Updated Dec 10, 2022 19:05

Clay Market in India

Market Overview
The Indian clay market expanded sharply to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated moderate growth from 2007 to : its value increased at an average annual rate of +% over the last fourteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against 2019 indices. Clay consumption peaked at $ in 2019; however, from to , consumption failed to regain momentum.

In value terms, clay production amounted to $ in estimated in export price. Overall, production recorded a buoyant increase. The most prominent rate of growth was recorded in 2011 when the production volume increased by % against the previous year. Clay production peaked at $ in 2019; however, from to , production stood at a somewhat lower figure.


Consumption
In , approx. tons of clays were consumed in India; surging by % on the previous year's figure. In general, consumption saw buoyant growth. Over the period under review, consumption hit record highs in and is likely to continue growth in the immediate term.

The value of the clay market in India rose slightly to $ in , with an increase of % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a measured expansion from 2007 to : its value increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against 2019 indices. Clay consumption peaked in and is expected to retain growth in the near future.


Consumption by Type
Fireclay ( tons), bentonite ( tons) and clays for construction and industrial use ( tons) were the main products of clay consumption in India, together accounting for % of the total volume.

From 2007 to , the biggest increases were recorded for bentonite (with a CAGR of +%), while consumption for the other products experienced mixed trend patterns.

In value terms, fireclay ($) led the market, alone. The second position in the ranking was held by bentonite ($). It was followed by clays for construction and industrial use.

From 2007 to , the average annual rate of growth in terms of the value of fireclay markets amounted to +%. With regard to the other consumed products, the following average annual rates of growth were recorded: bentonite (+% per year) and clays for construction and industrial use (-% per year).


Market Forecast
Driven by increasing demand for clay in India, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, the share of imports in terms of total clay consumption in India was relatively small in physical terms, fluctuating under an % figure. In value terms the share of imports also stood at a low figure, which means that the India clay market is largely supplied by domestic manufacturers. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
India remains a net exporter of clay; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.