Expanded Perlite Market Size

Expanded Perlite Market Size

Expanded Perlite Market size was over USD 700 million in 2015 and is expected to grow with a CAGR of more than 7% by 2024 driven by rising demand from construction industry. Rising need for infrastructure development will accelerate the pace of construction sector in future.

Expanded perlite is used in wide range of applications for construction, agriculture, filtration, etc. The product is popular due to excellent performance characteristics such as high resistance to freezing, high temperatures, micro-organisms & pests, low thermal conductivity, and superior resistance to moisture. Additionally, it is perfectly suitable as an acoustic barrier and chemically inert with stable volume.

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The COVID-19 pandemic impacted the consumer spending and consumption pattern around the world. Construction industry is among one of the highly affected industries by COVID-19 pandemic. Due to nationwide lockdowns in major countries such as India, Germany, U.S. and Middle East region resulted in the job loss owing to which construction demand in these countries slumped. Construction products is largest application segment in the expanded perlite market share, fall in construction industry growth affected overall expanded perlite demand negatively.

Pandemic impact on the overall industry for long term is uncertain in terms of the market environment, for instance, crucial geographic markets such as India may face third or fourth Covid-19 wave resulting in number of lockdowns. The introduction of vaccines and the vaccination of a significant portion of the population will create herd immunity, thus lowering the number of newly infected cases. Vaccination drives, government stimulus package, and improving economies will help in the expanded perlite market growth.

Expanded perlite is used as an aggregate for gypsum plasters and Portland cement. Moreover, it has applications in chimney lining, paint texturing, curtain or partition wall and many others. Urbanization coupled with growing population, changing consumer aspirations and huge government spending will facilitate the growth of construction sector in upcoming years.

Another factor influencing business growth is favorable trends associated with horticulture sector. The product is used as a component of growing mixes where soil is not used as it offers aeration and proper moisture preservation for excellent plant growth. The product is sterile, weed-free and has neutral pH value. Additionally, it is a good carrier for fertilizer, pesticides & herbicides and pelletizing of seed. The demand for horticulture products is increasing all over the world. Many farmers are inclining towards horticulture as it provides quick returns in less time.

Expanded perlite is employed in the filtration & process aid applications in mining, water treatment processes and gas drilling activities. In oil fields, the product has usages in thermal insulation, aeration of soil and as a soil aggregate. Increasing drilling activities coupled with technological progressions will augment the expanded perlite market revenue. The product is used for filtering liquids in food & beverage and pharmaceutical industry as the product has inert nature, no taste, odor or color is imparted. It is recognized as a safe material by food safety regulatory bodies. Favorable trends associated with food & beverage industry is going to catapult the product demand in upcoming years.

The expanded perlite market share may be affected by availability of substitute materials. Various alternatives such as barite, polymeric foam and diatomaceous rock can be used instead of the product in many construction applications. However, in horticulture sector, substitutes such as vermiculite, cellulose, wood chips and peat can be used for performing various applications. These substitutes pose threat to global market and may hinder its growth within the forecast period.