Global Gypsum Board Market Overview, 2024-29

Market Dynamic

Market Drivers • Rise of Prefabricated Construction and Modular Buildings: The global construction sector is witnessing a significant surge in prefabricated construction techniques and the use of modular buildings. Prefabricated wall panels often utilize gypsum board as a core component due to its lightweight nature, dimensional stability, and ease of integration with other prefabricated elements. This trend is particularly prominent in North America and Europe, where faster construction times, improved quality control, and reduced labor costs are driving the adoption of prefabrication. This presents a unique growth opportunity for the gypsum board market, as it positions gypsum board as a vital material for efficient and high-quality construction projects across the globe. • Growing Focus on Sustainable Building Practices: Environmental consciousness is on the rise globally, and the construction industry is no exception. Gypsum board offers several advantages that align with sustainable building practices. It's a naturally occurring and recyclable material, contributing to a lower environmental footprint compared to traditional construction methods. Additionally, gypsum board's inherent fire resistance properties enhance building safety and potentially reduce the risk of devastating fires. Furthermore, advancements in gypsum board technology are leading to the development of eco-friendly boards with recycled content or incorporating sustainable manufacturing processes. As governments worldwide implement stricter regulations and building codes that prioritize sustainability, gypsum board is poised to benefit from this growing emphasis on eco-friendly construction practices. • Urbanization and Rising Demand for Affordable Housing: Rapid urbanization is a global phenomenon, particularly pronounced in developing regions like Southeast Asia and parts of Africa. This influx of people into cities creates a surge in demand for new housing units, often requiring fast and cost-effective construction solutions. Gypsum board construction offers a compelling option in this scenario. It's faster to install compared to traditional brick-and-mortar methods, and its lightweight nature simplifies construction processes, especially in high-rise buildings. Furthermore, gypsum board can be a cost-competitive alternative, particularly in regions with readily available gypsum resources. As urbanization continues to reshape the global landscape, the demand for gypsum board is expected to rise steadily, driven by the need for affordable and efficient housing solutions in urban centers. Market Challenges • The Rise of Substitute Construction Materials: The global gypsum board market faces competition from the emergence of substitute construction materials. These include lightweight alternatives like fiber cement boards or prefabricated building panels utilizing different materials. While gypsum board offers established advantages in terms of fire resistance, ease of installation, and noise control, these substitutes can be attractive options for specific applications. For instance, fiber cement boards might be preferred in high-moisture environments like bathrooms due to their superior water resistance. Staying ahead of this challenge requires gypsum board manufacturers to continuously innovate and develop new product offerings that cater to specific construction needs. Highlighting the unique benefits of gypsum board, such as its recyclability and contribution to sustainable construction, can also be a differentiating factor in a competitive market landscape. • Balancing Affordability with Innovation: Striking a balance between affordability and innovation is a significant challenge for the global gypsum board market. While advancements in gypsum board technology are leading to the development of new and improved products with enhanced functionalities like moisture-resistance, fire-resistance, and soundproofing, these advanced boards often come at a premium price point. This can create a barrier to adoption, particularly in developing regions where cost-effectiveness remains a primary concern in the construction sector. For instance, standard gypsum boards remain dominant in many parts of Africa and Southeast Asia due to their affordability, despite the potential benefits offered by more specialized boards. Manufacturers face the challenge of developing innovative yet cost-competitive gypsum board solutions to cater to the diverse needs and budget constraints of markets across the globe. • Stringent Environmental Regulations and Sustainability Concerns: The construction sector is under increasing scrutiny for its environmental impact. Gypsum board production processes can generate dust emissions and require significant energy consumption. Stringent environmental regulations, particularly in developed regions like Europe, are pushing manufacturers to adopt cleaner production methods and develop gypsum boards with lower environmental footprints. Furthermore, growing consumer awareness of sustainability is leading to a demand for eco-friendly building materials. This translates to a challenge for manufacturers to balance the inherent benefits of gypsum board, such as its recyclability and fire resistance, with the need to minimize its environmental impact throughout the product lifecycle. Developing sustainable sourcing practices, optimizing production processes, and exploring the use of recycled content are all crucial steps manufacturers must take to navigate the evolving landscape of environmental regulations and consumer preferences. Market Trends • Innovation in Product Development: The global gypsum board market is witnessing a growing demand for specialized boards that cater to specific needs beyond the standard drywall option. This includes moisture-resistant boards ideal for kitchens and bathrooms, sound-attenuating boards for improved acoustics in multi-unit dwellings, and fire-resistant boards for enhanced building safety. Stringent building codes in many regions are mandating the use of fire-resistant gypsum boards in specific applications, while rising consumer expectations for comfort and energy efficiency are driving the demand for sound-attenuating and moisture-resistant boards. Manufacturers are constantly innovating to cater to this growing demand, developing new gypsum board formulations and features that address these specific needs. This trend towards product diversification is expected to continue, shaping the future of the global gypsum board market. • Focus on Lightweight Gypsum Boards and Space Optimization: A significant trend gaining momentum within the global gypsum board market is the development and adoption of lightweight gypsum boards. These boards offer several advantages over traditional options. They are easier to handle and install, reducing labor costs and potentially accelerating construction timelines. Furthermore, their lighter weight translates to reduced building loads, which can be beneficial in high-rise construction projects. Advancements in manufacturing processes are leading to the creation of even thinner gypsum boards that maintain structural integrity. This opens doors for design flexibility in creating thinner yet functional walls and partitions, potentially optimizing space utilization within buildings, particularly relevant in urban environments with limited space. • Digitalization and Automation in Gypsum Board Manufacturing: The global gypsum board industry is gradually embracing digitalization and automation technologies to streamline production processes and enhance efficiency. This includes the adoption of computer-aided manufacturing (CAM) systems to optimize cutting processes and minimize material waste. Additionally, automation in material handling and logistics can improve overall production speed and reduce reliance on manual labor. Furthermore, the use of digital tools for quality control can ensure consistent product quality and minimize defects. As digitalization and automation continue to penetrate the gypsum board manufacturing landscape, they are expected to contribute to increased production capacity, improved product quality, and potentially lower production costs, impacting the global gypsum board market in the long run. •

Key Development

• April 2024: Saint-Gobain Gyproc India, a key player in the building materials sector, launched a new line of construction products. This innovative range boasts enhanced performance, design aesthetics, and improved durability. The product line includes Rigiroc-multi-purpose moisture resistant gypsum board with added advantages and Habito Standard- a high quality gypsum board for loading applications. • February 2024: Saint-Gobain, a major industry player, announced a significant step towards sustainability. Their gypsum facility in Vancouver, British Columbia, is implementing a heat recovery system expected to reduce Scope 1 carbon dioxide emissions by up to 15%. This initiative aligns with Saint-Gobain's commitment to environmental responsibility and their "Grow and Impact" strategy focused on reducing energy consumption and achieving carbon neutrality by 2050. This news highlights the gypsum board industry's growing focus on eco-friendly practices. • December 2023: A recent development in the gypsum board market relevant to trade policies is the imposition of anti-dumping duties by the Indian government on gypsum board imports from China. This action by the Indian authorities aims to protect domestic gypsum board manufacturers from unfair price competition. The impact of this decision on the Indian gypsum board market dynamics will be worth monitoring in the coming months, as it could potentially lead to a rise in domestic gypsum board prices or a shift in import sources for Indian construction companies. • December 2023: A collaborative study by USGKnauf, a gypsum board manufacturer, and The Energy and Resources Institute (TERI) was presented at the 15th GRIHA Summit in December 2023. This research focused on the potential of gypsum board drywalls to improve energy efficiency in buildings. The study examined a hospitality building across five climatic zones in India, analyzing factors like embodied energy, global warming potential, building energy consumption, and structural performance. The positive results presented at the summit highlight gypsum board construction as a viable solution for sustainable and energy-efficient buildings. • October 2023: Beneficial Reuse Management (BRM), a Chicago-based firm specializing in industrial byproduct diversion and recycling, has acquired USA Gypsum, a leading gypsum wallboard recycling company based in Denver, Pennsylvania. This acquisition strengthens BRM's access to recycled drywall scrap, a key sustainable alternative in gypsum board production. The move also expands BRM's geographic footprint and complements their existing gypsum processing operations. This signifies a growing trend in the construction industry towards utilizing recycled materials for environmental benefits.