Gypsum Market

Gypsum Market Size, Market Forecast and Outlook By FMI

The gypsum market reached USD 17.4 billion in 2025 and is expected to rise to USD 18.5 billion in 2026. By 2036, the market is projected to reach USD 34.5 billion. The market is anticipated to register a 6.4% CAGR during the forecast period. Plasterboard/Drywall is expected to lead product type, while construction is likely to remain the primary end-use segment in 2026.

Key Takeaways, Market Size, and Forecast

Summary of the Gypsum Market

• Demand and Growth Drivers
  • Green building standards are expected to increase gypsum use in low-carbon interior construction systems.
  • Rapid urbanization is likely to support demand for plasterboard and drywall across high-volume housing projects.
  • Agricultural soil improvement needs are anticipated to support gypsum use beyond construction applications.
• Product and Segment View
  • Plasterboard/Drywall is expected to remain the leading product type due to speed and fire-resistance benefits.
  • Construction is likely to remain the main end-use area as wallboard and cement applications absorb large volumes.
  • Natural gypsum is anticipated to gain importance as synthetic gypsum supply tightens with coal power phase-outs.
• Geography and Competitive Outlook
  • China is expected to lead country-level expansion due to construction scale and gypsum board capacity additions.
  • India is likely to record strong expansion as infrastructure development supports cement and plasterboard use.
  • Companies with recycling capacity and low-carbon product lines are anticipated to strengthen their position.
• Analyst Opinion
  • Nikhil Kaitwade, Principal Consultant for Chemicals and Materials at FMI, suggests, “The gypsum market is moving toward circular material supply and verified low-carbon construction products. Manufacturers with secure raw material access, recycling capability, and environmental product declarations are likely to gain advantage as builders face tighter sustainability requirements.”
• Gypsum Market Value Analysis
  • The gypsum market is shifting from volume-led mineral supply toward a more sustainability-linked construction material category.
  • Demand is likely to rise as builders use gypsum boards, plasters, and cement additives in faster construction systems.
  • Adoption is expected to improve as moisture-resistant and low-carbon gypsum products meet stricter building standards.
  • Spending is anticipated to be supported by urban housing, renovation activity, and agricultural soil amendment needs.

Addressing the need for resilience in this evolving landscape, Bernard Delvaux, CEO of Etex, remarked in April 2025: "We took significant steps to position Etex for future growth. We want to be ready when market demand will pick up again. We went through 2024 with strong results, we are prudent for 2025, and remain optimistic for the following years, as of 2026." [1] Suppliers must interpret this prudence as a signal to optimize operational efficiency and invest in circularity now to capture the volume rebound anticipated post-2026.

Regional growth trajectories through 2036 indicate a multi-speed expansion, with China (7.5% CAGR) and India (7.2% CAGR) leading global volume additions due to massive infrastructure pipelines. North American markets, including Canada (6.4% CAGR) and the United States (5.8% CAGR), show steady demand anchored in residential retrofits. Japan (5.8% CAGR), Spain (5.1% CAGR), and Germany (5.0% CAGR) represent mature markets where growth stems from renovation and energy-efficiency upgrades rather than new builds.

Gypsum Market Definition

The gypsum market encompasses the global extraction, processing, and trade of calcium sulfate dihydrate in both its natural mineral form and as a synthetic byproduct (FGD gypsum). It serves as a critical feedstock for manufacturing building materials such as plasterboard, cement setting retarders, and soil conditioners.

Gypsum Market Inclusions

Included in this analysis are all commercial grades of gypsum utilized in construction, agriculture, and industrial applications, covering raw ore, calcined powder, and finished boards. The scope extends to moisture-resistant boards, fire-resistant panels, and specialized plaster accelerator formulations used in modern drywall systems.

Gypsum Market Exclusions

Excluded from the report are non-commercial geological reserves that are economically unviable for extraction and niche artisanal uses with negligible volume impact. Purely decorative arts applications and unrelated calcium derivatives not used in joint compound or standard construction workflows are also outside the scope.

Gypsum Market Research Methodology

• Primary Research: Interviews with mining operators, wallboard manufacturers, and regulatory bodies to validate production volumes.
• Desk Research: Analysis of geological survey reports, trade data, and corporate sustainability disclosures to benchmark capacity.
• Market-Sizing and Forecasting: A bottom-up approach aggregating demand from housing starts and infrastructure spending.
• Data Validation and Update Cycle: Cross-referencing producer sales data with import/export statistics to ensure accuracy.

Segmental Analysis

Gypsum Market Analysis by Product Type

Plasterboard and drywall products command the dominant share of the market, driven by their essential role in modern interior construction for speed and fire resistance. As per FMI's estimates, the segment's resilience is underscored by players like Etex, which reported revenue of EUR 3,777 million in 2024, maintaining strong performance despite headwinds in new construction starts [1].

• Renovation trigger: Demand is reinforced by energy-efficiency retrofits, where soundproof drywall materials and insulation upgrades replace older interiors to meet tighter thermal regulations. Etex’s Building Performance division noted a like-for-like revenue increase of 0.9% in H1 2025, validating the shift toward high-value renovation products [2].
• Innovation uptake: Procurement shifts because buyers now demand moisture-resistant and active air-purifying boards, compelling manufacturers to upgrade formulations. Knauf India launched 'DewBloc' in May 2025, a moisture-resistant board designed specifically for wet areas, directly addressing durability concerns in humid climates [3].
• Sustainability mandate: Adoption accelerates where low-carbon materials are required to lower the embodied carbon footprint of buildings. Saint-Gobain Gyproc India introduced low-carbon plasters in April 2024 that reduce Global Warming Potential by over 40%, aligning product specs with net-zero goals [4]. 

Gypsum Market Analysis by End Use

The construction sector remains the primary end-use segment, absorbing the vast majority of gypsum output for wallboard, gypsum free plaster alternatives, and cement manufacturing. FMI analysts opine that this dominance is structurally tied to the minerals economy, which contributed over $4 trillion to the USA economy in 2025, highlighting the material's foundational role [5].

• Housing correlation: Growth is anchored in residential housing starts and completion cycles, which dictate the immediate consumption of wallboard and finishing plasters. In Canada, the mining sector, including gypsum, contributed USD 7.1 billion to the Atlantic region's GDP in 2024, reflecting the material's economic weight in construction supply chains [6].
• Infrastructure scale: Demand momentum builds as large-scale commercial and public infrastructure projects utilize gypsum-based precast concrete and cement. Chinese equipment suppliers scaled operations in October 2025 to provide production lines capable of 50 million square meters annually, supporting massive urbanization needs [7].
• Agricultural diversion: Uptake expands as the agriculture sector increasingly utilizes gypsum as a soil conditioner to improve yield and soil structure. FAGMIL in India reported sales of 0.11 LMT of agriculture-grade gypsum in 2024-25, demonstrating the material's critical utility beyond the built environment [8].

Gypsum Market Analysis by Form

Natural gypsum continues to hold a substantial market share, particularly as the availability of synthetic gypsum declines due to the closure of coal-fired power plants. FAGMIL's total gypsum production in India stood at 274,814 MT in 2024-25, illustrating the continued reliance on mined sources to meet domestic needs [8].

• Synthetic scarcity: Supply constraints emerge as the transition away from coal reduces the output of Flue Gas Desulfurization (FGD) gypsum, forcing a return to natural mining or recycling. In Germany, more than half of current consumption relies on FGD gypsum, creating an urgent need for alternative sources as energy policies shift [9].
• Processing efficiency: Production pivots because converting gypsum into usable forms like bassanite traditionally requires high energy, prompting a search for lower-temperature methods. A German consortium (BAM) introduced a water-based conversion process in 2024 that operates below 200°C, offering a route to decarbonize processing [10].
• Strategic mining: Capacity expands where state-owned enterprises consolidate mining operations to optimize extraction efficiency and grade quality. FAGMIL merged its Ramsinghpur and Suratgarh mines in India during FY 2024-25 to streamline operations amidst high demand for natural gypsum [8].

Gypsum Market Drivers, Restraints, and Opportunities

Drivers

The acceleration of "Green Building" certifications is a primary demand driver, compelling developers to utilize materials with transparent environmental impacts. Buyers prioritize products that contribute to LEED or BREEAM points, shifting procurement toward manufacturers who can provide Environmental Product Declarations (EPDs). According to FMI's estimates, this mechanism is exemplified by the Japanese market, where Yoshino Gypsum registered active EPDs for its Tiger R50 board with the Sustainable Management Promotion Organization in 2025, directly enhancing its appeal to eco-conscious contractors [11].

Restraints

The declining availability of synthetic gypsum (FGD) serves as a significant restraint, creating a raw material gap that natural mining cannot instantly fill due to permitting delays. As coal power plants decommission, the loss of this low-cost feedstock forces manufacturers to reconfigure supply chains and absorb higher logistics costs. To mitigate this, companies are exploring recycling, yet the transition is capital intensive; for instance, Germany’s reliance on FGD gypsum for over half its consumption poses a structural risk that consortiums like the BMBF-funded ReMin project are racing to address through recycling innovation [9].

Opportunities

• Circular Economy: Buyers in resource-constrained regions benefit from closed-loop recycling systems that turn demolition waste into new board feedstock. Knauf and BSR Ingolstadt confirmed a joint venture in January 2026 to build a recycling plant in Bavaria, creating a scalable model for secondary raw material recovery [12].
• Low-Carbon Innovation: Developers seeking to meet net-zero targets can leverage new plaster technologies that significantly reduce embodied carbon. Saint-Gobain’s launch of a low-carbon plaster in India in April 2024 offers a 40% reduction in global warming potential, presenting a high-value opportunity in climate-sensitive markets [4].
• Agricultural Soil Remediation: Farmers in arid regions gain from utilizing gypsum as a cost-effective solution for soil salinity management. Sales of 0.11 LMT of agriculture-grade gypsum by FAGMIL in India during 2024-25 highlight the untapped potential for specialized agricultural product lines [8].

Regional Analysis

Based on the regional analysis, the Gypsum market is segmented into North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa across 40+ countries. The full report also offers market attractiveness analysis based on regional trends.

Source: Future Market Insights (FMI) analysis, based on proprietary forecasting model and primary research

Asia Pacific Gypsum Market Analysis

Asia Pacific remains the engine of global volume growth, driven by massive urbanization projects and government mandates for affordable housing. The region is characterized by a dual demand for high-volume blended cement inputs and increasingly sophisticated interior finishing materials. In October 2025, equipment suppliers in China demonstrated the capacity to deliver turnkey gypsum board lines with outputs exceeding 50 million square meters, underscoring the industrial scale of the region [7].

• China: Demand for gypsum in China is set to grow at 7.5% CAGR through 2036, supported by robust industrial capacity scaling before procurement and budgeting cycles translate into higher deployment volumes. This trajectory is reinforced by the government's push for modernization, where equipment makers now offer lines producing up to 50 million m2 annually, securing supply for the domestic construction boom [7].
• India: Gypsum sales in India are projected to rise at 7.2% CAGR from 2026 to 2036 as infrastructure development accelerates, creating a clearer pathway from policy or spending intent to purchase orders. FAGMIL’s sale of 3.08 LMT of gypsum in 2024-25 confirms the steady consumption of material for both cement and agricultural use [8].
• Japan: The Japan gypsum sector is poised to expand at 5.8% CAGR during 2026 to 2036 because strict environmental standards lift utilization rates and justify technology refresh decisions. This is evident in the certification of products like Tiger R50 (GB-R) in 2025, which aligns with the country's stringent eco-labeling requirements for construction materials [11].

Strategic opportunities in Asia Pacific extend to Indonesia and Vietnam, where rapid industrialization mirrors early-stage growth seen in China. Suppliers should monitor the adoption of air barrier technologies in these humid markets, as moisture control becomes a priority for new commercial builds.

North America Gypsum Market Analysis

North America continues to exhibit steady demand, anchored by a vast residential repair and remodel market and a recovering housing sector. The region is seeing a strategic shift toward domestic sourcing and tariff-influenced pricing models to protect local industries. In 2025, the USA minerals industries, heavily reliant on gypsum, contributed over $4 trillion to the economy, signaling the material's indispensable role in the broader industrial base [5].

• United States: The outlook for gypsum in the United States indicates a 5.8% CAGR from 2026 to 2036 as residential retrofits drive material needs, strengthening demand from both public programs and private operators. The foundational contribution of minerals to the $4 trillion economy in 2025 highlights the stable baseline demand for construction aggregates [5].
• Canada: Canada is expected to record 6.4% CAGR in gypsum demand over 2026 to 2036 as mining output supports regional GDP, tightening the link between operational constraints and adoption-led investment. The sector's $7.1 billion contribution to Atlantic Canada's GDP in 2024 underscores the economic vitality of extraction activities [6].

FMI’s report includes an analysis of Mexico and Brazil, which are poised to benefit from near-shoring trends. Buyers in these markets are increasingly seeking carbon negative cement solutions, presenting an avenue for premium gypsum additives to enter the supply chain.

Europe Gypsum Market Analysis

Europe acts as the global laboratory for circular economy initiatives in the gypsum sector, driven by the urgent need to replace dwindling synthetic supplies. Manufacturers are heavily investing in recycling infrastructure and EPD certification to maintain competitiveness. Etex’s investment of over £140 million in a new plasterboard plant in Bristol in 2025 exemplifies the commitment to modernizing capacity despite broader economic pressures [13].

• Germany: Germany is forecast to register 5.0% CAGR in gypsum sales through 2036 as recycling initiatives accelerate, raising the addressable pipeline for vendors with local-ready integration. The BMBF-funded research into low-temperature gypsum conversion in 2024 demonstrates the market's pivot toward energy-efficient processing technologies [10].
• Spain: The Spain gypsum market is expected to expand at 5.1% CAGR during 2026 to 2036, supported by advanced cladding system deployments that increase ROI visibility for buyers. Saint-Gobain’s Q1 2025 project deployment for the Ágora Caixa Forum highlights the demand for integrated high-performance wall systems [14].

Significant potential exists in Poland and the UK, where demand for gypsum in eu aligns with renovation waves. Suppliers should focus on concrete containing polymer innovations to meet the sophisticated thermal performance standards required in these northern latitudes.

Competitive Aligners for Market Players

Market consolidation is reshaping the competitive landscape as major players execute strategic mergers and asset optimizations to secure market share. The rebranding of USG Boral to Knauf Gypsum Pty Ltd in Australia in 2025 illustrates how global giants are streamlining their regional identities to unify operational standards and marketing power across Asia-Pacific [15].

Sustainability has evolved from a corporate social responsibility metric into a core competitive differentiator, influencing contract awards in the public sector. Etex’s achievement of 8.6% recycled input across its global portfolio in 2024 signals a shift where ability to demonstrate circularity directly impacts a supplier's eligibility for green building projects [1].

Investments in capacity are increasingly targeted at specialized, high-margin products rather than generic volume expansion. Etex’s £140 million investment in a new UK plant focuses on efficiency and modern production capabilities, ensuring they can meet future environmental standards while maintaining cost leadership in a competitive European market [13].

Recent Developments

The report includes full coverage of key trends from competitive benchmarking. Some of the recent developments covered in the reports:

• In May 2025, Knauf India launched DewBloc, a moisture-resistant gypsum wallboard designed to prevent moisture absorption in wet area applications [3].
• In April 2024, Saint-Gobain Gyproc India unveiled low-carbon plasters that reduce Global Warming Potential by over 40% compared to traditional alternatives [4].
• In January 2026, Knauf Group and BSR Ingolstadt announced a joint venture to construct a new gypsum recycling plant in Bavaria to secure secondary raw materials [12].

Key Players in Gypsum Market

• Saint-Gobain
• Knauf Gips
• Knauf / USG Corporation
• Etex Group
• Yoshino Gypsum

Scope of the Report

Gypsum Market Analysis by Segments

Form

• Natural Gypsum
• Synthetic Gypsum

Product Type

• Plasterboard/Drywall
• Cement
• Plaster
• Soil Amendment
• Others

End Use

• Construction
• Agriculture
• Industrial
• Others

Region

• Asia Pacific
  • India
  • China
  • Japan
  • South Korea
  • Indonesia
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Europe
  • Germany
  • Italy
  • France
  • United Kingdom
  • Spain
  • Benelux
  • Nordics
  • Central & Eastern Europe
  • Rest of Europe
• North America
  • United States
  • Canada
  • Mexico
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Rest of Latin America
• Middle East & Africa
  • Kingdom of Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Turkey
  • Rest of Middle East & Africa

Bibliography

• [1] Etex. (2025). Etex 2024 Annual Report & Press Release. Etex.
• [2] Etex. (2025). Etex Half-Year Results 2025. Etex. 
• [4] Saint-Gobain Gyproc India. (2024). Press Release - Saint-Gobain Gyproc India Leads Industry Transformation with Low-Carbon Gypsum Plasters. Saint-Gobain.
• [5] USA Geological Survey (USGS). (2026). Mineral Commodity Summaries 2026. USGS.
• [6] Government of Canada. (2024). Sectoral Profile: Mining - Atlantic Region. Job Bank.
• [7] Zibo Municipal People's Government. (2025). Shandong Jingxin Mechanical Equipment Operations. Zibo Government.
• [8] FCI Aravali Gypsum (FAGMIL). (2025). Annual Report 2024-25. FAGMIL.
• [9] ReMin. (2024). GipsRec 2.0 Project Overview. BMBF Research Concept.
• [10] Federal Institute for Materials Research and Testing (BAM). (2024). Sustainable Production of Bassanite. BAM.
• [11] Sustainable Management Promotion Organization (SuMPO). (2025). EcoLeaf Environmental Product Declaration - Tiger R50. SuMPO.
• [12] Knauf Group. (2026). Knauf & BSR Ingolstadt Joint Venture Announcement. Knauf Newsroom.
• [13] Etex Building Performance (Siniat). (2024). Sustainability Scorecard 2024. Siniat.
• [14] Saint-Gobain. (2025). Q1 2025 Sales & FY 2024 Results. Saint-Gobain.
• [15] Knauf Gypsum. (2025). About Knauf Gypsum - Rebranding Announcement. Knauf.

This bibliography is provided for reader reference and is not exhaustive. The full report contains the complete reference list and detailed citations.

This Report Addresses - Gypsum Market

• Market intelligence to enable structured strategic decision making across construction materials, cement manufacturing, agricultural soil conditioning, and industrial applications in both mature and emerging infrastructure economies
• Market size estimation and 10 year revenue forecasts from 2026 to 2036, supported by validated construction output data, cement production statistics, and mining capacity benchmarks
• Growth opportunity mapping across natural gypsum, synthetic gypsum, and recycled gypsum streams with emphasis on supply security, cost competitiveness, and environmental compliance
• Segment and regional revenue forecasts covering wallboard and plasterboard manufacturing, cement production, plaster applications, and agricultural soil amendment usage
• Competition strategy assessment including quarry ownership models, vertical integration with wallboard production, logistics optimization positioning, and sustainability capability benchmarking
• Product and process innovation tracking across lightweight gypsum boards, fire-resistant and moisture-resistant formulations, flue-gas desulfurization (FGD) gypsum utilization, and waste recovery technologies
• Regulatory and environmental impact analysis covering mining regulations, emission standards, landfill diversion mandates, and green building certification requirements
• Market report delivery in PDF, Excel, PPT, and interactive dashboard formats for building material manufacturers, mining operators, infrastructure planners, and procurement leaders