Lime Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Lime Category Overview

The global lime category is anticipated to grow at a CAGR of 3.2% from 2023 to 2030. Growth of the category can be primarily attributed to increase in demand from construction, agriculture, steel, chemical, and manufacturing industries. For instance, lime is used in the production of several vital chemicals such as calcium carbide, cyanamide, propylene glycol, and sodium alkali, and rising demand for these chemicals is propelling the lime category. In the manufacturing sector, the category is experiencing significant demand from paper, refractory, and sugar producing companies. During the forecasted period, lime is expected to have significant demand from the steel industry. For instance, Lime is a vital component required for the production of Argon Oxygen Decarburization (AOD) converters, refining ladles, and electric arc furnaces in steel production. The demand for steel is expected to improve significantly from countries such as Brazil, South Africa, China, and India, which will propel the demand for the category during the forecasted period. Few of the key restraining factors for this category include high carbon footprint, environmental restrictions, and health hazards associated with lime production. For instance, lime is primarily produced from limestone, and the carbon dioxide that is emitted during this process is a greenhouse gas, which leads to global warming. Moreover, lime production consumes a large amount of energy which expands the overall carbon footprint.

Key technological advancements in the global lime category include computer-controlled systems in lime slaking, innovations in lime shattering, ball mill slakers, vertical pneumatic slakers, paste slakers, and microwave slakers. Computer-controlled systems in large plants are used to monitor parameters such as slurry density, inlet temperature, and slaker revolutions per minute (rpm) in real-time. Moreover, feedback control loops are used to modify operating environments to improve slaking efficiency and end-product quality. Innovations in lime shattering include adjusting the lime feedstock by breaking the hydrophobic calcium oxide foundations via rapid cooling and heating processes. This allows quicker water penetration and improves the lime slaking efficiency. Ball mill slakers use innovative designs to provide effective reduction of particle sizes and improve mixing to facilitate faster and improved slaking. Vertical pneumatic shakers are being used to optimize energy efficiency and improve fine grinding performance by facilitating exceptional steam and heat dissipation.

The global lime category is fragmented and consists of a large number of global market players, turning the category to be competitive. Key players in the category set themselves apart by using latest technologies, investing in production capacity expansions, and engaging in strategic partnerships and acquisitions in order to enhance their product portfolio and to stay competitive. For instance, in May 2023, Graymont Limited acquired Gridland limestone quarry from GCCP Resourced Limited to strengthen its lime and limestone production business across Malaysia. Buyers in the category possess high bargaining power owing to an extensive supply base. Leading players in this category can assist buyers to realize cost savings by implementing various measures such as reducing total cost of ownership (TCO), managing volatility in commodity prices, negotiating on contractual terms, maintaining supply synergy, optimizing quality management, and implementing vertical integration.

Raw material, labor, equipment and energy, packaging, logistics, and other costs such as R&D, sales and marketing, taxes, and compliance costs are the key components of this category. Raw material and labor account for the largest share of the cost structure. Manufacturers in this category typically follow cost-plus and competition-based pricing structures in order to price their products. In the cost-plus pricing structure, a margin is added to the product's manufacturing cost to determine the ultimate selling price. This pricing structure is based on the notion that the vendor must be able to make a profit on the product being sold. Whereas, in the competition-based pricing model, the manufacturer sets the product price based on the prices offered by competitors. Additionally, pricing structures such as demand-based pricing and volume-based pricing are also used. In demand-based pricing, the prices are set based on consumer demand. In volume-based pricing, the pricing structure varies based on the quantity of products sold. For instance, price per unit may decrease for bulk volumes. The prices of lime vary based on several factors such as lime type (e.g., quick lime and slaked lime), lime grade (e.g., class A, class B, and class C used in construction and building materials), raw material price fluctuations, and energy price variations. In January 2024, the prices of slaked lime (calcium hydroxide) in the U.S. were in the range of USD 0.21 - USD 0.27/KG, the prices in Europe were in the range of USD 0.11 - USD 0.15/KG, and the prices in Northeast Asia were in the range of USD 0.09 - USD 0.14/KG.

Asia Pacific dominates the global lime category, holding a significant portion of the global market share. Key driving factors for this region include elevated demand from countries such China, India, and Japan due to high concentration of steel manufacturing companies, high demand from sectors such as agriculture, construction and building materials, and increased usage in water treatment applications such as precipitative softening. Asia Pacific is expected to continue its dominance during the forecasted period as well due to rapid urbanization leading to rise in construction activities, and surge in demand for usage in water and wastewater treatment facilities. Comparing the prices charged by various suppliers, assessing the supplier capability based on type, grade, and end-use applications, assessing the experience level of suppliers, and negotiating the prices based on demand and volume are some of the best sourcing practices considered in this category.

Lime Procurement Intelligence Report Scope