Bleaching Clay Market Size, Share & COVID-19 Impact Analysis, By Application (Edible Oils & Fats, Mineral Oils and Lubricants, and Others), and Regional Forecast, 2021-2028

The global bleaching clay market size was USD 280.86 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with bleaching clay witnessing a slight drop in the demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -0.51% in 2020. The market is projected to grow from USD 296.70 million in 2021 to USD 474.59 million in 2028 at a CAGR of 6.9% during the 2021-2028 period. The sudden rise in CAGR is attributable to the limitation on manufacturing sector, returning to pre-pandemic levels once the pandemic is over.

Oils are bleached using a powdered substance containing surfactants. The powder is mixed with water and then added to the oil where unnecessary impurities are dissolved until they are extracted from the oil again, bringing with them the impurities. Up to three types of clay minerals are typically composed of bleaching earth: bentonite, attapulgite, and sepiolite. Natural and activated bleaching clays are capable of softly extracting the pigments, gums, and other compounds that can adversely affect the flavor, odor, and shelf life of edible oils.

Over the projected period, the demand is expected to be powered by increased use of biofuel as a renewable energy resource and increasing consumption of vegetable oils. Increasing demand for vegetable oil is a major factor driving the market. On the other hand, the market's development is likely to be hampered by decline in the production of the oilcrops resulting from the COVID-19 outbreak.

Contraction in Production of Oil Crops during COVID-19 Hampered Bleaching Clay Market

According to the Food and Agriculture Organization, the global production of oil crops stood at 612.3 million tons for the period of 2018-19, while the production declined and reached 584.3 million tonnes during the period of 2019-20. The decline mainly reflects reduced yields, as well as smaller harvested areas following adverse weather conditions in many key growing countries. In particular, soybeans and rapeseed are decreasing year on year, while production gains are reported for sunflower seeds and groundnuts.

The new 2019-20 FAO’s projections for oilseeds and derived products point to a tightening supply-demand situation due to the ongoing COVID-19 pandemic, caused by a pronounced contraction in production. Tentative projections for 2020-21 indicate that, compared to the demand, stocks will stay tight.

In 2019-20, oil crop production is projected to decrease from the record level of the previous season, with marked declines in soybean and rapeseed outweighing increases in the other crops. Adverse weather conditions resulted in significantly lower soybean plantings and yields in the United States of America (U.S.A.), while the global rapeseed production was impaired by further region contractions in the European Union (E.U.) and Canada. As possible, small increases in palm and sunflower oils will not be sufficient to overcome declines in other oils, the global production of oils and fats is also expected to decline.

At the same period, development in the worldwide usage of oils and fats is projected to come to a halt, as both food consumption and the biofuel sector's uptake are slowing down in the aftermath of the COVID-19 pandemic. Although the demand from biodiesel producers is also hit by the recent decline in mineral oil prices. Global inventories are predicted to decline with the overall supply of oils and fats poised to fall short of consumption, triggering a further slide in global stock-to-use ratios for the same.

BLEACHING CLAY MARKET TRENDS

Dry Bleaching to be the Most Preferred Refining Process in the Market

Dry bleaching and wet bleaching are two common ways to use bleaching clays in the refining process. Dry bleaching, according to Alfa Laval, a world leader within the key technology areas of heat transfer, separation and fluid handling, is the conventional approach for bleaching oils and other liquids fatty acids. It is the most widespread in Europe and Asia.

Compared to wet bleaching, dry bleaching demands a significantly smaller initial expenditure. Owing to the usage of plate heat exchangers, which needless utility consumption, the maintenance costs are also considerably lower. The procedure is both simple and straightforward, requiring only a small amount of setup space.

Wet bleaching, on the other hand, introduces water into the process. Water improves the efficiency of bleaching earth, allowing for the use of less chlorine and a reduction of oil losses. Wet bleaching is appealing because of the reduced process costs, even though the start-up costs are higher.

BLEACHING CLAY MARKET GROWTH FACTORS

Increasing Demand from Oil & Fats Industry to Drive the Bleaching Clay Market Growth

For food applications, fats and oils are used around the globe. They are used in honey, shortening oils, margarine, salad oils, cooking oils, and animal feed.

Food applications accounted for the largest share of the global intake of fats and oils. There is a large demand for refined vegetable oils globally. They have to be refined in order to eliminate impurities, both for commercial and health reasons, before refined vegetable oils can be safely eaten. A procedure known as bleaching includes the use of soil or clay bleaching. Vegetable oils contain pollutants that have a negative effect on the oil's performance, appearance, and taste. The oil must follow high-quality standards which require the removal of various impurities in order for it to be used in edible applications.

Asia dominates in terms of the global production of fats and oils. Indonesia is the top producer in the world and accounts for more than half of the world's palm oil supply. In 2020, China had a large share in the world's overall production of fats and oils. Because of its position as the world's second-largest palm oil producer, Malaysia ranks third in world production. India also grows canola and butter in large quantities. Overall, Asia accounts for over half of the world's 2020 production of fats and oils.

According to OECD-FAO Agricultural Outlook 2019-2028, in 2019-20, the per capita consumption of vegetable oil is projected to grow by 0.9% every year. This is substantially less than 2.0% p.a. during 2009-18. The per capita level of vegetable oil food availability in China and Brazil is expected to hit levels comparable to those in developed countries.

India, the world's second-largest customer and number one importer of vegetable oil, is expected to sustain a fast rise of 3.1 percent p.a. in per capita consumption, to reach 15 kg in 2028 per capita.

India is the largest importer and second-largest consumer of vegetable oil in the world. This significant growth would be the result of both an increase in domestic demand, resulting from the intensification of oilseed cultivation, and a further increase in imports of palm oil, mostly from Indonesia and Malaysia.

Thus, the above factors would boost the demand for edible oil & fats, which, in turn, is likely to accelerate the demand for this type of clay during the forecast period.

RESTRAINING FACTORS

EHS Guidelines for Vegetable Oil Production and Processing to Hamper Growth

The EHS Guidelines for the extraction and refinement of oils and fats apply to facilities that extract and refine oils and fats from a variety of plants, grains, and nuts. Canola, castor, cottonseed, mustard, olive, palm, palm kernel, groundnut, rapeseed, safflower, sesame, soya bean, and sunflower are among the vegetable oils covered by the EHS guidelines for cultivation and processing.

Activities in the production of vegetable oil contain large volumes of organic solid waste, contaminants, and by-products. The amount of waste produced depends on the nature of raw materials and on the efficiency of the processes. Waste, residues, and by-products can be used in the processing of economically viable by-products or in the generation of electricity. Other solid waste from the processing phase of vegetable oil contains soap stock and spent acids from the chemical processing of palm oil; spent bleaching earth containing gums, metals, and pigments; and deodorizer distillate from the steam distillation of processed edible oils. Thus, the environmental regulation governing vegetable oil processing would hamper the fuller’s earth market growth.

BLEACHING CLAY MARKET SEGMENTATION ANALYSIS

By Application Analysis

Edible Oils & Fats Segment to Lead Stoked by Increasing Usage in Production of Chemicals

On the basis of the application, the market is segmented into edible oils & fats, mineral oils and lubricants, and others. Natural and activated bleaching clays are used in a wide range of sectors, such as edible oils, biofuels, and paraffin wax. Brands such as ZAKURO® have impressive potency and are very effective in the purification of oils and fats prior to their final use. Palm, sunflower, rapeseed, and soya bean oils are the main vegetable oils used.

The other important application of bleaching clay is mineral oils and lubricants. Because of the reduction of friction by optimizing the operation of bearing surfaces, mineral oil-based lubricants are increasingly used in automotive applications. During the forecast period, this rising demand from the automobile industry will affect the market for mineral oil-based lubricants and propel growth.

REGIONAL BLEACHING CLAY MARKET ANALYSIS

Asia Pacific market size was estimated at USD 145.37 million in 2020, and is projected to grow at a CAGR of 7.5% from 2021 to 2028. The growth in the region is attributable to the rising consumption of vegetable oils. In addition, growing crop yields in countries such as Malaysia and Indonesia are pushing the production of vegetable oil in these areas, thereby leading to the augmented product demand for purification and refining purposes.

North America is projected to be the second-largest regional market. This rise is mainly due to the expansion of the refined and industrial edible oils industry. It is also anticipated that large-scale production of raw materials would boost the market. Also, the strong presence of well-established domestic and foreign market players such as Oil-Dri Company of America and EP Minerals, would fuel the market growth over the forecast period. North America is one of the main producers and exporters of both crude and processed edible oils. Refined edible oil processing requires the use of bleaching soil to eliminate toxins and other materials, thereby propelling the growth of the regional market over the forecast period.

Countries in Europe such as Germany, France, Spain, and the U.K. are also major contributors to the market growth. The main factors driving the demand are the increasing number of manufacturing bases, rising consumer disposable incomes, and substantial development in the automotive industry. Clariant is the major company operating in this region.

In Latin American countries, the production of oilseeds & rising living standards is expected to drive & to boost a growth in the region. MEA, on the other hand, is expected to account for a lower market share in the worldwide market for bleached clay, due to a lesser number of manufacturing bases coupled with lesser consumption of edible oils.

KEY INDUSTRY PLAYERS

Rising Adoption of Acquisition Strategies by Companies to Strengthen Their Market Shares

With the involvement of multiple large players and some global and regional small and medium-sized players worldwide, the industry is competitive in nature. These primary vendor-manufacturing facilities are fully integrated across the supply chain and carry out industrial operations ranging from mining to this type of clay production. With the growing acceptance of acquisition strategies by key vendors, the competitive environment in this sector is expected to increase.

One of the major producers, Clariant AG based in Switzerland has 25 production sites and 43 mines globally. The company’s bleaching earth production plants are in Mexico, Peru, Brazil, Spain, France, Germany, Turkey, and Indonesia.

LIST OF KEY COMPANIES PROFILED:

• AMCOL Minerals Europe (Winsford, United Kingdom)


• Ashapura Group (Pune, Maharashtra, India)


• EP Minerals (Reno, NV, United States)


• Clariant (Muttenz, Switzerland)


• Musim Mas Holdings (Singapore)


• Oil-Dri Corporation of America (Chicago, Illinois, United States)


• Taiko Group of Companies (Ipoh, Perak, Malaysia)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Oil-Dri Corporation of America announced the hike in prices of its product line including bleaching clay, agricultural, and fluid purification products. The new prices will be effective August 1^st and will range almost up to 7% reliant on the product. 

REPORT COVERAGE

The global bleaching clay market research report provides a detailed industry analysis and focuses on crucial aspects such as leading companies, products, and applications. The market includes insights into trends, competitive landscape, and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth rate of the market over recent years. It includes historical data & forecasts revenue growth at global, regional and country levels, and analyzes the latest market dynamics, and opportunities in the industry.

Report Scope & Segmentation