Synthetic Gypsum Market Summary

The global synthetic gypsum market size was estimated at USD 2.06 billion in 2024 and is projected to reach USD 2.59 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.1% from 2025 to 2030. This growth is primarily driven by the rapid surge in construction activities around the world, which can be attributed to improving financial conditions, increasing urbanization, and fast-paced industrial development. Furthermore, governments across both developing and developed economies are placing considerable emphasis on infrastructure enhancement, which in turn is further stimulating demand for synthetic gypsum in building and construction applications.

The expansion of urban infrastructure is accelerating the adoption of sustainable and technologically advanced construction materials. This trend aligns with the broader shift toward environmentally responsible development, thereby contributing to the growth of the synthetic gypsum industry. Synthetic gypsum, often referred to as artificial gypsum, is produced from various industrial by-products, such as flue gas desulfurization (FGD) processes. It is composed of calcium sulfate dihydrate and shares identical physical and chemical characteristics with naturally occurring gypsum. Its consistent performance and eco-friendly profile make it suitable for widespread use in the construction industry, including in products such as cement, drywall, and plaster.

As reserves of natural gypsum continue to deplete in various countries, the demand for synthetic alternatives has grown significantly to bridge the supply gap. Additionally, synthetic gypsum offers numerous advantages in building construction, such as energy efficiency and improved insulation. It contributes to reducing a building’s overall energy consumption and enhances acoustic comfort by absorbing noise and sound. The increasing focus on green buildings and energy-efficient construction solutions is playing a vital role in bolstering the synthetic gypsum industry.

In 2024, the flue gas desulfurization (FGD) gypsum segment accounted for the largest revenue share of 37.0%. This dominance can be attributed to its consistent quality, cost-effectiveness, and versatile applications in the building materials industry. FGD gypsum is especially valued in the manufacturing of cement and plaster, offering both economic and environmental benefits through the reuse of industrial by-products.

Key Market Trends & Insights

• The drywall segment also held the largest share in terms of end-use applications in 2024. This is largely due to the growing demand for drywall in residential, commercial, and institutional construction projects. Drywall offers advantages such as easy installation, affordability, and fire resistance, making it a widely preferred interior construction material for walls and ceilings in modern buildings.
• The soil amendments segment is projected to emerge as the fastest-growing application from 2025 to 2030, driven by increasing adoption of sustainable agricultural practices. Synthetic gypsum is being increasingly used in agriculture as a soil amendment to improve soil structure, enhance water retention capacity, and boost nutrient availability—thereby supporting healthier crop yields and soil conservation.
• Regionally, North America dominated the global synthetic gypsum market in 2024, accounting for a 28.0% revenue share. This leadership position is largely due to extensive infrastructure and construction activities across the region. There is also a growing shift toward sustainable building practices, which has led to increased usage of synthetic gypsum in construction materials like drywall, plaster, and cement.
• The U.S. synthetic gypsum market led the North American region in 2024. This can be attributed to ongoing construction activities and rising awareness about eco-friendly agricultural practices. In the agriculture sector, synthetic gypsum is increasingly being used to improve soil fertility, water management, and crop productivity—highlighting its multifunctional role across industries.
• In Europe, the synthetic gypsum market is anticipated to witness notable growth during the forecast period. One of the key driving forces behind this trend is the region’s focus on circular economy initiatives, including the recycling of industrial waste. By converting industrial by-products into usable construction materials, European industries are addressing both environmental concerns and material demand.
• The Asia Pacific synthetic gypsum market is expected to grow at a significant CAGR of 4.4% from 2025 to 2030. Government-led programs that promote affordable housing projects and urban infrastructure development are significantly boosting demand for building materials such as synthetic gypsum. The region’s strong construction pipeline, particularly in emerging economies, is fostering a steady increase in synthetic gypsum consumption.

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Market Size & Forecast

• 2024 Market Size: USD 2.06 Billion
• 2030 Projected Market Size: USD 2.59 Billion
• CAGR (2025-2030): 4.1%
• North America: Largest market in 2024

Key Companies & Market Share Insights

Some of the leading companies operating in the synthetic gypsum industry include USG Corporation, Knauf Digital GmbH, American Gypsum Company, LLC, BauMineral, and Georgia-Pacific Gypsum LLC. These companies are actively investing in product development, manufacturing capacity, and sustainability-focused innovations to meet the rising global demand.

• American Gypsum Company, LLC is a prominent U.S.-based manufacturer that specializes in producing and distributing gypsum wallboard products. The company's offerings are available in various categories, including regular/non-fire-rated boards, fire-rated boards, moisture- and mold-resistant boards, and wallboard designed for factory-built housing. This diversity allows the company to cater to a broad range of construction needs.
• Georgia-Pacific Gypsum LLC is another key player in the industry, known for delivering durable and sustainable building materials. The company manufactures a wide array of gypsum products that are used for roofing systems, ceilings, interior and exterior walls, and commercial building applications. Its product lines are distributed under various brands and serve both residential and industrial markets through its gypsum and wood divisions.

Key Players

• USG Corporation
• Knauf Group
• American Gypsum Company, LLC
• BauMineral
• Dolina Nidy Sp.z.o.o
• Saint-Gobain
• National Gypsum Company
• BNBM Group
• Yoshino Gypsum Co., Ltd.
• Etex Group

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Conclusion

The global synthetic gypsum market is gaining momentum as construction and infrastructure activities accelerate worldwide. Rising environmental concerns and the depletion of natural gypsum reserves are prompting industries to adopt sustainable alternatives like synthetic gypsum. Its diverse applications in construction, agriculture, and insulation—coupled with cost-effectiveness and energy efficiency—make it a preferred choice across sectors. Regional initiatives promoting green building practices, especially in Asia Pacific, North America, and Europe, further drive market growth. As leading companies continue innovating with eco-friendly solutions, the synthetic gypsum industry is poised for steady expansion, aligning with global sustainability and urban development goals.