Chlor-Alkali Market Report 2026

The chlor-alkali market size has grown strongly in recent years. It will grow from $90.78 billion in 2025 to $98.57 billion in 2026 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to expansion of pulp and paper production, growth of chemical manufacturing industries, rising demand for caustic soda, increasing chlorine usage in water treatment, availability of salt-based raw materials.

The chlor-alkali market size is expected to see strong growth in the next few years. It will grow to $134.68 billion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to increasing investments in clean chemical production, rising demand from renewable energy storage applications, expansion of sustainable manufacturing practices, growing focus on emission reduction, increasing automation in chlor-alkali plants. Major trends in the forecast period include increasing adoption of membrane cell technology, rising focus on energy-efficient electrolysis processes, growing demand from water treatment applications, increasing integration in battery and ev supply chains, enhanced process automation.

The growth of the chemical industry across the globe is driving the chlor-alkali market. The chemical industry produces industrial chemicals and provides building blocks and raw materials for many sectors, including textiles, paint, paper, soap and detergent, pharmaceuticals, and agriculture. Chlor-alkali is used in the chemical industry to generate chemicals through industrial processes, and the expansion of the chemical industry encourages the use of chlor-alkali to produce chlorine, hydrogen, and sodium hydroxide. For instance, in February 2025, according to Atradius N.V., a Netherlands-based trade company, US chemical production grew by 2.1% in 2024, with solid growth expected to continue at 3.8% in 2025 and 2.7% in 2026. Therefore, the growth of the chemical industry globally is driving the chlor-alkali market.

Major companies in the chlor-alkali market are focusing on developing low-carbon products to help customers reduce carbon emissions and support the transition to a Net Zero economy. Low-carbon products are manufactured with reduced greenhouse gas emissions throughout their lifecycle, minimizing environmental impact and promoting sustainability. For instance, in February 2024, INEOS Inovyn, a UK-based vinyls and organic chlorine derivatives company, launched the Ultra Low Carbon (ULC) Chlor-Alkali range. This reduces the carbon footprint of caustic soda, caustic potash, and chlorine by up to 70% compared to industry averages, using renewable energy sources such as hydroelectric power and wind turbines. This innovation helps customers lower scope 3 emissions and supports sustainable product development while enhancing INEOS Inovyn’s position as a leader in sustainable chlor-alkali production.

In November 2023, Brenntag SE, a Germany-based chemicals and ingredients distribution company, acquired OWI Chlor Alkali for an undisclosed amount. Through this acquisition, Brenntag aimed to strengthen its North American supply chain and sourcing capabilities, enhance terminal capacities, and improve last-mile service operations. OWI Chlor Alkali, also known as Old World Specialty Chemicals LLC, is a US-based chemical distributor specializing in caustic soda, potassium hydroxide, methanol, sulfuric acid, and glycols, serving industrial clients and supporting large-scale chemical processing and manufacturing needs.

Major companies operating in the chlor-alkali market are 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, Formosa Plastics Corporation, Axiall Corporation, BASF SE, Shin-Etsu Chemical Co., Ltd., Saudi Arabian Basic Industries Corporation (SABIC), Reliance Industries Limited, Grasim Industries, Gujarat Alkalies and Chemicals Limited, Nirma Limited, China National Chemical Corporation, Shandong Dongyue Group, Ciech S.A., Inner Mongolia Junzheng Energy & Chemical Group.

Asia-Pacific was the largest region in the chlor-alkali market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the chlor-alkali market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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