The global chemical industry is thriving, despite the constraining environmental regulations enforced on the production of inorganic chemicals. The emergence of industrial revolution 4.0 has paved the way for digitalization and R&D in the industry, flagging abundance of opportunities for the market players. This in return has tiled a flourishing future for the caustic based compound formulation market players, helping in the generation of profitability in the operations and higher returns from investments. Caustic based compounds such as sodium hydroxide, calcium oxide, and potassium hydroxide are used in several industries such as dairy processing, pulp and paper manufacturing, water treatment, and others. While the growing population is extremely inclining towards the pollution-free world and increasing renewable energy, these caustic based compounds are emerging beneficial and also easier to produce. Around 80% of wastewater is released to the environment without adequate treatment. In February 2019, HyperSolar, Inc. developed a breakthrough technology to manufacture renewable hydrogen, chlorine and sodium hydroxide, using Generation 1 device on seawater or waste brine water. This production of sodium hydroxide will benefit the environment as well as the market players. Similarly, a group from the Massachusetts Institute of Technology (MIT) developed a chlor-alkali electrolysis process to generate valuable chemicals such as sodium hydroxide and chlorine from desalination waste brines. Therefore this sustainable solution will lead to a greener environment paving an offset cost approach and additional revenue streams for the caustic based compound formulation market investors.
As of 2018, the global Caustic Based Compound Formulation Market size was evaluated at around $148.5 million, which is expected to witness escalation at a CAGR of 4.5% during the forecast period 2019-2025. The report details caustic based compound formulation market size by type and market size by applications, caustic compound formulation market share by top 5 companies and also the market share by startups.
Caustic Based Compound Formulation Market Analysis: Key Application
Caustic based compounds are used extensively as cleaners, soil removers, chemical production, and others in two forms, solid and solution. The major prevalence of caustic based compound formulation can be witnessed in solid form, which is projected to heighten at a CAGR of 4.87% during the forecast period 2019-2025. The global import value of sodium hydroxide, potassium hydroxide, and peroxides of sodium or potassium was approximately $6.97 billion in 2018, which witnessed 7% increase than 2017. Also, the global chlor-alkali market involving Chlorine and caustic soda (sodium hydroxide) in solid form used as bleaching agents in the soap and detergent, pulp and paper, textile, aluminum, and other sectors is going to expand at a CAGR of 5.65% during the forecast period 2019-2025, which was evaluated at $91.13 million in 2018. A part of these array of figures is going to contribute to the growth of the caustic based compound formulation market in the upcoming years.
APAC Caustic Compounds Formulation Market Overview:
The economic prospects for Asia have improved favorably than in 2017. It is further expected to grow by around 5.5% in the coming years opening considerable and dynamic margins for the investors. The rapid urbanization of the region is further contributing to the growth of several industries flourishing there. The digital revolution is also acting upon the growth of the region's economy. All these are playing a part in the further development of the caustic based compound formulation market in the Asia Pacific region. In 2018, APAC seized the largest caustic based compound formulation market share with approximately 46.4% amidst the global market. Furthermore, the caustic soda plant capacity of India is expected to grow in the upcoming years. As of March 2018, the installed capacity of caustic soda in India was 38.8 lakh million tons per annum, while the production during 2017-2018 was 32.42 lakh million tons. The 10 upcoming projects in the subcontinent are expected to escalate the caustic based formulation market of APAC to new heights. The projects such as Kutch Chemical Industries Gandhidham Caustic Soda Plant, GACL-NALCO Alkalies and Chemicals Dahej Caustic Soda Plant, and Gujarat Alkalies and Chemicals Bhavnagar Caustic Soda Plant are some of the major projects to look forward to. The main consumption of caustic based compounds in India is experienced in the chemical industry, the textile sector, and others. The Indian chemical industry is projected to reach $403 billion by 2025, while the exports of textiles from India is projected to reach $82 billion by 2021. Moreover, Asahi Glass Company planned to invest $889 million in South East Asia to increase the regional output of caustic soda along with polyvinyl chloride to meet the increasing demand. The production capacity of caustic soda or sodium hydroxide in South East Asia is going to rise to 590,000 tons. These glorious numbers are evincing the growth of the APAC caustic based compound formulation market in the upcoming years.
Caustic Based Compound Formulation Market Trends & Growth Drivers:
As of March 2019, the chemical industry contributed $5.7 trillion to the world Gross Domestic Product (GDP), equivalent to 7% of the world's GDP, supporting 120 million jobs across the globe. A part of this contribution is also attributable to the caustic based compound formulation market, which is expanding due to the latest innovations and growth drivers. Here are the following –
· Flat Glass Industry to Leverage Global Caustic Based Compound Formulation Market Revenue –
Flat glass manufacturers extensively deploy soda ash and caustic soda for the manufacturing process. The global flat glass market collected a revenue avenue of around $12 billion in 2018, which is projected to grow at a CAGR of around 6% during the forecast period 2019-2025. Therefore, with the growth of the flat glass sector, the caustic based compound formulation market is also set to witness positive disruption in the upcoming years.
· Dairy Industry to Drive the Caustic Based Compound Formulation Market –
A huge amount of chloride is found in manufactured caustic. The chlorate residue in milk has intrigued the nation due to the emerging food safety concern. In March 2018, Carbon Group’s innovative and pro-active approach developed a Sodium Hydroxide with 30% concentration, which doesn't have traces of chlorates. The world milk production is projected to increase by 177 million tons by 2025. The innovation is going to create a positive impact on the dairy industry, thereby, escalating the growth of the caustic based compound formulation market across the globe in the upcoming years.
Caustic Based Compound Formulation Market: Competitive Landscape
The principal business leaders who are currently holding maximum caustic based compound formulation market shares in the world and are focusing on the expansion of their manufacturing capacity to gain an edge over other market players are Dow Chemical Company, Formosa Plastics Corporation, PPG Industries, Inc., INEOS, Tosoh Corporation, Hanwha Chemical, Solvay S.A., FMC Corporation, Occidental Petroleum Corporation, and others.
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