Caustic Soda Market Analysis

Caustic Soda Market Analysis

Caustic soda market from membrane cell segment is expected to grow steadily with a CAGR of 3.8% through 2026. Membrane cell technology has witnessed substantial growth over the years owing to its environment friendly nature and low energy consumption.
 

Caustic soda production process is very costly. Any advancement in the production process that saves input energy reduces production cost significantly. For instance, AkzoNobel Specialty Chemicals has introduced “e-Flex” technology, which routinely adjusts production with electricity supply, saving energy and cost.
 

Caustic Soda finds application in several various end use industries such as pulp & paper, alumina, organic chemicals, inorganic chemicals, textile, water treatment, food processing, soaps & detergents and others. Caustic soda market growth trajectory in terms of volume is most likely to stay linear as it is essential for raw materials in many end use industries such as alumina, paper & pulp, and organic & inorganics.
 

Organic chemicals segment accounted for close to 20% revenue share in 2019 is expected to grow at a CAGR of 3.7%. About 60% of all chemical products are produced, directly or indirectly, using chlorine and?/?or caustic soda. Product performs various functions in the manufacturing of various chemicals including waste acid neutralization, catalysis, caustic scrubbing of off-gases, pH control, and caustic extraction. The growing chemical industry is expected to drive the caustic soda market growth.
 

Asia Pacific contributed over $15 billion in 2019. The Asia Pacific dominates caustic soda production and consumption; thus, any significant change in either supply or demand may cause price hike. Strong position of Asia Pacific market is highly attributed to higher production capacity, lower energy rates, strong regional demand, lower prices compared to other regions and dominating supply chain. The caustic soda market in APAC is expected to witness highest growth owing to rapid industrialization, urbanization, and population growth.