The Global Caustic Soda Market accounted for US$45,264 Mn in 2020 with a considerable CAGR of 5% during the forecast period of 2021 to 2028.
Caustic soda is a key ingredient used in daily life essentials. This chemical compound is also known as lye or sodium hydroxide with the chemical formula (NaOH). However, it may also refer to potassium hydroxide. The pure form of caustic soda is used for making soap or candles although, impure caustic soda is used as a drain cleaner. For a few decades, the demand for caustic soda has increased a lot, due to the limitless need of the growing population worldwide. Since caustic soda finds its application in widespread industries its demand is skyrocketing and is expected to reach US $ 63,535 Mn in 2028.
Market Growth Drivers:
Covid-19 Impact on Caustic Soda Industry
Demand for caustic soda was strong, with most sectors exhibiting a consistent increase in recent years. When the COVID-19 pandemic struck, the market immediately moved from abundant supply and high inventories to a much tighter market when operating rates were reduced due to low chlorine demand. It has impacted the caustic soda’s supply chain and manufacturing. People began to use throwaway paper products as a result of the COVID 19 outbreak, which raised the demand for caustic soda. In addition, operations such as pulp and paper, water treatment, and chemical manufacture have grown in tandem with the caustic soda market's expansion.
|Market||Caustic Soda Market|
|Market Size 2020||US$ 45,264 Mn|
|Market Forecast 2028||US$ 63,535 Mn|
|CAGR||5% During 2021 - 2028|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Application and By Geography|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||AkzoNobel, Dow Chemical Company, FMC Corporation, Formosa Plastics Corporation, Hanwha Chemical Corporation, INEOS Group Limited, Occidental Petroleum Corporation, PPG Industries, Solvay SA, Tosoh Corporation, and others.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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The global caustic soda market is primarily driven by the growth of the alumina industry. The huge application of caustic soda for the production of alumina, from which aluminum is made, has acted as a supporting factor for the growth of the market. For example, Emirates Global Aluminium, the UAE's largest industrial business outside of oil and gas, reported in 2018 that it had received the first cargo of caustic soda for its Al Taweelah alumina refinery. Similarly, the growing application of caustic soda in the paper & pulp, and textile industries has also shown a positive response during the forecast period. The pulp and paper industry uses caustic soda as a commodity chemical. The cooking/processing of Kraft pulps, the extraction of lignin during pulp bleaching sequences, and the on-site manufacturing of sodium hypochlorite are all common uses in pulp and paper production.
However, the high reactive and corrosive nature of caustic soda makes it a material that has to be handled with care and caution. Direct contact with it, whether in solid or liquid form, is dangerous and can cause skin and eye irritation. In addition, it is witnessed that when sodium hydroxide is combined with other metals such as tin, aluminum, copper, zinc, and others, explosive gas combinations and poisonous compounds can result.
Moreover, innovation and advancements in the production process of caustic soda and growing product demand from emerging economies are expected to create numerous growth prospects for the market in the coming years. Another factor accelerating the demand for caustic soda is growth in applications in the pharmaceuticals and chemical industries. For instance, from simple pain relievers like aspirin to anticoagulants that help prevent blood clots and cholesterol-lowering pharmaceuticals, caustic soda is used to assist make a variety of medicines and pharmaceutical products.
The global caustic sodamarket is segmented based on applicationand region.
Market by Application
Among applications, the organics segment dominated the market with the maximum share in 2020. More than 50% of the chemical products produced, directly or indirectly use chlorine or caustic soda. Caustic soda is an important ingredient in the manufacture of a wide range of organic compounds. Caustic soda is frequently employed in the synthesis of numerous valuable organic chemicals, as well as the processing of inorganic substances such as paints, glass, and ceramics. Meanwhile, the pulp & paper application is expected to grow with significant growth (CAGR) throughout the forecast period 2021 – 2028.
Plastic-to-Fuel Market Regional Overview
Middle East & Africa
China witnessed the largest share in the Asia-Pacific Caustic Soda Market
In 2020, the Asia-Pacific region acquired the maximum share accounting for more than 50% of the global share. The high growth in the region can be attributed to the growing chemical industry, high consumer spending, and increasing construction activities. In addition, the rise of the textile industry in developing countries such as China, India, Taiwan, etc. has also accelerated the growth of the APAC caustic soda industry. Moreover, the foremost production of and robust demand for caustic soda in China has helped the Asia region to hold a dominant position in the past and present.
Caustic Soda Market Competitive Landscape
This section of the report determines various important players in the market. Prominent companies profiled in the report include AkzoNobel, Dow Chemical Company, FMC Corporation, Formosa Plastics Corporation, Hanwha Chemical Corporation, INEOS Group Limited, Occidental Petroleum Corporation, PPG Industries, Solvay SA, Tosoh Corporation, and others.
Companies in the industry are engaging in a range of strategic operations in order to get a major foothold in the competitive landscape. For instance, in 2018, after a year and a half of preparation, AkzoNobel Specialty Chemicals and Evonik Industries successfully launched potassium hydroxide and chlorine production at their joint venture facility in Germany.
The estimated value of global Caustic Soda marketin 2020 was accounted to be US$45,264 Mn.
The projected CAGR of Caustic Soda during the analysis period of 2021 to 2028 is 5%.
The prominent players of the global Caustic Soda marketinvolve AkzoNobel, Dow Chemical Company, FMC Corporation, Formosa Plastics Corporation, Hanwha Chemical Corporation, INEOS Group Limited, Occidental Petroleum Corporation, PPG Industries, Solvay SA, Tosoh Corporation, and others
Asia-Pacific held the dominating share for Caustic Soda during the analysis period of 2021 to 2028
Asia-Pacific region exhibited fastest growing CAGR for Caustic Soda during the analysis period of 2021 to 2028
Growing demand from the alumina sector, increased paper and pulp output, and advancements in the caustic soda manufacturing process are all driving the worldwide caustic soda market forward
Based on revenue, organic segment held the maximum share for caustic soda market in 2020