Caustic Soda Market: Overview
The size of the world market for caustic soda was evaluated at USD 45.4 billion in 2021 and is expected to grow at a CAGR of 3.0% during the projected period. Over 40% of all inorganic chemicals comprise caustic soda used in various industries, including pulp and paper, chemicals, alumina, soaps and detergents, and textiles. Expansions in end-use industries are directly related to the growth of the caustic soda market. Throughout the projected period, rising demand from the pulp, paper, and textile sectors is anticipated to fuel market expansion. Globally, 97 million metric tonnes of graphic paper were manufactured in 2020. Production of packaging paper and board totaled 249 million metric tonnes simultaneously. Strong alkali caustic soda quickly interacts with many substances, including zinc and aluminum. This is a significant additional factor that will probably fuel product demand in metallurgical applications. The market is also anticipated to grow faster as product use for alumina extraction rises.
Innovations in cell membrane technology and introducing brand-new, eco-friendly products are two more factors driving market revenue growth. Westlake Vinnolit GmbH & Co. will launch on February 24, 2021. Ismaning, Germany-based KG declared it would introduce environmentally friendly "green" caustic soda. Government rules will allow manufacturers to lower their carbon footprint from current caustic soda goods by 30% and contribute to developing more environmentally friendly products. Additionally, manufacturers are abandoning the mercury approach in favor of cell membrane technology due to its minimal maintenance requirements and need for less energy. As it keeps mercury out of the environment, it is also environmentally friendly. These additional elements are anticipated to fuel market revenue growth going forward.
Caustic Soda Market: COVID-19 Impact
The COVID-19 epidemic has impacted practically all global industries. One of these, the caustic soda market, saw a large decline in sales during the epidemic. The caustic soda market's manufacturing and supply chain have both been impacted. Production was stopped during the epidemic in the majority of the regions. Most of them recently began to operate and work hard to satisfy market demands. People began using throwaway paper products due to the COVID-19 outbreak, which raised the demand for caustic soda. Additionally, activities, including pulp and paper production, water treatment, and chemical production, have increased, which is related to the expansion of the caustic soda market.
Caustic Soda Market: Drivers
Growing Caustic Soda Market to be Driven by Increasing Alumina Demand
The production of alumina is closely related to that of caustic soda. Raw bauxite is refined using it to produce white power alumina, which is then smelted to produce aluminum. In 2020, 65.3 million tonnes of primary aluminum were anticipated to have been produced globally. The building and construction, transportation, containers and packaging industries are major markets for aluminum. Utilizing aluminum has a lot of potentials to improve sustainable energy use. For instance, lighter-weight materials like aluminum improve fuel efficiency in both passenger and commercial vehicles.
Hybrid vehicles are now leading the charge to increase fuel efficiency. An aluminum-air battery from Phinergy, an Israeli company that creates metal-air energy systems, can run an electric vehicle for 1,000 kilometers. The ability of aluminum to reflect 95% of solar energy significantly reduces the cost of cooling buildings in the construction sector. As a result, the aforementioned causes would increase demand for aluminum, increasing demand for this particular beverage during the predicted period.
Chemical Industry Expansion to Promote Growth
Chemically, caustic soda is quite prevalent and has several uses. It serves as a crucial reactant and feedstock in synthesizing numerous valuable organic compounds and a wide range of other molecules. It is employed as an intermediary and a reactant in the manufacturing processes of medications, solvents, inks, textiles, dyes, synthetic fibers, herbicides, coatings, adhesives, and bleach. Additionally, it is utilized to neutralize and clean up acid waste sources. Additionally, it is employed in the manufacture of pharmaceutical compounds, the recycling of rubber, and the neutralization of acids. Thus, throughout the projection period, there will likely be a rise in the demand for caustic soda due to the growing need for organic chemicals in developing nations like China and India.
Caustic Soda Market: Restraints
Highly Corrosive Nature to Slowdown Market’s Growth
Aluminum, tin, copper, zinc, and their alloys react with sodium hydroxide to produce hydrogen, forming explosive gas combinations. Additionally, it reacts with substances, including oxidizers, organic molecules, nitro compounds, and chlorinated compounds. When the chemical reacts with amine and ammonium compounds, hazardous chemicals may also be released. The main danger of the caustic is how severely corrosive it is if humans or animals are exposed to it. If there is no urgent treatment, contact with the eyes could result in severe damage that is irreversible. Concentrated consumption can seriously harm all tissues exposed to the drug, including mucous membranes. Its corrosive properties can thus endanger human life, and its high chemical reactivity can emit poisonous gases that have an adverse effect on the environment and the market.
Caustic Soda Market: Segment Overview
With Its Anti-Bacterial Properties, Caustic Soda to Dominate Market
Numerous pharmaceutical products and medicines, including aspirin and other common painkillers, as well as anticoagulants that can help prevent blood clots and cholesterol-lowering drugs, are made with caustic soda flakes. Caustic soda flake is often used for various food processing tasks, such as preserving items like olives or assisting in browning Bavarian-style pretzels to give them their distinctive crunch. It is used to peel potatoes, tomatoes, and other fruits and vegetables before preserving them, as well as an ingredient in food preservatives that help keep bacteria from forming in the food. These are this product's main characteristics that drive up market demand.
With Rising Awareness for Green Label Products, Demand for Organic Chemicals is Rising
Caustic soda is frequently employed in producing numerous beneficial organic chemicals and processing inorganic chemicals used in paints, glass, and ceramics. Additionally, it is employed in the creation of cosmetics and fuel cells. It is crucial for producing soap powders, soap bars, and detergents, in addition to being utilized to make industrial and specialty soaps. Bar soap is in high demand in developing nations since it is commonly used for cleaning clothes and maintaining personal hygiene. These distinctive goods include liquid soaps, shampoos, floor cleaners, metal cleaners, paint removers, soaps for cleaning ovens and other kitchen appliances, and stronger dishwasher detergents.
Caustic Soda Market: Regional Landscape
Asia Pacific to Acquire Largest Market Share due to Increased Infrastructure Development Activity
The region now dominates the global market and is expected to keep this position over the projected period due to increasing consumer spending, rising interest rates, construction activity, an expanding chemical industry, and government subsidies. These are a few of the key elements that make up GDP. Moreover, the market is probably being driven by the expanding chemical industry. In the forecast period, China held a major market share in the Asia Pacific region. In 2021, the major exporters of caustic soda were China and India, according to the World Integrated Trade Solution (WITS). In the upcoming years, this country's market is expected to be driven by the growth of end-use industries. India has a sizable number of chemical manufacturing facilities, which would, in turn, fuel the country's caustic soda market. The two biggest manufacturers in India are Gujarat Alkalies and Chemicals Limited and Aditya Birla Chemicals (India) Limited. ABCIL produces premium lye and flakes at three plant locations using innovative membrane technology. Lye and flakes are frequently used in alumina refineries, the production of soaps and detergents, and the paper and textile sectors. They serve as fundamental feedstock for various downstream processes in the chemical production industry.
The caustic soda market in North America is anticipated to grow steadily over the next years due to rising consumer demand for caustic soda in cosmetic and personal care goods, including lotions, mascara, balm, and others. With an annual average consumption of roughly 3 million tonnes of sodium hydroxide, the United States and Canada account for the highest revenue share contributors to this market in the area. Some key factors propelling revenue growth in this region include increasing focus on Research & Development (R&D) activities by major companies for developing innovative products, ongoing development in the real estate sector, and rising demand for environmentally friendly caustic soda.
Global Caustic Soda Market: Competitive Landscape
In January 2021, Shin-Etsu Chemical Co. (Tokyo) announced plans to expand the production capacity of Shintech Inc., its U.S. subsidiary. The capacity of vinyl chloride monomer (VCM) will be raised by 580,000 metric tonnes per year (m.t./yr), polyvinyl chloride (PVC) will be increased by 380,000 m.t./yr, and caustic soda will be enhanced by 390,000 m.t./yr. At completion, Shintech's production capacity will be 3.62 million mt/yr of PVC, 2.95 million mt/yr of VCM, and 1.95 million mt/yr of caustic soda. The investment is projected to be worth $1.25 billion. By the end of 2023, the project is anticipated to be finished. In August 2020, Brenntag, the global market leader in chemical and ingredient distribution, announced the acquisition of the caustic soda distribution business of US-based Suffolk Solutions, Inc. During the 12-month period ending April 30, 2020, the acquired company earned sales of roughly USD 15.6 million.
Few of the players in the Caustic Soda Market include Olin Corporation, Tata Chemicals Limited, Formosa Plastics Corporation, Westlake Chemical Corporation, Occidental Petroleum Corporation, Xinjiang Zhongtai Chemical Co. Ltd, Gujarat Alkalies and Chemical Limited, Hanwha Chemical, and AkzoNobel NV
Regional Classification of the Global Caustic Soda Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Caustic Soda Market
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