The global gypsum market is estimated to grow from USD 36.2 billion in 2025 to USD 68.5 billion by 2035, advancing at a CAGR of 6.3% during the forecast period. Growth is underpinned by large-scale infrastructure projects, urban redevelopment, and a global shift toward lightweight, fire-resistant, and energy-efficient building materials.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 36.2 Billion |
| Industry Value (2035F) | USD 68.5 Billion |
| CAGR (2025 to 2035) | 6.3% |
The increasing demand for gypsum-based products such as plasterboard, cement additives, and prefabricated components is being driven by governments and industries prioritizing sustainable, quick-to-install, and cost-effective solutions in residential, commercial, and institutional construction.
According to recent corporate updates and regulatory discussions in the building materials sector, gypsum’s role is expanding beyond traditional construction into modular and prefabricated housing, driven by the need for affordable housing and regulatory mandates on emissions and safety.
Green building codes, particularly in North America and Europe, have placed gypsum in a favorable position due to its recyclability, low toxicity, and performance in fire and thermal regulation. Asia-Pacific, led by China and India, is witnessing rapid capacity additions and domestic resource development to meet rising consumption.
A significant contributor to future market momentum is synthetic gypsum, especially flue-gas desulfurization (FGD) gypsum, derived from industrial processes. Governments and manufacturers are increasingly focused on waste-to-resource strategies, where FGD gypsum helps reduce reliance on natural deposits while enabling circular economy integration.
In parallel, technological innovations in moisture-resistant boards, multi-functional panels, and gypsum recycling are enhancing product value across end-use sectors such as healthcare, retail, and infrastructure. As urbanization accelerates and environmental regulations tighten, gypsum’s low-carbon, versatile characteristics are being recognized as essential for next-generation construction standards. Overall, the market outlook remains strong, with capacity expansions and policy-driven demand forming the bedrock of growth through 2035.
Synthetic gypsum especially flue gas desulfurization (FGD) gypsum is projected to represent 35% of global gypsum demand in 2025, with its share rising to approximately 42% by 2035, growing at a CAGR of 7.0%, outpacing natural gypsum. Derived from industrial byproducts, particularly the desulfurization of flue gases in coal-fired power plants, synthetic gypsum offers comparable purity and performance to natural gypsum and aligns well with global sustainability targets.
As part of broader waste-to-resource strategies, synthetic gypsum is increasingly favored in North America, Europe, China, and Japan. It reduces landfill pressure, lowers carbon intensity in construction products, and supports closed-loop manufacturing in plasterboard, cement, and agriculture.
The USA Environmental Protection Agency (EPA), the EU Circular Economy Action Plan, and China's Green Manufacturing policies are actively encouraging the use of industrial byproducts like FGD gypsum in mainstream building materials. Key producers like Saint-Gobain, National Gypsum, and Etex are incorporating synthetic gypsum into their manufacturing lines, ensuring consistent quality through advanced material handling and purification systems.
The decarbonization of energy systems does pose a long-term threat to synthetic gypsum supply particularly in regions retiring coal-fired power plants. However, emerging sources such as phosphogypsum (from fertilizer production) and citrogypsum (from citric acid production) are under research for commercialization. Strategic partnerships between utilities, cement firms, and construction material companies are forming to ensure long-term feedstock security.
In 2025, the cement industry is projected to account for nearly 25% of global gypsum demand, with consumption expected to increase at a CAGR of 5.9% through 2035. Gypsum plays a vital role in regulating the setting time of Ordinary Portland Cement (OPC), preventing flash setting and ensuring consistent performance during application. Its inclusion is essential for producing durable and workable cement mixtures, especially in high-volume construction.
Rising infrastructure investments across China, India, Brazil, and Indonesia are fueling the expansion of cement manufacturing, thereby accelerating gypsum usage. Additionally, mounting environmental pressures are prompting the adoption of clinker reduction strategies, where gypsum helps preserve mechanical properties and setting behavior in low-clinker cement formulations.
The growing preference for synthetic gypsum, particularly flue gas desulfurization (FGD) gypsum, is further shaping this segment. Offering high purity, availability, and alignment with ASTM and EN standards, FGD gypsum supports the industry’s efforts to lower its carbon footprint while reducing dependence on natural gypsum sources.
With the cement sector’s push toward sustainable production and performance optimization, gypsum continues to be a critical enabler of efficiency, regulatory compliance, and environmental stewardship in modern cement applications.
Environmental Issues and Regulation
Disposal and gypsum mining also pose ecological concerns, including land degradation and waste. Extraction is due to habitat loss, whereas construction and demolition gypsum wastes are hard to dispose of. Gypsum mining, industrial process emissions, and waste disposal are increasingly regulated by governments worldwide. The law forces companies to use cleaner methods in mining and new technology recycling.
Synthetic Gypsum and Recycling Technology Development
Artificial gypsum production is one of the greatest market development opportunities. Flue-gas desulfurization units in industry and power stations are replacing ageing equipment, producing quality gypsum as a by-product. This discourages the consumption of mined gypsum and promotes a culture of a circular economy. Furthermore, advances in recycling gypsum enable builders to recycle material from building gypsum scrap, thereby preventing it from going into landfills. There are also opportunities for development in the industrial and construction sectors through the manufacturing of high-strength lightweight gypsum products.
The USA gypsum market is slowly expanding, driven by strong demand in the construction, agriculture, and industrial sectors. Development in green building construction and the adoption of energy-efficient gypsum panels are key drivers. The USA Green Building Council's LEED certification system encourages the use of recycled gypsum in drywall production.
Sustained investments in infrastructure and housing developments in the next couple of years will continue to fuel gypsum demand. Agricultural Demand: The application of gypsum as a soil conditioner is also gaining momentum in the United States' agricultural industry. Gypsum desalts and enhances the yield of crops. Due to enhanced precision farming technology, the application of gypsum for developing the soil structure is gaining increasing focus.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 3.9% |
The UK gypsum market is growing steadily as the transition to sustainable building products and low-carbon building solutions gains momentum. Government initiatives to reduce landfill waste encourage recycling activities for gypsum.
Use of Sustainable Gypsum: Environmental regulations under the Environment Act 2021 promote the circular economy, and the use of recycled gypsum in plasterboard production increases.
Growth in Fire-Resistant Gypsum Boards: The building industry is embracing gypsum-based fire-resistant panels on a large scale, according to improved safety standards. Demand for the same is increasing, especially for high-rise commercial and residential buildings.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 3.5% |
Strict environmental and energy efficiency laws influence the European Union market for gypsum. Green building products, particularly low-carbon gypsum-based products, are in increasing demand.
Regulatory Drive for a Circular Economy: The EU Waste Framework Directive is driving the uptake of gypsum recycling. France and Germany are the leaders in recycled gypsum board manufacturing.
Smart Gypsum Applications: The use of smart sensors in gypsum panels for structural and humidity monitoring is on the rise, enhancing building material intelligence.
| Country | CAGR (2025 to 2035) |
|---|---|
| EU | 4.0% |
Japanese markets for gypsum are growing through applications in construction and high-technology material markets. Innovation in seismic-resistance panels made from gypsum composition is increasing the market potential.
High-Tech Gypsum Advanced Materials: Development on self-healing forms of gypsum is increasing, reducing maintenance requirements in buildings. Increased uptake is also taking place for light forms of gypsum board to build high skyscrapers.
Gypsum in Electronics: Japan's sophisticated manufacturing sector is considering the application of gypsum for electronic components, specifically as a heat insulation in semiconductor production.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 3.7% |
The demand for gypsum in South Korea is increasing due to infrastructure development, green building construction, and industrial applications.
Government Incentives for Sustainable Building Materials: The government is offering subsidies to green buildings to encourage the increased use of gypsum insulation in energy-efficient buildings.
Increased Demand in the Cement Industry: The use of gypsum in the cement industry is on the rise, driven by South Korea's emphasis on high-performance concrete in infrastructure development.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 3.8% |
The gypsum market is experiencing intensified competition as companies focus on enhancing product performance, sustainability, and operational efficiency. Industry players are investing in lightweight, moisture-resistant, and fire-rated gypsum products to meet evolving construction standards and regulatory requirements.
Strategic collaborations are being pursued to develop eco-efficient solutions, including the integration of synthetic gypsum and recycled materials into production processes. Vertical integration is being adopted to streamline supply chains, reduce reliance on raw material imports, and control input costs. Expansion of manufacturing capacities across high-growth regions is underway to meet increasing demand from residential, commercial, and infrastructure projects.
Additionally, innovations in prefabricated gypsum systems and modular construction technologies are creating new avenues for differentiation. As sustainability, speed of construction, and energy efficiency become critical market drivers, competitive advantage is being shaped by the ability to deliver high-performance gypsum solutions aligned with circular economy principles and national infrastructure development goals.
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 36.2 Billion |
| Projected Market Size (2035) | USD 68.5 Billion |
| CAGR (2025 to 2035) | 6.3% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD million for value and kilotons for volume |
| Product Types Analyzed (Segment 1) | Natural, Synthetic |
| End Uses Analyzed (Segment 2) | Cement, Drywalls, Plaster, Soil Amendment, Gypsum Blocks, Others |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East & Africa |
| Countries Covered | United States, Canada, Mexico, Brazil, Argentina, Germany, France, United Kingdom, Italy, Spain, Netherlands, China, India, Japan, South Korea, ANZ, GCC Countries, South Africa |
| Key Players influencing the Gypsum Market | Saint-Gobain, Knauf Gips KG, USG Corporation, Georgia-Pacific Gypsum LLC, National Gypsum Company, LafargeHolcim, PABCO Gypsum, Etex Group, Yoshino Gypsum Co., Ltd., Gypsemna Co. |
| Additional Attributes | Dollar sales by product type (natural vs synthetic), Dollar sales by end use (cement, plaster, soil), Regional infrastructure growth trends, Adoption of gypsum in soil improvement and eco-friendly building materials, Market share in drywall and plasterboard production |
| Customization and Pricing | Customization and Pricing Available on Request |
The global gypsum market size was approximately USD 36.2 Billion in 2025.
The gypsum market is projected to reach approximately USD 68.5 Billion by 2035.
The increasing demand for gypsum is driven by its extensive use in the construction industry, particularly in products like drywall, plasterboard, and cement. Additionally, the rise in infrastructure development and urbanization contributes to the growth of the gypsum market.
The top 5 countries contributing to the development of the gypsum market are United States, China, India, Japan, Germany.
Based on application, the wallboard segment is expected to hold a dominant position in the global gypsum board market, owing to its wide range of applications in room interiors, surfaces, and room partitions.
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