Chlor-Alkali Market Report 2025

The chlor-alkali market size has grown strongly in recent years. It will grow from $85.7 billion in 2024 to $92.15 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to growth in chemical manufacturing, increased water treatment demand, growth of the pulp and paper industry, increased pharmaceutical production, and increased demand for food processing.

The chlor-alkali market size is expected to see strong growth in the next few years. It will grow to $128.8 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to increasing sustainable chemistry practices, growing clean energy production, global industrial expansion, green chemical manufacturing, increasing demand for water quality management. Major trends in the forecast period include advanced electrolysis technologies, water treatment solutions, specialty chemical applications, electrolyzer innovations, and chemical industry innovation.

The expansion of the global chemical industry is anticipated to drive the growth of the chlor-alkali market in the future. The chemical industry manufactures industrial chemicals and supplies essential building blocks and raw materials for various sectors, including textiles, paint, paper, soap and detergent, pharmaceuticals, and agriculture. Chlor-alkali is utilized within the chemical industry to produce chemicals through an industrial process, and the industry's growth will promote the use of chlor-alkali for generating chlorine, hydrogen, and sodium hydroxide. For example, in August 2024, data from the Bureau of Labor Statistics, a US-based federal agency, indicated that employment for chemical engineers is expected to increase by 10% from 2023 to 2033, with approximately 1,400 job openings projected each year on average during that decade. Thus, the global growth of the chemical industry is fueling the chlor-alkali market's expansion.

The rising occurrences of water contamination are anticipated to fuel the growth of the chlor-alkali market. Water contamination, characterized by the presence of harmful substances or pollutants in water sources, necessitates effective treatment for safe consumption and use. Chlor-alkali chemicals, particularly chlorine, are instrumental in water treatment processes, serving to disinfect and eliminate contaminants to ensure the safety of drinking water. Illustratively, as per the Environment Agency, a UK-based non-departmental public body, there has been a notable increase in reported instances related to sewage and water supply infrastructure. In 2022, these instances reached 2,026, up from 1,883 in 2021. The surge in pollution incidents and concerns about water supply assets underscore the vital role of chlor-alkali in addressing water contamination challenges and driving the market's growth.

In the chlor-alkali market, a discernible trend involves major companies engaging in strategic partnerships and collaborations. This strategic approach is motivated by the abundance of chlor-alkali firms in the industry, aiming to bolster their market leadership and explore synergies with key industry players. A noteworthy example is the collaboration between Abu Dhabi National Oil Company (ADNOC), a UAE-based oil company, and Reliance Industries Limited, an India-based conglomerate. Together, they established a strategic partnership to participate in a new world-scale production facility for ethylene dichloride, chlor-alkali, and polyvinyl chloride in Abu Dhabi. This collaborative venture leverages the combined strengths of both entities as global industrial leaders, reflecting a trend towards strategic collaborations to navigate and capitalize on market dynamics.

Key players in the chlor-alkali market are concentrating on developing low-carbon products to assist customers in significantly reducing their carbon emissions and facilitating the transition to a Net Zero economy. Low-carbon products are designed and manufactured to have reduced greenhouse gas emissions throughout their lifecycle, aiming to lessen environmental impact and encourage sustainability. For example, in February 2024, INEOS Inovyn, a UK-based company specializing in vinyls and organic chlorine derivatives, introduced the Ultra Low Carbon (ULC) Chlor-Alkali range. This product line significantly decreases the carbon footprint of caustic soda, caustic potash, and chlorine by as much as 70% compared to industry averages, by utilizing renewable energy sources like hydroelectric power and wind turbines in its manufacturing processes. This innovation allows customers to reduce their scope 3 emissions and supports their sustainable product development objectives, contributing to a Net Zero economy while strengthening INEOS Inovyn's position as a leader in sustainable chlor-alkali production.

In November 2023, Brenntag, a chemical distribution company based in Germany, acquired OWI Chlor Alkali for an undisclosed amount. This acquisition will bolster Brenntag's local and regional distribution network in North America and expand its terminal capabilities, specifically for caustic soda and potassium hydroxide, thereby enhancing supply chain and sourcing efficiency. OWI Chlor Alkali is a US-based provider of caustic soda.

Major companies operating in the chlor-alkali market include AGC Inc., Tosoh Corporation, Solvay SA, The Dow Chemical Company, Tata Chemicals Ltd., Olin Corporation, Westlake Chemical Corporation, Xinjiang Zhongtai Chemical Co. Ltd., Occidental Petroleum Corporation, Hanwha Group, INOVYN ChlorVinyls Limited, Wanhua-Borsodchem, Formosa Plastics Corporation, Axiall Corporation, BASF SE, Shin-Etsu Chemical Co., Ltd., PPG Industries, Saudi Arabias Basic Industries Corporation, Reliance Industries Limited, Grasim Industries, Gujarat Alkalies and Chemicals Limited, Nirma Limited, China National Chemical Corporation, Shandong Dongyue Group, Ciech S.A., The Aditya Birla Group, Inner Mongolia Junzheng Energy & Chemical Group.

The term 'chlor-alkali' refers to the method employed for the production of chlorine and sodium hydroxide (caustic soda), both fundamental chemicals widely used in various industries. Chlor-alkali encompasses a group of chemicals, including chlorine, hydrogen, and sodium hydroxide, produced through the electrolysis of saltwater. Chlorine, a major product of this process, is essential in the manufacturing of bleaching agents, solvents, construction materials, and insecticides.

The primary types of products in the chlor-alkali category include chlorine-based chlor-alkali, caustic soda-based chlor-alkali, soda ash-based chlor-alkali, and others. The membrane cell process, utilizing brine and membrane cells with charged electrodes, is a common method for chlor-alkali production. Different production processes, such as membrane cells, diaphragm cells, and others, find applications across various industries, including pulp and paper, organic chemicals, inorganic chemicals, soap and detergent, alumina, textiles, and more.

The Chlor-Alkali Market Research Report is one of a series of new reports that provides chlor-alkali market statistics, including chlor-alkali industry global market size, regional shares, competitors with a chlor-alkali market share, detailed chlor-alkali market segments, market trends and opportunities, and any further data you may need to thrive in the chlor-alkali industry. This chlor-alkali market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the chlor-alkali market in 2024. North America was the second-largest region in the chlor-alkali market share. The regions covered in the chlor-alkali market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the chlor-alkali market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.

The chlor-alkali market consists of sales of chlor-alkali products, including hydrogen peroxide and sodium hypochlorite. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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