Chlor-alkali Market - Forecast(2024 - 2030)

Report Code: CMR 80716 Report Format: PDF + Excel

Chlor-alkali Market Market Overview:

The Chlor-alkali Market is forecast to reach US$120 billion by 2030, after growing at a CAGR of 5.7% during the forecast period 2024-2030. The chloralkali process is an industrial process for the electrolysis of sodium chloride solution that produces chlorine and sodium hydroxide. Chlor-alkali chemicals serve as critical feedstock for the manufacture of everything from water purification and fertilizers to detergents and pharmaceuticals. The growing demand from these end use industries drives the market growth.

A notable trend is the research on rechargeable batteries that can safely store more charge than current batteries. As part of this R&D, there is a lot of interest in alkali- metal-chlorine battery. Hydrogen, a co-product of the chlor-alkali process, can be used as a zero CO2 emission fuel in plant boilers, reducing a facility's carbon footprint. This innovative approach aligns with the increasing emphasis on sustainability and carbon footprint reduction in industrial operations. As industries globally strive for greener operations, leveraging hydrogen as a clean fuel derived from the chlor-alkali process. 

Report Coverage

The report: “Chlor-alkali Acetate Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Chlor-alkali Industry.

By Product:  Caustic Soda, Chlorine and Hydrogen
By Process:  Mercury Cell Process, Diaphragm Cell Process and Membrane Cell Process
By Application:  Inorganic Chemicals, Organic Chemicals, Pulp & Paper, Soaps & Detergents, Textiles, Water Treatment, Steel/Metallurgy - Sintering and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa)

Key Takeaways

Paper & pulp is expected to see the fastest growth in the chlor-alkali market.

The demand influx from the soaps and detergents industry and the growing demand of water treatment drives the chlor-alkali market.

Asia-Pacific dominated the Chlor-akali Market in 2023. The major reason behind this is the investments in the chlor-alkali process and products in the region.

Chlor-alkali Market Segment Analysis – By Product

The Chlorine segment held the largest share in the Chlor-alkali Market in 2023. Chlorine is a fundamental building block for the production of various chemicals. Its applications span the manufacturing of plastics, solvents, detergents, and pharmaceuticals, establishing it as a crucial component in numerous industrial processes. According to The Chlorine Institute, approximately 95% of chlorine is produced using the chlor-alkali process, which involves passing a direct electric current through a sodium chloride brine (i.e., electrolysis), converting chloride ions to elemental chlorine at the anode while sodium ions and hydrogen gas collect at the cathode to react and form sodium hydroxide. 

Chlor-alkali Market Segment Analysis – By Application

Paper & pulp held the largest share in the Chlor-alkali Market in 2023 and is expected to grow at a CAGR of 6.9% between 2024 and 2030. due to chlorine's integral role in the pulp bleaching process. Chlorine is a primary agent used in the delignification of wood pulp, a crucial step in paper manufacturing to produce high-quality, bright, and durable paper products. As an effective bleaching agent, chlorine aids in breaking down lignin, the natural polymer in wood responsible for color and rigidity. This process enhances the brightness and quality of paper, making it a preferred choice in the paper and pulp industry. The demand for chlorine in this sector remains robust, driven by the continuous global consumption of paper and cardboard products across various applications, including packaging, printing, and writing materials.

Chlor-alkali Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the Chlor-alkali Market in 2023 up to 46%. The rapid industrialization and sustained economic growth in countries like China and India have led to increased demand for chlor-alkali products. Industries such as textiles, chemicals, and manufacturing, which heavily rely on chlorine and caustic soda, have flourished in the region. Many global chlor-alkali manufacturers have strategically invested in production facilities in Asia-Pacific to capitalize on the region's growing demand. This further solidifies the region's dominance in the chlor-alkali market. For instance, in April 2022, Grasim Industries Limited inaugurated it first chlor-alkali manufacturing unit in BB Puram, Andhra Pradesh. The unit is one of the largest chlor-alkali manufacturing projects in India with an investment of $300 million. In April 2023, The Indonesia Investment Authority (INA) announced plans to invest in a chlor-alkali plant, which will produce chemicals used in making rechargeable batteries for electric vehicles.

Chloralkali Market Drivers

· The Demand Influx from the Soaps & Detergents Industry 

Chloralkalis are used in the production of soaps & detergents. As global hygiene awareness rises, the demand for soaps and detergents, essential for personal and household cleanliness, experiences a surge. According to company data, Karnataka Soaps and Detergents Ltd. (KSDL) manufactured and supplied a record 852 tons of detergents to the market in December 2023. Caustic soda's versatile applications in formulating detergents and providing alkalinity in cleaning products underscore its critical role. So, the soaps & detergents industry growth is boosting the demand for caustic soda, which is reflected in the growth prospects in the chlor-alkali market. 

· Growing Demand for Water Treatment 

Water treatment is one of the most pressing environmental and public health challenges in the world. With the expansion of population, industry, and multiple uses of water resources, maintaining the quality and providing drinking water resources in sufficient quantity has become one of the basic goals. Chlorine gas and sodium hydroxide are used for water treatment in municipal water treatment facilities, for home use as well as in industrial applications. Chlorine is used as a strong oxidizer in water purification. This substance removes organic oxides and microbes and is used in the primary process of water purification to disinfect and destroy organics. In December 2023, Wauchope Treatment Plant completed a $5.5 million upgrade, including the completion of a new $1.7 million chlorine dosing facility. The facility will boost the plant’s ability to treat water after storms and heavy rainfall. Such investments boost the chlor-alkali market.

Chloralkali Market Challenges 

Government Regulations

The biggest constraint in the chloralkali market is the regulations enforced by governments due to environmental concerns. Chloralkali utilizes asbestos and mercury, which have adverse effects on the environment. Recently, the US NGO Health Building Network (HBN) has warned that the continued usage of mercury and asbestos in the supply chain of PVC and other chlorine-based products, is a source of environmental pollution. Furthermore, in other countries such as in the Americas and Europe wherein the government is majorly focusing on environment issues, the vendors in the chloralkali market are facing the stringent restraint from the governments. However, the major market players such as Dow set an example by converting asbestos-based diaphragm technology to non-asbestos operations to align the production facility with the regional regulations. The future foresees vendors avoiding harmful production technologies and adopting the PFAS-coated (Polyfluoroalkyl Substances) membrane technology. 

Chlor-alkali Market Key Players

The major players striving to capitalize on the demand influx in the chlor-alkali market are 

  1. Solvay S.A.

  2. Akzonobel N.V.

  3. Asahi Kasei

  4. Dow

  5. Kemira

  6. Covestro AG

  7. INEOS

  8. Westlake Corporation

  9. Olin Corporation

  10. DCM Shriram

1. Chlor-alkali Market - Overview
    1.1 Definitions and Scope
2. Chlor-alkali Market - Executive summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key Trends by type of Application
    2.3 Key Trends segmented by Geography
3. Chlor-alkali Market
    3.1 Comparative analysis
        3.1.1 Product Benchmarking - Top 10 companies
        3.1.2 Top 5 Financials Analysis
        3.1.3 Market Value split by Top 10 companies
        3.1.4 Patent Analysis - Top 10 companies
        3.1.5 Pricing Analysis
4. Chlor-alkali Market - Startup companies Scenario Premium Premium
    4.1 Top 10 startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5. Chlor-alkali Market - Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis - Top 10 companies
6. Chlor-alkali Market Forces
    6.1 Drivers
    6.2 Constraints
    6.3 Challenges
    6.4 Porters five force model
        6.4.1 Bargaining power of suppliers
        6.4.2 Bargaining powers of customers
        6.4.3 Threat of new entrants
        6.4.4 Rivalry among existing players
        6.4.5 Threat of substitutes
7. Chlor-alkali Market -Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Product life cycle
    7.4 Suppliers and distributors Market Share
8. Chlor-alkali Market - By Product (Market Size -$Million / $Billion)
    8.1 Caustic Soda
    8.2 Chlorine
    8.3 Hydrogen
    8.4 Others
9. Chlorine Market - By Process (Market Size -$Million / $Billion)
    9.1 Mercury Cell Process
    9.2 Diaphragm Cell Process
    9.3 Membrane Cell Process
10. Caustic Soda Market - By Application (Market Size -$Million / $Billion)
    10.1 Inorganic Chemicals 
    10.2 Organic Chemicals 
    10.3 Pulp & Paper 
    10.4 Soaps & Detergents 
    10.5 Textiles 
    10.6 Water Treatment 
    10.7 Steel/Metallurgy - Sintering 
    10.8 Others
11. Chlor-alkali- By Geography (Market Size -$Million / $Billion)
    11.1 North America
        11.1.1 U.S
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Spain
        11.2.6 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zealand
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
        11.5.2 Africa
12. Chlor-alkali Market - Entropy
    12.1 New product launches
    12.2 M&A s, collaborations, JVs and partnerships
13. Chlor-alkali Market - Industry / Segment Competition landscape Premium Premium
    13.1 Market Share Analysis
        13.1.1 Market Share by Country- Top companies
        13.1.2 Market Share by Region- Top 10 companies
        13.1.3 Market Share by type of Application - Top 10 companies
        13.1.4 Market Share by type of Product / Product category- Top 10 companies
        13.1.5 Market Share at global level - Top 10 companies
        13.1.6 Best Practises for companies
14. Chlor-alkali Market - Key Company List by Country Premium Premium
15. Chlor-alkali Market Company Analysis
    15.1 Solvay SA
    15.2 Akzonobel N.V.
    15.3 Asahi Kasei
    15.4 Dow
    15.5 Kemira
    15.6 Covestro AG
    15.7 INEOS
    15.8 Westlake Corporation
    15.9 Olin Corporation
    15.10 DCM Shriram
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