Caustic Soda Market Research Report, Analysis, Market Share, Size, Emerging Trend, Industry Growth, Leading Player And Region – Forecast To 2027

“Paper Pigments Market”
caustic soda is used in a range of industries. The market is segmented based on application as inorganic chemical, organic chemical, alumina, soap & detergents, pulp & paper, water treatment, textiles, and dye & ink among others.

The global caustic soda market is set to grow moderately at a CAGR of 5.92% over the forecast period (2017-2027), according to an extensive report by Market Research Future (MRFR). The growth witnessed in the alumina industry due to increasing use of aluminum in transportation and pulp & paper industries. Caustic soda is used in bleaching pulp and usage of caustic soda in industries like organic, inorganic, textile and dyes. Also, increasing urbanization across cities, rise in consumer purchasing power, shift of consumer preference towards luxury and comfort are likely to positively influence the market. Increasing demand from the fast-growing chemical industry and rising use in food, pulp & paper industries leave a positive impact on the caustic soda market. High demand in automotive industry for alumina also fuels the market growth.

However, energy-intensive operations and environmental impact of carbon emission can undermine the market growth across the world. On the other hand, caustic soda is a cost-effective chemical used in water treatment, which can revitalize growth prospects for the caustic soda market.

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Market Segmentation

The caustic soda market is segmented on the basis of type and application.

Based on type, the market is segmented into lye, flake, and others. The major users of caustic soda are the aluminum industry, pulp & paper, and the chemical industry. The main applications of caustic soda lye are water treatment and water purification, in chemical industry for starch production, and for the desulphurization in the petrochemical industry.

Based on application, the market is segmented into inorganic chemical, organic chemical, alumina, soap & detergents, pulp & paper, water treatment, textiles, and dye & ink, and others. The alumina and pulp & paper segments are estimated to dominate the market by 2027. The alumina segment accounted for 18.07% share in 2017. The segment is slated to retain its lead over the forecast period with a share of 18.40% by 2027 end, owing to growing demand for caustic soda in alumina refineries.

Following alumina segment, pulp & paper is the second largest application segment for caustic soda and was accounted for 17.05% market share in 2017. The segment is expected to grow steadily due to high demand of caustic soda for bleaching of pulp. Apart from this, organic chemical was the third largest application segment in 2016. The organic chemical segment is deemed to expand at a CAGR of 6.01% during the forecast period, as caustic soda is an essential reactant in the production of many useful organic chemicals. Moreover, other segments are presumed to witness rapid growth. Altogether, nine application segments are poised to grow at a rate of 5.92% per annum to reach USD 56687.66 mn by 2027.

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Key Players

  • Solvay S.A
  • Formosa Plastics Group
  • Gujarat Alkalies and Chemicals
  • AkzoNobel N.V.
  • Westlake Chemical Corporation

For instance, Covestro AG is planning to build its own chlorine production plant in Tarragona, Spain, using oxygen-depolarised cathode technology (ODC). The production facility will consume around a quarter less energy than the conventional method.  Around USD 200 MN is invested in the plant at Tarragona to increase the site’s competitiveness. The ODC technology is based on the conventional membrane process, in which chlorine, caustic soda, and hydrogen are usually produced from rock salt and water. This cost-effective move will ensure production control, knowledge protection, as well as quality improvement for Covestro AG.

Regional Analysis

Geographically, the caustic soda market is segmented into five different regions namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The Asia Pacific caustic soda market spans China, India, Japan, South Korea, Australia, and other regions. Asia Pacific has accounted for the largest market share trailed by North America and Europe. The Asia Pacific region offers huge growth potential for caustic soda market and is slated to register the highest CAGR of 6.22% during the forecast period. In APAC region, China holds the largest market share in the Asia Pacific region and is projected to dominate during the forecast period 2017-2027 owing to increasing end-user industries in the region. Also increasing research and development activities towards development of new products using caustic soda and new production processes provide new opportunities to the competitors. Hence, drastic market growth can be expected over the coming years in the Asia-Pacific region.

The North America market is driven by major economies such as the U.S. and Canada, while the Europe caustic soda market is fueled by Germany, Russia, the U.K, France, and Italy. Increasing demand from end-user industries, growing demand from organic chemical industries, and technological advancement in processing of caustic soda are responsible for the augmentation of caustic soda market in these regions.

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