“Global Caustic Soda Market to reach a market value of USD 63.8 Billion by 2030 growing at a CAGR of 5.4%”
The Global Caustic Soda Market size is expected to reach $63.8 billion by 2030, rising at a market growth of 5.4% CAGR during the forecast period. In the year 2022, the market attained a volume of 83,252.5 Kilo Tonnes experiencing a growth of 4.7% (2019-2022).
Increasing demand in the chemical, pulp and paper, biofuels, recycled paper, and water treatment industries drives the growing usage of this soda in Europe. Consequently, the European region would acquire nearly 20% of the total market share by 2030. Also, Germany would consume 4,271.73 Kilo Tonnes of this Soda by 2030. Additionally, as the chemical industry in Europe continues to grow, driven by factors such as innovation and increased investment, the demand for this soda is expected to increase. As Europe continues to prioritize sustainability and innovation, the demand for this soda will remain strong in the region.
With urbanization on the rise, cities worldwide are investing in upgrading and expanding their water treatment infrastructure. Furthermore, industrial water reuse projects are becoming more prevalent as industries seek to minimize water consumption and reduce their environmental footprint. Thus, the growing use of this chemical in water treatment will support the market's growth throughout the forecast period. Additionally, as emerging economies invest in building and upgrading their infrastructure, there is a corresponding increase in the demand for various chemicals, including this chemical. Moreover, government initiatives are crucial in driving infrastructure development in emerging economies. Therefore, developing infrastructure in emerging economies will propel the expansion of the market.
However, salt, a primary raw material for the chemical’s production, is a key cost component. Salt price variations can arise from weather conditions affecting salt production, transportation costs, and geopolitical events impacting salt supply chains. The impact of fluctuating raw material prices extends beyond production costs. It can also affect pricing strategies, profitability, and investment decisions within the industry. Thus, these aspects could hinder market growth, especially in regions or industries sensitive to cost fluctuations.
On the basis of application, the market is classified into organic chemical, inorganic chemical, alumina, pulp & paper, soap & detergent, water treatment, and others. The pulp & paper segment recorded 12.5% revenue share in the market in 2022. In terms of volume, the pulp & paper segment registered a volume of 9,986.1 Kilo Tonnes. This chemical is used in the kraft pulping process to break down lignin, a natural polymer found in wood. By dissolving lignin, this chemical helps to separate the cellulose fibers, which are then used to make paper.
Based on production process, the market is characterized into membrane cell, diaphragm cell, and others. The diaphragm cell segment procured a 32% revenue share in the market in 2022. The diaphragm cell process is known for its high production capacity, which allows manufacturers to meet the growing demand for this chemical from industries. Additionally, the diaphragm cell process is more energy-efficient than the mercury-based electrolysis method, leading to lower production costs.
Free Valuable Insights: Global Caustic Soda Market size to reach USD 63.8 Billion by 2030
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment garnered a 52% share in the market in 2022. Countries like China, India, and Southeast Asian nations are witnessing a surge in manufacturing activities across various industries, including chemicals, textiles, and pulp and paper. This chemical is a crucial raw material in these industries, driving the demand for this chemical in the region. Additionally, the growing population in the region is driving demand for basic necessities, further fueling the demand for this chemical.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 42.1 Billion |
| Market size forecast in 2030 | USD 63.8 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 5.4% from 2023 to 2030 |
| Quantitative Data | Volume in Kilo Tonnes, Revenue in USD Billion, and CAGR from 2019 to 2030 |
| Number of Pages | 276 |
| Number of Tables | 500 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Production Process, Application, Region |
| Country scope |
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| Companies Included | Shin-Etsu Chemical Co., Ltd., Gujarat Alkalies and Chemicals Limited, INEOS Group Holdings S.A., BASF SE, The Dow Chemical Company,Tata Chemicals Ltd., Solvay SA, Covestro AG, LG Chem Ltd. (LG Corporation) and Formosa Plastics Group |
By Application (Volume, Kilo Tonnes, USD Billion, 2019-2030)
By Production Process
By Geography (Volume, Kilo Tonnes, USD Billion, 2019-2030)
The Market size is projected to reach USD $63.8 billion by 2030.
Growing use in water treatment are driving the Market in coming years, however, Fluctuating raw material prices restraints the growth of the Market.
Shin-Etsu Chemical Co., Ltd., Gujarat Alkalies and Chemicals Limited, INEOS Group Holdings S.A., BASF SE, The Dow Chemical Company,Tata Chemicals Ltd., Solvay SA, Covestro AG, LG Chem Ltd. (LG Corporation) and Formosa Plastics Group
In the year 2022, the market attained a volume of 83,252.5 Kilo Tonnes experiencing a growth of 4.7% (2019-2022).
The Organic Chemical segment led the Market by Application in 2022; thereby, achieving a market value of $15.6 billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $33.8 Billion by 2030.
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