The market for caustic soda in the Asia-Pacific region is expected to develop at a CAGR of over 4% during the forecast period. The major factor driving the growth of the market is the increasing demand of caustic soda from pulp & paper industry. Furthermore, the rising demand in the textile applications is the governing factor for the caustic soda market and is expected to increase the growth of the market studied. Unfavorable conditions arising due to the sudden outbreak of COVID-19 is anticipated to foil the growth of the market during the forecast period.
- Caustic soda is used to manufacture products in industries like paper & pulp, soap & detergents, textiles, etc. and also in the synthesis of many organic and inorganic chemicals. Therefore, the product has high demand and is expected to boost the market studied.
- China is expected to be the largest market due to the large-scale production and consumption of the caustic soda products and their derivatives.
Key Market Trends
Organic Chemical Industry to dominate the Caustic Soda Market
- Caustic soda mainly acts as a reagent or basic solution to manufacture organic chemicals. Organic chemicals use caustic soda for manufacturing different products, such as methanol, sulfites, phosphates, hydroxyl ethyl cellulose, carboxymethyl hydroxyethyl cellulose, polyurethane, cellulose ether, methylcellulose, propylene oxide, polycarbonate, ethylene amines, epoxy resins, acetic acid, and epichlorohydrin.
- Moreover, it is also used for neutralization and gas scrubbing by many organic chemical manufacturers. Epoxypropane (propylene oxide), another important organic chemical, also uses caustic soda for manufacturing. It is used to make polyurethanes.
- China and India are the major countries producing organic chemicals in the Asia-Pacific region. With the increasing production of polycarbonate, methanol, polyurethane, epoxy resin, acetic acid, etc., the demand for caustic soda increases significantly in the Asia-Pacific region.
- All the aforementioned factors are expected to drive the caustic soda market during the forecast period.
China to Dominate the Asia-Pacific Region
- China holds a prominent share in the caustic soda market across the region and is expected to dominate the market during the period of forecast.
- China is world’s largest producer of alumina. The increasing demand for aluminum from various end-user industries, such as construction and chemical sectors, are driving the demand for alumina. In 2019, the country produced 71.28 million metric tons of alumina. This, in turn, is expected to augment the market for caustic soda in the country during the forecast period.
- China is the largest pulp and paper producing nation in the world, as a result of its vast forest reserves (22.5% of the land area). The industry is modern and highly mechanized, and labor is cheap.
- In 2019, the Industry revenue form the manufacturing of textiles in China is estimated to be USD 533.9 billion. China produced around 3.24 billion meters of clothing fabric in the month of May in 2020. Since 2019, the monthly textile production volume was over 3 billion meters in China.
- By the end of 2019, the total production of plastic products in China is evaluated to be approximately 75.31 million metric tons.
- Thus, rising demand from various industries is expected to drive the market studied in the region during the forecast period.
The Asia-Pacific caustic soda market is fragmented. Some of the players in the market include Tata Chemicals Ltd, Tosoh Corporation, Hanwha Solutions/Chemical Corporation, SABIC, and Shin-Etsu Chemical Co., Ltd.
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