Increased Usage and Rising Governments Initiatives are Steering the Market Growth. Latin America Soda Ash Market size is forecast to reach $1,351.5 million by 2026, after growing at a CAGR of 5.3% during 2021-2026.
The growth of the Latin American Soda Ash Market is mainly attributed owing to wide-ranging applications across chemical, soaps & detergent, water treatment, and various other end-user industries. Increasing usage of soda ash in the manufacturing process of various glass and glass products is anticipated to raise the growth of the market. Additionally, the rising demand for light, medium, and dense grade soda ash due to its alluring properties from various end use sectors will also drive the market growth. Furthermore, the broader use of naturally available raw materials, i.e., Trona, due to their low-cost advantages, will also upsurge the Latin America soda ash industry over the forecast period.
The production and demand in top countries of Latin America region for soda ash is expected to boom over the next five years. In terms of revenue in 2020, granular soda ash held the largest share with 62.2% in Latin America soda ash market. The granular sodium carbonate is obtained by hydrating the monohydrate (Na2CO3. H2O) with light sodium carbonate and then dehydrating it to give an increased crystal size and density of the product. These crystals have a particle size similar to that of sand, so that the two make a homogeneous mixture which is important for glass making is the major end-use for granular soda ash. Granular soda ash is being used in the steel industry for the removal of sulphur from iron ore in blast furnaces. It also imparts slag fluidity, thus ensuring smoother and continuous operation of the blast furnace. Soda ash is used as a key ingredient in manufacturing glass, as it reduces melting temperatures and its alkali effectively supports the shaping of the glass item. With the result of increased glass demand in the LATAM market, many glass manufacturing companies have expanded their production capabilities and increased the product offering. Further, rising per capita glass consumption will also influence the domestic manufacturers to increase production which results in the rising soda ash demand. Therefore, with the rising glass sector, the growth for Latin America soda ash market is anticipated to rise in the forecast period.
Mexico dominated the Latin America soda ash market in terms of revenue with a share of 36.7% in 2020 and is projected to dominate the market during the forecast period (2021-2026). Mexico is one of the major economies in the Latin American region with a diverse range of end use industries including construction, chemicals, personal care, and food & beverages. The rising glass, cleaning products, and metallurgy industry is the major driving force contributing to the increased demand for soda ash in Mexico. Mexico produces very less amount of soda ash which only fulfils its domestic demand by about 10% only; the rest of the demand is met by the import. The US is the largest exporter of soda ash to Mexico with more than 70% of share in import. Thus, growing demand for Latin America soda ash from various end use industries in this region will further drive the market growth in the forecast period. The increasing usage of soda ash in soaps and detergents in developing countries of Latin America, along with the rising initiatives by governments towards the growth of the building & construction industry is expected to drive the market growth during the forecast period 2021-2026.
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Latin America Soda Ash Market Growth Drivers
Rapid Growth in the Building and Construction Sector Boosts the Demand for Glass Products and Drives the Demand for Soda Ash
With the rising construction of new houses and buildings, the need for glass windows and insulation is also intensifying. After being mined and refined, high quality soda ash is used to produce two essential things required for the construction of each building- fiberglass insulation and flat glass (glass panels, windows, and doors) with superior properties. The industry is constantly developing new and revolutionary glass innovations that deliver substantial and attractive performance advantages over older models, which will continue to push the trend of replacing installed glass stock with high-performance products, thereby boosting demand for Latin America's soda ash market. Flourishing construction industry in various countries of Latin America region will drive the market growth in the forecast period. According to International Trade Administration (ITA), Mexico's construction industry is gradually shifted towards more private sector involvement. In 2019, the private construction increased by 2.1 percent. Thus, with the rising building and construction industries in Latin America, the market for Latin America soda ash is estimated to grow in the forecast period.
Increasing Demand for Soda Ash from Soaps and Detergents Industry is Driving the Market Growth
Soda ash is used in a slew of laundry and cleaning compound formulations to improve cleaning properties: as a builder to emulsify oil stains, to provide alkalinity for cleaning, to reduce the deposit of dirt during washing and rinsing, and to soften laundry water. In comparison, sodium ash is a part of sodium tripolyphosphate (STPP), another major component in detergent formulations. Typically, medium dense or lighter grades of soda ash are used in detergents. The products serve as builders in the formulation of soaps, detergents and other washing compounds, preparing wash water to reach an optimum degree of soil removal. Soda ash also profits by assisting agglomeration, being a carrier for surfactants and an alkali supply for pH change as well. Therefore, rising demand for soda ash due to its alluring properties from soaps and detergents industry is projected to fuel the market for Latin America soda ash market during the forecast period.
Latin America Soda Ash Market Major Players
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Latin America soda ash market. Major players in the Latin America soda ash market are Solvay S.A., DECCO LATAM, Vikudha Overseas Corporation Ltd., Tata Chemicals Limited, Ciner Resources Corporation, CIECH S.A., Minerals Technologies Inc., Genesis Energy LP, Vitro, and Innova Corporate among others.
The rapid surge of coronavirus has had a huge effect on Latin American markets as large markets had been locked up because of the pandemic in 2020. Because of this major lockdown, the consumer market has started to show zero interest in purchasing soda ash materials. The shutdown of all forms of domestic transport within countries is one of the major difficulties faced by the industry. Also, the temporary shutdown of large sections such as the construction and automotive industries in several countries due to increasing COVID-19 cases among people working in manufacturing sites and to tame the spread of COVID-19 in the Latin America region has significantly dropped the soda ash market growth. The GDP growth rate in the Latin American region has also been affected severely due to the pandemic. According to the International Monetary Fund, at a glance of 2021 the actual GDP expected (percent change) in Brazil is -5.8%, in Argentina -11.8%, in Colombia -8.2%, in Mexico -9%, and in Chile -6%. Besides, various sectors including the manufacturing sector have slowed down the demand for goods’ production and exports of soda ash which has declined the Latin American soda ash market growth.
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