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The caustic soda (NaOH) market size is estimated to grow by USD 9.75 billion at a CAGR of 4.42% between 2022 and 2027. The market's growth is influenced by several key factors. Firstly, the alumina industry's increasing demand is a significant driver, as alumina is a crucial component in various industrial processes. Secondly, the rising production of paper and pulp is contributing to market expansion, as these industries require chemicals for processing. Lastly, the growing adoption of PVC products is fueling demand for chemicals used in PVC manufacturing. These factors collectively indicate a positive outlook for the market, with opportunities for growth and development in the chemicals sector. Additionally, the market is benefiting from the increasing use of chemicals in various applications across industries, such as construction, automotive, and healthcare. This broadens the market's scope and provides ample growth opportunities. The market is expected to continue its upward trajectory as industries increasingly rely on chemicals for their operations.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historical market data from 2017 to 2021.
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This market report extensively covers market segmentation by application (organic chemical products, soaps/detergents/textiles, paper and pulp, aluminum, and others), method (membrane cell process, diaphragm cell process, and mercury cell process), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The organic chemical products segment is estimated to witness significant growth during the forecast period. Sodium hydroxide (NaOH), also known as lye or caustic soda, is mainly used in the production of organic acids, organic resins, and organic chemicals such as epoxy resins, propylene oxide, polycarbonate resins, ethyleneamine, pigments, and dyes. It is used for hydrolysis based on esters, alkyl halides, and amides. However, potassium hydroxide is a suitable substitute for this application because it is more soluble in some organic solvents, unlike caustic soda.
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The organic chemical products segment was the largest segment and was valued at USD 10.11 billion in 2017. The rising consumption in the production of epoxy resins will boost the consumption of caustic soda. Epoxy resins consist of prepolymers or polymers containing epoxy groups. They are mainly crosslinked by polymerization, either by themselves or with other co-reactants known as curing agents or hardeners, such as phenols, alcohols, and acid anhydrides. Epoxy resins are widely used as metal coatings, adhesives, fiber-reinforced plastics, anti-slip coatings, and electronic components. Hence, demand is expected to propel the growth of the market during the forecast period.
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APAC is estimated to contribute 71% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the leading market in production and consumption. In addition, this region is experiencing the highest growth in per capita caustic soda consumption in the world. China, India, Japan, Australia, South Korea, and Indonesia are among the largest contributors in the region.
Moreover, high production capacity and the presence of high-end end-consumer industries in the region are driving the growth of the market in the region. Alumina is one of the main industries using caustic soda. In addition, the growing demand from end-consumer industries, such as pulp and paper, alumina, PVC, and textiles, is expected to drive the growth of the market in the region during the forecast period.
The market is influenced by various factors, including the chemicals market and the demand for both commodity chemicals and specialty chemicals. It is used in various industries, including bleached pulp production, biopharma, and the manufacturing of soap and detergent. The market growth is driven by emerging economies' increasing demand for chlorine derivatives, which are essential in chlorine production. However, environmental concerns surrounding its production and usage are noteworthy. This is a key component in many industrial processes and plays a vital role in the transport sector. Its production involves several raw materials, including titanium dioxide, water vapor, aerosol compounds, silica, asbestos, hydroxide anion, and coral. Different grades, like ACS Grade and Pharmaceutical Grade, cater to specific industry needs. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising paper and pulp production is the key factor driving the market growth. This is a common chemical used in pulp and paper production. The main application in pulp and paper production is in the chemical processing or cooking of pulp, especially kraft pulp. Therefore, this is also known as a cooking chemical in the pulp and paper industry. This is used in most pulp-bleaching processes, such as sulfite, sulfate, and soda.
Pulp is indeed widely used in the production of printing and writing paper. Additionally, its production and use involve specialty chemicals, making it an essential component in various industries. The pulp industry's growth is particularly significant in emerging economies, but it also raises environmental concerns due to its impact on forests and ecosystems. Inorganics are sometimes used in the processing of pulp, further highlighting the complexity of the industry's environmental footprint. Countries like China, India, and Indonesia are driving high consumption of these papers due to the high literacy rates and population growth. This is mainly used in pulp and paper production. Increased pulp and paper consumption is expected to fuel the market during the forecast period.
Increasing production capacity for caustic soda is the primary trend in the market. The market players are investing heavily in expanding production capacity to meet growing demand from end-user industries. Existing and new market players are expanding production facilities or opening new facilities to meet growing demand. The establishment of new factories and the capabilities of suppliers of a particular product will support the market.
Furthermore, the increase in the number of alumina, PVC, and pulp factories in the world is one of the main reasons for the increase in the world production capacity of caustic soda. Therefore, the establishment of new production plants by key market players is a sign of increasing global demand. Therefore, the strengthening of capacity expansion is likely to boost the market during the forecast period.
Fluctuations in caustic soda prices is a challenge that affects the market. This is a commodity and is used primarily in many end-user industries. Fluctuating production and consumption patterns in end-user industries directly influence the market. The price of raw materials, such as caustic soda, is directly related to global economic performance and price elasticity. Price fluctuations create uncertainty in the market and affect the profit margins of value chain stakeholders.
Furthermore, users are reducing inventories to continue operations. This has increased consumer dependence on imported caustic soda. This affects the price of caustic soda even more. Therefore, price fluctuations will also reduce the profit margin of caustic soda producers, which will pose a challenge to their growth. Therefore, volatility in prices could hinder the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is a crucial component in various industries, including water treatment, soaps and detergents, and metals processing. It is used in the production of rayon, an Essential ingredient, and as an ingredient in the saponification process for making soaps. Additionally, it is used in the manufacture of aspirin and anticoagulants, highlighting its significance in the pharmaceutical industry. Potassium oxide is used in the production of caustic soda, and the market is witnessing growth due to the increasing demand for soaps and detergents. The industry's growth is also fueled by its essential role in chloralkali production and its applications in fuel additives, household cleaning, and clothes manufacturing. Efforts are being made to enhance sustainability by reducing impurities and pollutants through technologies like membrane cell technology. Anionic surfactants are characterized by their ionic properties and are commonly used in soap production for their cleaning properties.
Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.42% |
Market growth 2023-2027 |
USD 9.75 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.02 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 71% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aditya Birla Management Corp. Pvt. Ltd., Arkema Group, BASF SE, Braskem SA, Covestro AG, Dow Chemical Co., Formosa Plastics Corp., Genesis Energy LP, Gujarat Alkalies and Chemicals Ltd., INEOS Group Holdings SA, Kemira Oyj, Nouryon Chemicals Holding BV, Occidental Petroleum Corp., Olin Corp., Shin Etsu Chemical Co. Ltd., Solvay SA, Superior Plus Corp., Tata Sons Pvt. Ltd., Tosoh Corp., and Westlake Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Method
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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