The chlor-alkali industry produces chlorine, caustic soda and soda ash, which are key raw materials used across a wide range of industries including chemical processing, pulp & paper, water treatment and petrochemicals. Chlorine is used to manufacture products like PVC, polyurethane, propylene oxide, ethylene dichloride and others. Caustic soda or sodium hydroxide is used in manufacturing of pulp & paper, aluminum, textiles and many other industries.
The global Chlor-Alkali Market is estimated to be valued at US$ 263531.83 Mn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand from the chemicals industry is one of the key trends propelling the growth of the Global Chlor-Alkali Market Size. Chemical processing is one of the largest end-use industries for chlorine and caustic soda. These chemicals find wide application in producing other commodity chemicals such as ethylene dichloride (EDC), polyvinyl chloride (PVC), chloromethanes, and many other organic and inorganic chemicals. According to published sources, the global chemicals market is expected to grow at over 5% during the forecast period, thereby augmenting the demand for chlorine and caustic soda from this industry. With rapid industrialization and growing per capita consumption of chemicals worldwide, the demand from the chemicals industry is expected to continue rising over the coming years, driving the chlor-alkali market during the forecast period.
SWOT Analysis
Strength: The chlor-alkali industry is consolidated with a few large players having a global presence. This ensures economies of scale and stable supply.
Weakness: Strict environmental regulations regarding mercury emissions are a challenge for players. Compliance requires upgrading of plants with new technologies which increases costs.
Opportunity: Growing demand for PVC from the construction industry is driving chlorine demand. Asia Pacific region offers high growth opportunities due to infrastructure development projects.
Threats: Fluctuating raw material prices of salt and energy could impact profitability. Water scarcity issues in some regions pose a threat to operations depending on water availability.
Key Takeaways
The global chlor-alkali market is expected to witness high growth over the forecast period supported by rising demand for PVC, caustic soda and alumina.
The Asia Pacific region currently dominates the market and is expected to continue its lead through 2030. China, India and Southeast Asian countries will be the fastest growing markets on account of infrastructure development activities in these regions.
Key players operating in the chlor-alkali market are 3D Systems Corporation, 3M Company, 3Shape A/S, Align Technology, Inc., Bernhard Förster GmbH, Carestream Dental, LLC, and American Orthodontics Corporation, among others. These companies are focusing on expanding their production capacities in the high growth Asia Pacific region to tap into new opportunities. Partnerships and mergers & acquisitions are other common strategies being adopted.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it