The global barite market is estimated to be valued at $1,712.1 million by 2028, surging from $1,232.0 million in 2020, at a noteworthy CAGR of 4.3%.
Impact Analysis of COVID-19 on the Barite Market
The global market for Barite is estimated to experience a low growth amid the COVID-19 pandemic. This low growth is the result of decreased demand for barite in oil extraction during the pandemic; therefore, demand for barite is also consequently projected to decline.
Furthermore, according to International Energy Agency, in 2020, demand for oil failed by 57% amid the pandemic due to travelling restriction and lockdown imposed by governments across the globe. Furthermore, due to COVID-19, chemical industries are facing production and revenue loss.
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However, various leading market players in barite industry are implementing strategies to get back towards the market growth. For instance, CIMBAR Performance Minerals, Inc., in May 2021, announced that they are going to increase the prices for drilling grade barite products for recovering the losses that they have faced amid the pandemic. All such initiatives and aspects are predicted to positively impact the global barite market during the pandemic.
Global Barite Market Analysis
The enormous growth of the global barite market is mainly attributed to increasing use of barite in medical application owing to its use in the field of medical devices for its absorptive properties of gamma and x-rays. Moreover, barite is also used in pharmaceutical industry as a filler for plaster and it is also used to extend plaster time. These types of factors are creating awareness among people to adopt barite and thus fueling the market growth.
There are certain side effects of barite if used in high amount; such key issues may create a negative impact on the market during the forecast period.
The increasing application of barite in oil & gas industry may create huge opportunities for the market in the future. Also, barite is used as the weighing agent in the application of drilling mud. Along with this, it prevents the explosion release of gas & oil during drilling, such aspects RW expected to raise the demand for barite globally. Furthermore, increasing government support FOR barite industry is one of the biggest drivers. All such factors may further lead to lucrative market opportunities in the market in the upcoming years.
Global Barite Market, Segmentation
The global barite market is segmented based on color, deposit type, grade, end-use industry, and region.
The color segment is further classified into grey, white & off white, brown, and others. Among these, the white & off white type sub-segment is anticipated to have the fastest growth and surpass $407.0 million by 2028, with an increase from $281.2 million in 2020.
The market growth can be attributed to growing application of barite in paint & coatings industry. Powdered white & off-white barite is added to paint to increase the viscosity of the paint and to provide extra strength when applying on the walls; these factors may create a positive impact on the sub-segment throughout the forecast period.
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The deposit segment is further divided into bedding, cavity filling, residual, and vein. The bedding sub-segment is anticipated to have a dominating as well as fastest growing sub-segment in the global market and register a revenue of $903.4 million during the analysis timeframe.
This growth is owing to the presence of barite in bedded form in many parts of the U.S. like Nevada and Arkansan. Also in bedded deposit type, barite is in fine granular form and many other minerals are also deposited along with barite like pyrite, secondary iron oxide, and clay minerals. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The grade segment is further divided into grade 3.9, grade 4.0, grade 4.1, grade 4.2, grade 4.3, and grade above 4.3. The grade 4.2 sub-segment is anticipated to be the fastest growing sub-segment in the global market and register a revenue of $521.0 million during the analysis timeframe.
This growth of the sub-segment is owing to its properties such as high-density and high specific gravity, therefore it is mainly used in drilling fluid formulation. Moreover, barite is widely used in rubber industry. Thus, increasing number of rubber industries and drilling activities around the world are expected to drive the barite market in the coming years. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The end-use segment is further divided into oil & drilling, paints & coatings, pharmaceuticals, adhesives, rubber & plastics, textiles, and others. The pharmaceuticals sub-segment is anticipated to be the fastest growing sub-segment in the global market and register a revenue of $139.6 million during the analysis timeframe.
This growth is owing to increasing use of barite in medical industry. As barite is excellent in absorbing and reflecting radiations, it is widely used in conducting various medical tests like X-rays and diagnostic tests. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The barite market in the North America region is projected to witness dominant share. This market generated a revenue of $489.1 million in 2020 and is further projected to reach up to $652.3 million by 2028.
The demand for barite is surging in the North America region specifically because of factors such as presence of some of world’s largest offshore mining industries like Halliburton and Schlumberger. Barite is widely used as a weight filling agent to provide sufficient density to the machine in the drilling industry due to its soft texture property which prevents the drilling machines from damaging while drilling fluid. All such factors are anticipated to boost the market in the North America region.
Key Players in the Global Barite Market
Some of the leading global barite market players are
- Desku Group Inc.
- Ashapura group
- Halliburton Company
- International Earth Products LLC
- Excalibar Minerals LLC
- Kaomin Industries
- Barium & Chemicals Inc
- Seaforth Mineral & Ore Co. Inc.
- New Riverside Ochre Company, Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Barite Market
Bargaining Power of Suppliers: The suppliers involved in the market are limited in number. Thus, manufacturers and companies have limited options and alternatives to handle expensive supplies.
Thus, the bargaining power of the suppliers is high.
Bargaining Power of Buyers: Buyers have moderate bargaining power, primarily because of the availability of barites at comparative low prices. The buyers can hence choose the barite that best fits their preferences in color, grade and deposit type.
Hence, the bargaining power of buyers is moderate.
Threat of New Entrants: Startups entering this market are providing best quality barite to the end-users. However, companies that are in the barite are much more globalized and supported by government.
Thus, the threat of the new entrants is moderate.
Threat of Substitutes: There are certain alternatives available for barite such as celestite and iron ore for various applications.
Therefore, the threat of substitutes is moderate.
Competitive Rivalry in the Market: The ventures operating in the global barite are opting for various businesses deployment strategies to hold their position in the market. Several companies are launching their value-added services in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.
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