Industrial Salt Market
Industrial Salt Market Analysis, By Grade (Grade-I Industrial Salt, Grade-II Industrial Salt), By Source (Rock Salt, Natural Brine), by Production Process (Conventional Mining, Solar Evaporation), By Application (Chemical Processing, Oil & Gas, De-icing) & Region - Global Market Insights 2023 to 2033
Analysis of Industrial Salt Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Industrial Salt Market Growth Outlook (2023 to 2033)
The global industrial salt market is valued be US$ 14.7 billion in 2023 and it is anticipated to grow at a CAGR of 4.0% during the forecast period from 2023-2033.
Industrial Salt is extensively used in the manufacturing of caustic soda and soda ash. Industrial salt has application in the oil & gas industry owing to its density modification properties. Owing to the plethora of applications industrial salt is anticipated to project high growth opportunities during the projection period.
Industrial Salt Market Size (2022A)
US$ 14.2 Billion
Estimated Market Value (2023E)
US$ 14.7 Billion
Forecasted Market Value (2033F)
US$ 21.8 Billion
Global Market Growth Rate (2023-2033)
North America Market Share (2023)
Market Share of Top Companies
Key Companies Profiled
Historic and Future Pathway Analysis for the Industrial Salt Market
With the advent of newer technologies and industrial salt experiencing application in it, the market players are set to witness high-profit margins in the forthcoming years. For instance, cloud seeding, water desalination, and renewable energy investment, all require industrial salts to perform the basic function or initiate the process.
Hence, with the growing investment in such technology, the industrial salt market is anticipated to grow at a prominent rate during the course of the projection period.
- Short Term (2023-2026): Growing chemical industry coupled with the rising demand for the chlor-alkali to drive the industrial salt market during the assessment period.
- Medium Term (2026-2029): MEA especially Abu Dhabi to create a plethora of opportunities for the industrial salt market to grow over the projection period. Further, government investment in renewable energy sources to supplement product’ growth.
- Long Term (2029-2033): Efforts by market players to increase sales and expand their business across untapped markets are likely to fuel the industrial salt market growth.
On the back of the aforementioned facts, the market is anticipated to grow at a CAGR of 4.0% during the forecast period from 2023-2033, According to the Fact.MR, a market research and competitive intelligence provider.
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Market Dynamics Overview
“Growing Water Projects to Drive Industrial Salt Demand Growth”
Abu Dhabi created new policies to improve water security via nine of its water desalination plants. For Abu Dhabi desalination plants water security has been a major priority to ensure secure and sustainable water supplies through nine of its plants, which have a production capacity of around 1.3 bn cubic meters of water per year. The project requires a significant amount of industrial salt for water softening purposes.
Further, about fifty kilometers to the northeast of the Emirate of Abu Dhabi is where the Al Taweelah Power and Desalination Complex is situated. It is the world's largest water desalination plant. There are two water and power plants there, and a third is under construction. Abu Dhabi's desalinated water constitutes 14.0% of total desalinated water, worldwide. This proves the amount of salt required during the forecast period for the water-softening process.
Water infrastructure is set to stabilize the demand for water in the region and is set to reduce the dependence on other regions. On the other hand, the rise in such projects is set to largely benefit the industrial salt market. K+S is the key player channeling salt for the water treatment process. Post-desalination of seawater and softening process utilizes a significant amount of salt, which therefore tends to provide perfect trade wind for the industrial salt demand in the country.
“Thriving Chemical Industry to Pave the Way for Industrial Salt Market Growth”
The growing use of industrial salt in chemical manufacturing is driving the products' consumption. With the flourishing chemical industry, for instance, chemical volumes, are anticipated to increase by 3.2% in 2022 after recovering 1.4% in 2021. Shipments increased by 8.1% to US$ 526 billion in 2021 and by 8.2% to US$ 569 billion in 2022.
Hence, the growing chemical industry, especially chlorine-alkali chemicals production to drive the industrial salt market. Due to the lack of an affordable substitute for industrial salt, it is highly used for the production of chlorine-alkali.
With the growing demand for chlorine alkali, for instance, in order to make vinyl, chlorine is used in great quantities. Chlorine is used to create a number of downstream chemicals, including polyvinyl chloride (PVC). PVC is the third most commonly used polymer in the world.
It is widely used to manufacture pipes, window frames, and other products in the construction sector. The demand for chlorine in the manufacture of vinyl has increased as a result of the booming construction sector in emerging economies.
Hence, mushrooming chemical sector and growing demand for chlorine-alkali chemicals are likely to accelerate industrial salt consumption during the forecast period at the global level.
“Factors to Restrain Industrial Salt Market Growth”
For industrial salt, the process of extracting it from mines requires a high cost. It includes licenses from mining administrators across the globe and additional approvals, which are considered to impede production.
Additionally, the functional levels of mine locations vary greatly as the demand for de-icing products mounts, which is anticipated to slow down industrial salt market growth over the course of the forecast period.
Further, the ongoing Russia-Ukraine invasion has a highly negative impact on the industrial salt market as Russia is targeting Soledar rages, one of the major salt mining sites. Hence, the market is anticipated to witness a significant impact due to the ongoing war.
Moreover, the mining industry is regulated by laws such as the Mine Health and Safety Act, which is concerned with the health and safety of miners, enforced by the Environmental Protection Agency (EPA) for the protection of the environment as well.
In addition, manufacturers must follow a number of regulations related to obtaining government permits, which are predicted to restrain the industrial salt market growth.
What are the Factors Driving Industrial Salt Demand Across the UAE?
The United Arab Emirates has pioneered successfully utilizing cloud seeding methods to get rain in the country. The dry-laden country always seeks the opportunity to grow. The country imported water and agricultural goods extensively in the historical period and is looking forward to moving in a self-sufficient manner to reduce the trade surplus of agricultural products.
The country has begun utilizing air-based cloud seeding flares, which consist of 13% of Grade-I industrial salt. Flares are placed at the back of the aircraft wing and the updraft of the wind carries the particle to clouds.
The flare is fired for 2 to 3 minutes and the effect is shown within around 20 minutes of the flare being fired. Likewise, certain clouds are targeted for extracting the process of rain. New technologies and innovation as such in the application of industrial salt are set to provide the market with a long-run thrust in the region. Moreover, its ability to channel investments toward the development of the region has bolstered market growth. Therefore, new technologies such as cloud seeding are set to provide a platform for the industrial salt market growth across the country.
Why is the Indian industrial salt Market Expected to Be Highly Lucrative?
The growing chemical sector in India, for instance, the Indian chemicals market was worth US$ 178.0 billion in 2019 and is anticipated to grow at a 9.3% rate annually and reach a valuation of US$ 304.0 billion by 2025. By 2025, the demand for chemicals is anticipated to increase by 9% annually. By 2025, it is anticipated that India's chemical sector will contribute US$ 300 billion to the country's GDP.
By 2025, it is anticipated that US$ 107.4 billion will be invested in India's chemicals and petrochemicals industry. In India, specialty chemicals account for 22% of the market for chemicals and petrochemicals overall. Indian market is also lucrative for alkali chemicals, hence, the demand for industrial salt is anticipated to grow with the thriving chemical industry across India.
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Which Source is Driving Industrial Salt Market?
Brine is a crucial source of industrial salt, as it is extracted from solution mining or large saline water bodies. The use of brine in the application industries is anticipated to benefit from the stringent regulations on mining operations.
Chemical processing is a significant application industry that uses brine extensively. Hence, the brine segment is witnessing high demand and is anticipated to accelerate the industrial salt market growth.
How does Caustic Soda Contribute to Industrial Salt Market Growth?
Caustic soda is used to control alkalinity in oil & gas remains, which is the top priority for oil drillers in the United Arab Emirates. Industrial salt is the key component utilized for manufacturing caustic soda. Sodium hydroxide (NaOH) is also known as caustic soda, caustic alkali, and lye. It is a potent base that separates sodium and hydroxyl ions in solution and is incredibly soluble in water.
To maintain or raise pH, caustic soda is employed. In high-hardness waters, adding caustic soda raises the pH, precipitating magnesium (Mg2+) and suppressing calcium (Ca2+). Oil is mostly generated with large amounts of alkaline water coupled with calcium present in them. As a drilling fluid additive to control the alkalinity of the oil produced, caustic soda is used.
Industrial salt is widely used in the chloralkali process at a ratio of 1:1 to produce caustic soda (i.e., 1 Kg of salt is required for the generation of 1 kg of caustic soda). Additionally, caustic soda is used for caustic treatment to upgrade a variety of liquid fractions from LPG to heating oils, diesel fuels, and others.
Depending on the process used, the caustic solution (often a catalyst) either extracts or sweetens mercaptans as it mixes with the hydrocarbon feed. As a result, rising oil production will have a cascading effect on the demand for caustic soda, which in turn will drive up the price of industrial salt used in its production.
Market Player’s Key Stratagems
Eminent industrial salt is American Elements, Amra Salt Co., Atisale S.P.A., Cargill, Inc., Tata Chemicals Ltd., Wacker Chemie AG, and Wilson Salt Company.
Market players are targeting to deal with the growing number of orders of industrial salt across the globe. Companies are looking for increasing their capacity utilization rates to deal with the marginally added orders every quarter. Market players are looking to manufacture in the region where the production cost is low and channel it to the countries at market price to gain absolute dollar opportunity.
Fact.MR has provided detailed information about the price points of key manufacturers of industrial salt positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
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Segmentation of Industrial Salt Industry Research
- Rock Salt
- Natural Brine
By Production Process:
- Conventional Mining
- Solar Evaporation
- Vacuum Evaporation
- Chemical Processing
- Caustic Soda
- Soda Ash
- Power Industry
- Oil & Gas Industry
- Water Treatment Industry
- Chemical Processing
- North America
- Latin America
- East Asia
- South Asia & Oceania
- FAQs -
The industrial salt market is estimated to be valued at US$ 14.7 billion in 2023.
The market is anticipated to reach a valuation of US$ 21.8 billion in 2033, due to the flourishing demand from various end-use verticals.
The following segments were considered in the industrial salt market: grade, source, production process, and application.
In East Asia, in China the presence of a well-established chemical industry coupled with growing government investment in renewable energy infrastructure supplement industrial salt market growth across the East Asia Market.
Following regions were considered in the industrial salt market: North America, Europe, Latin America, East Asia, South Asia & Oceania, and MEA.