Chlor Alkali Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Chlor Alkali Companies and the Market is Segmented by Product (Caustic Soda, Chlorine, and Soda Ash), Production Process (Membrane Cell, Diaphragm Cell, and Other Production Processes), Application (Pulp and Paper, Organic Chemical, Inorganic Chemical, Soap and Detergent, Alumina, Textile, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market sizes and forecasts in volume (kilo ton) for all the above segments.

Chlor Alkali Market Size

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Chlor-alkali Market Summary
Study Period 2019 - 2029
Market Volume (2024) 271.88 Million tons
Market Volume (2029) 317.80 Million tons
CAGR (2024 - 2029) 3.17 %
Fastest Growing Market South America
Largest Market Asia Pacific

Major Players

Chlor-alkali Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Chlor Alkali Market Analysis

The Chlor-alkali Market size is estimated at 271.88 Million tons in 2024, and is expected to reach 317.80 Million tons by 2029, growing at a CAGR of 3.17% during the forecast period (2024-2029).

COVID-19 negatively affected the demand for chlor-alkali in 2020. However, the rise in demand for chemicals in alumina, textile, and paper and pulp applications has propelled the consumption of chlor-alkali.

  • The major factor driving the market's growth in the short term is the high demand for caustic soda and its derivatives. Furthermore, caustic soda is used to manufacture products in industries like paper and pulp, soap and detergents, textiles, and the synthesis of many organic and inorganic chemicals. 
  • Rising demand for chlor-alkali in emerging applications such as water treatment and lithium-ion batteries is expected to offer new growth opportunities to the industry.
  • The Asia-Pacific region is expected to be the largest market due to the large-scale production and consumption of chlor-alkali products and their derivatives.
  • On the flip side, the environmental impact and stringent environmental regulations are likely to hinder industry growth.

Chlor Alkali Market Trends

This section covers the major market trends shaping the Chlor Alkali Market according to our research experts:

The Chlorine Segment is Expected to Drive the Market Growth

  • Chlorine occurs naturally but not in its elemental (gas) form (as Cl2). Chlorine and caustic soda/sodium hydroxide are produced by passing an electrical current through brine (common salt dissolved in water). This process is called chlor-alkali.
  • The chlorine and sodium hydroxide produced in this process is widely used in the chemical industry. The three raw materials used in chlorine production are salt, water, and electricity. The result is three products, chlorine, caustic soda, and hydrogen.
  • Chlorine has many industrial uses, including making bulk materials like bleached paper products, plastics such as PVC, and solvents like tetrachloromethane, chloroform, and dichloromethane. It is also used to make dyes, textiles, medicines, antiseptics, insecticides, and paints.
  • Additionally, clinical uses of chlorine in healthcare facilities include hyper chlorination of potable water to prevent Legionella colonization, chlorination of water distribution systems used in hemodialysis centers, cleaning of environmental surfaces, disinfection of laundry, local use to decontaminate blood spills, disinfection of equipment, decontamination of medical waste before disposal, and dental therapy.
  • The production and consumption of chlorine is increasing constantly in its various end-user industries. In June 2022, European chlorine production stood at 682,760 tonnes. Additionally, PVC is one of the largest consumers of chlorine in the European region.
  • Moreover, owing to the pandemic, the demand for chlorine in water treatment is expected to grow excessively in the forthcoming years.
Chlor-alkali Market : Chlorine Consumption, in Kilo Tons, by End-user, in Europe, 2021

China is Expected to Dominate the Asia-Pacific Region

  • China dominates the chlor-alkali market in the Asia-Pacific due to the growing demand for chlor-alkali chemicals from different industries.
  • The Chinese textile industry is the largest in the world in production and exports. In 2021, China accounted for over 41% of the world's textile exports, followed by the European Union and India. The textile industry in China is also booming with increasing investments and government support from the 13th Five-Year Plan. Investment in the country's textile industry has been increasing due to cheaper electricity rates, transportation subsidies, and lower raw cotton prices.
  • Additionally, according to the National Burau of Statistics, in October 2022, around 3.18 billion meters of clothing fabric were produced in China.
  • In addition, through the Belt & Road initiative, the country saw an in-flow of huge investments, both domestic and foreign, mainly focusing on increasing production capacity and exports of textiles and apparel. This, in turn, increases the demand in the chlor-alkali market.
  • China is a hub for chemical processing, accounting for a major chunk of the chemicals produced globally. The growth in the country accounts for half of the growth of the global chemical market. The chemical market in China is growing at 4-5% annually compared to the ~3% growth in the rest of the world.
  • Overall, the market for chlor-alkali is projected to witness healthy growth in the country over the forecast period.
Chlor-Alkali Market - Growth Rate by Region, 2022-2027

Chlor Alkali Industry Overview

The overall chlor-alkali market is partially fragmented. Some major players in the market include Olin Corporation, Occidental Petroleum Corporation, Solvay, Ciner Resources Corporation, and Westlake Chemical Corporation, among others (not in any particular order).

Chlor Alkali Market Leaders

  1. Olin Corporation

  2. Occidental Petroleum Corporation

  3. Westlake Chemicals Corporation

  4. Solvay

  5. Ciner Resources Corporation

*Disclaimer: Major Players sorted in no particular order

Chlor-alkali Market Concentration
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Chlor Alkali Market News

  • In June 2022, OxyVinyls, the chemical division of Occidental Petroleum, is planning a USD 1.1 billion expansion and modernization project at its chlor-alkali plant in La Porte, Texas. The company's plan involves expanding and upgrading current system equipment and processes with the integration of new equipment that better utilizes membrane cell technology.
  • In January 2021, INOVYN was selected by the Koyuncu Group to supply chlor-alkali technology as part of a EUR 16 million (~USD 17.02 million) investment at a new production facility in Konya province, Turkey. INOVYN will provide state-of-the-art BICHLOR bipolar electrolyzers for a new facility that will produce chlorine, caustic soda, sodium hypochlorite, and hydrochloric acid. The new facility will have an annual production capacity of 50,000 tons, and it is estimated to begin production in 2022.

Chlor Alkali 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 High Demand for Caustic Soda and Its Derivatives

      2. 4.1.2 Growing Demand from End-user Segments and Existing Production Facilities

    2. 4.2 Restraints

      1. 4.2.1 Environmental Impact and Stringent Environmental Regulations

    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. 4.5 Import and Export Trends

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

    1. 5.1 Product

      1. 5.1.1 Caustic Soda

      2. 5.1.2 Chlorine

      3. 5.1.3 Soda Ash

    2. 5.2 Production Process

      1. 5.2.1 Membrane Cell

      2. 5.2.2 Diaphragm Cell

      3. 5.2.3 Other Production Processes

    3. 5.3 Application

      1. 5.3.1 Pulp and Paper

      2. 5.3.2 Organic Chemical

      3. 5.3.3 Inorganic Chemical

      4. 5.3.4 Soap and Detergent

      5. 5.3.5 Alumina

      6. 5.3.6 Textile

      7. 5.3.7 Other Applications

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 France

        4. 5.4.3.4 Italy

        5. 5.4.3.5 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 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 (%) Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ANWIL SA (PKN ORLEN SA)

      2. 6.4.2 BorsodChem (Wanhua Chemical Group Co. Ltd)

      3. 6.4.3 Ciner Resources Corporation

      4. 6.4.4 Covestro AG

      5. 6.4.5 Dow

      6. 6.4.6 Ercros SA

      7. 6.4.7 Formosa Plastics Corporation

      8. 6.4.8 Genesis Energy LP

      9. 6.4.9 Hanwha Solutions/Chemical Corporation

      10. 6.4.10 INOVYN (INEOS)

      11. 6.4.11 Kemira

      12. 6.4.12 Kem One

      13. 6.4.13 MicroBio Ireland Limited

      14. 6.4.14 NIRMA

      15. 6.4.15 Nouryon

      16. 6.4.16 Occidental Petroleum Corporation

      17. 6.4.17 Olin Corporation

      18. 6.4.18 PCC Rokita SA (PCC SE)

      19. 6.4.19 Shandong Haihua Group Co. Ltd

      20. 6.4.20 Spolchemie

      21. 6.4.21 Tata Chemicals Limited

      22. 6.4.22 Tosoh Corporation

      23. 6.4.23 Vinnolit GmbH & Co. KG (Westlake Chemical Corporation)

      24. 6.4.24 Vynova Group

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

    1. 7.1 Growing Demand for Chlor-alkali from the Emerging Markets

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Chlor Alkali Industry Segmentation

The chlor-alkali process involves the electrolysis of aqueous sodium chloride in a membrane cell, producing chlorine and its co-products, caustic soda and hydrogen gas. The chlor-alkali market is segmented by product, production process, application, and geography. By product, the market is segmented into caustic soda, chlorine, and soda ash. By production process, the market is segmented into membrane cell, diaphragm cell, and others. Based on application, the market is segmented into pulp and paper, organic chemical, inorganic chemical, soap and detergent, alumina, textile, and other applications. The report also covers the market sizes and forecasts for the chlor-alkali market in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done based on volume (kiloton).

Product
Caustic Soda
Chlorine
Soda Ash
Production Process
Membrane Cell
Diaphragm Cell
Other Production Processes
Application
Pulp and Paper
Organic Chemical
Inorganic Chemical
Soap and Detergent
Alumina
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
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa
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Chlor Alkali Market Research FAQs

The Chlor-alkali Market size is expected to reach 271.88 million tons in 2024 and grow at a CAGR of 3.17% to reach 317.80 million tons by 2029.

In 2024, the Chlor-alkali Market size is expected to reach 271.88 million tons.

Olin Corporation, Occidental Petroleum Corporation, Westlake Chemicals Corporation, Solvay and Ciner Resources Corporation are the major companies operating in the Chlor-alkali Market.

South America 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 Chlor-alkali Market.

In 2023, the Chlor-alkali Market size was estimated at 263.53 million tons. The report covers the Chlor-alkali Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Chlor-alkali Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Chlor Alkali Industry Report

Statistics for the 2024 Chlor Alkali market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Chlor Alkali analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Chlor Alkali Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)