Chlor-alkali Market Snapshot
According to latest analysis by Fact.MR, the global chlor-alkali market is estimated to be worth around US$ 84 Bn in 2021. With rising demand for chlor-alkali for application across diverse industries, the market is set to register a CAGR of around 5.4% between 2021 and 2031.
Asia Pacific will lead the chlor-alkali market steered by expansion of textile and paper and pulp industries in India and China. Caustic soda is not only used for manufacturing products in aforementioned industries, its application in the synthesis of organic and inorganic chemicals will present attractive prospects for growth in the market.
Key Points Covered in Chlor-alkali Market Study
- Market Estimates and Forecast 2016-2031
- Key Drivers and Restraints Impacting Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Chlor-alkali Market and How to Navigate
- Recommendation on Key Winning Strategies
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2016-2021 Chlor-alkali Market Demand Outlook in Comparison to 2021-2031 Forecast
The steady growth of chlor-alkali market can be attributed to the increasing application industries such as organic chemicals, pulp and paper, and water treatment.
The market also will gain from steady application in the expanding building and construction sector. Chlor-derivatives also are used in advanced infrastructure solutions. Considering this, the market will gain momentum and scope for application increases on account of the rising number of water treatment plants.
Among the chlor-alkali products, chlorine and caustic soda are the two commonly used chemicals. Chlorine is increasingly utilized in vinyl production. Rising demand for polyvinyl chloride (PVC) across construction industry is therefore augmenting chlor-alkali market growth.
Chlorine also is used in the manufacturing of various protective equipment deployed in defense and military such as canopies, cockpit, night vision goggles, and rocket propellants, bullet resistant glass and others.
With growing demand for chlor-alkali derivatives, key players are setting up new manufacturing units. They are adopting various organic and inorganic growth strategies such R&D activities, mergers and acquisitions, advanced product development, partnerships and collaborations to gain a competitive edge in the market.
For instance, in June 2021 Reliance Industries LTD (RIL) signed a strategic partnership with Abu Dhabi National Oil Company (ADNOC) to build a chlor-alkali, ethylene dichloride and Polyvinyl chloride (PVC) production at TA’ZIZ in Ruwais.
Similarly in January 2021, INOVYN, one of the world's leading chlor-alkali technology solution providers was selected by Koyuncu Group to supply chlor-alkali technology as part of a €16 million investment at a new production facility in Konya province, Turkey. The new facility will produce chlorine, caustic, sodium hypochlorite and HCL.
Chlor-Alkali Market Surges with High Profit Margins as Vinyl Production Soars
According to a newly published report by Fact.MR, the global chlor-alkali market is projected to grow at a CAGR of 5.4% and was pegged at a valuation of more than US$ 84 Bn in 2020.
The proliferation of building and construction has boosted the overall consumption of chlor-alkali across all end-use applications.
EDC / PVC applications account for a significant share in the chlor-alkali market. In 2021, the trade value of vinyl chloride polymers and other olephins was $20.48 billion.
Growing trade of PVC is anticipated to create opportunities in the chlor-alkali market.
The use of chlor-alkali derivatives, such as polyvinyl chloride plastics in advanced infrastructure solutions, further improves the chlor-alkali market's revenue margins.
Rising aluminum production, and growing paper and pulp industries in China, India, Indonesia, and Malaysia are expected to drive growth in the Asia-Pacific Chlor-alkali markets.
In addition, low energy costs for Shale gas in North America will fuel capacity expansion.
New and modern facilities will drive higher utilization and increase profitability through 2031.
Manufacturing technology has strategically shifted from the diaphragm and mercury cell system to the membrane cell process globally, owing to increasing mercury pollution levels. This will give the industry a major boost over the forecast period.
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Demand for Caustic Soda in Asia Pacific Surges
Caustic soda acts as an active compound of alkali and reacts readily with various substances, including zinc and aluminum.
This is a significant factor that is likely to boost the demand for chlor alkali products in metallurgical applications.
Chlor-alkali is also used for water neutralization owing to its low pH value. The need for integration of water treatment plants owing to environmental restrictions by governments around the world will escalate the demand for chlor-alkali.
Presently countries in Asia Pacific such as China and India account for a major chunk of caustic soda exports thus boosting the market in these regions.
Energy-Intensive Operations Adversely Affect Market Growth
Factors such as the energy-intensive production processes and strict environmental standards are expected to hamper the global chlor-alkali market growth.
The Chlor-alkali market's main limitation is the legislation implemented by governments arising from ecological concerns.
In regions such as the Americas and Europe, where the government focuses primarily on environmental issues, vendors face strict government regulations. Leading market players like DowDupont have set an example by turning asbestos-based diaphragm manufacturing into non-asbestos operations in order to align production facilities with local laws.
Average operating rate in North America will rise to 90% by the short term forecast.
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Capacity Expansions to Drive Asset Utilization and Increase Profitability
Manufacturers are investing heavily toward expansion of their production facilities to meet the increasing demand for chlor-alkali derived products across the globe. The global chlor-alkali market, characteristically, is moving towards consolidation.
Prominent players are enhancing their distribution network by acquiring regional and local players. Companies are focusing on increasing their business footprints through continuous capacity expansions and acquisitions.
These expansions are expected to surge the demand for chlor-alkali across the globe. For instance,
- In Oct 2019, Borregaard invested 207 million Norwegian krone in a chlor-alkali plant at Sarpsborg site in Norway; The project aims at modernizing existing equipment and is expected to near completion in 2021
- In July 2019, Global EPC and turnkey management company Nuberg EPC has been selected by SCE Chemicals, Morocco as the EPC lump sum contractor to establish a new Chlor-Alkali plant. The plant will produce caustic soda, hydrochloric acid and sodium hypochlorite chlorine.
- In Feb 2019, Aditya Birla Group firm, Grasim Industries, has inked a pact to acquire the chlor-alkali business of KPR Industries.
- In April 2018- Kemira announced an investment of USD 58.5 Million to expand the manufacturing capacity of chlor-alkali at its Finland based plant
Global Chlor-alkali Market: In-Depth Assessment on Key Segments
The global chlor-alkali market is segmented on the basis of product, application, and region.
Country-specific assessment on demand for chlor-alkali has been provided for each regional market, along with the market size valuation and forecast price point assessment, price index and impact analysis of key regional and country-wise dynamics, which were obtained through quotes from numerous chlor-alkali manufacturers, experts, and suppliers. Y-o-Y growth projections have also been offered on all regional markets incorporated in the report.
Moreover, future trends, growth prospects, and other possibilities related to the market have been answered in the report.
The report provides company-level market share analysis, which has been derived on the basis of the company’s annual sales and segmental revenue in all the target end-use industries.
The market has been forecasted based on constant currency rates. The report provides detailed competitive and company profiles of key participants operating in the global market.
Some of the major competitors operating in the chlor-alkali market are Dow Chemicals, Solvay SA, AkzoNobel SA and others.
Global Chlor-alkali Market – Scope Of The Report
The following report provides forecast and analysis of the global chlor-alkali market along with the historical data of 2016, estimated data 2021 and forecast data up to 2031 in terms of revenue (US$ Mn) and volume (Tons), according to a Fact.MR study.
The research propounds critical trends that are currently influencing growth within the global chlor-alkali market along with several macro-economic indicators.
This newly published and insightful report on chlor-alkali sheds light on key dynamics, and their impact on the overall value chain from suppliers to end-users, which are expected to transform the future of the global chlor-alkali market.
The report also comprises the study of current issues with end users and opportunities for chlor-alkali. It also contains value chain analysis, including the key market participants.
To provide users of this report with a comprehensive view of the market, we have included a detailed competitive analysis about the key players involved in the market and strategic overviews.
The dashboard included in the report provides a detailed comparison of chlor-alkali manufacturers on parameters such as total revenue, product offerings, and key strategies.
A list of key companies operating in the chlor-alkali market provided in the report adds to the credibility of this exhaustive research study.
Global Chlor-alkali Market: Research Methodology
A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, Morningstar and Hoovers, and company annual reports and publications.
Comprehensive interviews have been conducted by our analysts, and the intelligence and insights obtained have been used for validating the information gained through secondary research.
The report also includes a description of assumptions and acronyms utilized for research purposes. Data gathered has been validated using the triangulation method to offer useful quantitative and qualitative insights into the chlor-alkali market.
Qualitative aspects gained from industry experts and opinion leaders have also been adhered to by the analysts while developing this insightful report on the global chlor-alkali market. Secondary research is leveraged for ascertaining the overall size of the chlor-alkali market.
A short market viewpoint offered in the report elucidates the macro-economic aspects that influence the growth of the chlor-alkali market, which includes global GDP growth rate, various industries growth rate, such as chemical, water treatment, pulp & paper and others.
This report serves as an authentic resource of intelligence on the chlor-alkali market, enabling the readers to take fact-based decisions on the future direction of their businesses.
- FAQs -
The chlor-alkali market is poised to surpass US$84 Bn by the end of 2031.
As per latest updated data by Fact. MR, the Chlor-alkali market is set to register a CAGR of around 5.4% during the forecast period.
Increasing demand for chlor-alkali products and their derivates across various applications and expanding construction and automotive sectors are some of the factors driving the growth of chlor-alkali market.
Establishment of new manufacturing plants, utilization of green production techniques, acquisitions, mergers and partnerships are some of the key trends prevailing in the market.
Vinyl segment dominates the global chlor-alkali market. The trade value of vinyl chloride polymers and other olefins is expected to surpass US$ 20.48 billion by 2021 end.
The North America market is forecast to exhibit a healthy CAGR during the forecast period.
Owing to the expanding construction and automotive sectors along with increasing production of Chlor-alkali products, the Asia Pacific market is set to register a steady CAGR between 2021 and 2031.
Implementation of stringent environmental regulations and COVID-19 impact are some of the factors restraining the growth of Chlor-alkali market.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
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