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The soda ash market size is forecast to increase by USD 4.65 billion, at a CAGR of 4.42% between 2023 and 2028. The growth of the market depends on several factors, including an increase in demand for soda ash from the glass industry, a growing chemical industry, and increasing demand for soda ash in the pharmaceutical industry.
The report includes a comprehensive outlook on the Soda Ash Market, offering forecasts for the industry segmented by Application, which comprises glass, soaps and detergents, chemicals, and others. Additionally, it categorizes Type into light and dense, and covers Regions, including APAC, Europe, North America, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Soda ash or sodium carbonate is an inorganic chemical that is a strong alkaline. Natural soda ash is manufactured from the refining of mineral trona or naturally occurring sodium carbonate-bearing brines, whereas synthetic soda ash is manufactured from various chemical processes.
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The growing chemical industry is the key factor driving market growth. The chemical industry is growing at a significant pace globally, with increasing demand for chemicals in innovative and enhanced products used in various industries, such as construction, automotive, and agriculture. Soda ash, a highly soluble substance, is widely used in the chemical industry for manufacturing a wide variety of chemical products. It is used as an effective ingredient in manufacturing coloring agents, dyes, adhesives, sealants, fertilizers, and detergents.
In addition, in China, the chemical industry has been contributing significantly to the regional GDP of APAC, owing to growth in the demand for chemicals in different end-user industries. Therefore, with the growth of the chemical industry, the global market is expected to grow significantly during the forecast period.
The rising number of M&A activities is the primary trend shaping market growth. Companies manufacturing soda ash are engaging in several mergers and acquisitions (M&A) to strengthen their business and expand their geographical presence. For instance, in February 2022, Solvay and the French National Centre for Scientific Research (CNRS) renewed their 45-year-old partnership. For more than 45 years, CNRS and Solvay have been working together on chemical research and its use in the global market.
Also, in November 2021, Sisecam announced the acquisition of a 60% stake in Ciner Resources Corp. The company owns a 74% stake in Ciner Resources LP, which, in turn, owns 51% of Ciner Wyoming USA, a fully functional plant with a 2.5 million tonne annual capacity for producing natural soda ash. Such partnerships and M&A activities will propel the growth of the market during the forecast period.
Volatility in prices of raw materials is a challenge that affects market growth -The production requires high-energy resources, including coal and natural gas. In the past few years, the prices of these raw materials have surged globally owing to growing geopolitical uncertainties, which have impacted the global trade of these commodities and resulted in price volatility. Furthermore, the ongoing trade war between China and the US has also negatively impacted the prices of coking coal and natural gas. In addition, a rise in the prices of furnace fuel used in the production has also been adversely affecting the growth of the market in focus.
Operations at the production facilities of several producers, such as BASF and GHCL, among others, are negatively impacted by the volatile prices of coal. For the continuous manufacturing, companies require a regular supply of coal. To achieve this, they are entering into long-term purchase contracts with designated vendors. The purchase price of contracts increases the overall operational cost. Therefore, the volatility in the prices of these raw materials is expected to negatively impact the growth of the global soda ash market during the forecast period.
The market share growth by the glass segment will be significant during the forecast period. The demand for other types of glass, including those used in television screens, mobiles, solar panels, foam glass, and specialty glass, is also growing with the growth in the electronics and energy industries. Therefore, the rise in the demand for different types of glass from various end-user industries has driven the growth of the global glass industry.
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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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