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

Market Overview

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.

Rapid Urbanization and Construction Growth

China's ongoing urbanization has greatly increased the demand for building materials. Synthetic gypsum is widely used in drywall, plaster, and cement — essential components in residential, commercial, and infrastructure development.

• Over 65% of China's population now resides in urban areas, up from 40% two decades ago.
• The country produces more than 2.2 billion tons of cement annually.
• Drywall production consumes approximately 45% of synthetic gypsum in the country.
• Infrastructure investments grew by 10.3% in 2023, driven by government stimulus.
• China has built more than 200 million m² of new residential space annually in recent years.

As cities expand and construction continues at scale, the demand for cost-effective, sustainable materials like synthetic gypsum is expected to grow substantially.

Government Push for Circular Economy and Waste Utilization

China’s commitment to a low-carbon, circular economy has directly benefited the synthetic gypsum market. The government encourages the conversion of industrial waste into usable products, reducing environmental impact.

• China produces around 75 million metric tons of phosphogypsum annually.
• More than 600 million tons of phosphogypsum are stockpiled nationwide.
• In 2022, only 40% of phosphogypsum produced was reused.
• The 14th Five-Year Plan targets 60% reuse of bulk solid waste by 2025.
• Investment in circular economy initiatives reached USD 18 billion in the last three years.

Such policies promote the conversion of waste gypsum into products for agriculture, cement, and construction, increasing demand for synthetic variants while reducing landfill pressure.

Technological Advancements in Processing and Quality Enhancement

Improvements in synthetic gypsum purification and processing have significantly increased its acceptance across diverse applications. Enhanced chemical stability, purity, and moisture resistance make it a viable substitute for natural gypsum.

• Modern processing facilities can now achieve gypsum purity of above 90%.
• Moisture content has been reduced from 15% to under 10%, improving handling.
• Fire-resistant and water-resistant gypsum boards have seen a 25% rise in demand.
• Nearly 60% of board manufacturers now integrate synthetic gypsum into production.
• Use of automated calcination units has increased energy efficiency by 30%.

These advances allow synthetic gypsum to meet specifications for high-end construction, medical applications, and agriculture, supporting broader market penetration.

Expansion in Agricultural and Soil Conditioning Applications

Agricultural use of synthetic gypsum, especially phosphogypsum, is gaining momentum due to its ability to improve soil structure and provide calcium and sulfur nutrients.

• China has more than 135 million hectares of arable land, with over 30% affected by soil degradation.
• Phosphogypsum use in agriculture grew by 8% year-over-year since 2021.
• In 2023, over 6 million tons of synthetic gypsum were applied to farmlands.
• Soil reclamation projects using gypsum covered more than 2 million hectares nationwide.
• Trials have shown 10–15% yield improvements in crops like wheat and rice using gypsum-treated soils.

The growing awareness among farmers and government-led land rehabilitation programs are expanding the role of synthetic gypsum in the agricultural sector.

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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.

Quality Concerns and Contaminant Risk:

Environmental and health regulations increasingly scrutinize trace contaminants in synthetic gypsum, especially from phosphogypsum. Analysis of samples from five fertilizer plants in Yangtze River provinces between 2021 and 2023 revealed heavy metal levels (cadmium, lead) exceeding limits in 37% of batches, prompting recalls in wallboard production lines. Moisture content variability has also worsened: ~30% of shipments now require extra drying due to 5%–15% moisture, affecting calcination costs (+RMB 45/ton) and raising thermal energy use by ~10%. Water-soluble phosphorus levels above 0.2% have forced multiple cement plants to suspend synthetic gypsum use for up to 45 days. The cost of compliance testing for contaminants has surged over 40%, making sub‑par materials economically unviable and reducing available supply by ~18% in regions lacking certified purification plants. The result is a bifurcated market, in which only Grade I gypsum (moisture ≤10%, chloride ≤350 ppm) is preferred, but represents only 45% of available catalog gypsum resources.

Logistics and Infrastructure Shortfalls:

Transporting bulk synthetic gypsum over long distances in China is logistically demanding due to its bulk density and susceptibility to moisture. Around 60% of gypsum production occurs in coastal provinces while significant cement and board mills are inland. Transport over poor rural roadways adds 15–25% to delivered cost versus local supply. Approximately 22% of shipments between provinces are delayed by up to 7 days in wet season due to water ingress in open-carry systems, requiring re-drying and recalcination—raising costs by RMB 60/ton. Storage capacity is another constraint; 28% of local processors report short-term stockouts due to silo fill limits. Where nearby dewatering plants exist, capacity pools fill to 95%, yet most regions still lack facilities for moisture reduction at scale. Overall, logistics deficiencies inflate costs by 12–18% compared to optimal supply routes, eroding margins and deterring wider use of synthetic gypsum.

Competition from Natural Gypsum and Substitutes:

Despite environmental advantages, synthetic gypsum faces strong competition from natural gypsum and alternative additives. In regions with rich geological reserves (Inner Mongolia, Xinjiang), natural gypsum pricing has remained 10–15% lower than synthetic counterparts for roughly a decade. In cement and construction, blended additives such as fly ash and GGBFS are increasingly displacing gypsum in leveling and retarding mixes. Fly ash supply has grown by ~8% annually since 2021, offering similar setting-rate control at 20% lower cost. PVC-laminated fiber-cement boards, priced within 5% of gypsum panels, capture growing share because of superior moisture resistance. Faced with these alternatives, synthetic gypsum usage in board and cement is capped; between 2020 and 2024, its penetration rate plateaued at around 55% of total additive use despite rising supply.

Capital Intensity and Technological Bottlenecks:

While purification and drying technologies have improved, scaling them is capital‑intensive. Advanced calcination and decontamination units cost between RMB 120–180 million per plant and require four‑year amortization schedules. Only 23% of Chinese FGD gypsum processors have adopted such systems to meet Grade I standards, while the rest rely on basic separation and screening—a gap that limits high‑end application opportunities. Smaller plants cite ROI periods of 8–10 years, compared to 4–6 years for conventional board lines, making investments unattractive. Limited access to low‑interest finance further constrains technology upgrades; only RMB 1.3 billion was allocated in green credit lines to gypsum processors in the past two years, covering just ~17% of industry needs. The result is technological fragmentation—while a few elite plants supply high‑spec gypsum, lacking counterparts in smaller provinces reduces the total technological absorptive capacity of the sector.

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.

Modular and Prefabricated Construction Demand:

The rising use of prefabricated modular construction has driven demand for specialized gypsum products. From 2022 through 2024, modular housing system uptake grew ~14% per year, now accounting for 18% of new residential starts. Such systems require precise panel characteristics, driving demand for gypsum board with tight dimensional tolerances (<±0.5 mm) and embedded fire/sound insulation. Manufacturers leveraging synthetic gypsum have tailored formulations to meet these specs. Plant batches are now scheduled for 100–300 m² modular block runs, generating faster production cycles and reduced waste. This alignment fuels further demand for high-quality synthetic gypsum.

Vertical Tech Advancement and Digital Quality Control:

A wave of technology adoption is transforming processing quality control. Around 60% of leading processors now utilize real-time moisture sensing and automated blending to ensure batch uniformity. Online spectroscopic sensors adjust purifying agents and water dosing, cutting off-spec batches by 70% since early 2023. Digital traceability platforms log FGD source, purity, and drying path across the supply chain, with QR codes enabling board factories to track feedstock quality to parcel level. These systems have increased Grade I compliance from 68% in 2021 to 83% currently, and reduced recall incidents by over 50%. By offering transparency and assurance, these technologies enhance market trust in synthetic gypsum.

Segmental Insights

Product Type Insights

Flue Gas Desulfurization (FGD) gypsum segment dominated in the China Synthetic Gypsum market in 2024 due to the country’s deep reliance on coal-fired power generation and strict emission control policies. China operates one of the largest fleets of coal-fired power plants globally, with over 1,000 active units, the majority of which are equipped with FGD systems. These systems are mandated by environmental laws to capture sulfur dioxide (SO₂) emissions, a process that results in the generation of high volumes of synthetic gypsum. In 2024, FGD systems in China are estimated to have produced approximately 75 million tons of gypsum, accounting for over 80% of the country’s total synthetic gypsum output.

Another factor contributing to this dominance is the purity and consistency of FGD gypsum compared to other types like phosphogypsum or citrogypsum. FGD gypsum typically contains above 90% calcium sulfate dihydrate (CaSO₄·2H₂O) and meets industrial standards for use in cement, drywall, and plaster applications. Cement manufacturers prefer FGD gypsum due to its stable chemical composition and low impurity levels, which enhance the performance of blended cement and reduce setting time variability. Moreover, the high moisture content of FGD gypsum can be effectively managed using advanced drying technologies, allowing for large-scale industrial utilization.

Government support and environmental incentives have further strengthened the FGD gypsum market. Policies favoring circular economy practices, which encourage the conversion of industrial waste into reusable materials, have led to better handling, transportation, and use of FGD gypsum in construction and infrastructure projects. The combination of abundant supply, strong industrial demand, high material quality, and regulatory support has cemented FGD gypsum’s position as the leading segment in China’s synthetic gypsum market in 2024.

Product Form Insights

Powdered segment dominated the China Synthetic Gypsum market in 2024 due to its widespread applicability in cement, drywall, and plaster production. Powdered synthetic gypsum is easier to transport, mix, and integrate into manufacturing lines, especially in the construction and infrastructure sectors where consistent blending is critical. It offers superior flowability, faster dissolution rates, and better compatibility with automated processing systems. Additionally, powdered gypsum’s lower moisture content reduces drying time and energy costs, making it a preferred choice for high-volume users. These efficiency and compatibility benefits have reinforced its market-leading position over other forms such as granular or slurry.

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Region Insights

Largest Region

North China dominated the China Synthetic Gypsum market in 2024 owing to a combination of industrial density, high coal-based energy dependence, and well-developed cement and building materials clusters. Provinces such as Hebei, Shanxi, and Inner Mongolia house a significant portion of China’s coal-fired power generation capacity, with over 200 gigawatts of installed capacity concentrated in this region. This makes North China the largest source of FGD gypsum in the country, contributing nearly 35–40% of the total FGD gypsum output. As a result, the region has a natural logistical advantage when it comes to sourcing synthetic gypsum for industrial use.

Additionally, North China is home to several major cement production hubs and gypsum board manufacturing centers. Companies operating in this region—such as China National Building Material (CNBM) and Sinoma—have integrated FGD gypsum into their operations, using it extensively as a setting time regulator in cement and as a base for drywall and plaster products. Cement production in North China exceeded 700 million tons in 2023, and synthetic gypsum played a key role in improving product consistency and lowering raw material costs.

From a regulatory perspective, provincial governments in North China have been proactive in enforcing environmental compliance, which has led to more widespread adoption of FGD technology and optimized by-product management systems. This enforcement ensures a steady and reliable supply of synthetic gypsum. Moreover, proximity to large-scale infrastructure and real estate projects across the Beijing-Tianjin-Hebei corridor drives consistent downstream demand. Taken together, these factors—ample raw material availability, industrial integration, environmental policy enforcement, and strong end-use demand—make North China the dominant region in China’s synthetic gypsum market in 2024.

Emerging Region

East China was the emerging region in the China Synthetic Gypsum market in the coming period fueled by expanding construction activity, industrial diversification, and rising adoption of sustainable building materials. Cities like Shanghai, Nanjing, and Hangzhou are experiencing fast-paced urban development, which is driving demand for gypsum-based drywall, panels, and cement. The region also benefits from improved logistics networks, port access, and increasing investments in eco-friendly material processing. Moreover, government-backed green building policies and circular economy initiatives are encouraging wider use of FGD gypsum. These factors position East China as a key growth region in the upcoming phase of market development.

Recent Developments

• In June 2025, Stephen Yurek, President of AHRI, and his leadership team visited Midea Air Conditioning Headquarters to explore global collaboration. Discussions centered on advancing regional energy efficiency standards and streamlining international regulatory access. AHRI acknowledged Midea’s 100% compliance over three consecutive years in certification testing for VMAC, PTHP, PTAC, and other categories. Midea representatives included Louis Zhao, Vincent Chou, and Dennis Lee from its Residential and Building Technologies divisions, underscoring Midea’s commitment to global regulatory excellence.
• In July 2024, Saudi Arabia's Minister of Municipal, Rural Affairs, and Housing, Majid Al-Hogail, met with Chinese Ambassador Chang Hua in Riyadh to enhance bilateral cooperation in real estate and municipal sectors. Both parties discussed strengthening strategic partnerships in housing development, contracting, and municipal services. Al-Hogail emphasized forming a joint working team to explore new collaboration opportunities, marking a significant step toward deepening Saudi–Chinese engagement in infrastructure and real estate initiatives.
• In June 2025, Volvo Construction Equipment announced the sale of its stake in SDLG (Shandong Lingong) to a fund primarily owned by Lingong Group (LGG) for SEK 8 billion (RMB 6 billion). The divestment is projected to boost Volvo CE’s operating income by SEK 1 billion at closing, subject to currency adjustments. The move aligns with Volvo CE’s strategy to concentrate on select customer segments in China and optimize its engagement with the local supplier ecosystem.

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:

o   Flue Gas Desulfurization (FGD) gypsum

o   Phosphogypsum

o   Fluorogypsum

o   Citrogypsum

o   Others

• China Synthetic Gypsum Market, By Product Form:

o   Powdered

o   Granular

• China Synthetic Gypsum Market, By Application:

o   Residential

o   Commercial

o   Others

• China Synthetic Gypsum Market, By Region:

o   North China

o   Northeast China

o   East China

o   South Central China

o   Southwest China

o   Northwest China

Competitive Landscape

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

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Company Information

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

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