Chlor-alkali involves scientific processes used to manufacture caustic soda, chlorine, sodium and other chlorine based products such as bleaching powder, chlorinated paraffin, and others. The main products of chlor-alkali are caustic soda, soda ash, and chlorine gas. The increasing demand for chlor-alkali in chemical processing, glass manufacturing, textile industry, construction, and automobile industry has augmented the growth of chlor-alkali market during the forecast period of 2020-2030.

The products are in high demand due to their characteristics such as free flowing properties and high abrasion resistance. The alkali chemicals such as chlorine, sodium hypochlorite, and bleaching solutions are used in disinfection solutions. The Alkali Manufacturers Association of India (AMA) has issued guidelines to companies operating in chlor-alkali market regarding the preventive measures users should follow to avoid harmful reactions on skin. The manufacturers are spreading awareness regarding the products and emphasizing on dilution of disinfectant chemicals before using them. The disinfectants are widely used for sanitization of objects or surfaces that are infected or contaminated. Thus, after the outbreak COVID-19 pandemic the chlor-alkali market had exhibited a substantial growth trend in 2020.

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Increasing Efficacy in Customized Packaging Solutions to Boost PVC Segment in Chlor-Alkali Market

PVC segment is projected to dominate the chlor-alkali market on basis of application during the forecast period. PVC is used in pipes and fittings and wire and cables. To meet the credibility credentials, manufacturers are focusing on tailor-made packaging solutions and broadening their avenues in surfactants and biodiesel production. These factors have propelled the growth of chlor-alkali market.

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Asia Pacific’s Domination in Chlor-Alkali Market Incurs High Revenue and Exponential Growth

Asia Pacific holds a dominant position in chlor-alkali market. The region accounted for 60% market share in 2019. Rapid urbanization and industrialization in countries such as India and China has given rise to construction activities for commercial, residential, and industrial purposes. Chlor-alkali is widely used in manufacturing process of PVC and glass which are mainly used in the construction sector. The aforementioned aspects have accelerated the growth of the chlor-alkali market. India and China, together, have accounted for more than 70% share in chlor-alkali market in 2017 according to a TMR study.

Overall, the chlor-alkali market is expected to expand at a CAGR of 4% during the period of 2020-2030 and cross value of US$100 Bn by 2030.

The key factors that foster the demand for chlor-alkali are the presence of end- user industries such as PVC production, pulp and paper, textile, manufacturing, alumina production, and others. The increasing demand for caustic soda due to its free flowing nature and high abrasion resistance has also contributed towards the growth of chlor-alkali market.

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Global Manufacturers Expand Their Business Avenues by Investing Substantially in Improvising Production Techniques

The companies operating in chlor-alkali market are making substantial investments in improvising the production techniques to meet the end-user demands. The players are investing in mergers and acquisitions, joint ventures, and partnerships to maintain their market dominance. For instance, a specialty chemical supplier named Nouryon has initiated the manufacture of caustic soda at its membrane electrolysis plant in Frankfurt to meet the quality parameters of end-users in Western Europe. Such activities are fostering the growth of chlor-alkali market.

Major companies are expanding the operations in India as it is widely used in production of aluminum. India is eyeing value-grab opportunities and signing strategic agreements. Aditya Birla Group has taken over chlor-alkali business of KPR industries in Andhra Pradesh to expand aluminum production.  Prominent manufacturers in the chlor-alkali market are tapping opportunities in various sectors such as viscose staple fiber, pharmaceuticals, water treatment, and others. Some of the key players in the chlor-alkali market are Kemira, Tosoh, Dow, Solvay, INEOS, Occidental Petroleum Corporation, Tosoh Corporation, AGC Inc., and others.

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