The gypsum board industry experienced a significant shift in 2025. After years of rapid expansion, the market contracted sharply, with most manufacturers reporting declining sales. Even industry leaders like Beixin Building Materials were not immune, though their decline was less severe than the overall market average. As demand softened throughout the year, prices followed a downward trajectory, making 2025 a particularly challenging period for every gypsum board supplier. Looking ahead to 2026, there is cautious optimism about a potential recovery, but market stability is far from guaranteed, and the coming months will be critical in determining whether demand can stabilize.
Product stratification has become increasingly pronounced in the market. Gypsum boards are now clearly segmented into high-end, mid-range, and low-end tiers, distinguished not only by quality and manufacturing processes but also by raw material inputs. The facing paper, in particular, plays a crucial role in determining the final product quality. High-end offerings, such as those used in prestigious projects like the Beijing Winter Olympics venues, rely on superior materials and advanced production techniques. These premium products also benefit from strong brand equity built through years of marketing and association with landmark developments. For any gypsum board supplier, understanding this hierarchy is essential, as each tier serves distinct applications: high-end products dominate large public infrastructure, mid-range boards cater to three- and four-star hotels and mid-budget projects, while low-end options are reserved for cost-sensitive developments with shorter lifecycles
The demand structure of the industry is primarily driven by three segments: infrastructure projects, real estate development, and distributor channels. Infrastructure accounts for the largest share, contributing over 50% of total demand and effectively setting the tone for the entire market. Real estate, despite its high profile, represents only 15-20% of consumption. Throughout 2025, all segments experienced weakening demand, and early 2026 has shown no definitive signs of reversal. The market has remained relatively flat, leaving gypsum board suppliers and industry observers watching closely for any indicators of a trend shift. Whether demand recovers, stagnates, or continues to decline in the coming quarters remains an open question.