U.S LIME MARKET ANALYSIS

Lime is a calcium compound in the wastewater treatment process and is also used in the steel industry which consists of calcium oxide and calcium hydroxide. It has a wide range of applications across construction, chemical, environmental, and metallurgical application Moreover, it is also used in the construction industry in the road, buildings, and dams where it is used to stabilize the soil. The U.S. lime market is projected to surpass US$ 4.6 billion by the end of 2030, in terms of revenue, growing at CAGR of 5.1% during the forecast period (2023 - 2030). U.S. Lime market is segmented into its type, application, and others.

Drivers

Rise in demand for lime in the production of precipitated calcium carbonate-

Growing demand for lime in the production of precipitated calcium carbonate is expected to serve as a major driving factor for the market of U.S. lime. As per the National Lime Association precipitated calcium carbonate (PCC) is an innovative product derived from lime. Paper, plastic, paint, rubber, and ink are just a few of the applications for precipitated calcium carbonate. Furthermore, because to its high calcium content, precipitate calcium carbonate is utilised in the manufacture of calcium-based antacid formulations and multi-vitamin tablets. Due to its high calcium concentration, PCC may be used to create multivitamin/mineral pills and calcium supplements with large dosages. Precipitated calcium carbonate production utilizes the milk of lime process, which involves direct carbonation of hydrated lime slurry.

Growth in the construction industry in the U.S.

Growth in the construction industry in the U.S. is propelling the market growth of lime in the region. Lime is commonly used in steel manufacturing. The main application of lime in construction is in soil stabilization for airfields, highways, earthen dams, and building foundations plus lime could be used with specific chemicals to make other metals, and it is also a crucial component in lime slurry mortar and plaster. For instance, according to the associated general contractors of America, construction employment increases in 42 states and D.C. from May 2022 to May 2023, while 24 states add construction employees for the month. Therefore, growth in the construction industry of the U.S. is expected to accelerate the market growth of the overall U.S. lime market over the forecast period.

Figure 1. U.S Lime Market, Revenue Share (%), By Region, 2022

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According to the United States Department of Agriculture, US imports was 665,277 metric tonnes in 2021, accounting for more than 99% of all limes marketed in the US. In 2021, Mexico accounted for 97% of all lime imports, with Colombia and Honduras filling the gap. These variables have grown due to rising lime use in different sectors of the economy and retail demand, which will drive the market in the next years and is predicted to rise over the projection period. Regionally, South dominated the U.S. lime market in 2019, reporting 38% market share in terms of revenue, followed by Midwest and Western, respectively. 

Market Trends

Popularity in the usage of lime in environmental applications

The rising trend of using lime in environmental applications such as wastewater treatment is expected to augment market growth. Moreover, the majority of industrialists in the country produced a large amount of wastewater that contain harmful chemicals and other product which are required to be treated before it dispose of in the environment. Most metals are stabilized by lime by transforming them into more chemically stable forms that are less likely to leach. Furthermore, when applied to soil, lime can be a very efficient technique to harden debris and avoid future hazardous waste release. Thus, the growing demand for lime from the wastewater treatment industry is expected to augment the market growth.

Growing use of precipitated calcium carbonate (PCC) in the polymer and pulp paper industry  

Increase in the use of precipitated calcium carbonate (PCC) in the polymer and pulp paper industry is another major trend expected to foster market growth. Precipitated calcium carbonate is used as a filler and surface coating material in the paper industry for high grades paper products such as office paper and cigarette/tissue paper. The use of calcium carbonate facilitates polymer extrusion while also lowering the cost. It improves the polymer's heat resistance, stiffness, and hardness. Moreover, manufacturers are focusing on introducing fine-grade lime to meet the rising demand from end-use industries in the region is expected to accelerate the market growth of the U.S. lime over the forecast period.

Figure 2. U.S. Lime Market, Revenue Share (%), Application, in 2022

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On the basis of application, chemicals dominated the U.S. lime market in 2022 with around 33% of the market share in terms of revenue, followed by metal and cement, respectively.

Lime is also used in the chemical sector. It is used to make citric acid, polyvalent alcohols, and synthetic plasters, among other things. It's also utilised as a reactant in chemical synthesis and to adjust the pH. Lime is an extremely versatile substance. Lime reduces impurities from steel production (such as silica, phosphorus, and sulphur). It combines with impurities to generate slag, which separates from the steel and is removed. This treatment increases the steel's quality. Lime has a high water retention rate, allowing for early curing of cementitious materials. High initial flow allows for simple covering of masonry units. The cement-lime mortar's low air content improves bond strength. Lime is utilised in a variety of pulp and paper mill applications, including the pulping process, pH control, and colour removal. The sulfite-pulping process is one of the most typical uses. Acid is used in this procedure to dissolve the glue (lignin) that keeps the fibres (cellulose) together. Other variety of applications lime includes environmental, metallurgy, building, and chemical/industrial. The most rapidly rising application of lime is in environmental applications, where lime is utilised to meet air, drinking water, wastewater, and solid waste requirements.

Market Restraints

Limited storage time of lime-

Storage time of lime is a key challenge faced by manufacturers, especially among the major players and this is expected to hinder the market growth of lime. Lime cannot be stored for a longer period because lime changes its chemical and physical characteristics very easily. When lime comes in contact with moisture and carbon dioxide it eventually becomes unsuitable for use. Limited production of lime due to harsh weather conditions is expected to hinder the market growth of the U.S. lime. Limited production of lime is a major factor expected to restrict the market growth of lime in the U.S. over the forecast period.

Market Opportunity-

Escalation in consumption of cement in the U.S.

A rise in the consumption of cement is expected to represent potential opportunities for the lime market. As the popularity of the construction business started to rise in the U.S., cement, which is considered one of the important factors for construction, also requires lime content. It can be seen that the percentage of lime in cement is 62 – 65%, i.e. approximately 60 – 67%. Since lime mortar produced by lime aging has strong water retention, it may be used with cement mortar to increase mortar water retention and therefore facilitate building. According to the data from the U.S Energy Information Administration, the total energy consumption of the cement industry in 2022 was 406.9 trillion Btu.

Growth in the pulp & paper industry

Increase in the pulp & paper industry in the U.S. country is expected to present lucrative growth opportunities to the market of the U.S. Lime. Lime can be used as a coagulant in color removal, an air conditioner, and, to a lesser extent, a neutralizing agent in the treatment of pulp and paper mill liquid wastes.  It's also utilized to recover valuable by-products from pulp and paper mill trash. For instance, according to the United States Federal Reserve. Historically, U.S. Producer Price Index by Commodity: Pulp, Paper, and Allied Products: Wood Pulp reached a record high of 222.30000. Therefore, the growing pulp and paper industry in the country is expected to augment the market growth of the U.S. lime over the forecast timeframe.

U.S. lime Market - Impact of Coronavirus (Covid-19) Pandemic

Manufacturers in the lime market are facing major challenges to operate due to various factors such as disruptions in supply chains, lack of sub-contractors & raw materials, and the dissolution of contracts and expense control. This scenario is expected to continue to reduce the demand for lime services across the globe which in turn will hinder the growth of the U.S. lime market for a short-term period till the end of 2021. However, functional activities in various industries are likely to continue after a short-term period and stabilize the market growth

Recent Developments

Graymont Limited

On May 4, 2023, the company announced that to satisfy increased lime demand in the Victoria region and other burgeoning markets in eastern Australia. Graymont Limited will entail an upgrade and expansion of Graymont’s existing lime plant in Traralgon, Victoria.

United States Lime & Minerals, Inc.

On February 9, 2022, as mentioned in the annual report the company acquired Mill Creek, a dolomite mining and production company located in Mill Creek, Oklahoma, for US$ 5.6 million cash. The company believes that these acquisitions will complement its existing geographic footprint.

Lhoist

In May 2020, Lhoist North America expands its lime production capacity. The new vertical kiln, which is expected to be operational in 2021, is primarily driven by growing demand for Lhoist's high-purity dolomitic lime products in the steel industry.

*Definition: Lime is a calcium compound in the wastewater treatment process and is also used in the steel industry for removing which consists of calcium oxide and calcium hydroxide. It has a wide range of applications across construction, chemical, environmental, and metallurgical application. It is majorly used the impurities. Moreover, it is also used in the construction industry in the road, buildings, and dams where it is used to stabilize the soil.