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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.
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The glass segment accounted for USD 6.25 billion in 2018. The glass manufacturing industry is growing significantly worldwide, with the increasing demand for high-performance glass from different end-user industries. The demand for flat, glazing, and container glass is growing in the construction, automotive, and packaging industries, respectively. Globally, the construction industry is a major contributor to the consumption of flat glass, which is used in window panes and doors. Thus, such factors will drive glass segment during the forecast period.
The light segment will dominate the global market in 2023. Light soda ash has a finer density of 0.7 grams per cubic centimeter (g/cc). Light soda ash is a basic industrial alkali chemical used in soap and detergents, aluminum cleaning compounds, pulp and paper, iron and steel, water softening, dyes, effluent treatment, and the production of chemicals. The growth of these end-user industries will contribute to the growth of the light segment, which, in turn, is anticipated to drive the growth of the global market during the forecast period.
APAC is estimated to contribute 66% 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.
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In 2023, APAC is the largest contributor to the growth of the global market, owing to the growing demand from flat glass and detergent manufacturing industries, dominantly operating in China and India, respectively. In 2022, China was the largest soda ash producer in the world and holds 39%-41% of the global production capacity of soda ash. The demand for glass is increasing in China, specifically from the construction and automotive industries. The rapid growth in residential and industrial construction activities has propelled the demand for glass in the country. Therefore, with the growth of the glass industry in China, the demand is expected to grow significantly during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
BASF SE, Ciech SA, Ciner Group, Destiny Chemicals, Genesis Energy LP, GHCL Ltd., Hydrite Chemical Co., Lianyungang Soda Ash Co. Ltd., Lucky Commodities Pvt. Ltd., Nirma Ltd., OCI Co. Ltd., SHANDONG OCEAN CHEMICAL Co. Ltd., Solvay SA, TangShan SanYou Chemical Industries Co. Ltd., Tata Sons Pvt. Ltd., Telford Industries, The Chemical Co., Tokuyama Corp., TURKIYE SISE VE CAM FABRIKALARI A.S., and DCW Ltd.
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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
Soda Ash Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.42% |
Market Growth 2024-2028 |
USD 4.65 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.02 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 66% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Ciech SA, Ciner Group, Destiny Chemicals, Genesis Energy LP, GHCL Ltd., Hydrite Chemical Co., Lianyungang Soda Ash Co. Ltd., Lucky Commodities Pvt. Ltd., Nirma Ltd., OCI Co. Ltd., SHANDONG OCEAN CHEMICAL Co. Ltd., Solvay SA, TangShan SanYou Chemical Industries Co. Ltd., Tata Sons Pvt. Ltd., Telford Industries, The Chemical Co., Tokuyama Corp., TURKIYE SISE VE CAM FABRIKALARI A.S., and DCW Ltd. |
Market dynamics |
Parent market analysis, 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. |
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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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