Sodium chlorate market size is estimated to show notable expansion from 2021 to 2027 on account of growing utility in the production of bleaching agents. The considerable boom in the packaging sector has increased the adoption of superior-quality tissue, packaging, and craft paper among consumers.
Sodium chlorate is primarily a hygroscopic inorganic compound that is used to manufacture oxidizing agents, herbicides, defoliants, dyes, explosives, matches, cosmetics, inks, pharmaceuticals, and leather. On account of its oxidation properties, it is widely used in tanning, and leather finishing applications.
Pharmaceutical, metal treatment, vanadium mining, and herbicides are other significant applications of the product. It is also utilized to create color in fireworks and is employed in the manufacturing of explosives. The presence of stringent regulations and easy availability of alternatives may pose a challenge to the market progression.
Based on form, the crystalline sodium chlorate industry will grow with the rising adoption in weed control and production of sodium perchlorate, potassium chlorate, and sodium chlorite. The crystalline form is found to be quite expensive in comparison to amorphous, given its higher cost of production. Rising developments across the pulp and paper sector along with rising adoption in explosives will add to the segment growth. However, the fluctuations in crystalline prices will contribute to the market expansion.
Sodium chlorate uses in paper and pulp applications will substantially expand with increasing penetration in the production of chlorine dioxide, which is a bleach used in the manufacturing of high quality and eco-friendly paper products. It has been estimated that over 90% of all sodium chlorate produced worldwide is employed by the pulp and paper sector to generate chlorine dioxide, the most critical component used in elemental chlorine-free pulp bleaching. Its rising popularity in emerging markets like India and China along with the mounting need for wood pulp in craft paper manufacturing will drive the segment expansion.
Geographically, Asia Pacific will record notable gains for the sodium chlorate market on account of the robust industrialization. The growing need for improved engine designs and influx of advanced technologies has led to significant strides in the automotive sector mainly in developed countries. The rising demand from the paper & pulp vertical specifically in China will add positive impetus to the regional market growth.
North America sodium chlorate market led by Canada, is expected to gain notable proceeds through 2027 due to the expanding pulp and paper sector. The surge in number of e-commerce activities has stirred the requirement for cardboard packaging across the region.
Some of the major sodium chlorate market players include GFS Chemicals, Reagents, ALDON Corporation, Spectrum chemicals, Mil-Spec Industries, H. K. Group, A. B. Enterprises, Annexe Chem, Shree Chlorates, and Petrochem.
These firms are consistently focusing on taking up persistent efforts for production expansions and collaboration-oriented strategies, like acquisitions and partnerships, for broadening their portfolio as well as to increase their stronghold in the competitive market landscape.
For instance, in May 2020, Kemira Oyj inked a long-term agreement with UPM-Kymmene Corp. for extending and proliferating its capacity for hydrogen and peroxide sodium chlorate in Uruguay. The new agreement includes the capacity for supporting the existing pulp mill located in Fray Bentos as well as the currently under construction 2.1 Mn ton UPM pulp mill in Paso de los Toros.
The coronavirus pandemic caused major bubbles to the global economy whilst bringing significant impacts on several industrial verticals worldwide. The sodium chlorate industry also felt the brunt of the outbreak owing to the plummeted demand from pulp and paper, dye, and leather tanning sectors. However, the increasing use of sodium hypochlorite disinfectants to combat the virus notably in Italy compelled several companies to increase their sodium hypochlorite production to easily integrate their compact skid-mounted chlorine units in their existing facilities.