Caustic Soda Market Size By Production Technology (Diaphragm Cell, Membrane Cell, Mercury Cell), By Application (Pulp & Paper, Alumina, Organic Chemicals, Inorganic Chemicals, Textile, Water Treatment, Food Processing, Soaps & Detergents), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Apr 2020  |  Report ID: GMI2238  |  Authors: Kiran Pulidindi, Hemant Pandey

Report Format: PDF   |   Pages: 212   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Caustic Soda Market size was USD 30.27 billion in 2019 and will grow at a CAGR of 3.6% from 2020 to 2026. Indispensable product demand in pulp & paper and water treatment sector will complement the industry size by 2026.
 

Caustic Soda Market Statistics

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Caustic soda is an inorganic compound which is used in various end use industries due to its strong alkaline property. It has outstanding ability to dissolve or extract, thus it is majorly used in paper & pulp and alumina sector. The product is also heavily used as a feedstock for production of large number of chemicals.
 

Furthermore, in sodium-based chemistry, it acts as reagent which delivers sodium to the final end use products. Thus, the product is used in the production of silicates, silicas, metasilicates fibres and cleaning products such as bleach, detergents and soaps.
 

Covid-19 pandemic has increased awareness of personal hygiene thus augmenting the demand for soaps & cleaning agents. Product supply is influenced by various factors such as end use industries demand, production operating rates and chlorine derivatives businesses. Until 2019, the caustic soda market demand was highly motivated by strong economy activity and growth of prominent end use industries such as alumina and paper & pulp.
 

In 2017, caustic soda market prices have witnessed drastic hike due to increased demand and tight supply. In 2018 price hike remained stable owing to rising demand from alumina producers around the world, especially in Asia. There was notable demand from alumina refineries from in China, India, Indonesia, Vietnam, the Philippines, and most notably Australia.
 

Caustic soda is highly corrosive and harmful to living organisms. Thus, there are strict guidelines and regulations for handling the product. Tight regulations governing the caustic soda market may act as a constraint during forecast timeframe. For instance, Chinese plants were continued to run at reduced capacity due to environmental checks at plants during late 2017.
 

This resulted in competition amongst the key buyers in the value chain. For instance, alumina producers were competing each other for cargoes of raw material, thus boosting caustic soda market share.
 

Caustic soda market demand is expected to witness reduction due to ongoing covid-19 pandemic. The pandemic has disrupted the supply chain. Virus crisis has resulted in reduction of production capacity in China – earlier, the plants were running at 80% capacity, now rates across the country have dropped to approximately 65%. Short term product demand expected to take a hit owing to virus-related demand erosion and product movement constraints. However, demand will recover after countries lift the lockdown and open international trade.
 

Caustic Soda Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 30.27 Billion
Historical Data for: 2016 to 2019 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 3.6% 2026 Value Projection: USD 32.06 Billion
Pages: 212 Tables, Charts & Figures: 194
Geographies covered (22): U.S., Canada, Germany, UK, France, Spain, Italy, Russia, China, India, Japan, Australia, Taiwan, South Korea, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, UAE
Segments covered: By production technology (Diaphragm Cell, Membrane Cell, Mercury Cell), By Application (Pulp & Paper, Alumina, Organic Chemicals, Inorganic Chemicals, Textile, Water Treatment, Food Processing, Soaps & Detergents)
Companies covered (18): Akzo Nobel N.V., Arkema S.A., Covestro AG, Dow, Formosa Plastics Corp., Grasim (Aditya Birla), Hanwha Chemical Corporation, Aras Petrochemical Company, SABIC, Solvay Chemicals, Occidental Chemical Corporation (OxyChem), Asahi Glass Company, Union Chlorine LLC, Olin Corporation, ARABIAN ALKALI COMPANY
Growth Drivers:
  • Rapid industrialization in Asia Pacific
  • Strong pulp and paper industry in Latin America
  • Covid-19 impact on demand of soaps and cleaning agents and water treatment
  • Strong product demand from chemical industry
  • Strong demand from alumina producers
Pitfalls & Challenges:
  • Stringent regulations governing industry

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Membrane cell technology will dominate the chlor-alkali production

Caustic Soda Market by Production Process

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Caustic soda market from membrane cell segment is expected to grow steadily with a CAGR of 3.8% through 2026. Membrane cell technology has witnessed substantial growth over the years owing to its environment friendly nature and low energy consumption.
 

Caustic soda production process is very costly. Any advancement in the production process that saves input energy reduces production cost significantly. For instance, AkzoNobel Specialty Chemicals has introduced “e-Flex” technology, which routinely adjusts production with electricity supply, saving energy and cost.
 

Chemicals production to proliferate the application landscape

Caustic Soda Market by Application

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Caustic Soda finds application in several various end use industries such as pulp & paper, alumina, organic chemicals, inorganic chemicals, textile, water treatment, food processing, soaps & detergents and others. Caustic soda market growth trajectory in terms of volume is most likely to stay linear as it is essential for raw materials in many end use industries such as alumina, paper & pulp, and organic & inorganics.
 

During 2016 to 2019, the market experienced steady growth from alumina manufactures. High demand of Product and tight supply during 2017 & 2018 had led to drastic hike in prices in every region.
 

Organic chemicals segment accounted for close to 20% revenue share in 2019 is expected to grow at a CAGR of 3.7%. About 60% of all chemical products are produced, directly or indirectly, using chlorine and?/?or caustic soda. Product performs various functions in the manufacturing of various chemicals including waste acid neutralization, catalysis, caustic scrubbing of off-gases, pH control, and caustic extraction. The growing chemical industry is expected to drive the caustic soda market growth.
 

Asia Pacific will influence global demand & supply

Caustic Soda Market by Region

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Asia Pacific contributed over $15 billion in 2019. The Asia Pacific dominates caustic soda production and consumption; thus, any significant change in either supply or demand may cause price hike. Strong position of Asia Pacific market is highly attributed to higher production capacity, lower energy rates, strong regional demand, lower prices compared to other regions and dominating supply chain. The caustic soda market in APAC is expected to witness highest growth owing to rapid industrialization, urbanization, and population growth.
 

Production capacity expansion is a key strategy among industry players

Companies are heavily investing in the caustic soda market production capacity expansion and new technology adoption.  Production process is costly, and cost is heavily influenced by energy consumption. For instance, in October 2019 Ercros, completed capacity expansion of the chlorine and caustic soda with new membrane cell technology.
 

Key players involved in the caustic soda industry are Akzo Nobel N.V., Arkema S.A., Dow, Covestro AG, Formosa Plastics Corp., Grasim (Aditya Birla), FMC Corporation, Hanwha Chemical Corporation, Aras Petrochemical Company, and SABIC.
 

The caustic soda market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD million from 2016 to 2026, for the following segments:
 

By Production Technology

  • Diaphragm cell
  • Membrane cell
  • Mercury cell

By Application

  • Pulp & Paper
  • Alumina
  • Organic Chemicals
  • Inorganic Chemicals
  • Textile, Water Treatment
  • Food Processing
  • Soaps & Detergents
  • Others

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Taiwan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
       

Frequently Asked Questions (FAQ) :

Overall caustic soda market would be pegged at a valuation of USD 32.6 billion in 2026.
Caustic soda market is likely to depict a CAGR of 3.6% over 2020-2026.
According to the report published by Global Market Insights Inc., the caustic soda business is supposed to attain $32.06 billion by 2026.
Rapid industrialization, strong pulp and paper industry, Covid-19 impact on demand of soaps and cleaning agents and water treatment, and strong product demand from chemical industry and alumina producers are major factors expected to drive the growth of global market.
Akzo Nobel N.V., Arkema S.A., Covestro AG, Dow, Formosa Plastics Corp., Grasim (Aditya Birla), Hanwha Chemical Corporation, Aras Petrochemical Company, SABIC, Solvay Chemicals, Occidental Chemical Corporation (OxyChem), Asahi Glass Company, Union Chlorine LLC, Olin Corporation, ARABIAN ALKALI COMPANY are some of the top contributors in the industry.
The membrane cell production process segment registered a major market share in 2019 and is projected to record a remarkable growth rate throughout the forecast period.

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Premium Report Details

  • Published Date: Apr 2020
  • Pages: 212
  • Tables: 172
  • Charts / Figures: 22
  • Companies covered: 18
  • Countries covered: 22

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