Gypsum is a soft sulfate mineral composed of calcium sulfate dihydrate. It is widely used as a fertilizer, in mold, sculptures, and as plaster material. It is commonly used in residential and commercial construction for creating interior walls, partitions, and decorative elements. It provides a smooth and even surface that can be painted or decorated. Additionally, gypsum plaster is known for its good soundproofing and thermal insulation properties. It helps in reducing noise transmission between rooms and provides some degree of insulation against heat transfer. The serviceable addressable market (SAM) for gypsum plaster in India is expected to reach ~INR 520 crore by 2027 growing at a CAGR of ~6%. Increasing decorative elements in houses & recently introduced anti-dumping duty driving the demand for gypsum plaster.

Gypsum plaster is gaining a prominent place in design for interior as well as exterior decorative work. Plaster finish walls have emerged as a favoured choice in recent years, offering an earthy and rustic appeal that has captivated many homeowners. As a result, there is a growing preference for plaster-based interior decorations, such as wall textures, murals, and decorative mouldings. Overall, the accessibility and acceptance of gypsum plaster have grown steadily over the years. The market has also seen new forms of commoditization, such as modular pre-cast plasters. Moreover, innovations like fire-resistant and recycled plaster have further expanded the possibilities of gypsum plaster.

The major stakeholders across the value chain of gypsum plaster include manufacturers, mandi/wholesalers, retailers & customers. Manufacturers include a large number of MSMEs along with a few large players. In the distribution network, wholesalers play a significant role in tier 1 and tier 2 locations, where they have a prominent presence. Mandis, on the other hand, are important in tier 3 cities and rural markets. Retailers have two main sources for purchasing gypsum plaster - either from mandis or wholesalers. However, certain retailers have direct agreements with transporters to buy the product. Customers have limited involvement in the purchase and selection process of gypsum plaster. Instead, builders and contractors, who act as influencers, are primarily responsible for making the purchases which implies that builders and contractors play a key role in determining which brand or type of gypsum plaster is selected.

The serviceable addressable market (SAM) for gypsum plaster in India is expected to grow at a CAGR of ~6% reaching ~INR 520Cr by FY27. Currently, the market is spread across all regions of India, with a slightly higher concentration in the southern region. ~80% of the overall sales come from the retail channel with ~50% demand from builders/contractors. ~50% bought in large quantities.

The demand for gypsum plaster has seen a significant rise due to increased decorative elements in houses and the recent implementation of anti-dumping duty measures. As economies recover from the pandemic and restrictions are lifted, construction activities have witnessed a surge, with ~75% of the markets reaching or surpassing pre-pandemic levels by the end of 2022. This has led to higher adoption of decorative elements such as false ceilings, exterior decorative work, and other interior designs. The market for gypsum plaster can be influenced by safety regulations and specific properties such as recyclability and fire resistance. In line with the EU's REACH regulations, the Indian government is expected to introduce similar measures, categorizing gypsum plaster as a non-hazardous material. Furthermore, the utilization of fire-resistant gypsum-based plaster, derived from iron and steel industry waste, opens up potential applications in various sectors, particularly in construction and industries requiring fire protection.