The sodium hydroxide market size was valued at US$ 16,150.38 million in 2022 and is expected to reach US$ 23,831.06 million by 2030; it is estimated to register a CAGR of 5% from 2022 to 2030.
Market Insights and Analyst View:
Sodium hydroxide, commonly known as caustic soda, is a strong alkaline chemical compound with the chemical formula NaOH. It is an essential substance in various industrial and chemical processes, often used for its corrosive and reactive properties. It is typically available in the form of white, odorless pellets, flakes, or a solution. In its solid form, it is hygroscopic, meaning it readily absorbs moisture from the air, which can make it easier to handle. It is primarily used in the manufacturing of soap. When it reacts with fats or oils, it forms soap through saponification. This reaction separates the fatty acids from glycerol, creating soap as a byproduct. It is also crucial in the production of paper and textiles. It aids in breaking down lignin and cellulose, two key components in wood and plant fibers, during the pulping process. This helps create pulp, which can be used to make paper, textiles, and other cellulose-based products. Additionally, it plays a vital role in water treatment. It can be used to adjust the pH of water, making it less acidic, and to remove metals, such as iron and copper, from water supplies. The sodium hydroxide market is sensitive to economic conditions as it is closely tied to industrial production. The sodium hydroxide market is also subject to regulatory scrutiny due to its caustic and corrosive properties.
Growth Drivers and Challenges:
The manufacturing sector is a significant driver of sodium hydroxide market growth. It is used in the production of various products, including pulp & paper, textiles, and detergents. In the pulp & paper industry, this chemical is crucial for breaking down lignin and cellulose in wood fibers during the pulping process, aiding in the creation of pulp, which is then used to make paper products. In addition, organics, including the pharmaceuticals, polycarbonate, and polypropylene oxide industries, play a significant role in driving the demand for sodium hydroxide due to its versatile applications in these sectors. In the pharmaceutical industry, it is utilized in the production of various medications and pharmaceutical products. It is involved in the synthesis of active pharmaceutical ingredients (APIs) and is crucial for pH adjustment during different chemical reactions. It helps in controlling the acidity or alkalinity of reaction mixtures, ensuring the quality and efficiency of pharmaceutical compounds. The pharmaceutical sector's continuous research and development efforts to create new drugs and formulations contribute to a sustained demand for this chemical. The polycarbonate industry also relied on it for its manufacturing process. Polycarbonate is a widely used thermoplastic known for its high impact resistance and optical clarity. It is used in the production of polycarbonate resins, specifically for the polymerization process. It acts as a catalyst in the formation of polycarbonate, contributing to the overall efficiency and quality of the polymer. As the demand for polycarbonate products, such as eyeglass lenses, automotive components, and electrical closures, continues to grow, so does the sodium hydroxide market is expected to grow. In addition, distributors of this chemical ensure a steady and efficient supply chain of sourcing, storing, and distributing the chemical to manufacturers and end-users.
However, regulatory authorities often establish strict limits on the discharge of sodium hydroxide and its associated waste streams into water bodies. This is because this chemical can significantly alter the pH of water, potentially harming aquatic life. In addition, it is a highly caustic and corrosive substance. Furthermore, the disposal of waste generated during the production and use of it is subject to stringent regulations. The manufacture of this chemical needs to follow these strict regulations. In addition, the prices of this chemical are heavily influenced by raw material costs. All these factors could limit the sodium hydroxide market growth.
Strategic Insights
Report Segmentation and Scope:
The "Global Sodium Hydroxide Market Analysis to 2030" is a specialized and in-depth study with a major focus on market trends and growth opportunities across the globe. The report aims to provide an overview of the market with detailed market segmentation by form, production process, and end-use industry. The market has witnessed high growth in the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of this chemical globally. In addition, the report provides a qualitative assessment of various factors affecting the sodium hydroxide market performance globally. The report also includes a comprehensive analysis of the leading players in the market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.
Further, ecosystem analysis and Porter's five forces analysis provide a 360-degree view of the market, which helps understand the entire supply chain and various factors affecting the global sodium hydroxide market growth.
Segmental Analysis:
The global sodium hydroxide market is segmented on the basis of form, production process, end-use industry, and geography. Based on form, the market is bifurcated into flake, granule, and liquid. On the basis of the production process, the market is divided into diphagram cells, membrane cells, and mercury cells. In terms of the end-use industry, the market is segmented into pulp & paper, personal care, pharmaceutical, water treatment, textile, food, and others. The flake segment is expected to register significant growth from 2022 to 2030. The flake form of sodium hydroxide is a solid form that is easier to handle and transport compared to liquid. It does not have the same spill and leak hazards associated with liquids. This ease of handling makes it a safer and more convenient choice for many applications. In addition, flake form offers a distinct advantage in industries where precise dosing is critical, such as water treatment and chemical manufacturing. Its solid nature allows for accurate and controlled addition to processes, ensuring consistent results. Flake form has a longer shelf life and better storage stability compared to liquid forms. This makes it a practical choice for facilities that need to maintain a stock of this chemical for extended periods without degradation. All these factors are driving the growth of the flake segment in the sodium hydroxide market.
Regional Analysis:
Based on geography, the sodium hydroxide market is segmented into five key regions—North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa. The global sodium hydroxide market was dominated by Asia Pacific in 2022. The region has become a global manufacturing hub, with industries spanning chemicals, textiles, and pulp & paper. The Asia Pacific region experienced rapid industrialization and urbanization. It is a crucial chemical in various industrial processes, such as pulp and paper manufacturing and chemical production. Thus, as the region progresses and industrializes, the demand for this chemical is expected to remain strong, which is expected to boost the market growth in Asia Pacific from 2022 to 2030. Further, Europe is on sodium hydroxide for various applications, leading to a steady and sustained demand for this versatile chemical. The chemical industry in Europe is one of the largest consumers of this chemical. Many chemical processes, such as the production of plastics, detergents, and various industrial chemicals, rely on this chemical as a crucial raw material. With Europe's strong presence in the chemical sector and its commitment to research and innovation, the demand for this chemical has increased to support these industries. All these factors are driving the sodium hydroxide market growth in Europe.
Industry Developments and Future Opportunities:
Various initiatives taken by the key players operating in the sodium hydroxide market are listed below:
- In March 2023, Gujarat Alkalies and Chemicals Limited expanded the Caustic Soda Lye Plant from 785 MTPD to 1,310 MTPD of its Dahej Complex. A new 700 MTPD Caustic Evaporation Unit (CEU) was also commissioned to accommodate the Caustic Soda Lye production requirements as part of the Caustic Soda Lye expansion.
- In June 2023, AGC Inc. launched FORBLUE FLEMION F-9060 ion-exchange membrane that can lower electrolysis voltage by approximately 40 mV*1 at salt electrolysis plants that produce caustic soda, etc., thereby reducing power consumption and reducing electricity costs and GHG emissions.
COVID-19 Impact:
The COVID-19 pandemic adversely affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America, and the Middle East & Africa (MEA) hampered the growth of several industries, including the chemical & materials industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, and delivery schedules. Various companies reported delays in product deliveries and a slump in their product sales in 2020. Most of the industrial manufacturing facilities were shut down during the pandemic, decreasing the consumption of this chemical. In addition, the COVID-19 pandemic has caused fluctuations in the prices of this chemical. However, various industries revived their operations after supply constraints were resolved, which led to a revival of the sodium hydroxide market. Moreover, the rising demand for this chemical from the industrial and residential sectors is substantially promoting the sodium hydroxide market growth.
Competitive Landscape and Key Companies:
Vynova Group; Vencorex; Tessenderlo Group; Kaustik Europe B. V.; Nobian Industrial Chemicals BV; Aditya Birla Group; Tokuyama Corporation; BASF SE; Dow Chemical Company; and INEOS are among the players operating in the global sodium hydroxide market. The market players focus on providing high-quality products to fulfill customer demand.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Sodium Hydroxide Market Report Analysis
-
CAGR (2023 - 2031)5.00% -
Market Size 2023
US$ 16.96 Billion -
Market Size 2031
US$ 25.05 Billion
Report Coverage
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Industry landscape and competition analysis & recent developments
- Detailed company profiles
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
Key Players
- BASF SE
- Bayer AG
- Ciech S.A
- Dow, Inc.
- Formosa Plastics Corporation
- Hanwha Solutions
- INEOS
- Kemira
- SABIC
- SOLVAY
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
By Form
- Flake
- Granule
- Liquid
By Production Process
- Diphagram Cells
- Membrane Cells
- Mercury Cells
By and End-Use Industry
- Pulp & Paper
- Personal Care
- Pharmaceutical
- Water Treatment
- Textile
- Food
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Sodium Hydroxide Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 16.96 Billion |
| Market Size by 2031 | US$ 25.05 Billion |
| Global CAGR (2023 - 2031) | 5.00% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Form
|
| Regions and Countries Covered |
North America
|
| Market leaders and key company profiles |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The List of Companies
1. BASF SE
2. Bayer AG
3. Ciech S.A
4. Dow, Inc.
5. Formosa Plastics Corporation
6. Hanwha Solutions
7. INEOS
8. Kemira
9. SABIC
10. SOLVAY
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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