Global Drywall

Global Drywall

Global demand for drywall – also known as plasterboard, wallboard, or gypsum board – is forecast to grow 1.8% per year to 12.2 billion square meters in 2027. Growth will be supported by:

• an acceleration in growth in the massive Chinese market, as demand recovers from a weak 2022 performance
• rising nonresidential building construction, boosted in part by a rebound in the US, the second largest global drywall market

In value terms, demand is expected to fall from an elevated 2022 base to $22.7 billion in 2027. Supply chain problems and high raw material costs caused drywall prices to surge in 2021 and 2022 and remain high in 2023. Prices will begin to moderate in 2024 as these issues are mostly resolved.

Growth Acceleration in the Chinese Market Will Be Major Driver of Global Demand

The best opportunities for drywall producers will be found in China, which will account for 44% of global absolute gains through 2027. Growth is expected to accelerate from the 2017-2022 pace, which was restrained by the:

• country’s Zero-COVID policy, which led to temporary shutdowns of businesses and factories throughout the country in 2022
• introduction of price caps and other financial regulations by the Chinese government in the latter part of the historical period to address the high levels of speculation in the real estate market

Gains will mostly derive from the nonresidential market due to increasing demand in urban areas for offices and other structures that use more modern construction techniques, including the use of drywall instead of other materials such as plaster or concrete.

Nonresidential Buildings to Remain Larger Market for Drywall

The nonresidential market will remain the larger market for drywall and will grow at a much faster rate than the residential market due to:

• gains in nonresidential building construction globally, boosted by federal investment in municipal and public buildings as a means to further drive economic recovery post-pandemic
• growing technological advancement of construction industries in developing economies
• increasing urbanization in the Asia/Pacific and Africa/Mideast regions, increasing demand for a variety of institutional, office, and retail structures

Gains in the nonresidential market will also be supported by a rebound in nonresidential building construction in the US, the second largest drywall market in the world. Greater numbers of employees returning to in-office work and ongoing increases in travel will encourage greater spending on the construction or renovation of office spaces and hotels, investment in which lagged throughout the pandemic.

This Freedonia industry study analyzes the 11.1 billion square meters global drywall industry, valued at $23.3 billion. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by market (residential and nonresidential construction) and application (new construction, improvement and repair construction). The study also evaluates company market share and competitive analysis on industry competitors including Beijing New Building Materials, Eagle Materials, Georgia-Pacific, Knauf, and Saint-Gobain.