Sodium Hydroxide Global Market Report 2024

The sodium hydroxide market size has grown strongly in recent years. It will grow from $38.67 billion in 2023 to $40.66 billion in 2024 at a compound annual growth rate (CAGR) of 5.1%. The historical growth in the utilization of sodium hydroxide during the past period can be attributed to several contributing factors. These include the expansion of the pulp and paper industry, heightened demand within chemical manufacturing processes, increased production requirements for soap and detergent manufacturing, widespread use in water treatment applications, various applications within the petroleum industry, and utilization in metal processing activities. These factors collectively contributed to the increased demand for and utilization of sodium hydroxide.

The sodium hydroxide market size is expected to see strong growth in the next few years. It will grow to $49.78 billion in 2028 at a compound annual growth rate (CAGR) of 5.2%. The projected growth in the upcoming period is anticipated to be driven by several key factors, such as the expanding scope of renewable energy initiatives, a heightened emphasis on sustainable practices across industries, increased demand within pharmaceutical manufacturing, the growth of biodiesel production, and the expansion of the electronics industry. Key trends expected in this period encompass advancements in membrane cell technology, leveraging biotechnology applications, the utilization of advanced materials in manufacturing processes, a continued focus on sustainable production practices, and the influence of global economic trends on the industry's trajectory.

The anticipated expansion of the pulp and paper industry is poised to drive the sodium hydroxide market's growth. This sector encompasses businesses engaged in the production of pulp, paper, paperboard, and related products. Sodium hydroxide plays a crucial role in breaking lignin bonds during wood pulp processing for papermaking, particularly in soda pulping and the kraft process. The escalating demand from the pulp and paper industry is expected to be a key factor propelling the sodium hydroxide market. Notably, in 2023, the International Energy Agency reported a historic high in global paper production at 417 million metric tons in 2021, reflecting a 4% increase from the previous year. Additionally, the annual growth forecast of 1% in global paper and paperboard demand by 2030 further underscores the significant influence of the growing pulp and paper industry on the sodium hydroxide market.

The sodium hydroxide market is anticipated to experience growth driven by the expanding chemical production sector. Chemicals, characterized by distinct molecular compositions, are integral to various industrial processes. Sodium hydroxide, known for its versatility as a base, catalyst, or reagent, is widely utilized in chemical production, including soap and detergent manufacturing, pulp and paper production, and water treatment. Recent data from the Chemical Industries Association (CIA) reveals a positive trend, indicating a 1.0% expansion in UK chemical production in 2022, followed by 2.2% growth in 2023, with expectations to rise to 2.3% in 2024. This upward trajectory in chemical production is a key driver behind the growth of the sodium hydroxide market.

A notable trend gaining momentum in the sodium hydroxide market is product innovation. Leading companies in this market are strategically focused on introducing innovative products to enhance their market positioning. For example, in March 2021, Vynova, a UK-based chemicals company specializing in the production of industrial and consumer goods, including PVC and Chlor-Alkali, launched the world's first renewable caustic soda with ISCC PLUS certification. Utilizing electricity generated from renewable sources such as wind, solar, aerothermal, geothermal, or water, Vynova's membrane electrolysis process ensures the production of renewable caustic soda with a substantially smaller carbon footprint. This innovative offering is poised to assist clients across various industries in producing more environmentally friendly goods, aligning with the increasing emphasis on sustainability in the sodium hydroxide market.

Major players in the sodium hydroxide market are actively engaged in the development of advanced membranes, including Ion-Exchange Membrane, to cater to the increasing demand for salt electrolysis plants. An ion-exchange membrane functions as a selectively permeable barrier, facilitating the passage of ions while hindering the passage of other substances. In a notable example, in June 2023, AGC, a prominent Japanese manufacturer specializing in glass, chemicals, and high-tech materials, introduced FORBLUE FLEMION F-9060. This innovative ion exchange membrane is specifically designed for utilization in salt electrolysis plants, with the aim of reducing electrolysis voltage by approximately 40 mV. This reduction contributes to decreased power consumption and, consequently, lower electricity costs. The initiative targets a global reduction in greenhouse gas emissions from salt electrolysis plants, particularly in the production of caustic soda, a versatile chemical widely employed in various industrial processes.

In October 2022, INEOS Group Limited, a leading UK-based chemical company, successfully acquired Ashta Chemicals Inc., a US-based chemical company specializing in potassium-based chlor-alkali products, including potassium hydroxide (KOH), chlorine, and sodium hydroxide. The acquisition, valued at an undisclosed amount, positions INEOS to expand its portfolio of products and services in the sodium hydroxide market. This strategic move enables the exploration of new opportunities and reinforces INEOS's presence in the dynamic landscape of chemical production, particularly in the potassium-based chlor-alkali sector.

Major companies operating in the sodium hydroxide market report are Aditya Birla Chemicals Ltd., BASF SE, Bayer AG, BSC Chemicals, Covestro AG, DowDuPont Inc., Formosa Plastics Corp., GACL Ltd., Gujarat Alkalies and Chemicals Limited, INEOS Newton Aycliffe Ltd., Occidental Petroleum Corporation, Olin Corporation, Sanmar Holdings Limited, Shin-Etsu Chemical Co., Sigma Aldrich Corp., Solvay SA, Tata Chemicals Ltd., Tokuyama Corporation, Westlake Chemical Corporation, Xinjiang Zhongtai Chemical Co. Ltd., Brenntag North America Inc., Grasim Industries Limited, INOVYN ChlorVinyls Limited, Chemplast Sanmar Limited, Wanhua Chemical Group Co. Ltd., Nexa Old Bridge Chemicals Inc., Silox India Pvt. Ltd., American Chemet Corporation, EverZinc Belgium SA, Flaurea Chemicals SA, Hakusui Tech. Co. Ltd., Intermediate Chemicals Company L. Brüggemann GmbH & Co. KG, TIB Chemicals AG, Hindustan Zinc Limited.

Asia-Pacific was the largest region in the sodium hydroxide market in 2023. North America was the second-largest region in the sodium hydroxide market. The regions covered in the sodium hydroxide market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the sodium hydroxide market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Sodium hydroxide is available in two primary product forms such as liquid and solid. The liquid form denotes an incompressible fluid that freely flows but maintains a consistent volume and is pourable. The production processes involved in its manufacturing include membrane cells, diaphragm cells, and other methods. Sodium hydroxide finds application across various sectors such as textiles, pulp and paper manufacturing, soap and detergent production, dye and ink production, pesticide formulation, pharmaceuticals, water treatment processes, petrochemical industries, and various other applications.

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

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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