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 CAGR of 4.1% from 2025 to 2030, driven by the exponential growth in construction activities across the globe, owing to improving financial conditions and rapid industrialization. In addition, the governments of both developing and developed countries are emphasizing infrastructure development, which is further driving product demand.

Expansion of urban infrastructure is further encouraging the use of eco-friendly and advanced construction materials. All such factors are promoting the growth of synthetic gypsum industry. Synthetic gypsum, also known as artificial gypsum, is derived from various industrial by-products. It is composed of calcium sulfate dihydrate and possesses the same characteristics as natural gypsum. Synthetic gypsum is used in the construction sector for various applications, including plasters, cement, and drywall. The limited resources and depleting reserves of natural gypsum across countries are propelling the production of synthetic gypsum to meet growing demand. In addition, synthetic gypsum is an energy-efficient product used to insulate buildings and reduce the overall energy consumption of structures. Synthetic gypsum also offers better insulation properties by absorbing noise and sound. The growing emphasis on the construction of green and energy-efficient buildings is boosting the growth of the synthetic gypsum industry.

Technological advancements in synthetic gypsum production have improved its quality and efficiency, making it more viable for various applications. Synthetic gypsum’s ability to enhance agricultural productivity is boosting its adoption in sustainable farming practices. Rich in sulfur, synthetic gypsum is an ideal source of plant nutrition and is also used to improve soil structure and aggregation and reduce dispersion in the soil.  Innovations, such as enhanced purification and processing methods, are expanding synthetic gypsum’s use in construction and agriculture. The rising demand for soil amendments, due to the need for improved soil structure and nutrient availability, is further driving market growth.

The market growth stage is medium, and the pace of growth is accelerating. Ongoing efforts by key industry participants have resulted in fragmented market scenarios by driving innovation, strategic partnerships, and sustainability initiatives. Major players are investing in advanced technologies to improve product quality, efficiency, and cost-effectiveness, while also exploring new applications in construction, agriculture, and other sectors. In addition, industry leaders are expanding their regional presence by strengthening distribution networks and addressing growing environmental concerns. These efforts enhance competitiveness support the overall growth of the synthetic gypsum market, ensuring long-term sustainability and market expansion.

The global synthetic gypsum industry is characterized by a moderate degree of innovation in terms of technology, production process, and use of raw materials. Manufacturers are exploring advanced technologies and alternative raw materials to enhance the production process, reducing energy consumption and minimizing waste. Innovations such as improved purification techniques and the use of industrial by-products are making synthetic gypsum an eco-friendlier alternative. Such advancements contribute in achieving environmental goals and open up new growth opportunities for industry players by catering to the increasing demand for sustainable construction and agricultural solutions.

There are several product substitutes for synthetic gypsum, including natural gypsum, recycled gypsum, limestone, silica fume, and other industrial byproducts. These alternatives can be used in place of synthetic gypsum in various applications inclusing construction, soil amendments, and waste management. For instance, limestone is often used as a substitute in soil treatment and waste management. However, due to the increasing focus on sustainability and the environmental advantages of synthetic gypsum-such as reducing waste and conserving natural resources-the synthetic gypsum industry is expected to grow consistently.

The flue gas desulfurization (FGD) gypsum segment held the largest revenue share of 37.0% in 2024, fueled by its versatile applications and cost advantages. FGD gypsum is widely used in the production of construction materials such as cement and plaster, offering consistent quality and performance. Moreover, its adoption in the agriculture sector as a fertilizer is growing, as it helps improve soil quality and boost crop yields. Low production costs, efficient manufacturing processes, and diverse applications continue to drive the dominance of FGD gypsum in the market.

The fluorogypsum segment is anticipated to grow significantly with a CAGR of 4.3% over the forecast period. The growth of the segment is attributed to its diverse applications across construction and agriculture. Derived from the production of phosphate fertilizers, fluorogypsum offers similar chemical properties to natural gypsum, making it a viable alternative for cement and drywall production. Technological advancements in processing methods are improving their quality and reducing impurities. The increasing demand for sustainable materials and eco-friendly solutions is also driving the rise of fluorogypsum in various industries.

The drywall segment held the largest revenue share in 2024, propelled by its widespread use in both residential and commercial construction. Its cost-effectiveness compared to traditional building materials has made it the preferred choice for interior wall and ceiling applications. The growing construction activities driven by rapid urbanization, particularly in developing economies, are further fueling the demand for drywall. In addition, its fire-resistant properties make drywall an ideal option for institutional and commercial structures, contributing significantly to its dominant position in the synthetic gypsum industry.

The soil amendments segment is projected to be the fastest-growing segment in the synthetic gypsum industry from 2025 to 2030, propelled by the agriculture sector’s focus on sustainability and innovative practices. Synthetic gypsum provides a sustainable, cost-effective solution for improving soil structure, enhancing water retention, and boosting nutrient availability. These benefits help promote plant growth and increase soil fertility, aligning with the growing demand for eco-friendly agricultural inputs. The rising need for efficient farming practices and the utilization of industrial by-products are further fueling the demand for synthetic gypsum in soil amendment applications.