China Synthetic Gypsum Market By Product Type (Flue Gas Desulfurization gypsum, Phosphogypsum, Fluorogypsum, Citrogypsum, Others), By Product Form, By Application, By Region, Competition, Forecast and Opportunities, 2020-2030F

China Synthetic Gypsum Market was valued at USD 150.78 Million in 2024 and is expected to reach USD 205.63 Million by 2030 with a CAGR of 5.15% during the forecast period.

The China synthetic gypsum market has witnessed substantial growth over the past decade, driven by rapid industrialization, rising environmental regulations, and the booming construction sector. Synthetic gypsum, primarily derived from flue gas desulfurization (FGD) in coal-fired power plants, is increasingly being used as a sustainable alternative to natural gypsum in various applications such as drywall production, cement manufacturing, soil amendments, and water treatment. China, being the world's largest producer of coal-generated electricity, generates an abundant supply of FGD gypsum as a by-product. This availability, coupled with tightening environmental policies that mandate the reduction of industrial waste and carbon emissions, has significantly boosted the utilization of synthetic gypsum across industries. Moreover, government incentives and industrial circular economy initiatives have further propelled its market expansion.

The construction sector in China is a major consumer of synthetic gypsum, especially in the production of drywall, plaster products, and cement. As urbanization and infrastructure development continue at a rapid pace, particularly in second- and third-tier cities, the demand for building materials incorporating synthetic gypsum is expected to rise steadily. Cement manufacturers are also increasingly turning to synthetic gypsum to control the setting time of cement and improve product consistency, offering both economic and ecological advantages. Beyond construction, the agriculture sector in China is slowly adopting synthetic gypsum, particularly phosphogypsum and citrogypsum, as soil conditioners to improve water retention and nutrient absorption in degraded soils. While still in the nascent stage, this represents a potential growth area due to China's focus on sustainable farming practices.

The market is moderately consolidated, with major players such as China National Building Material (CNBM), Sinoma International, Gansu Jingtai Gypsum, and Jingmen Leixin Gypsum dominating production and processing. In parallel, a number of regional and private players contribute to meeting localized demand, while machinery and equipment manufacturers facilitate processing and downstream applications. Despite its growth prospects, the market faces certain challenges such as quality inconsistencies among different types of synthetic gypsum, concerns around the presence of trace contaminants (especially in phosphogypsum), and limited adoption in some end-use sectors due to awareness or logistical constraints. Nevertheless, technological improvements in purification and processing, combined with China's push toward green development and circular economy practices, are expected to sustain the market's momentum. As environmental compliance tightens and industries seek cost-effective, eco-friendly raw materials, the synthetic gypsum market in China is likely to continue expanding over the coming years.

Key Market Drivers

Strengthening Environmental Regulations and Emissions Control

China's increasing focus on environmental protection has accelerated synthetic gypsum production, especially from coal-fired power plants. The implementation of strict air pollution standards has led to the widespread adoption of flue gas desulfurization (FGD) technology, which generates gypsum as a by-product.

• China currently operates over 1,000 coal-fired power plants, most equipped with FGD units.
• These plants produce approximately 75 million metric tons of FGD gypsum annually.
• Sulfur dioxide (SO2) emissions from industrial sources have decreased by over 60% between 2015 and 2022.
• Nearly 85% of large-scale power generation units have installed FGD systems.
• Government investment in desulfurization systems exceeded USD 1.4 billion over the past five years.

As environmental compliance becomes more rigorous, industries are compelled to utilize synthetic gypsum to reduce waste. This ensures high-volume availability of gypsum while supporting China's circular economy goals.

Key Market Challenges

Supply Instability from Energy Transition:

As China accelerates its energy transition, the rationalization and closure of older coal-fired power plants remove key sources of FGD gypsum. Between 2022 and 2024, over 150 GW of coal capacity was retired or retrofitted, diminishing synthetic gypsum outputs. Among remaining plants, retrofitting timelines have extended by up to 18 months on average, creating intermittent production delays. The contraction in FGD output has left gypsum processors grappling with inventory shortfalls for up to 20% of their typical monthly demand. At the same time, alternate sources such as phosphogypsum have inconsistent chemistry and moisture levels, leading to grade fluctuations of +/- 12 percentage points in CaSO4*2H2O content, which hampers downstream consistency in drywall and cement manufacture. These disruptions threaten to skew pricing by +- 8%, and create hesitancy among board manufacturers who fear out-of-spec feedstock, exiting some regions over the past two years by roughly twelve processing lines. While the government has pledged compensation for shutdown-induced byproduct loss (a program worth RMB 2 billion), questions remain about its sufficiency in offsetting structural deficits in FGD gypsum production.

Key Market Trends

Accelerating Use in Soil Amendment and Agricultural Sectors:

As government-led land rehabilitation projects intensify, synthetic gypsum is seeing expanded agricultural use. In 2023 alone, 6 million tons were spread across nearly 2 million hectares of farmland. Soil studies have confirmed 10%-15% yield improvements in wheat and rice under gypsum-amended soil. With soil degradation impacting 30% of arable land, the trend has government policy aligning with rural revitalization programs. Integration of gypsum into fertilizer megaprojects is underway, aiming for 20 million tons potential reuse annually. Farmers now purchase gypsum via agro-enterprises at RMB 500-600/ton, compared to RMB 200-300/ton five years ago, representing both increasing demand and rising margins.

Key Market Players

• China National Building Material
• Sinoma International Engineering Co. Ltd.
• Gansu Jingtai Gypsum (Group) Co. Ltd.
• SDIC Hainan Cement Co. Ltd.
• Jingmen Leixin Gypsum Product Co. Ltd.
• Tangshan City Secai Trading Co. Ltd.
• Fujian Chuanyuan Investment Co. Ltd.
• Linyi Huihang Machinery Co. Ltd.
• Shandong Bullis Metallurgical Engineering Co. Ltd.
• Hebei Lvjoe Machinery Manufacturing Co. Ltd.

Report Scope:

In this report, the China Synthetic Gypsum Market has been segmented into the following categories, in addition to the Application trends which have also been detailed below:

China Synthetic Gypsum Market, By Product Type:

• Flue Gas Desulfurization (FGD) gypsum
• Phosphogypsum
• Fluorogypsum
• Citrogypsum
• Others

China Synthetic Gypsum Market, By Product Form:

• Powdered
• Granular

China Synthetic Gypsum Market, By Application:

• Residential
• Commercial
• Others

China Synthetic Gypsum Market, By Region:

• North China
• Northeast China
• East China
• South Central China
• Southwest China
• Northwest China

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the China Synthetic Gypsum Market.

Available Customizations:

China Synthetic Gypsum Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).