The market for chlor-alkali 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 high demand for caustic soda and its derivatives.
- Furthermore, the rising demand for alumina in the transport sector is positively influencing the market growth. Unfavorable conditions arising due to the sudden outbreak of COVID-19 are expected to restrict the growth of the market studied during the forecast period.
- Caustic soda is used to manufacture products in industries, like paper and pulp, soap and detergents, and textiles, and in the synthesis of many organic and inorganic chemicals. Therefore, the product has a high demand, which is expected to boost the market studied.
- The Asia-Pacific region is expected to be the largest market due to the large-scale production and consumption of chlor-alkali products and their derivatives.
Key Market Trends
High Demand for Caustic Soda is Expected to Drive the Market
- Caustic soda finds application across various industries, such as pulp and paper, soap and detergent, textiles, aluminum, water treatment, etc., to name a few.
- The global paper and pulp industry’s market value in 2019 was estimated to be USD 63.3 billion, which is forecasted to reach a value of USD 79.6 billion by 2024.
- The market size of the global textile flooring market in 2020 is estimated to be USD 17.64 billion and is expected to grow significantly during the forecast timeline.
- The increasing focus on energy-saving cars and aluminum’s excellent reusability, which allows the energy invested in its production to be entirely reclaimed, are expected to increase aluminum consumption during the forecast period.
- In 2019, the global consumption of aluminum was estimated to be around 60 million metric ton. It is anticipated to rise to 70.8 million metric ton by 2023.
Asia-Pacific is Expected to Dominate the Market
- The Asia-Pacific region holds a prominent share in the chlor-alkali market globally and is expected to dominate the market during the forecast period.
- The Indian chemical industry is the sixth-largest producer of chemicals in the world, and in 2019, its liquid chlorine production volume was estimated to be 2.07 million metric ton.
- The market size of the Indian textile industry is predicted to reach a value of around USD 223 billion by 2021.
- China and India are the world leaders in the production of aluminum with capacities of 36 million metric ton and 3.7 million metric ton, respectively.
- By the end of 2019, the total production of plastic products in China was evaluated to be approximately 75.31 million metric ton.
- Thus, the rising demand from various industries, coupled with government support, is expected to drive the market studied in the region during the forecast period.
The chlor-alkali market is consolidated. Some of the players in the market include Olin Corporation, Tata Chemicals Ltd, Tosoh Corporation, Occidental Petroleum Corporation, and Hanwha Solutions/Chemical Corporation.
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