Barite Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Barite Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global barite market is likely to grow with a CAGR of over 4%, during the forecast period.

The market was negatively impacted by COVID-19 in 2020. However, the market recovered significantly in 2021, owing to rising consumption from various end-user industries such as oil and gas, chemicals, rubber, and others.

Key Highlights

• Over the long term, the major factors driving the barite market are the growing demand from oil and gas drilling activities and its growing usage in the plastics industry across the globe.
• However, the presence of close substitutes, such as celestite and iron ore, is restraining the growth of the barite market.
• Nevertheless, studies revealing the combination of barite with iodine to help block radiation in diagnostic tests may act as an opportunity for the barite market in the medical sector.
• Middle-East and Africa is forecast to be the largest market for barite, owing to the growing oil and gas industry where barite plays a very crucial role.

Key Market TrendsHigh Demand from the Oil and Gas Industry

• Barite has huge demand in oil and gas drilling operations as a weighing agent in the drilling mud. It prevents the explosive release of oil and gas during drilling, and it has unique physical and chemical properties such as high specific gravity, chemical and physical inertness, low solubility, and magnetic neutrality.
• About 80% of the global demand is from the petroleum industry. The worldwide demand for barite would continue till petroleum products are preferred as the chief source of energy, given their importance in the transportation and industrial end-use sectors.
• The properties like non-corrosiveness, non-abrasiveness, insolubility in water, inertness, and high specific gravity enable barite’s application as a weighting agent in drilling operations to remove the cutting from the bits, transport cutting to the surface to reduce the friction in the drilling string, control pressure, prevent blow-out and at the same time to provide lubrication.
• The prospectus for the future growth of the petroleum industry suggests that petroleum exploration will continue to grow and simultaneously the consumption of barite. Furthermore, more drilling must be done per unit of oil as hydrocarbon discoveries become less productive with time.
• According to bp statistical review of world energy report 2022, global oil production increased by 1.4 million barrels/day in 2021.
• Also, as per International Energy Agency, global oil demand in 2022 was estimated to 1.7 million barrels/day, reaching 99.2 million barrels/day. A further 2.1 million barrels/day gain is expected in 2023, led by a strong growth trajectory in non-OECD countries.
• Hence, the rising demand for barite from the oil and gas industry globally is expected to drive market growth during the forecast period.

The Middle-East and Africa Region to Dominate the Market

• The Middle-East has the largest market share in the barite market owing to its dominance of over 30% in global oil production. This is due to the presence of some leading oil-producing nations of the world in this region, like Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates.
• It was estimated that among OPEC’s total oil reserves, the majority was held by the Middle Eastern nations. The proven oil reserves of this region were valued at about 113.2 billion metric tons.
• According to a bp statistical review of world energy, as of 2021, the Middle East produces one-third of the world’s total oil production, which was estimated to be around 1,315.8 million tons, in 2021, indicating a growth in demand for barite.
• Saudi Arabia's oil production in 2021 accounted for 10,954 thousand of barrels per day, registering for 12.2% of the global output, making it the largest oil producer globally.
• Further, the oil production of Iran, Kuwait, and the United Arab Emirates in 2021 accounted for 3,620, 2,741, and 3,668 thousand barrels per day respectively. This is likely to fuel the production from the oil and gas industries of the Middle Eastern countries, which is expected to increase the consumption of barite in this region.
• Hence, with the rising demand from various industries, the demand for barite is expected to grow considerably in the Middle East & African region over the forecast period.

Competitive Landscape

The barite market is partially consolidated. Some of the key companies in the market (not in particular order) include Sachtleben Minerals GmbH & Co. KG, MILWHITE, INC., Cimbar Performance Minerals, New Riverside Ochre, and Newpark Resources Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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