Global Barite Market-Insight
Baryte or barite is a white or colorless mineral and is a major source of barium. The barite group consists of anhydrite, baryte, celestine, and anglestite. Barite can be commonly found in the lead-zinc veins in limestones and are deposited through wide range of processes including, evaporation, hydrothermal, and biogenic, among others. It is an industrial mineral that contains 34.3% sulfate and 65.7% barium oxide when in pure form. The properties such as low solubility, high density, chemical inertness, and low cost makes barite an essential industrial mineral, with high demand in the oil and gas, paint and coatings, and pharmaceutical industries.
Growing demand for oil and gas throughout the globe is the major factor driving growth of the global barite market. Oil and gas accounts for the largest user of barite, owing to its property as a weighing agent for drilling fluids. Growing demand for oil and gas in the emerging economies so as to become energy sufficient, is fueling growth of the oil and gas industry, in turn, augmenting demand for barite. According to the International Energy, the global energy demand is set to increase from 268 mboe/d in 2013 to 399 mboe/d by 2040. Moreover, increasing demand for barite in the paints and coating and pharmaceutical industries, is further expected to fuel growth of the barite market. Furthermore, the low oil absorption and high brightness of barite makes it desirable to be used in the pigments of paints and coatings for automobiles and consumer goods. Hence, the growing automobile industry also contributes to growth of the global barite market. According to the Organization Internationale des Constructeurs d’Automobiles (OICA), the automotive industry has witnessed a growth of 4.5% during 2015-2016. However, the limited presence of barite throughout the globe and high costs associated with its transportation pose as major restraints to growth of the global barite market.
In terms of revenue, Asia Pacific is the fastest growing market for barite, witnessing a CAGR of 6.49% over the forecast period. The rapidly growing oil and gas industry in the emerging economies of the region such as India and China, is the major driving factor for market growth. Growing population coupled with increasing disposable income among the populace in the region has augmented demand for energy in the region. As per data released by the U.S. Energy Information Administration (EIA), total liquid fuel consumption in Asia Pacific is estimated to reach 33.3 million barrels per day (bpd) in 2017, with China accounting for 80% of the consumption in the region. Furthermore, the recent discovery of barite deposits in the Krishna-Godavari basin (KGD6) India, has brought in investments from various companies, with Reliance announcing an investment of US$ 6 billion in 2015.
North America is the largest market for barite and is expected to retain its dominance through 2025. North America barite market was valued at US$ 0.56 billion in 2016 and is expected to exhibit a CAGR of 6.21% over the forecast period. The shale oil revolution in the region has surged the growth in the exploration and development activities, which in turn has led to major capacity addition in the region, subsequently fueling demand for barite as weighting agent in the oil and gas industry. According to the U.S Energy information Administration (EIA), around 15.8 trillion cubic feet of natural gas was produced from shale reserves in the U.S. in 2016.
Europe is the second largest market for barite, projected to witness a CAGR of 5.24% during the forecast period. The growth in the exploration and production activities, especially in the North Sea has surged the barite market in the region. Moreover, the dominant automobile and consumer goods industry in the region has increased the demand for paint and coating in the region, which in turn is significantly driving the barite market due to its major use in pigments in paint and coating industry.
Figure1. Global Barite Market Share, By End-Use Industry, 2016
Source: Coherent Market Insights 2017
Among end-use industries, oil & gas was the largest segment in 2016 and is expected to show the same trend during 2017–2025. Oil and gas held a market share of 80.01% in 2016.
Major Players in the Global Barite Market:
Some of the major players in the market are Seaforth Mineral & Ore Co. Inc., CIMBAR Performance Minerals, Shijiazhuang Oushun Mineral Products Company Limited, Excalibar Minerals LLC, Shanghai Titanos Industry Company Limited. International Earth Products LLC. Spectrum Chemical Manufacturing Corporation, Anglo Pacific Minerals, and Desku Group Inc,