FGD Gypsum Market to Reach US$ 1.39 Bn by 2032 Fueled by Rising Demand in Construction and Agriculture

✅Overview of the Market

Flue Gas Desulfurization (FGD) gypsum, a byproduct of coal-fired power plants during the sulfur dioxide removal process, is emerging as a sustainable alternative to natural gypsum. Its application in agriculture, construction, and industrial processes is significantly driving the global FGD gypsum market. With increasing emphasis on reducing environmental waste and utilizing industrial byproducts effectively, FGD gypsum is gaining traction for its ability to serve as a cost-effective and eco-friendly solution. According to the latest report by Persistence Market Research, the global FGD gypsum market is projected to grow from US$ 928.6 Mn in 2025 to US$ 1,383.4 Mn by 2032, expanding at a CAGR of 5.9% during the forecast period.

The construction sector remains the leading application segment, with drywall manufacturing and cement production driving the majority of demand. Additionally, the use of FGD gypsum in soil amendment applications is surging in the agriculture sector due to its ability to improve soil structure and increase crop productivity. Geographically, Asia Pacific dominates the market, with countries like China and India relying heavily on coal-based energy and investing in sustainable construction. The region's burgeoning population, expanding infrastructure, and supportive regulatory policies for cleaner production methods are further strengthening the demand for FGD gypsum across diverse end-use industries.

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✅Key Market Insights

➤ FGD gypsum is gaining acceptance as a sustainable substitute for natural gypsum in cement and drywall production.
➤ Asia Pacific leads global demand, accounting for the largest share due to massive infrastructure growth and coal-based energy reliance.
➤ Construction remains the top application segment, especially in plasterboard manufacturing.
➤ Agricultural applications are rising significantly, driven by the need for improved soil fertility and sustainable farming.
➤ Government regulations supporting industrial byproduct recycling and circular economy principles are fueling market growth.

✅What is FGD gypsum used for in agriculture and construction?

FGD gypsum is widely used in agriculture to improve soil structure, reduce erosion, and enhance water infiltration. It also supplies essential nutrients like calcium and sulfur, making it valuable for crop productivity. In the construction industry, FGD gypsum is primarily used in the production of plasterboard (drywall) and as a component in Portland cement. Its chemical consistency and purity make it an effective and eco-friendly alternative to natural gypsum, contributing to reduced environmental impact and cost savings in both sectors.

✅Market Dynamics

Market Drivers:
The primary drivers of the FGD gypsum market include increasing demand for sustainable building materials and the need to manage industrial byproducts effectively. Rising urbanization and infrastructure development in emerging economies are also contributing to market growth. Additionally, governments across regions are encouraging cleaner production technologies, boosting the adoption of FGD gypsum over natural alternatives.

Market Restraining Factor:
Despite its growing acceptance, the market faces challenges such as variability in FGD gypsum quality, logistical constraints in transportation, and limited awareness in underdeveloped regions. Moreover, the transition to renewable energy and reduction in coal-fired power generation could impact the long-term availability of FGD gypsum.

Key Market Opportunity:
An emerging opportunity lies in the development of value-added products from FGD gypsum for advanced construction and agricultural applications. Innovations in gypsum-based composites and strategic collaborations between energy producers and material manufacturers are expected to open new avenues for market expansion, particularly in developing regions.

✅Market Segmentation

The FGD gypsum market is segmented based on application and end-use industries. By application, the market is categorized into drywall (plasterboard), cement, agriculture, and others. Drywall manufacturing is the largest application segment, driven by the booming construction industry and increasing demand for lightweight, fire-resistant building materials. Cement production follows closely, with FGD gypsum used as a retarder to improve the workability and setting time of cement, particularly in large-scale infrastructure projects.

From an end-use industry perspective, construction leads the market, followed by agriculture and industrial processing. The construction sector benefits from the consistent quality and reduced cost of FGD gypsum compared to natural gypsum. In agriculture, the product's role in soil conditioning, especially in regions with alkaline soils or low sulfur content, is gaining prominence. Additionally, FGD gypsum is used in industrial applications such as glass and ceramic manufacturing, indicating the material's versatility and economic potential across sectors.

✅Regional Insights

Regionally, Asia Pacific commands the highest share of the FGD gypsum market, owing to the large number of coal-fired power plants and the rapid expansion of construction activities in the region. China, in particular, has a well-established infrastructure for collecting, processing, and utilizing FGD gypsum in building materials and fertilizers. India is also experiencing increased adoption due to policy-level support for industrial waste recycling and a growing demand for affordable construction materials.

North America and Europe are mature markets with a strong focus on sustainability and environmental regulation compliance. In these regions, FGD gypsum is primarily used in high-quality wallboard and cement production. Meanwhile, Latin America, the Middle East, and Africa are expected to witness steady growth, driven by rising awareness about sustainable construction materials and efforts to improve agricultural productivity.

✅Competitive Landscape

The global FGD gypsum market is moderately consolidated, with key players focusing on regional expansion, technology integration, and strategic partnerships with energy and construction companies. These players are increasingly investing in research to improve the quality and utility of FGD gypsum across applications.

✅Company Insights

✦ Saint-Gobain
✦ Knauf Gips KG
✦ National Gypsum Company
✦ USG Corporation
✦ LafargeHolcim
✦ Etex Group
✦ Boral Limited
✦ YOSHINO GYPSUM CO., LTD.
✦ Georgia-Pacific Gypsum LLC
✦ PABCO Gypsum
✦ FEECO International, Inc.

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✅Key Industry Developments

Recent years have witnessed a rise in collaborations between power plants and building material manufacturers aimed at streamlining the supply of FGD gypsum. Saint-Gobain has announced plans to increase its FGD gypsum sourcing for plasterboard manufacturing in Asia to reduce reliance on mined gypsum. Likewise, Knauf has enhanced its recycling programs by integrating FGD gypsum in circular production loops in Europe.

Another key development includes government-backed programs in countries like India and China that promote the use of FGD gypsum in agriculture. These initiatives are encouraging the installation of gypsum processing facilities near thermal power plants, making logistics more efficient and widening the material's accessibility for farmers and construction companies alike.

✅Innovation and Future Trends

Technological advancements are enabling the development of high-purity FGD gypsum, which can replace natural gypsum in applications requiring strict quality standards. This includes precision agriculture, lightweight cement formulations, and moisture-resistant drywall. Moreover, companies are exploring ways to combine FGD gypsum with other industrial byproducts such as fly ash and slag to develop composite construction materials with enhanced durability and environmental performance.

In the future, the FGD gypsum market is expected to benefit from digital supply chain integration and AI-powered logistics optimization, making material sourcing and distribution more streamlined. Additionally, the ongoing transition toward circular economy principles will fuel further research into novel applications of FGD gypsum in fields such as 3D-printed construction, green roofing systems, and eco-friendly ceramic production, ensuring the material remains relevant even as energy generation landscapes evolve.

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This release was published on openPR.