U.S. Lime Market Size, Share & COVID-19 Impact Analysis, By Type (Quick Lime, and Hydrated Lime), Application (Agriculture, Building Material, Mining & Metallurgy, Water Treatment, and Others), and Regional Forecast, 2021-2028

The U.S. Lime market size was USD 2.14 billion in 2020. The market is projected to grow from USD 2.17 billion in 2021 to USD 2.46 billion in 2028 at a CAGR of 1.8% during the 2021-2028 period. The impact of COVID-19 has been unprecedented and staggering, with lime witnessing a negative demand shock across the country amid the pandemic. Based on our market analysis, the U.S. market exhibited a decline of 4.0% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth rate, returning to pre-pandemic levels once the pandemic is over.

Lime derived from limestone has natural properties beneficial in various industrial domains, including mining and metallurgy, water treatment, and building materials. The product is primarily used for steel manufacturing, where it separates the impurities through slag formation. Hence, the growing steel usage in the framework of automobiles and beams for building structures will drive the market during the forecast period. The use of the product to design false ceiling and wall partitions by the architects & interior designers during the renovation process and the higher economy within the country is driving the market. Moreover, the rising demand for lime to remove dissolved metals in wastewater and free acids in water from iron and steel manufacturing plants further propels this market.

COVID-19 IMPACT

Disorder in Limestone Mining Due to COVID-19 Outbreak Affected Market Growth

Several key industries such as construction, mining & metallurgy, chemicals, and automotive that use the compound as a critical chemical were affected due to stoppage in mining and transportation of limestone. This irregularity in raw material supply has resulted in inflation of prices, making the market unstable. The strict lockdown and restrictions over import/export from supplier countries such as India, China, and Brazil have also affected the product supply chain. Moreover, COVID-19 also led to a momentary halt over construction projects, including the renovation activities of buildings, office spaces, and residential structures, causing a major loss in value generation. This also led to loosing of laborers and workers, further making it difficult for companies.

LATEST TRENDS

Increasing Demand from Various Manufacturing Applications to Boost Market Share

Lime is used in various applications, including the manufacturing of alkalis in the chemical industry, which are important to control the acidity of multiple production processes. In the manufacturing industry, the product is mainly utilized in pulp & paper, sugar, glass, bioplastics, and ferrous and non-ferrous metal mining applications. The product is consumed for fermentation of sugar and tapioca for making bioplastics, removing impurities during the production of glass, and acidity adjustment of wastewater and mineral dressing for mining. The rising demand for calcium hydroxide in these applications is creating market opportunities. These versatile applications of the product in a number of industries act as a key factor for manufacturers to gain novel ways to create product demand during the forecast period.

DRIVING FACTORS

Growing Demand for Calcium Hydroxide in Steel Industry to Augment Market Expansion

Lime has an important role in the different stages of the steelmaking process as a flux and significantly impacts the steel quality, metallurgical properties, productivity, and total cost of production. The ever-growing demand from the construction and automotive industries for cleaner steel is driving this market. This includes the use of steel in construction applications for high barrier steel beams to provide a strong structure. In addition, architectural development has further surged demand for steel to give different shapes to the buildings while also improving looks.

Rising Demand from Other Applications to Aid U.S. Lime Market Growth

Lime is used to treat mining and industrial wastewater as it adjusts the pH of acidic wastewater and removes toxins such as phosphorus and nitrogen. It forms a slag with the impurities, which can be easily filtered, promoting clarification. Additionally, calcium hydroxide acts as the first necessary step to remove dissolved metals from wastewater, and it neutralizes free acids in water. Hydrated lime in the form of slurry is used to balance hardness, such as use in heating systems or use in steel product washing to prevent carbonate deposition. Moreover, lime-based products are used to process by-products during sewage and wastewater treatment, assisting in dehydration and granulation. Calcium hydroxide is also efficient for sanitizing and stabilizing sewage sludge, allowing recycling in agriculture. Regulations from the government have caused the country to create a regulatory design for limiting the entry of contaminants into the environment. This has further driven product consumption in treating wastewater and chimney gases from industries, waste incinerators, and power plants.

RESTRAINING FACTORS

High Carbon Emission during Production to Impact Market Growth

Lime is obtained from limestone through calcination operation. In this process, a large amount of energy is required to obtain the optimum temperature for limestone to convert in calcination kiln, thus leading to high carbon emission. The high consumption of the product in steel production for automobiles further doubles the carbon footprint. The carbon dioxide released has an adverse effect on the already rising global warming. The different governments have taken measures to minimize the effect, leading to end-use industries seeking alternative solutions that replicate products with substitutes such as gypsum, limestone, and dolomite. The usage of these substitutes lowers the demand for the product, thereby restricting U.S. calcium hydroxide market.

SEGMENTATION

By Type Analysis

Quick Lime Segment will Hold Dominant Share during the Forecast Period

Based on type, the U.S. Lime market share is bifurcated into hydrated lime and quick lime.

Quick lime segment will capture a dominant share of the U.S. market due to its high demand from steel manufacturing. The addition of quick lime in the steel manufacturing processes separates the impurities by slag formation while also reducing brittleness and improving the performance. Moreover, increasing usage of this type in metal extraction and concentration plants to keep pH values at a vital level while also ensuring high yield from the mine is expected to affect the U.S. calcium hydroxide market positively.

Hydrated lime is primarily used in flue gas treatment plants across several production facilities such as power plants, glass, cement, and water incinerators. It further catalyzes and filters emitted particles due to incomplete combustion. In the construction industry, this type is used in mortar and plaster, owing to its superior plasticity, workability, and adhesion properties. The segment growth is characterized by the expansion of airports, roads, and renovation activities in the country.

By Application Analysis

Mining & Metallurgy Segment will Capture Largest Share due to Rise of Steel Industry in the U.S.

Based on application, the market share is broken down into building material, agriculture, water treatment, mining & metallurgy, and others.

The others segment is expected to account for the largest share in the market owing to high product demand from various applications. The product is used to manufacture several goods and materials used in everyday life, including paper, sugar, plastics, and paint.

Lime for mining and metallurgy is utilized in basic oxygen furnaces and electric arc furnaces, along with secondary refining. It is also used in copper ore mining and converts alumina and magnesia to aluminum and magnesium, respectively. In the agriculture segment, the product is used to reduce soil acidity by improving physical and biological properties along with the pH of soil. Furthermore, compound use has been proven to decrease surface crusting, improve water withholding capacity, increase herbicide effectiveness, improve nutrient availability, and diminish soil erosion. The acceptance of modern and advanced methods in the agriculture industry is anticipated to drive the segment growth.

The water treatment segment uses hydrated lime to correct pH, reduce smell, absorb heavy metals and kill bacteria and algae. The rising need for purified drinking water boosts the demand for hydrated lime, further supported by depleting natural freshwater bodies. In the building & construction segment, the product is mainly utilized in mortar and plaster, soil stabilization under the roads, airstrips, dams, and high-rise building foundations. The ongoing and upcoming renovation of commercial and residential spaces in the country will substantially boost the segment growth.

REGIONAL INSIGHTS

U.S. market size stood at USD 2.14 billion in 2020 and is witnessing huge product demand due to the presence of varied end-use industries. The construction industry is expected to be rejuvenating due to upcoming infrastructural development, which will fuel the demand for the product in the region. Furthermore, many companies operating in the country have been undertaking improvement of their water treatment plants, which shall boost the product demand.

As per the Mineral Commodity studies by the U.S. government more than 16.9 million tons of lime were produced in the U.S. in 2019. The production in 2020 in the U.S. was estimated to be around 16 million tons. In the country, 28 companies were involved in the production activity, out of which 18 companies had commercial sales and ten companies produced the compound strictly for internal use. The major markets consuming the product in the U.S. have been steelmaking, chemical & industrial, environmental, and construction.

KEY INDUSTRY PLAYERS

Key Players are Focusing on Acquisition and Expansion Strategies to Sustain

The key players in the market include Carmeuse, Lhoist Group, Graymont Limited, Mississippi Lime Company, and United States Lime & Minerals Inc. Carmeuse has adopted strategies such as expansion and investment to gain a competitive advantage. This company is a material & service provider of mining components, material processing, and engineering solutions. The company has widespread business segments such as iron & steel, agriculture, non-ferrous, glass, chemical, water & waste treatment, PCC, and pulp & paper. The company has evolved from calcium minerals provider to supplier of new product offerings and integrated mining services.

LIST OF KEY COMPANIES PROFILED:

• Carmeuse (Belgium)


• Lhoist Group (Belgium)


• Graymont Limited (Canada)


• Mississippi Lime Company (U.S.)


• United States Lime & Minerals Inc.  (U.S.)


• Linwood Mining & Minerals Corporation (U.S.)


• Minerals Technologies, Inc.  (U.S.)


• Cheney Lime & Cement Company (U.S.)


• Pete Lien & Sons, Inc. (U.S.)


• Valley Mineral LLC (U.S.)


• Brookville Manufacturing (U.S.)  

KEY INDUSTRY DEVELOPMENTS:

• November 2020 – Carmeuse Overseas, a subsidiary of Carmeuse in Africa, started constructing Chaux de la Teranga, a greenfield lime plant in Bandia, Senegal. The plant will operate using an innovative PFR kiln and shall have a capacity of 250 tons/day and is expected to be commissioned by May 2021.


• September 2020: Mississippi Lime acquired terminal and rail assets in Kansas City, Kansas, from L.G. Everist Inc. With the acquisition, the company wants to strengthen its commitment towards water & electric utilities, construction, and other industries in the region.

REPORT COVERAGE

The U.S. lime market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, and applications. Also, it offers insights into the competitive landscape and highlights vital industry developments. In addition to the factors mentioned above, the scope of the report encompasses various factors contributing to the market growth over recent years.

Report Scope & Segmentation