Global Rare-Earth Metals Compounds Market to See Moderate Growth with 2.0% CAGR Through 2035

IndexBox has just published a new report: World - Compounds Of Rare-Earth Metals, Of Yttrium Or Of Scandium Or Mixtures Of These Metals - Market Analysis, Forecast, Size, Trends And Insights.

The demand for compounds of rare-earth metals, yttrium, and scandium is on the rise globally, driving the market to continue upward consumption trends over the next decade. Market performance is expected to grow steadily, with a projected CAGR of +2.0% for volume and +2.2% for value from 2024 to 2035, reaching 18M tons and $339.6B respectively by the end of 2035.

Market Forecast

Driven by increasing demand for compounds of rare-earth metals, of yttrium or of scandium or mixtures of these metals worldwide, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.0% for the period from 2024 to 2035, which is projected to bring the market volume to 18M tons by the end of 2035.

In value terms, the market is forecast to increase with an anticipated CAGR of +2.2% for the period from 2024 to 2035, which is projected to bring the market value to $339.6B (in nominal wholesale prices) by the end of 2035.

Consumption

World's Consumption of Compounds Of Rare-Earth Metals, Of Yttrium Or Of Scandium Or Mixtures Of These Metals

In 2024, consumption of compounds of rare-earth metals, of yttrium or of scandium or mixtures of these metals increased by 5.5% to 15M tons, rising for the seventh consecutive year after two years of decline. The total consumption volume increased at an average annual rate of +4.1% from 2013 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Global consumption peaked in 2024 and is expected to retain growth in years to come.

The global compounds of rare-earth metals market revenue stood at $267B in 2024, picking up by 4.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +4.0% over the period from 2013 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2022 when the market value increased by 8.8%. Over the period under review, the global market attained the maximum level in 2024 and is likely to continue growth in years to come.

Consumption By Country

The countries with the highest volumes of consumption in 2024 were China (3M tons), the United States (2.2M tons) and India (1.2M tons), together accounting for 44% of global consumption. Japan, Russia, Indonesia, France, the UK, Italy and Mexico lagged somewhat behind, together comprising a further 24%.

From 2013 to 2024, the biggest increases were recorded for Indonesia (with a CAGR of +5.0%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($65.3B) led the market, alone. The second position in the ranking was held by Japan ($30.8B). It was followed by the United States.

From 2013 to 2024, the average annual rate of growth in terms of value in China amounted to +3.7%. In the other countries, the average annual rates were as follows: Japan (+4.8% per year) and the United States (+3.5% per year).

The countries with the highest levels of compounds of rare-earth metals per capita consumption in 2024 were France (6.8 kg per person), the UK (6.8 kg per person) and Italy (6.5 kg per person).

From 2013 to 2024, the biggest increases were recorded for Italy (with a CAGR of +4.2%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World's Production of Compounds Of Rare-Earth Metals, Of Yttrium Or Of Scandium Or Mixtures Of These Metals

In 2024, production of compounds of rare-earth metals, of yttrium or of scandium or mixtures of these metals increased by 5.3% to 15M tons, rising for the seventh consecutive year after two years of decline. The total output volume increased at an average annual rate of +4.1% from 2013 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2015 with an increase of 7.8% against the previous year. Global production peaked in 2024 and is likely to see gradual growth in years to come.

In value terms, compounds of rare-earth metals production reached $266.4B in 2024 estimated in export price. Overall, the total production indicated tangible growth from 2013 to 2024: its value increased at an average annual rate of +3.9% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, production increased by +50.4% against 2017 indices. The growth pace was the most rapid in 2022 with an increase of 10% against the previous year. Global production peaked in 2024 and is expected to retain growth in the near future.

Production By Country

The countries with the highest volumes of production in 2024 were China (2.9M tons), the United States (2.2M tons) and India (1.2M tons), together comprising 44% of global production. Japan, Russia, Indonesia, France, the UK, Italy and Mexico lagged somewhat behind, together accounting for a further 24%.

From 2013 to 2024, the most notable rate of growth in terms of production, amongst the main producing countries, was attained by Indonesia (with a CAGR of +5.0%), while production for the other global leaders experienced more modest paces of growth.

Imports

World's Imports of Compounds Of Rare-Earth Metals, Of Yttrium Or Of Scandium Or Mixtures Of These Metals

In 2024, supplies from abroad of compounds of rare-earth metals, of yttrium or of scandium or mixtures of these metals decreased by -12.2% to 172K tons for the first time since 2020, thus ending a three-year rising trend. Over the period under review, imports, however, continue to indicate buoyant growth. The pace of growth appeared the most rapid in 2017 with an increase of 38% against the previous year. Global imports peaked at 196K tons in 2023, and then declined in the following year.

In value terms, compounds of rare-earth metals imports reduced notably to $2.6B in 2024. In general, imports, however, continue to indicate a prominent increase. The pace of growth appeared the most rapid in 2021 when imports increased by 58% against the previous year. Over the period under review, global imports hit record highs at $3.2B in 2023, and then shrank dramatically in the following year.

Imports By Country

China dominates imports structure, accounting for 94K tons, which was approx. 54% of total imports in 2024. Japan (14K tons) held the second position in the ranking, followed by the United States (13K tons) and the Philippines (9.6K tons). All these countries together took approx. 21% share of total imports. Vietnam (6.4K tons), Belgium (5.1K tons), Germany (4.4K tons), Taiwan (Chinese) (4.3K tons), Estonia (3.7K tons) and South Korea (2.9K tons) followed a long way behind the leaders.

From 2013 to 2024, average annual rates of growth with regard to compounds of rare-earth metals imports into China stood at +26.5%. At the same time, the Philippines (+62.3%), Belgium (+32.2%), Taiwan (Chinese) (+10.0%), Vietnam (+7.9%), Japan (+3.6%) and South Korea (+2.8%) displayed positive paces of growth. Moreover, the Philippines emerged as the fastest-growing importer imported in the world, with a CAGR of +62.3% from 2013-2024. Estonia and the United States experienced a relatively flat trend pattern. By contrast, Germany (-3.6%) illustrated a downward trend over the same period. While the share of China (+43 p.p.), the Philippines (+5.5 p.p.) and Belgium (+2.6 p.p.) increased significantly in terms of the global imports from 2013-2024, the share of South Korea (-1.7 p.p.), Estonia (-3.6 p.p.), Japan (-7 p.p.), Germany (-8 p.p.) and the United States (-14.4 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($1.4B) constitutes the largest market for imported compounds of rare-earth metals, of yttrium or of scandium or mixtures of these metals worldwide, comprising 53% of global imports. The second position in the ranking was held by Vietnam ($280M), with an 11% share of global imports. It was followed by Japan, with a 7.6% share.

From 2013 to 2024, the average annual rate of growth in terms of value in China totaled +21.8%. In the other countries, the average annual rates were as follows: Vietnam (+14.0% per year) and Japan (-2.5% per year).

Import Prices By Country

In 2024, the average compounds of rare-earth metals import price amounted to $15,044 per ton, dropping by -7.9% against the previous year. In general, the import price recorded a noticeable descent. The most prominent rate of growth was recorded in 2021 when the average import price increased by 32% against the previous year. Over the period under review, average import prices hit record highs at $21,310 per ton in 2013; however, from 2014 to 2024, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Vietnam ($43,386 per ton), while Belgium ($1,002 per ton) was amongst the lowest.

From 2013 to 2024, the most notable rate of growth in terms of prices was attained by Vietnam (+5.7%), while the other global leaders experienced more modest paces of growth.

Exports

World's Exports of Compounds Of Rare-Earth Metals, Of Yttrium Or Of Scandium Or Mixtures Of These Metals

In 2024, after seven years of growth, there was significant decline in overseas shipments of compounds of rare-earth metals, of yttrium or of scandium or mixtures of these metals, when their volume decreased by -20.7% to 175K tons. In general, exports, however, enjoyed a strong increase. The growth pace was the most rapid in 2017 with an increase of 45% against the previous year. Over the period under review, the global exports reached the peak figure at 221K tons in 2023, and then dropped markedly in the following year.

In value terms, compounds of rare-earth metals exports fell notably to $2.7B in 2024. Overall, exports, however, saw a remarkable increase. The most prominent rate of growth was recorded in 2021 when exports increased by 77% against the previous year. The global exports peaked at $3.6B in 2023, and then dropped sharply in the following year.

Exports By Country

Myanmar (48K tons) and China (43K tons) represented roughly 52% of total exports in 2024. Malaysia (23K tons) held a 13% share (based on physical terms) of total exports, which put it in second place, followed by the United States (13%). Lao People's Democratic Republic (7.4K tons), India (5.2K tons), Japan (4.9K tons), the Netherlands (4.9K tons), Russia (4.4K tons) and Vietnam (3.5K tons) held a relatively small share of total exports.

From 2013 to 2024, the biggest increases were recorded for Myanmar (with a CAGR of +71.2%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, Myanmar ($1B) remains the largest compounds of rare-earth metals supplier worldwide, comprising 37% of global exports. The second position in the ranking was taken by China ($393M), with a 14% share of global exports. It was followed by Malaysia, with a 13% share.

In Myanmar, compounds of rare-earth metals exports increased at an average annual rate of +78.1% over the period from 2013-2024. The remaining exporting countries recorded the following average annual rates of exports growth: China (-1.5% per year) and Malaysia (+32.0% per year).

Export Prices By Country

In 2024, the average compounds of rare-earth metals export price amounted to $15,640 per ton, shrinking by -3.5% against the previous year. Overall, the export price showed a pronounced reduction. The most prominent rate of growth was recorded in 2021 when the average export price increased by 45%. Over the period under review, the average export prices hit record highs at $21,484 per ton in 2013; however, from 2014 to 2024, the export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Japan ($45,950 per ton), while the Netherlands ($6,307 per ton) was amongst the lowest.

From 2013 to 2024, the most notable rate of growth in terms of prices was attained by Malaysia (+7.1%), while the other global leaders experienced more modest paces of growth.