San Francisco, 27 May 2024: The Report Caustic Soda Market Size, Share & Trends Analysis Report By Application (Inorganic & Organic Chemicals, Alumina, Food, Pulp & Paper, Textiles, Water Treatment), By Region, And Segment Forecasts, 2016 - 2024

The global caustic soda market is expected to reach USD 46.31 billion by 2024, according to a new report by Grand View Research, Inc. Escalating demand across various industries such as textile, pulp & paper, organic chemicals, etc. is expected to strengthen the market growth. Rising demand for alumina in automobile industry especially in Asia Pacific is considered to stimulate the market growth.

Fluctuating prices due to high energy consumption and uneven production rates is likely to limit the market growth. Chlorine production is also expected to influence the caustic soda market as it is co-produced with chlorine.

Organic chemicals emerged as the leading application segment and accounted for 16.3% of total market volume in 2015. Owing to incessant demand for manmade fibers, the textile industry is expected to emerge as the fastest growing application segment at an estimated CAGR of 4.4% from 2016 to 2024. Textiles are expected to emerge as the leading application surpassing organic chemicals over the forecast period.

Caustic soda accounts for over 40% of the total inorganic chemicals and finds application in various applications such as pulp and paper, chemicals, alumina, soaps and detergents, and textiles. The growth of the market for caustic soda is directly linked to expansions in end-use industries. Increasing demand from pulp and paper as well as textile industries is expected to foster market growth over the forecast period.

Caustic soda serves as a strong alkali compound and readily reacts with various substances, including zinc and aluminum. This is another major factor likely to propel product demand in metallurgical applications. The market is further expected to accelerate with increase in product consumption in alumina extraction.

High corrosive and reactive nature of caustic soda has a harmful impact on the environment and this is expected to pose a challenge to market growth. Also, limited consumption of PVC is likely to affect chlorine demand and thereby its production. Caustic soda is a by-product of the chlorine manufacturing process, and as a result, lower production rates for chlorine will have an adverse impact on the production of caustic soda in the coming years.

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The market in Asia Pacific is growing significantly due to increasing consumption of the product across industries such as aluminum and textiles. On a global scale, while demand for organic and inorganic chemicals as well as soaps and detergents may be growing at a moderate pace, the domestic overall consumption of caustic soda in Asian countries will continue to grow at a rapid pace.

Further key findings from the report suggest:

• Global market demand was 74.57 million tons in 2015 and is expected to reach 99.30 million tons by 2024, growing at a CAGR of 3.2% from 2016 to 2024
• Asia Pacific dominated the global market with demand share exceeding 55% in 2015. Burgeoning textile as well as pulp & paper industry particularly in China and India is likely to drive the regional market.
• Asia Pacific is also expected to witness the highest growth of 3.5% over the forecast period. China is the largest producer as well as consumer of caustic soda, and the market growth can be attributed to high demand from textile and pulp & paper industry within the nation.
• North America and European markets are expected to witness moderate growth on account of market maturity levels. European demand for caustic soda is expected to grow at an estimated CAGR of 2.8% from 2016 to 2024.
• Key players in operating in the global market are anticipated to focus on mergers & acquisitions to expand their market presence. Cost effective production of caustic soda is considered to be a major challenge which will influence the market in coming years.
• Key market players include Dow Chemical Company, Olin Chlor Alkali Products, AkzoNobel Chemicals, Befar Group Co. Ltd., Shintech Inc. The global caustic soda industry is fragmented in nature owing to the presence of a large number of small players concentrated in China which will witness larger production as well as consumption of caustic soda in coming years.

The organic chemicals segment accounted for the dominant share in the caustic soda market in 2015. However, the segment is expected to lose market share mainly to the textile industry by 2024. Caustic soda is a crucial reactant in the production of various organic chemicals. In Europe, over 25% of caustic soda goes into the production of organic chemicals.

Apart from the organic application scope of sodium hydroxide, the product has several applications in inorganic chemical formulations as well. Inorganic chemicals such as glass, paints, cosmetics, and ceramics utilized for the production of fuel cells also accounts for a majority stake in the global demand for caustic soda.

Report Scope

The textile sector is expected to emerge as the fastest growing application segment, generating revenue worth over USD 8.0 billion by 2024. In the textile industry, caustic soda is used to remove waxes and oils from fiber, making it receptive to bleaching, dying, etc. Treatment of textile with caustic soda lends greater tensile strength and luster to the fabric. Caustic soda is also used in manufacturing manmade fibers.

Major players in the market include Dow Chemical Company, Formosa Plastics Corporation, PPG Industries, INEOS Group Limited, Tosoh Corporation, Hanwha Chemical Corporation, Solvay SA, FMC Corporation, and Occidental Petroleum Corporation.