The Chlor-Alkali process is an industrial process for the electrolysis of sodium chloride (NaCl) solutions. It is a method used to produce chlorine and caustic soda, which are commodity chemicals required by many industries such as automobile, pulp & paper, Healthcare, and agriculture industries. The chlorine and sodium hydroxide produced in this process is majorly used in the chemical industry.
The Chlor-Alkali market showcased growth at a CAGR of 3.69% during 2018-2021. The market was valued at USD 66.89 Billion in 2021 which is expected to reach USD 90.34 Billion in 2028. The growing health consciousness and rise in construction projects across the globe are contributing to the increasing consumer interest in chlor-alkali products.
The Global Chlor-Alkali Market is expected to grow in the forecast period and register a market value of USD 90.34 Billion in 2028 at a CAGR of 3.69% during the forecast period. The growing prevalence of various diseases due to unhealthy eating, rising demand for caustic soda, rising construction projects, and growing demand for organic compounds/chemicals are major driving factors that are accelerating the overall market growth of the Global Chlor-Alkali Market.
Industries are now getting more aware of the benefits of various Chlor-Alkali products; fortified products that are used in automobiles, pulp & paper, agriculture, and construction industries are more in demand. According to Bayer AG, the COVID-19 pandemic has led to increased awareness of immunity and environmental consciousness. Also, increasing healthcare costs are promoting demand for consumer health products such as sanitizers, surfactants, and medicines.
PVC is a recyclable material that is made by further processing of vinyl, which can contribute to the energy efficiency of buildings, for instance, PVC is used extensively in plumbing and drainage systems because they resist corrosion, lasts long, and are inexpensive. PVC roofing sheets are also becoming popular due to their lightweight, resistance to the elements, and efficiency in terms of energy use. PVC window frames are favored over traditional wooden window frames because they require very little care, they last for a very long time.
Therefore, an increase in the demand for sustainable and energy-efficient products is expected to drive demand for PVC which would lead to an increase in the demand for vinyl in the construction industry. As a result, the expanding demand for PVC in the construction sector is projected to continue to serve as a primary driving force behind the expansion of the worldwide chlor-alkali market in the years to come.
Issues with lack of coordination with the suppliers, unfavorable weather conditions, unavailability of skilled labor, lacking equipment, and updated standards have been constraining the market for the requirement of chlorine. Transportation of chlorine needs to stick to the appropriate procedures, rules, and regulations related to its reactive nature as a toxic substance, and transit routes designated for it are required to go through an approval process. Bulk transport of chlorine performed by rail is very significant. All such factors are expected to hinder the market growth.
The Soda Ash segment accounts for USD 34.59 Billion in 2021
Sodium carbonate, also known as disodium carbonate or soda ash, is a member of the Chlor-Alkali chemical family. Due to rising urbanization worldwide, there is a rise in demand for various glass forms such as hollow glass, flat glass, tableware, technical glass, solar glass, and smart glass by end-use industries which is positively impacting the demand for soda ash, as over half of all Soda Ash production is used in glass manufacturing, but it is also used in a wide range of other products.
Caustic Soda registered the fastest growth in Chlor-Alkali Market
The key growth drivers for the Caustic Soda (sodium hydroxide) market include the increasing demand for soaps and detergents, the growth of the pulp and paper industry, and the expansion of the water treatment sector, which helps to boost the production of the chlor-Alkali which is the main chemical required by the chemical industry.
According to Azoth Analytics Estimates, Asia Pacific accounts for the largest revenue share in 2022. The increasing demand for disinfectants such as sanitizers, surfactants, and crop protection are among the key drivers of the market along with the increasing demand for vinyl products in the construction industries, which are expected to drive the chlor-alkali market over the forecast period.
Also, improvements in the standard of living in developing countries, such as China and India, owing to increasing disposable income and the rising automobile sector are the major factors supplementing the growth of the Asia-Pacific Chlor-Alkali market.
Global Chlor-Alkali Market is fragmented with the top 7 companies accounting for a significant revenue share in the year 2022. Leading companies and brands in the market are executing different strategies and partnerships to strengthen their foothold and increase their competitiveness and product offerings in the market.
Bayer AG, Tronox Holdings PLC, Akzonobel, AGC Inc., INEOS, TOSOH Corporation, and TATA Chemicals Limited, The Dow Chemical Company are the leading companies in the Global Chlor-Alkali Market.
Leading companies in the Global Chlor-Alkali Market include:
TATA Chemicals Limited
Tronox Holdings PLC
The Dow Chemical Company
Recent Developments in the Chlor-Alkali Market
• April 13, 2023: Dow and Avery Dennison have co-developed an innovative and sustainable new adhesive solution that allows polyolefin film labels and polypropylene (PP) or polyethylene (PE) packaging to be mechanically recycled together in one stream.
• January 10, 2023: Announced in March 2022, Blue Water Alliance (BWA) is a joint venture of Olin and Mitsui. BWA brings together Mitsui's industry logistics, established supplier and customer relationships, and breadth of the product portfolio with Olin's scale, North American export capability, extensive global terminal network, and production flexibility across the electrochemical unit (ECU) portfolio.
Segmentations in the Report
• Caustic Soda
• Soda Ash
By Production Process
• Diaphragm Cell
• Membrane Cell
• Other Production Processes
• Chemical Production
• Pulp and Paper
• Others Applications
• Middle East & Africa
Frequently Asked Questions
1. What is the expected market value of the Chlor-Alkali Market in 2028?
Ans: Global Chlor-Alkali Market is expected to be valued at USD 90.34 Billion in 2028.
2. At what growth rate is Chlor-Alkali Market expected to grow in the forecast period?
Ans: During 2023-2028, Chlor-Alkali Market is expected to grow at a CAGR of 4.47%.
3. Which Region dominates the Chlor-Alkali Market?
Ans: Asia Pacific contributes the largest revenue share in the Chlor-Alkali Market and is expected to continue in the forecast period as well.
4. Which are the leading companies in the Chlor-Alkali Market?
Ans: The leading companies in Chlor-Alkali Market are Bayer AG, Tronox Holdings PLC, Akzonobel, AGC Inc., INEOS, TOSOH Corporation, TATA Chemicals Limited, The Dow Chemical Company, Hanwha Corporation, and Olin Corporation.
5. At what rate will China Chlor-Alkali Market Grow?
Ans: During 2023-2028, China Chlor-Alkali Market is expected to grow at a CAGR of 6.69%
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