Synthetic Gypsum Market

Market Definition

The synthetic gypsum market involves the production, distribution, and utilization of synthetic gypsum, primarily a byproduct of flue gas desulfurization (FGD) process in power plants, wherein sulfur dioxide is removed from exhaust gases.

This material, chemically similar to natural gypsum, is used in various applications such as drywall production, cement manufacturing, soil amendments, and water treatment, driven by its environmental benefits and cost-effectiveness compared to natural gypsum.

Synthetic Gypsum Market Overview

The global synthetic gypsum market size was valued at USD 1064.5 million in 2023 and is projected to grow from USD 1110.1 million in 2024 to USD 1653.8 million by 2031, exhibiting a CAGR of 5.86% during the forecast period.

Market growth is driven by growing demand for sustainable construction materials, the adoption of green building standards, and increased environmental awareness. As a byproduct of the FGD process in power plants, synthetic gypsum is widely used in wallboard and cement production.

Major companies operating in the global synthetic gypsum industry are Knauf Digital GmbH, YOSHINO GYPSUM CO., LTD., Synthetic Materials., American Gypsum Company, LLC, National Gypsum Services Company, Etex Group, Georgia-Pacific Gypsum LLC, Saint-Gobain, HOLCIM, PABCO Building Products, LLC, Gyptec Ibérica, USG Corporation, Travancore Titanium Products Ltd., FEECO International, Inc., and DOLINA NIDY sp. z o. o.     

The growth of the market is fueled by government regulations and initiatives aimed at minimizing industrial waste and promoting sustainable practices. Technological advancements in production methods and the expansion of the construction industry, particularly in emerging economies, are expected to contribute to market growth.

• In October 2023, Saint-Gobain acquired the remaining equity interest and assets of Seven Hills Paperboard LLC, including a gypsum paperboard liner manufacturing facility located in Lynchburg, Virginia,from its joint venture partner, WestRock.

Key Highlights

1. The global synthetic gypsum market size was recorded at USD 1064.5 million in 2023.
2. The market is projected to grow at a CAGR of 5.86% from 2024 to 2031.
3. North America held a share of 33.78% in 2023, valued at USD 359.6 million.
4. The flue gas desulfurization gypsum segment garnered USD 285.1 million in revenue in 2023.
5. The cement segment is expected to reach USD 443.2 million by 2031.
6. Asia Pacific is anticipated to grow at a CAGR of 6.78% through the forecast period.

Market Driver

"Increasing Demand for Eco-friendly and Sustainable Products"

The growing demand for eco-friendly and sustainable products is driven by increasing awareness of climate change, the need to reduce carbon footprints, and the imperative to conserve natural resources.

As industries and consumers prioritize sustainability, synthetic gypsum, a byproduct of flue gas desulfurization in coal power plants, is gaining popularity for its environmental benefits. It reduces the need for natural gypsum mining and supports circular economy practices by reusing industrial waste.

Stricter environmental regulations further promote the adoption of sustainable materials, and consumer preference for eco-friendly products boosts demand for alternatives such as synthetic gypsum.

• In October 2024, Grenzebach BSH secured a major contract with the Xinfa Group for the manufacturing of gypsum plasterboards. This agreement strenghthens Grenzebach’s presence in the gypsum industry,  delivering state-of-the-art production technology to enhance Xinfa’s manufacturing capabilities.

Market Challenge

"Quality and Consistency Issues"

Quality and consistency present significant challenges to the growth of the synthetic gypsum market due to variations in chemical composition and impurities. As a byproduct of the FGD process in coal-fired power plants, its composition can vary based on factors such as coal quality, desulfurization technology, and plant conditions.

These fluctuations can introduce undesirable elements, such as heavy metals, limiting its use in sectors such as construction and agriculture. Inconsistencies in sulfur content and moisture levels further impact performance in cement and plaster, complicating compliance with industry standards. Addressing these issues often requires additional processing to meet specific requirements, adding complexity to the reliable supply of synthetic gypsum.

To overcome quality and consistency issues, improving the control of the FGD process is essential. Optimizing plant operations and feedstock quality can help ensure a more uniform product.

Advanced purification methods to remove impurities such as heavy metals, along with implementing standardized testing for sulfur content and moisture levels, ensure product consistency. Additionally, investment in research and refining technologies improves synthetic gypsum's suitability for various applications, boosting reliability and market confidence.

Market Trend

"Advancements in Construction and Green Building"

Advancements in construction and green building practices are creating a strong demand for synthetic gypsum as a sustainable alternative to natural gypsum. With the rising focus on reducing carbon footprints and adhering to green building standards, such as LEED (Leadership in Energy and Environmental Design), intensifies, synthetic gypsum is increasingly used in drywall and plasterboard production.

It enhances fire resistance, soundproofing, and moisture control, making it ideal for energy-efficient buildings. Additionally, its role in thermal regulation and indoor air quality supports sustainable construction. As green building practices expand globally, the adoption of synthetic gypsum is expected to grow, particularly in projects targeting higher environmental standards.

• In January 2025, British Gypsum, a part of Saint-Gobain Interior Solutions, introduced Gyproc SoundBloc Infinaé 100, the first UK-manufactured plasterboard made from 100% recycled gypsum, setting a new benchmark for sustainable construction.

Synthetic Gypsum Market Report Snapshot

Segmentation	Details
By Type	Flue Gas Desulfurization Gypsum, Fluorogypsum, Phosphogypsum, Citrogypsum, Others
By Application	Cement, Gypsum Board, Dental, Soil Amendments, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Flue Gas Desulfurization Gypsum, Fluorogypsum, Phosphogypsum, Citrogypsum, and Others): The flue gas desulfurization segment earned USD 285.1 million in 2023 due to its widespread use in power plants and the increasing demand for sustainable construction materials.
• By Application (Cement, Gypsum Board, Dental, Soil Amendments, and Others): The cement segment held a notable share of 26.78% in 2023, as a result of its essential role in construction and growing demand for eco-friendly cement alternatives.

Synthetic Gypsum Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America synthetic gypsum market captured a substantial share of around 33.78% in 2023, valued at USD 359.6 million. The dominance in the market is attributed to the region's established construction and power generation sectors, particularly in the United States.

Stringent environmental regulations that promote the use of byproducts such as synthetic gypsum in building materials have further facilitated regional market growth. The presence of leading manufacturers and significant investments in sustainable technologies contribute to the its substantial market share.

The growing adoption of green building practices and increased use of gypsum-based products, including wallboards and cement, are anticipated to support sustained regional market expansion in the coming years.

• In February 2024, GMS Inc., a leading North American specialty building products distributor, completed its acquisition of Yvon Building Supply Inc., a major supplier of building materials across Ontario, with seven locations. Offering products such as drywall, insulation, steel, and ceilings, the company serves the Greater Toronto Area and beyond. For the year ending May 31, 2024, Yvon generated net revenues of approximately USD 135.8 million.

The Asia-Pacific synthetic gypsum industry is set to grow at a CAGR of 6.78% over the forecast period. This growth is fueled by rapid infrastructure development, particularly in the residential and commercial sectors, coupled with increasing awareness of the environmental advantages of synthetic gypsum.

Moreover, the region's expanding power generation capacity, which produces substantial quantities of flue gas desulfurization gypsum, is anticipated to further support regional market expansion.

With continued investments in sustainable construction and ongoing technological advancements, the demand for synthetic gypsum in Asia-Pacific is projected to rise steadily in the forthcoming years.

• In December 2024, UltraTech Cement Limited launched a pilot project utilizing inland waterways via National Waterway for transporting a large consignment of mineral gypsum. This initiative enhances sustainability by lowering environmental impact.

Regulatory Frameworks

• In the U.S., the Clean Air Act (CAA) regulates air emissions from stationary and mobile sources. This law authorizes the EPA to establish National Ambient Air Quality Standards (NAAQS) to protect public health and welfare and control hazardous air pollutants.
• The Resource Conservation and Recovery Act (RCRA) grants the EPA authority to regulates hazardous waste throughout its lifecycle, including generation, transportation, treatment, storage, and disposal.
• The EU’s Waste Framework Directive (WFD) sets standards for the management and classification of waste, including industrial byproducts.
• The (International Organization for Standardization) ISO 9001 is a globally recognized standard for establishing, implementing, and maintaining a quality management system (QMS) that ensures organizations consistently meet customer and regulatory requirements while fostering continuous improvement.

Competitive Landscape

The global synthetic gypsum market is characterized by a number of participants, including both established corporations and emerging players. Key participants include producers of synthetic gypsum derived from FGD processes, as well as manufacturers of construction materials such as drywall and cement.

These companies often form strategic partnerships with energy producers and construction firms to ensure a reliable supply of raw materials. Smaller regional companies are gaining market share by focusing on innovation and catering to specific regional needs.

As the demand for sustainable materials grows, the market is expected to witness increased competition, resulting in both consolidation and the entry of new players seeking to capitalize on the increasing preference for eco-friendly solutions.

• In January 2024, Ma’aden announced a frame agreement with Metso and thyssenkrupp Uhde to develop and license its Integrated process concept for greenfield facilities at Ras Al Khair in Saudi Arabia. The project includes CO2 capture technology utilizing lime from the calcination of phosphogypsum with sulfur, reducing emissions and enhancing the sustainability of Ma’aden’s phosphate business.

List of Key Companies in Synthetic Gypsum Market:

• Knauf Digital GmbH
• YOSHINO GYPSUM CO.,LTD.
• Synthetic Materials.
• American Gypsum Company, LLC
• National Gypsum Services Company
• Etex Group
• Georgia-Pacific Gypsum LLC
• Saint-Gobain
• HOLCIM
• PABCO Building Products, LLC
• Gyptec Ibérica
• USG Corporation
• Travancore Titanium Products Ltd.
• DOLINA NIDY sp. z o. o.
• FEECO International, Inc.

Recent Developments (M&A/Partnerships/Agreements/New Product Launch)

• In October 2024, Saint-Gobain, through its subsidiary CertainTeed Canada Inc., unveiled CarbonLow, a new line of low-carbon gypsum wallboard set for launch in Canada in 2025. CarbonLow offers up to 60% lower embodied carbon, cradle-to-gate, compared to traditional alternatives.
• In April 2023, UltraTech leveraged inland and coastal waterways to transport 57,000 metric tonnes of phosphogypsum from Paradeep port, Odisha, to its Gujarat Cement Works facility in Amreli, Gujarat, a first-of-its-kind initiative in India.