Barite Market Growth Drivers, Business Strategies and Future Prospects 2025

Posted by aartimurkute on October 5th, 2021

Slated for a steady growth outlook in the near future, the global barite market is predominantly driven by the consumption for petroleum products. An ascending number of oil and gas drilling activities further accelerate barite sales in global market, which currently account for more than 75% of the total barite demand worldwide. Surging barite adoption by the plastic industry is also likely to remain among the prime boosters to market growth.

Besides, its potential application in rubber, chemicals, pharmaceuticals, medical, and even diagnostics industries will also be responsible for upholding the market revenue over the forecast period. The inert, non-corrosive, non-abrasive, and water insoluble nature of barite mainly accounts for its high application potential as a weighting agent (for drilling operations) in addition to its higher specific gravity. Being an eco-friendly commodity mineral, barite does not require the European Union’s Registration, Evaluation, Authorisation and Restriction of Chemicals (EU REACH) regulatory registration. This is another strong factor boosting its preference over other equivalent alternatives. Moreover, it is a non-toxic, economical solution that places it ahead of others like ilmenite, further supporting the market growth. However, wide availability of close, equivalent substitutes like iron ore, and celestite will however continue to pose a challenge to rapid market growth.

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Barite of Sp. Gr. 4.2 Grade Preeminent for its Continued Traction in Oil and Gas Industry

The specific gravity, and purity of barite define its application potential. One that belongs to Sp. Gr. 4.2, grade along with its 4.3, and 4.0 counterparts, has been the most sought-after one for applications in the oil and gas industry, as indicated by the American Petroleum Institute (API). However, recently, a new grade SG. Gr. 4.1 has been introduced specifically targeting the oil and gas industry, in the wake of the depleting natural reserves of Sp. Gr. 4.2 that continues to be the grade of choice among land-based drilling operators.

Analysing the COVID-19 Impact on Barite

The International Energy Agency (IEA) reveals that the global crude oil demand saw a heavy dip by nearly 57% in 2020 over that recorded the previous year. Lockdowns, and mobility restrictions amid COVID-19 pandemic have cast a severe impact on the oil and gas industry, thereby on the barite market as well. Temporarily halted production of chemicals also held a massive impact on the performance of the barite market throughout 2020. The demand game is expected to speed up in 2021 and beyond as the oil and gas industry has been showcasing recovery with the rising number of exploring and drilling activities, and chemicals productions are reviving to normalcy.

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Barite Consumption Remains Concentrated in Middle Eastern Nations

With global oil leaders like the Kingdom of Saudi Arabia (KSA), Iraq, Kuwait, Iran, and the United Arab Emirates (UAE), the Middle Eastern region continues to hold the commanding revenue share of more than 64% in the world’s oil reserves. While this region accounts for over a third of the world’s total oil output, it also generates a whopping 75% of the total barite demand. A solid application base available for barite across the Middle East and African region is likely to remain the largest contributor to barite market growth.

On the other side, North America will also remain one of the important markets for barite consumption as a it has been the second-largest consumer region in the global barite market. This position is attributable to the U.S., the world’s largest crude oil producer in 2019, where over 90% of the barite is consumed for oil and gas drilling applications. Several industrial application areas in the country also register significant barite consumption, including engineering plastics, paints and coatings, and chemicals.