Caustic Soda Market Size

Report on Industry Size & Market Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Caustic Soda Manufacturers and is Segmented by Production Process (Membrane Cell, Diaphragm Cell, and Other Production Processes), Application (Pulp and Paper, Organic Chemical, Inorganic Chemical, Soap and Detergent, Alumina, Water Treatment, Textile, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). for Each Segment, the Market Sizing and Forecasts Have Been Done On the Basis of Volume (kilo Tons).

Caustic Soda Market Size

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Caustic Soda Market - Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) > 5.50 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Caustic Soda Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Caustic Soda Market Analysis

The Caustic Soda Market is expected to register a CAGR of greater than 5.5% during the forecast period.

The market was negatively impacted by the COVID-19 pandemic in 2020. The coronavirus's impact on demand for chlorine derivatives has squeezed the supply of caustic soda, a by-product of chlorine production. However, the rising prevention due to the spread of COVID-19 increased the demand for soaps, which further propelled the demand for caustic soda, thereby driving the industry's growth.

  • Over the short term, one of the major factors driving the growth of the market is the rising demand for alumina in the transport sector and the growing demand for soap and detergent. It is expected that 25% of the aluminum used in transportation will be used in commercial transportation by road and rail.
  • Energy-intensive production processes and major environmental concerns are likely to hinder market growth.
  • Surging demand for caustic soda in the water treatment industry is expected to offer new growth opportunities for the industry.

Asia-Pacific was the leader in the global caustic soda market because of the high demand for making alumina.

Caustic Soda Market Trends

Increasing Demand from the Soap and Detergent Segment

  • Sodium hydroxide (NaOH), also known as lye or caustic soda, is an essential ingredient used in the manufacturing of soaps, cleaners, and detergents. People use sodium hydroxide a lot because it can break up oil, grease, fat, and protein deposits.
  • Caustic soda is used in the saponification process that converts vegetable oils into soap. It is used to manufacture anionic surfactants, a crucial component in most detergents and cleaning products.
  • Detergents are classified in terms of their ionic properties, namely, anionic, cationic, and non-ionic. The major applications of detergents are reflected in household cleaning and fuel additives.
  • Detergent is an effective disinfecting agent. Clothes, unlike other hard surfaces, have layers; hence, viruses can easily settle down on the clothes. Researchers hypothesized that soaking clothes in detergent for a few minutes before washing could aid in virus removal.This, in turn, is increasing the demand for detergent in households.
  • In soap production, sodium hydroxide is widely used to manufacture a variety of detergents used in homes and commercial applications. Chlor-alkali products are widely used for manufacturing soaps and detergents. However, due to the COVID-19 crisis, manufacturers worldwide observed a boom in demand for soaps and detergents.
  • In 2020, the production volume of detergents will amount to almost 1,515 kilotons in India. India's per capita consumption of detergent stands at 2.7 kg. The leading players in the Indian detergent market are Henkel, Hindustan Unilever Limited, and Proctor & Gamble. Due to urbanization, there is an increasing demand for better-quality products.
  • In the United States, the demand for laundry detergent is growing steadily, which is further projected to accelerate the consumption of caustic soda within the country. In 2021, the average annual expenditure on soap and detergent was $80.49 per consumer.

During the forecast period, the global market is likely to be driven by all of the above factors.

Caustic Soda Market : Average Household Expenditure on Soaps and Detergents per Consumer, in USD, in United States, 2017-2021

The Asia-Pacific Region to Dominate the Market

  • Countries like China, India, Japan, and those in the Association of Southeast Asian Nations (ASEAN) are in the Asia-Pacific region. These countries are expected to grow in the coming years.
  • China is both the largest producer and the largest consumer of caustic soda in the world.
  • China is the largest pulp and paper-producing country in the world as a result of its large forest reserves (22.5% of its land area).
  • China is also a hub for chemical processing, accounting for a major chunk of all chemicals produced globally. With the growing need for both organic and inorganic chemicals around the world, it is expected that the demand for caustic soda from this sector will grow over the next few years.
  • India has a surplus of caustic soda because most of its plants are running at more than 85% capacity.
  • With the new capacity additions to meet the growing demand from the textile and alumina sectors, the caustic soda industry in India is likely to witness robust growth due to the rise in the number of pulp and paper mills.
  • The consumption and production of caustic soda in Japan and ASEAN countries have decreased in the past two years due to maintenance work and reduced demand, but they are expected to grow at a relatively higher pace in the forecast period.
  • In the coming years, the demand for caustic soda in the country is likely to go up as the pulp and paper, textile, and chemical processing industries grow.
Caustic Soda Market- Growth Rate by Region, 2022-2027

Caustic Soda Industry Overview

The caustic soda market is partially fragmented in nature. Some of the key players in the market include Occidental Petroleum Corporation, Shin-Etsu Chemical Co. Ltd, Dow, SABIC, and Formosa Plastics Corporation among others (not in any particular order).

Caustic Soda Market Leaders

  1. Occidental Petroleum Corporation

  2. Shin-Etsu Chemicals Co. Ltd

  3. Dow

  4. SABIC

  5. Formosa Plastics Corporation

*Disclaimer: Major Players sorted in no particular order

Caustic Soda Market  Concentration
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Caustic Soda Market News

  • February 2022: Occidental Petroleum's chemical division is considering an overhaul of some chlor-alkali plants to increase capacity to produce higher-value caustic soda. This will give it the chance to make a big change to its current capacity in order to meet the growing demand for its key products.
  • February 2022: Occidental Petroleum's chemical division is considering an overhaul of some chlor-alkali plants to increase capacity to produce higher-value caustic soda. This will give it the chance to make a big change to its current capacity in order to meet the growing demand for its key products.

Caustic Soda Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Rising Demand for Alumina in the Transport Sector

      2. 4.1.2 Increasing Demand for Soap and Detergent

    2. 4.2 Restraints

      1. 4.2.1 Energy-intensive Production Process

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Production Process

      1. 5.1.1 Membrane Cell

      2. 5.1.2 Diaphragm Cell

      3. 5.1.3 Other Production Processes

    2. 5.2 Applications

      1. 5.2.1 Pulp and Paper

      2. 5.2.2 Organic Chemical

      3. 5.2.3 Inorganic Chemical

      4. 5.2.4 Soap and Detergent

      5. 5.2.5 Alumina

      6. 5.2.6 Water Treatment

      7. 5.2.7 Textile

      8. 5.2.8 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 United Arab Emirates

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 BorsodChem (Wanhua Chemical Group Co. Ltd)

      2. 6.4.2 Dow

      3. 6.4.3 Formosa Plastics Corporation

      4. 6.4.4 Grasim Industries Limited

      5. 6.4.5 Hanwha Solutions/Chemical Corporation

      6. 6.4.6 INOVYN

      7. 6.4.7 Occidental Petroleum Corporation

      8. 6.4.8 Olin Corporation

      9. 6.4.9 SABIC

      10. 6.4.10 Shin-Etsu Chemical Co. Ltd

      11. 6.4.11 The Sanmar Group

      12. 6.4.12 Westlake Chemical Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Future Water Treatment Investments Around the World

**Subject to Availability
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Caustic Soda Industry Segmentation

Caustic soda is industrially produced through the electrolysis of brine solutions. The major electrolytic production processes use membrane cells and diaphragm cells. The market is segmented on the basis of the production process, application, and geography. By production process, the market is segmented into membrane cell, diaphragm cell, and other production processes. By application, the market is segmented into pulp and paper, organic chemicals, inorganic chemicals, soap and detergent, alumina, water treatment, textiles, and other applications. The report also covers the market size and forecasts for the caustic soda market in 16 countries across major regions. For each segment, market sizing and forecasts have been done on the basis of volume (kilotons).

Production Process
Membrane Cell
Diaphragm Cell
Other Production Processes
Applications
Pulp and Paper
Organic Chemical
Inorganic Chemical
Soap and Detergent
Alumina
Water Treatment
Textile
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
United Arab Emirates
Rest of Middle-East and Africa
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Caustic Soda Market Research FAQs

The Caustic Soda Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Occidental Petroleum Corporation, Shin-Etsu Chemicals Co. Ltd, Dow, SABIC and Formosa Plastics Corporation are the major companies operating in the Caustic Soda Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Caustic Soda Market.

The report covers the Caustic Soda Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Caustic Soda Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key drivers of Caustic Soda Market are a) The rising demand for alumina in the transport sector and the growing demand for soap and detergent b) Surging demand for caustic soda in the water treatment industry

Caustic Soda Industry Report

The global caustic soda market is projected to see significant growth in the coming years, with statistics from Mordor Intelligence™ Industry Reports predicting a substantial increase in market share, size, and revenue. This growth is driven by the increasing demand for caustic soda in various industries such as pulp and paper, detergent, alumina, oil and gas, textile, and chemical. The demand for caustic soda in water treatment, pulp and paper, and chemical manufacturing remains high. The market is also expected to be boosted by the increasing water scarcity across the globe and the rising demand for alumina. However, the highly corrosive nature of caustic soda may hamper market growth. The Asia Pacific region dominates the global market due to high consumer expenditure, rising interest rates, construction work, expanding chemical industry, and government subsidies. The caustic soda analysis includes a market forecast, outlook, and a historical overview, with a sample of this industry analysis available as a free report PDF download.

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Caustic Soda Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)