Chlor-Alkali Market Analysis Report By Product (Chlorine-based Chlor-Alkali, Caustic Soda-based Chlor Alkali, Soda Ash-based Chlor-Alkali), By Application And Regions 2021-2031

Market Outlook of Chlor-Alkali

The global chlor-alkali market is estimated to be worth around US$ 84 Bn in 2021. Demand for caustic soda will remain prevalent, as it is used in the synthesis of organic and inorganic chemicals. Asia is expected to lead the chlor-alkali market, capturing 40% of the revenue. With rising demand for chlor-alkali for application across diverse industries, the market is set to register a CAGR of around 5.4% by garnering a market revenue of US$ 143 Bn between 2021 and 2031.

Key Points Covered in Chlor-Alkali Industry Analysis

• 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
• 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

Chlor-alkali Revenue Analysis 2016-2021 Vs 2021-2031 Forecast

As per Fact.MR’s report, between 2016 and 2020, the sales of chlor-alkali exceeded US$ 79.69 Bn by the end of 2020, expanding at a 4% CAGR. Constant development of end user industries such as construction, plastic and chemicals in developing countries is spurring the demand for chlor-alkali.

A dip in the global chemical manufacturing industry throughout 2020 amid the COVID-19 pandemic induced a significant downfall in the global market for chlor-alkali derivatives. For instance, the European Union reported a nearly 2% decline in chemical production in 2020. However, with the easing of restrictions, global manufacturing operations have resumed since 2021, retaining positive growth outlook for the market.

Future sales of chlor-alkali products are expected to be driven by multiple end-use applications, including vinyl production and water treatment. Thus, in the forecast period, the sales of chlor-alkali market are expected to surpass US$ 143 Bn, registering a positive CAGR of 5.4% from 2021-2031. 

Why are Chlor-Alkali Derivatives Applications Surging in Water Treatment?

As urbanization proliferates, so is the demand for wastewater treatment. Societal and environmental pressures have prompted industries, households and agricultural stakeholders alike to reduce wastewater generation and thoroughly treat the same prior to discharge.

Globally, 56% of household wastewater flows were safely treated in 2020, according to UN Water. Countries are striving to increase the same to 100%, for which demand for efficient wastewater treatment systems is inclining. Hence, preference for chlor-alkali based treatment is expected to surge in coming years.

Chlor-alkali process helps remove unwanted solvents, via the process of electrolysis. It is typically useful for removing salts from brine. The by-products- chlorine, caustic soda and hydrogen, can then be used across various chemical processes to manufacture other useful products.

How will the Global Chemical Industry Spur Chlor-Alkali Process Adoption?

Chlor-alkali by-products: sodium hydroxide, chlorine and soda ash are instrumental in generating necessary raw material for the bulk chemical industry. These chemicals are extensively used across the plastic, alumina, paper & pulp and other major industries.

According to the European Chemical Industry Council, output of the global chemical industry is expected to grow by 3% in 2021 and 2% by 2022. Furthermore, it estimated that sales in 2019 were valued at US$ 4.1 billion, with sales expected to peak at nearly US$ 7 trillion by 2030. Attributed to these figures, demand for chlor-alkali process to generate useful chemicals is bound to rise significantly.

Country-wise Analysis

Why is Demand for Caustic Soda Chlor-Alkali Derivatives Surging in Asia?

Demand for chlor-alkali derivatives manufactured from caustic soda is expected to witness significant growth across Asia, exhibiting promising growth prospects across the Indian, Chinese and other East & Southeast Asian landscapes. Demand is primarily due to uptake in wastewater treatment facilities.

Besides, 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. Presently countries in Asia such as China and India account for a major chunk of caustic soda exports thus boosting the market in these regions. According to Fact.MR, Asia is expected to accumulate more than 40% of market share for chlor-alkali.

Which End Use Industry is Boosting Sales of Chlor-Alkali in North America?

Manufacturing technology has strategically shifted from the diaphragm and mercury cell system to the membrane cell process globally, owing to increasing mercury pollution levels. Hence, industries are transitioning towards more sustainable manufacturing practices, spurring demand for chlor-alkali derivatives.

In addition, the presence of chemical industries in the U.S is driving the growth of chlor-alkali for the region. Thus, new and modern facilities will drive higher utilization and increase profitability as North America is expected to possess nearly 35% of market share through 2031.

Category-wise Insights

How is Increasing Vinyl Production Impelling Chlor-Alkali Sales?

As per Fact.MR’s estimates, chlor-alkali chemicals for vinyl production is likely to be the highest, underpinned by increasing trade of polyvinyl chloride. In 2021, trade value of vinyl chloride polymers and other olefins is expected to be worth US$ 20.48 billion.

Use of chlor-alkali derivatives, including polyvinyl chloride plastics in the construction sector, is anticipated to broaden expansion prospects for the entire industry. As per the report, the market is slated to surge at a CAGR of 4% from 2021 to 2031.

Why are Chlorine-based Chlor-Alkali Products in High Demand?

Chlorine has gained prominence due to its disinfectant properties. Not only is chlorine used for disinfecting swimming pool water but it is also used for disinfecting drinking water. In addition, chlorine is used by a wide range of end user industries such as textiles, paper, paint and insecticides.

This, in turn, has spurred the demand for chlorine. According to Fact.MR, in the assessment period, chlorine is expected to accumulate more than 50% of market share in the global chlor-alkali industry.

Competitive Landscape

Manufacturers are investing heavily toward expansion of their production facilities to meet increasing demand for chlor-alkali derived products across the globe. The global chlor-alkali industry, 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
• Similarly, 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 to produce caustic soda, hydrochloric acid and sodium hypochlorite chlorine
• In September 2018, AGC evaluated and executed the expansion of its chlor-alkali production facility of its Thailand-based group company Vinythai PLC as part of its initiative to expand its chlor-alkali business in Southeast Asia

Chlor-Alkali Report Scope

Key Segments Covered

• Product

  • Chlorine-based Chlor-Alkali
  • Caustic Soda-based Chlor Alkali
  • Soda Ash-based Chlor-Alkali

• Application

  • Chlor-Alkali for Glass Manufacturing
  • Chlor-Alkali for Vinyl Production
  • Chlor-Alkali for Organic Chemical Production
  • Chlor-Alkali for Inorganic Chemicals Production
  • Chlor-Alkali for Pulp & Paper Production
  • Chlor-Alkali for Chlorinated Intermediates
  • Chlor-Alkali for Water Treatment
  • Chlor-Alkali for Other Applications