FGD Gypsum Market Forecasts to 2032 - Global Analysis By Product Type (Synthetic Gypsum, Powdered FGD Gypsum, Granulated FGD Gypsum and Pelletized FGD Gypsum), Type, Application and By Geography

According to Stratistics MRC, the Global FGD Gypsum Market is accounted for $989.4 million in 2025 and is expected to reach $1662.9 million by 2032 growing at a CAGR of 7.7% during the forecast period. FGD gypsum is a synthetic material produced as a byproduct of flue gas desulfurization (FGD) in coal-fired power plants. It results from the removal of sulfur dioxide using limestone slurry, forming calcium sulfate dihydrate-chemically identical to natural gypsum. Widely utilized in construction, agriculture, and industrial applications, FGD gypsum supports sustainable material use by reducing reliance on mined gypsum. Its consistent purity and controlled production make it a preferred choice for drywall, cement, and soil amendment, enhancing efficiency and environmental benefits.

According to the UN World Water Development Report, more than 360 billion cubic meters of wastewater is generated worldwide every year.

Market Dynamics:

Driver:

Increasing global concerns about air pollution and acid rain

As industrial emissions contribute to acid rain formation, regulatory bodies are tightening emission control standards, encouraging the adoption of flue gas desulfurization (FGD) processes. FGD gypsum, a byproduct of these purification techniques, offers an eco-friendly alternative to mined gypsum in various applications. The increasing emphasis on sustainable materials in construction and agriculture further boosts market growth, reinforcing its role in mitigating environmental impact.

Restraint:

Declining reliance on coal-fired power plants

The global shift toward renewable energy and cleaner alternatives is reducing dependence on coal-fired power plants, impacting FGD gypsum production. As countries implement stringent policies to phase out coal in favor of wind, solar, and natural gas, fewer facilities are generating FGD gypsum as a byproduct. This decline in production may lead to supply constraints for industries relying on its availability.

Opportunity:

Technological advancements in purification and processing

Advanced filtration and refining methods are optimizing its chemical composition, making it more suitable for construction, agriculture, and industrial applications. Research into enhanced material properties is expanding its usability, opening doors for new market opportunities. Additionally, the integration of automation in production facilities is improving consistency and reducing waste, reinforcing its viability as a sustainable gypsum alternative.

Threat:

Accelerated coal phase-out

The increasing urgency to phase out coal-fired plants due to environmental concerns presents a significant challenge for FGD gypsum suppliers. Many governments are fast-tracking policies to curb greenhouse gas emissions, leading to reduced coal combustion and lower byproduct generation. As regulatory shifts favor cleaner technologies, manufacturers dependent on FGD gypsum must adapt to changing supply dynamics.

Covid-19 Impact:

The pandemic disrupt industrial operations, temporarily affecting FGD gypsum production due to halted coal-fired plant activities. Supply chain interruptions led to fluctuations in availability, impacting dependent industries such as construction and agriculture. However, the post-pandemic recovery phase saw renewed infrastructure projects, increasing the demand for sustainable materials.

The granulated FGD gypsum segment is expected to be the largest during the forecast period

The granulated FGD gypsum segment is expected to account for the largest market share during the forecast period due to its high usability in diverse applications. Granulated variants offer improved consistency, making them ideal for construction, soil amendment, and industrial processing. Rising investments in eco-friendly building materials and agricultural soil conditioners are further propelling demand for granulated FGD gypsum, reinforcing its prominence in the market.

The water treatment segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the water treatment segment is predicted to witness the highest growth rate as industries focus on sustainable purification solutions. FGD gypsum plays a critical role in wastewater treatment by aiding in contaminant removal and pH stabilization. Its cost-effectiveness and efficiency in large-scale water processing operations make it a preferred material for regulatory-compliant treatment methods. With increasing industrial regulations promoting sustainable water management, the demand for FGD gypsum in filtration systems and wastewater treatment facilities is anticipated to surge.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market driven by its extensive industrial base, construction boom, and environmental regulation efforts. Countries such as China and India are investing heavily in emission control technologies, contributing to increased FGD gypsum production. Additionally, the region's growing demand for sustainable building materials is reinforcing its adoption across infrastructure projects.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR propelled by stringent environmental policies and sustainable material adoption. The region's transition toward cleaner energy solutions has not entirely diminished demand for FGD gypsum, as industries repurpose it for eco-friendly applications. Research initiatives focused on enhancing gypsum-based materials are strengthening its utility in emerging sectors, further supporting market expansion.

Key players in the market

Some of the key players in FGD Gypsum Market include American Gypsum, Boral Limited, CertainTeed Corporation, Continental Building Products, Eagle Materials Inc., Etex Group, Georgia-Pacific Gypsum, Gyptec Iberica, Knauf Gips KG, LafargeHolcim, National Gypsum Properties LLC, PABCO Gypsum, Saint-Gobain, USG Corporation, and Yoshino Gypsum Co., Ltd.

Key Developments:

In May 2025, Boral renewed its partnership with Road Safety Education Limited to continue delivering heavy vehicle and road safety education programs for students, emphasizing its commitment to Zero Harm.

In May 2025, Eagle Materials announced a $330 million investment to modernize and expand its gypsum wallboard plant in Oklahoma, aiming to increase capacity by 25% and reduce operating costs by nearly 20%.

In April 2025, Etex announced the launch of its first 100% recycled plasterboard, RECYPLAC(TM), scheduled for the French market in July 2025, marking a significant step towards sustainable construction materials.

Product Types Covered:

• Synthetic Gypsum
• Powdered FGD Gypsum
• Granulated FGD Gypsum
• Pelletized FGD Gypsum

Types Covered:

• Washed FGD Gypsum (Panel-Grade)
• Unwashed/Lower Grade FGD Gypsum

Applications Covered:

• Wallboard / Drywall Manufacturing
• Cement Production
• Agriculture / Soil Amendment
• Glass Manufacturing
• Water Treatment
• Plaster Products
• Road Construction & Mining Applications
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
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