across the globe. Based on deposit type, it is divided into residual, bedding, vein, and cavity filling. 

The bedding segment generated the highest revenue in 2019, with more than half of the total market share, followed by cavity filling segment. Barite obtained from bedding deposit is grey. Growing demand for grey barite from the oil & gas industry across the globe is expected to surge the mining of barite from bedding deposit globally.

Based on end-use industry, it is divided into oil & drilling, paints & coatings, pharmaceuticals, rubber & plastics, textiles, adhesives, and others. The oil & gas drilling segment generated the highest revenue in 2019, with more than three-fifths of the total market share, followed by paints & coatings segment. Barite is used as a weighing agent in oil well drilling fluids to counteract certain pressures that result from well drilling operations.

Based on region, the barite market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the major barite market share in 2019. North America generated the highest revenue in 2019, with more than one-third of the total market share, followed by Asia-Pacific. This is due to a steady increase in the investments made by U.S. oil companies for exploration and production of shale oil across the globe.

COVID-19 Analysis:

• The demand for barite is likely to experience a downfall during the COVID-19 pandemic due to decline in production activities of paints & coatings, plastics, textiles, and adhesive industries due to disrupted supply chain amid lockdown.
• Owing to the outbreak of COVID-19 pandemic in 2020, oil producers across the globe are crippled with excess supply and diminished demand. As a result, the drill rig count across the globe has witnessed a sharp fall leading to reduced consumption of barite for drilling mud.
• Barite manufacturers across the countries such as China, India, and countries of Southeast Asia exhibit high growth potential and generate maximum revenue, as government of these countries are gradually lifting the lockdown restrictions to start the industrial activities. Thus, the demand for barite and its products across the oil & drilling, paints & coatings, pharmaceuticals, rubber & plastics, textiles, and adhesives industries is expected to increase, which is anticipated to drive the demand for barite.

Key findings of the study

• In 2019, North America dominated the global barite market with around 34.8% of the share, in terms of revenue. 
• The powder segment is estimated to display the highest growth rate, in terms of value and volume, registering a CAGR of 7.7% & 2.5% from 2020 to 2027.
• Above Grade 4.2 dominated the global barite market with around 29.8% of the share, in terms of revenue. 
• The white & off-white segment is estimated to display the highest growth rate, in terms of value and volume, registering a CAGR of 7.8% & 2.6% from 2020 to 2027. 
• The bedding deposit segment dominated the global barite market with around 53.6% of the share, in terms of revenue.
• The pharmaceutical segment is estimated to display the highest growth rate, in terms of value and volume, registering a CAGR of 8.2% & 3.2% from 2020 to 2027.
• The key players operating in the global barite market include Chinchana Group, Demeter O&G Supplies SN BHD, KIA Energy Company Ltd., NHAT HUY Group, General Electric, Ashapura Group, Halliburton, Sibelco, Schlumberger, and Sojitz Corporation.