Chlor-Alkali Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Chlor-Alkali Market is segmented By Product (Caustic Soda, Packed Chlorine, Sodium Hydroxide, Potassium Hydroxide, Sodium Hypochlorite, Vinyl Chloride Monomer, Hydrogen Chloride, Others), By Type (Caustic Soda Flakes, Caustic Soda Lye, Others), By Production Process (Membrane Cell Process, Diaphragm Cell Process, Mercury Cell Process), By End-User (Soaps and Detergents, Paper and Pulp, Pharmaceuticals, Organics , Inorganics, Textiles, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

Global Chlor-Alkali market is growing at a high CAGR during the forecast period 2024-2031. The market is expected to grow due to increasing demand from Soaps and Detergents, Paper and Pulp, Pharmaceuticals, Organics , Inorganics, Textiles. The competitive rivalry intensifies with Solvay S.A, Hanwha Solutions., Olin Corporation, and others operating in the market.

Chlor-alkali is a scientific method for producing chlorine, soda ash, caustic soda, and these materials' derivatives. The treatment is carried out by using salt water electrolysis. By product form, caustic soda is the most common of the three products, followed by chlorine. Each of the three products produced — chlorine, hydrogen, and sodium hydroxide — is commonly used in various industries. Chlorine is used in nearly half of all industrial chemical processes, including plastics and resins, water purification, and pure silicon, which is used in electronic components and solar panels. Sodium hydroxide, also known as caustic soda, is commonly used in the sugar, aluminum, and textile industries and acting as a cleaning agent. Fuel cells and the production of ammonia and hydrogen peroxide use hydrogen as a combustible gaseous fuel.

The high demand for caustic soda can be due to its various uses in food processing and pulp and paper manufacturing. The mercury cell process, the membrane cell process, and the diaphragm cell process are all electrolytic processes used in the production of chlor-alkali. The global Chlor-alkali market is majorly propelled by increasing demand for chlorine and its derivatives, particularly from the petrochemical industry for the production of products such as  PVC, Chloro-Methane/ HCFC/PTFE, Polycarbonates, toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI), Propylene Oxide/Glycol, Epichlorohydrin, CaCl2, titanium oxide, etc. 

Market Summary

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Market Dynamics

Increasing chlorine use in almost all industrial chemical processes and has applications in the manufacturing of plastics and resins, water purification processes, and pure silicon, which is used in electronic components and solar panels, is triggering the demand for the chlor-alkali in recent times. Furthermore, increasing demand for sodium hydroxide, or caustic soda in aluminum manufacturing, food manufacturing, and the textile industry, in addition to serving as a cleaning agent, is adding values to the growing market of chlor-alkali in the forecast period

Increasing use of chlorine in almost all industrial chemical processes and has applications in the manufacturing of plastics and resins, water purification processes, and pure silicon production, which is used in electronic components and solar panels, is triggering the demand for the chlor-alkali in recent times.

Chlorine has many industrial uses, including making bulk materials like bleached paper products, plastics such as PVC and the solvents tetrachloromethane, chloroform, and dichloromethane. It is also used for dye-making, medicines, textiles, antiseptics, insecticides and paints. Chlorine is a disinfectant that kills bacteria. It's used to purify water for drinking and swimming pools. It's also used to produce hundreds of consumer goods, ranging from paper to paints, textiles to insecticides.

Furthermore, PVC is made with about 20% of the chlorine produced. This plastic is used in window frames, car interiors, electrical wiring insulation, water pipes, vinyl flooring and blood bags. Organic chemistry is another important application for chlorine. It's used in substitution reactions and as an oxidizing agent. During the manufacturing process, chlorine or its compounds are used in 85 percent of pharmaceuticals. Chlorine was once widely used to make anesthetics like chloroform and carbon tetrachloride (a dry-cleaning solvent). Thus, increasing the application range of chlorine in various applications leads to the demand of the chlor-alkali process's market in recent times.

Increasing demand for sodium hydroxide, or caustic soda in aluminum manufacturing, food manufacturing, and the textile industry and serving as a cleaning agent, is adding values to the growing market of chlor-alkali in the forecast period.

Sodium hydroxide is used in various food processing applications, including curing foods such as olives and assisting in the browning of Bavarian-style pretzels to give them their distinctive crunch. Furthermore, increasing consumption and demand for food preservatives add value to the growing use of Sodium hydroxide. They are used in food preservatives to prevent mold and bacteria from growing in food and removing the skins from tomatoes, potatoes, and other fruits and vegetables before canning.

In addition, Alumina is extracted from naturally occurring minerals using sodium hydroxide. Aluminum is made from alumina, used to make the foil, cans, cooking utensils, beer kegs, and aircraft parts. Aluminum is used in materials that allow building facades and window frames in the construction industry. Thus growing demand for aluminum in different applications leads to uplift the market of chlor-alkali market in the forecast period. Many other industrial and manufacturing processes use sodium hydroxide. It is used to manufacture rayon, spandex, explosives, epoxy resins, paints, glass and ceramics. It's also used in the textile industry to produce dyes, process cotton fabric, and launder and bleach clothes, as well as in metal cleaning and processing, oxide coating, electroplating, and electrolytic extraction.

Growing governmental regulations towards production processes that end up polluting water bodies and other ecological bodies such as mercury production are hampering the growth of chlor-alkali market in the forecast period.

Mercury, diaphragm, and membrane cell technology are the three most common technologies used today in chlor-alkali processes. Even though energy efficiency has improved since the introduction of membrane technology, energy consumption remains one of the most pressing issues in this industry. The use of oxygen-depolarized cathodes (ODC), a new technology, is proposed as a promising way to reduce electrolysis energy demand. However, the requirement for pure oxygen and the lack of hydrogen production, which could otherwise be valorized, are contentious aspects of greener chlorine production. In addition, chlor-alkali industry is exposed to various environmental regulations across the world. Out of all the mentioned technologies, mercury production is at the greater risk of polluting water bodies and other ecological bodies. As a result of which government is implementing stringent environmental regulations on such production processes. For instance, in 2018, Canada amended chlor alkali Mercury Liquid Effluent Regulations. Thus growing stringent laws by the government is more likely to hamper the market of chlor-alkali market in the forecast period.

COVID-19 Impact on Market

The global chlor-alkali market has shown a slight decline due to the COVID-19 pandemic, as most industrial operations were shut-down across the globe. Further several countries have restricted production activities during the covid-19 pandemic. The major lockdown impact was seen due to the COVID-19 outbreak leading to suddenly dropping down consumers' interest towards purchasing any goods, and halt in transportation sectors has severely hampered the chlor-alkali market's business disruption in the product's supply chain management. During the starting phase of the outbreak, operation rates had fallen down at an unprecedented rate; also the absence of end-users such as downstream in the market significantly drop down the demand for chlor-alkali products, particularly chlorine

Market Segmentation Analysis

The global chlor-alkali market is segmented based on type, product, production process, end-user and region.

Caustic soda is used as a primary raw material in the alumina refining process; growth in the alumina market is expected to fuel demand for caustic soda over the forecast period, boosting the chlor-alkali chemical industry in the long run.

In terms of product, the global chlor-alkali market is bifurcated into packed chlorine, sodium hydroxide and potassium hydroxide, sodium hypochlorite, caustic soda, vinyl chloride monomer, hydrogen chloride and others. Out of the mentioned product types, caustic soda is more likely to proliferate in the forecast period as caustic soda is used as a primary raw material in the alumina refining process; growth in the alumina market is expected to fuel demand for caustic soda over the forecast period, boosting the chlor-alkali chemical industry in the long run. Furthermore, Caustic soda (sodium hydroxide) is a versatile alkali, and its main uses are in the manufacture of pulp and paper, petroleum products soap and detergents, and chemical production. Other applications including water treatment, food, textiles, metal processing, mining, glass making and others. Thus, the rising application area of caustic soda among different end-users is triggering the segment's market in recent times. On the other hand vinyl chloride is expected to grow at the fastest rate in the forecast period in chloride consumption. Chlorine derivatives are predominantly used in PVC production and sometimes lead to fluctuating the market with PVC production, thereby adding values to the segment's market.

Market Geographical Share

Increasing demand for PVC and isocyanates from the construction and automotive industries and increased aluminum production and a rising paper and pulp industry in China, India, Indonesia, and Malaysia are expected to drive the growth of the Asia-Pacific chlor-alkali market.

Asia-Pacific is expected to dominate the chlor-alkali market in the forecast period. Increasing demand for PVC and isocyanates from the construction and automotive industries and increased aluminum production, and a rising paper and pulp industry in China, India, Indonesia, and Malaysia are expected to drive the growth of the Asia-Pacific chlor-alkali market during the forecast period. Besides, with the continuously increasing demand for Chlor-alkali products in China, the market participants are spending on capacity expansion and addition driven by the low cost of raw material and labor and rapid industrialization.

During the forecast period, North America is expected to be the second-largest market for chlor-alkali products. In the United States, rising demand for PVC, water treatment chemicals, isocyanates, and other materials propels the market forward. However, during the forecast period, the market's growth is expected to be hampered by strict environmental regulations and high energy consumption.

Companies and Competitive Landscape

The chlor-alkali market is highly fragmented, with the presence of local and companies across the globe. Some of the key players contributing to the market's growth include Formosa Plastics Corporation, Solvay S.A, Hanwha Solutions, Occidental Petroleum Corporation, Olin Corporation, Tata Chemicals Ltd, Covestro AG, Tosoh Corporation, SABIC, Kemira and among others.

The key players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the global chlor-alkali market. The key players are adopting acquisition and collaboration as the major growth strategy to build revenue for their company.

• For instance, in February 2021, Tata Chemicals, through its wholly-owned subsidiary, Valley Holdings Inc., has announced the news of acquiring the remaining 25 percent partnership interest in Tata Chemicals (Soda Ash) Partners Holdings from The Andover Group, Inc., a subsidiary of Owens-Illinois Inc. for around USD 195 Million.

Formosa Plastics Corporation

Overview: Formosa Plastics Corporation, a Taiwanese plastics company based in Taiwan, majorly produces polyvinyl chloride resins and other intermediate plastic products. With US$36.9 billion in sales in 2018, Chemical & Engineering News ranked Formosa Plastics as the world's sixth-largest chemical company in 2019.

Product Portfolio: The company has a product portfolio of chlor-alkali includes:

Sodium Hypochlorite: The company offers Chlor-alkali products for various uses in many industries such as soaps and detergents, water treatment, chemical processing, pulp and paper, water treatment and aluminum.  Furthermore, the company provides merchant-grade ethylene dichloride, technical grade hydrochloric acid and several grades of industrial bleach. Sodium hypochlorite is of the main product used for various industrial applications 

Key Development:

• In June 2020, Formosa Plastics USA announced the news to launch a planned turnaround at its 736,000 mt/year chlor-alkali plant in Point Comfort, Texas.

Why Purchase the Report?

• Visualize the chlor-alkali market segmentation by type, product, production process, end-user and highlight key commercial assets and players.
• Identify commercial opportunities in the chlor-alkali market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of chlor-alkali market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global chlor-alkali market report would provide access to an approx: 69 market data tables, 70 figures, and 180 pages.

Target Audience 2024

• Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
• Emerging Companies
• Manufacturers
• Logistics companies
• Distributors