Global Caustic Soda Market is Estimated to reach USD 59.36 Billion at the Rate of 3.26% by 2028
The Global Caustic Soda Market is worth USD 45.91 billion in 2020 and is expected to reach USD 59.36 billion by 2028, with a compound annual growth rate of 3.26% during the forecast period.
Caustic soda is an inorganic compound that is used in various industries due to its strong alkalinity. It has an exceptional ability to dissolve or extract, therefore it is mainly used in the pulp, paper, and alumina industries. The product is also widely used as a raw material for the production of large quantities of chemicals. Also, in sodium-based chemistry, it acts as a reagent that supplies sodium to end products. Therefore, the product is used in the production of silicates, silica, metasilicate fibers, and cleaning agents such as bleach, detergents, and soaps.
Caustic soda accounts for more than 40% of the total amount of inorganic chemicals. It is essential for the production of alumina, inorganic chemicals, organic chemicals, food, cellulose and paper, soaps and detergents, textiles, water treatment, steel/metallurgical sintering, etc. Caustic soda can be used in various end-use industries, such as pulp and paper, alumina, organic chemicals, inorganic chemicals, textiles, water treatment, food processing, soaps, detergents, etc. The growth trajectory of the Caustic Soda Market in terms of volume is likely to remain linear because it is important for raw materials in many end-use sectors such as alumina, paper and pulp, and organic and inorganic products.
About 60% of all chemicals are produced directly or indirectly using chlorine and/or caustic soda. The product performs various functions in the production of various chemicals, including waste acid neutralization, catalysis, alkaline exhaust gas cleaning, pH control, and caustic extraction. Growth in the chemical industry is expected to drive growth in the Caustic Soda Market. Caustic soda is very aggressive and harmful to living organisms. Thus, there are strict rules and regulations for handling the product. During the forecast period, strict Caustic Soda Market rules may become a constraint. It is estimated that by 2028, the Caustic Soda Market in the membrane battery field will grow steadily at a compound annual growth rate of 3.8%. Due to its ecological characteristics and low energy consumption, membrane battery technology has experienced significant growth over the years
The production of caustic soda is very expensive. Any improvement in the production process that allows you to save energy consumption will significantly reduce production costs. For example, AkzoNobel Specialty Chemicals has implemented "e-Flex" technology that regularly adjusts production and delivery of electricity, saving energy and costs.
Covid-19 has had a significant impact on the global Caustic Soda Market and its value chain. Serious fallout from the Covid-19 pandemic has been a demand shock and massive disruptions in global supply chains. However, the impact of industry demand on products from end-users varies across sectors and over time. For example, caustic soda producers saw a sudden surge in demand for water treatment products at the start of the pandemic. Thus, the pandemic has also impacted global manufacturing capacity, creating bottlenecks in global product supply.
Manufacturers in China closed their factories in the first quarter of 2020 due to the Covid-19 pandemic. China, the largest supplier of caustic soda, has been hit hard by the country's blockade, trade, and travel restrictions, and slowing growth in product consumption across various end-user sectors. For most of 2020, many key geographic markets experienced some kind of lockdown or similar. The decline in performance in the end-user industries has impacted global product demand.
The strong market position in the Asia-Pacific region is largely attributable to higher manufacturing capacity, lower energy tariffs, strong regional demand, lower prices than other regions, and a dominant supply chain. The Caustic Soda Market in the Asia Pacific region is expected to maximize its growth due to rapid industrialization, urbanization, and population growth.
Key players involved in the caustic soda industry are Akzo Nobel N.V., Arkema S.A., Dow, Covestro AG, Formosa Plastics Corp., Grasim (Aditya Birla), FMC Corporation, Hanwha Chemical Corporation, Aras Petrochemical Company, and SABIC. These companies are investing heavily in expanding market production capacity and introducing new technologies.
Browse the full Report - Caustic Soda Market by Type (Membrane Cell, Diaphragm Cell, Other Production Processes), by Application (Pulp and Paper, Organic Chemical, Inorganic Chemical, Soap and Detergent, Alumina, Water Treatment, Textile, Other Applications), by Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)