Aluminum Chemicals Market share is projected to reach a sizable valuation by the end of 2027. The consumption of aluminum chemicals is driven by their wide-ranging applications across water treatment, oil & gas, and agrochemical sectors. These chemicals are used as catalyst, flocculent, coagulant, fire retardant, and fumigant. They also find application in the medical sector in body implants and dental cements.
Increasing demand across the automotive sector and in plastics manufacturing will augment the aluminum chemicals industry forecast. Pulp and paper manufacturing is also a major area of application for these chemicals. The expanding food packaging sector and the increased consumption of paper packaging products will open up favorable opportunities for companies that supply aluminum chemicals.
In terms of the applications, the pulp and paper manufacturing segment is anticipated to hold a substantial share of the aluminum chemicals market between 2021 and 2027. The global paper demand is primarily driven by the rising consumption of packaging products. Paper packaging is a preferred material for a wide variety of materials. Its demand has increased tenfold since the outbreak of COVID-19 due to stay at home orders and the rise in home delivery services. From grocery and essential supplies to food and restaurant, home delivery is becoming a preferred choice among consumers owing to convenience. With the closure of dining services, a large number of restaurants and fast-food chains have started delivery or takeaway services, augmenting paper packaging consumption.
Aluminum chemicals industry size from the automobile sector is expected to grow at a significant CAGR in the coming years. This is due to the increasing trend of vehicle ownership worldwide and the rise in vehicle production. In the U.S., for instance, major automakers including Ford, GM, and Fiat were seen ramping up automotive production in June 2020 after COVID-19 restrictions were lifted. The growing vehicle demand among consumers, especially across the passenger vehicle segment, will certainly benefit aluminum chemical suppliers.
Considering the regional landscape, North America aluminum chemicals market share will expand substantially throughout the analysis period 2021-2027. The regional demand is largely driven by the ongoing developments in oil & gas and water treatment sectors. Recently, the U.S. President Joe Biden had announced a massive investment of USD 111 billion in water infrastructure projects, according to the U.S. Water Alliance. Back in July 2019, the U.S. Department of Energy had invested USD 40 billion in enhanced oil recovery (EOR) projects. These factors along with the growing consumption across food packaging, medical, and pharmaceutical applications will bolster the regional outlook significantly.
Kemira, General Chemical, Huber, Solvay Rhodia, USALCO, GEO, Kurita, Showa Denko, Aditya Birla, KC Corp, Tenor Chemical, Zhongke Tianze, Nabaltec, Summit Chemical, Jianheng Industry, Feralco Group, and, Albemarle are among the top players in the aluminum chemicals industry. Manufacturers are investing in capacity expansions to ramp up production and meet the growing market demand.
The coronavirus pandemic has presented numerous new challenges for manufacturers, including strict containment measures, supply chain shortages, workforce shortages, and the impact of the global economic slowdown. Due to these factors, companies were forced to halt production temporarily or operate at a diminished category. With other end-use sector experiencing similar disruptions, the aluminum chemicals industry witnessed a decline. However, ongoing efforts by respective governments to kickstart the economy will provide momentum to the industry growth in the next few years.