Key Driving Factors Of The Chlor-Alkali Market- Global Forecast to 2021
Posted by Robin White on January 8th, 2020
Increasing demand for chlor-alkali products in the emerging markets, high demand from end-use industries, and high existing production capacities of chlor-alkali products are driving the chlor-alkali market. Growth in the demand for EDC/PVC is driven by the growing construction, automotive, and personal care industries, globally. Growth of the chlor-alkali market is backed by growth in its niche applications, which include textile, water treatment, and various others. The market for chlor-alkali will continue to be governed by such factors in the future.
Three main products, namely, chlorine, caustic soda, and soda ash mainly characterize the chlor-alkali industry. These chlor-alkali products are further used in various applications, which include EDC/PVC, organic and inorganic chemicals, paper & pulp, water treatment, glass, metallurgy, and other applications. In 2015, EDC/PVC application of chlorine had the largest market share among all the applications of chlorine.
The shutting down of all mercury cell-based plants is set to have an effect on the European market. Not all plants are planned to be modified into membrane or diaphragm technology. This is expected to increase imports in the European region, which is still reeling from the Eurozone crisis.
Asia-Pacific and the Middle East & Africa are the fastest-growing chlor-alkali markets. The rising per capita consumption of chlorine, caustic soda and soda ash has made these regions as a hotspot for the chlor-alkali market. Increasing industrialization in India, Southeast Asia, and China has made Asia-Pacific the market leader, in terms of demand as well as growth. The Middle East has always enjoyed cheaper electricity tariffs and is strategically located to cater to the needs of export markets in Asia-Pacific, North America, and Europe.
Food and pulp & paper accounted for the largest share of caustic soda in 2015. It is further projected to follow the same trend and remain the largest application until the forecast period. In addition, the fastest-growing application for caustic soda is projected to be textile. For soda ash, glass accounted for the largest share, its demand in 2015 was over 50% of the total soda ash market. Increased demand from the packaging & container industry has spurred the demand for glass, globally. With the increase in demand from construction, automotive, and other industries, the demand for EDC/PVC is set to increase at a significant rate. EDC/PVC was also the largest application segment for chlorine in 2015. The Middle East & Africa and Asia-Pacific regions offer high growth opportunities in the chlor-alkali market.
Many companies in this industry have expanded their production capacities and also involved in other market penetration activities. Olin Corporation (U.S.), Solvay (Belgium), Tata Chemicals Limited (India), Occidental Petroleum Corporation (U.S.), Axiall Corporation (U.S.), AkzoNobel N.V. (Netherlands), Formosa Plastic Corporation (Taiwan), Hanwha Chemical Corporation (Korea), Tosoh Corporation (Japan), Nirma Limited (India), and Tronox (U.S.) were the most active companies between 2013 and 2015.
The market players are expected to employ both organic and inorganic growth strategies such as regional expansions, joint ventures, and mergers & acquisitions to expand their overall business, globally. The key companies operating in these markets are striving to enhance their presence in the emerging markets. All these developments are expected to lead to the growth of the chlor-alkali market during the forecast period.
