Chlor-Alkali Market - By Product Type (Chlorine, Caustic Soda, Soda Ash), By Technology (Mercury Cell Process, Diaphragm Cell Process, Membrane Cell Process), By Purity (High, Standard, Low), By End Use & Global Forecast 2023 – 2032

Chlor-alkali Market Size

Chlor-Alkali Market size was valued at around USD 68 billion in 2022 and is estimated to register a CAGR of over 10% between 2023 and 2032. The increased stress on water treatment and growing regulations pertaining to water quality are fueling the chlor-alkali product demand. These products are utilized as crucial raw materials in the manufacturing of various chemicals such as chlorine. Chlorine produced from chlor-alkali is used to produce Polyvinyl Chloride (PVC), solvents, bleaches, and other organic & inorganic compounds.
 

In the agriculture industry, chlor-alkali products are utilized in applications including fertilizers, pesticides, and herbicides. Chlorine-based compounds are used as soil sterilizers & disinfectants and in the production of agricultural chemicals. Population expansion, evolving eating habits, and the requirement for increased agricultural output are a few factors impacting chlor-alkali demand in the agriculture sector.

In chlor-alkali production, mercury cell technology is used, which causes ecological hazards owing to mercury emissions. Mercury is a poisonous substance and its emission can have damaging impacts on human health & the natural environment. This factor may limit the acceptance of chlor-alkali products.
 

COVID-19 Impact

The pandemic impeded the global supply chains of various industries including the chlor-alkali market. Lockdown measures, travel bans, and labor shortages impacted the transport & raw material availability, leading to production slowdown or interim shutdowns in some regions. During the pandemic, chlor-alkali demand varied in different sectors, stimulating the product demand. The water treatment, pharmaceutical, and disinfectant sectors witnessed an increased product demand due to the stringent hygiene measures implemented to contain the virus spread. The construction, automotive, and textile sectors witnessed reduced product demand owing to project delays, diminished customer expenses, and supply chain disruptions. Increased health awareness, decreased COVID-19 cases, and enactment of strategies by government & non-government organizations will spur market growth.
 

Chlor-alkali Market Trends

The chlor-alkali product demand in water treatment applications, such as disinfection and pH adjustment, is increasing. With growing concerns related to water scarcity and the requirement for clean water supplies globally, chlor-alkali products will play a critical role in guaranteeing water safety & quality. The water treatment sector presents substantial growth opportunities for the chlor-alkali business.
 

Developing economies, particularly in Asia Pacific and Latin America, are experiencing a growing demand for chlor-alkali products. Rapid industrial, urban & infrastructure development in these regions impacting the demand for chemicals, textiles, and construction materials, leading to increased chlor-alkali product demand. Caustic soda, also known as sodium hydroxide, is a vital product in the chlor-alkali market. It finds vast uses in chemical, pulp & paper, textile, and water treatment industries.
 

Chlor-alkali Market Analysis

Based on product type, the chlor-alkali market is segmented into chlorine, caustic soda, and soda ash. In 2022, the caustic soda segment acquired a high market share owing to its advantages and extensive applications in various industries such as chemicals, pulp & paper, textiles, and water treatment. Caustic soda is also employed in the alumina refining process to separate aluminum from bauxite. The global aluminum production and consumption trends influence the caustic soda demand in this sector. Chlorine is an essential element in the manufacturing of PVC, a extensively utilized plastic.
 

The demand for chlorine, a chlor-alkali product, is also closely associated with the construction & building materials industry growth as PVC is extensively used in pipes, window profiles, and other construction applications. These applications of caustic soda will propel its adoption rate and boost the market growth.
 

Based on technology, the chlor-alkali market is segmented into mercury cell process, diaphragm cell process, and membrane cell process. The membrane cell process segment held approximately 45% of the market share in 2022. It has become the most favored method for chlor-alkali production as it uses a specially designed ion-selective membrane that permits the selective passage of ions while preventing the mixing of the anolyte and catholyte. This process offers numerous advantages including higher energy efficiency, enhanced product purity, diminished environmental impacts, and lower operational costs.
 

Based on purity, the chlor-alkali market is segmented into high, standard, and low. The high purity segment dominated the market in 2022 and is anticipated to expand at over 5.5% CAGR through 2032. High-purity chlor-alkali products are used in industries, such as electronics, semiconductors, and pharmaceuticals, where strict purity standards are critical to manufacturing. Some advanced water treatment applications require high-purity chlor-alkali to effectively remove contaminants. Standard-purity chlor-alkali is generally used in municipal water treatment facilities to disinfect and remove contaminants.
 

Based on end use, the chlor-alkali market is segmented into chemical, water treatment, pulp & paper, textiles, and soaps & detergents industries. Chlor-alkali products are used as raw materials to produce various chemicals including chlorine-based compounds, solvents, PVC, and caustic soda. They also have applications in wastewater treatment. Economic growth, industrialization, population surge, regulations, and technological breakthroughs are a few factors driving chlor-alkali demand. Market variables and specialized industry needs also impact the chlor-alkali product demand across different sectors.
 

U.S. led the North American region with a high market value of USD 24 billion in 2022 and is set to grow at a lucrative rate by 2032. The manufacturing sector in North America including chemicals, pulp & paper, textiles, and metals is augmenting the chlor-alkali product demand. Chlorine-based products including sodium hypochlorite are widely used for water treatment in North America. The growing infrastructure projects and urban growth in the region are leading to an increased demand for chlor-alkali products, further propelling market growth in North America.
 

Chlor-alkali Market Share

The key players in the chlor-alkali market include:

• Westlake Chemical Corporation
• Tata Chemicals Limited
• Occidental Petroleum Corporation
• Formosa Plastics Corporation
• Solvay SA
• Tosoh Corporation
• Hanwha Solutions Corporation
• Nirma Limited 
• AGC Inc 
• Dow In
• Xinjiang Zhongtai Chemical Co., Ltd
• INOVYN
• Ciner Resources Corporation,
• Wanhua-Borsodchem.

These major market players concentrate on strategic partnerships, new product launches, and commercialization efforts for market expansion. Furthermore, they are making high investments in research to launch sophisticated products and gain maximum market revenue.
 

Chlor-alkali Industry News

• In July 2021, Olin Corporation forged a strategic agreement with ASHTA Chemicals, Inc. (U.S.) to buy & sell chlorine produced from ASHTA's Ohio factory in the U.S.
   
• In January 2021, Formosa Plastic Corporation expanded its production facilities in the U.S., Taiwan, and China
   

This chlor-alkali market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue and volume (USD Billion & Tons) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

By Product Type

• Chlorine
• Caustic Soda
• Soda Ash

By Technology

• Mercury Cell Process
• Diaphragm Cell Process
• Membrane Cell Process

By Purity

• High
• Standard
• Low

By End Use

• Chemical Industry
• Water Treatment
• Pulp & Paper
• Textiles
• Soaps & Detergents

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE