Chlor-alkali - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Key Highlights

• The major factor driving the market's growth in the short term is the high demand for caustic soda and its derivatives. Furthermore, caustic soda is used to manufacture products in industries like paper and pulp, soap and detergents, textiles, and the synthesis of many organic and inorganic chemicals.
• Rising demand for chlor-alkali in emerging applications such as water treatment and lithium-ion batteries is expected to offer new growth opportunities to the industry.
• The Asia-Pacific region is expected to be the largest market due to the large-scale production and consumption of chlor-alkali products and their derivatives.
• On the flip side, the environmental impact and stringent environmental regulations are likely to hinder industry growth.

Chlor Alkali Market Trends

The Chlorine Segment is Expected to Drive the Market Growth

• Chlorine occurs naturally but not in its elemental (gas) form (as Cl2). Chlorine and caustic soda/sodium hydroxide are produced by passing an electrical current through brine (common salt dissolved in water). This process is called chlor-alkali.
• The chlorine and sodium hydroxide produced in this process is widely used in the chemical industry. The three raw materials used in chlorine production are salt, water, and electricity. The result is three products, chlorine, caustic soda, and hydrogen.
• Chlorine has many industrial uses, including making bulk materials like bleached paper products, plastics such as PVC, and solvents like tetrachloromethane, chloroform, and dichloromethane. It is also used to make dyes, textiles, medicines, antiseptics, insecticides, and paints.
• Additionally, clinical uses of chlorine in healthcare facilities include hyper chlorination of potable water to prevent Legionella colonization, chlorination of water distribution systems used in hemodialysis centers, cleaning of environmental surfaces, disinfection of laundry, local use to decontaminate blood spills, disinfection of equipment, decontamination of medical waste before disposal, and dental therapy.
• The production and consumption of chlorine is increasing constantly in its various end-user industries. In June 2022, European chlorine production stood at 682,760 tonnes. Additionally, PVC is one of the largest consumers of chlorine in the European region.
• Moreover, owing to the pandemic, the demand for chlorine in water treatment is expected to grow excessively in the forthcoming years.

China is Expected to Dominate the Asia-Pacific Region

• China dominates the chlor-alkali market in the Asia-Pacific due to the growing demand for chlor-alkali chemicals from different industries.
• The Chinese textile industry is the largest in the world in production and exports. In 2021, China accounted for over 41% of the world's textile exports, followed by the European Union and India. The textile industry in China is also booming with increasing investments and government support from the 13th Five-Year Plan. Investment in the country's textile industry has been increasing due to cheaper electricity rates, transportation subsidies, and lower raw cotton prices.
• Additionally, according to the National Burau of Statistics, in October 2022, around 3.18 billion meters of clothing fabric were produced in China.
• In addition, through the Belt & Road initiative, the country saw an in-flow of huge investments, both domestic and foreign, mainly focusing on increasing production capacity and exports of textiles and apparel. This, in turn, increases the demand in the chlor-alkali market.
• China is a hub for chemical processing, accounting for a major chunk of the chemicals produced globally. The growth in the country accounts for half of the growth of the global chemical market. The chemical market in China is growing at 4-5% annually compared to the ~3% growth in the rest of the world.
• Overall, the market for chlor-alkali is projected to witness healthy growth in the country over the forecast period.

Chlor Alkali Industry Overview

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