The caustic soda market size was valued at USD 45.77 Billion in 2023. The caustic soda industry is projected to grow from USD 48.56 Billion in 2024 to USD 77.98 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.10% during the forecast period (2024 - 2032). Caustic Soda is used mainly for building blocks in industrial processes. As it contains the NaOH formula, it is highly corrosive in both liquid and solid forms, while in contact with skin, it can cause skin rashes as well. Caustic soda finds its application in several industries, such as soaps & detergents, paper & pulp, textile finishing, water treatment, metal processing, refining bauxite, and others. In recent years, the caustic soda market witnessed a surge in demand owing to the rise in demand for paper manufacturing, which is one of the factors leading the said market segment towards growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Rising demands for Soaps & Detergents and the trend to use caustic soda in water treatment plants are aiding the market's growth.
Caustic soda, which is commonly known as sodium hydroxide is an essential component in the production of soaps, cleansers and detergents. Sodium Hydroxide flakes are extensively utilized in these applications owing to their properties to dissolve oils, grease, fat, and deposits composed of proteins. Apart from this, the caustic soda flakes are also used in the saponification process, which is a chemical reaction that transforms vegetable oils into soap. Detergents having caustic soda as is primary ingredient are further categorized into anionic, cationic, and non-ionic based on their ionic characteristics. The primary uses of these detergents are seen in domestic cleaning and as additives in fuel. Soaps and detergents are extensively employed for effective sanitation of residences, workplaces, industrial facilities, and other locations.
Furthermore, the increasing scarcity of water in major parts of the world leads to more water treatment plants, and with this, the use of caustic soda as a water treatment chemical has risen in the past decade. Caustic soda raises the pH of water by absorbing water and carbon dioxide. Furthermore, the caustic soda market expansion will be primarily driven by water shortages, acute water stress, and stringent legislation to manage contamination in water bodies. The Food and Agriculture Organization of the United Nations states that water scarcity is a significant issue in the 21st century. It adversely affects both, human health and the environment, as well as the local economy that depends on water for enterprises, industry, and agriculture. These facts contribute to a growing demand for effective water and wastewater treatment facilities.
In 2024 Olin Corporation launched a new caustic soda product with improved purity and application versatility.
In 2023 Tata Chemicals introduced advanced caustic soda solutions designed to meet diverse industrial requirements.
The caustic soda market is primarily segmented based on type and application.
Based on type, the caustic soda market is further sub-segmented into lye and flakes. Out of which, the flakes sub-segmentation owes the major market share.
The flakes segment is known to be the primary driver of the said market's growth and is projected to grow at a compound annual growth rate (CAGR) of 6.23% over the forecast period. Sodium hydroxide is derived from solid flakes of caustic soda. The product is extensively utilized in several sectors such as pulp, paper, textile, soap, detergent, and alumina refining. Caustic soda flakes are predominantly utilized in the manufacturing of paper and pulp, soap, detergent, and textile production sectors. It serves as an intermediary for a diverse array of organic chemicals, such as dyes, pigments and agrochemicals, and various inorganic chemicals including sulfites and phosphates.
Based on application, the caustic soda market is further divided into paper & pulps, soaps & detergents, organic chemicals, food processing, water treatment and metallurgy. Out of which, the organic chemical segmentation dominates the market share. The organic chemicals subsegment is estimated to grow at a steady growth rate i.e., at a CAGR of 6.61% during the forecast period, making it a vital contributor to the growth of the caustic soda market. Caustic soda is a key ingredient in the production of several organic compounds. The production of organic compounds accounts for about 25% of Europe's caustic soda consumption. Glass, paints, cosmetics, ceramics, and inorganic compounds utilized in fuel cell production also contribute to the need for caustic soda, eventually aiding the growth of the caustic soda market.
The caustic soda market is primarily studied across four prominent regions, namely North America, Europe, Asia-Pacific and the Rest of the World. Out of which, the Asia-Pacific region dominates the market with the largest share of the market owing to the growing chemical industry in the region and government subsidies. The APAC region is predicted to exhibit a healthy growth rate over the forecast period, which is backed by high consumer expenditure and the growing chemical and construction industry, which is likely driving the market forward.
The major reason for APAC to dominate the caustic soda market is the developing chemical industries in major emerging economies like India and China. India's extensive chemical industrial infrastructure significantly influences the growth of the caustic soda industry in the country. Aditya Birla Chemicals (India) Limited and Gujarat Alkalies and Chemicals Limited are the predominant manufacturers in India. ABCIL utilizes advanced membrane technologies across three plant sites to produce lye and flakes of exceptional quality. Lye and flakes are frequently employed in alumina refineries, as well as in the production of soaps and detergents and in the paper and textile industries. Additionally, they are utilized in the chemical production sector as a fundamental raw material for various subsequent items, which eventually aid the market's growth.
Followed by the Asia-Pacific region, the North American and European regions combined a market share of more than 25% of the total market share. Manufacturers in the United States have transitioned from using the mercury cell or diaphragm technique to employing membrane technology. Anticipated lucrative prospects are expected for U.S.-based producers due to the increase in exports to Latin America and Africa.
Being named one of the most competitive market segments, several companies are entering the industry with high-end innovations and strategies. Major key players in the market often explore ways to expand their business through collaboration, mergers and acquisitions, partnership deals, and several other business strategies. Some of the top key competitors in the said market segment are listed below.
March 2021 -
In March 2021, Tamil Nadu Petroproducts Ltd., an Indian company, announced to boost their production capacity of linear alkylbenzene and build a propylene recovery unit.
January 2021 -
In January 2021, Shin-Etsu Chemical company announced their plans to expand its business ly by increasing its production plants of caustic soda.
January 2023 -
In January 2023, two major companies in the market Covestro and Lanxes, signed an acquisition deal to produce sustainable raw materials while reducing carbon footprints.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 45.77 billion |
| Market Size 2024 | USD 48.56 billion |
| Market Size 2032 | USD 77.98 billion |
| CAGR | 6.10% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024 to 2032 |
| Historical Data | 2019 & 2020 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application and End-Use |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | Olin Corporation, Tata Chemicals Limited, Formosa Plastics Corporation, Westlake Chemical Corporation, Occidental Petroleum Corporation, Xinjiang Zhongtai Chemical Co. Ltd, Gujarat Alkalies and Chemical Limited, Hanwha Chemical, AkzoNobel NV, Covestro AG, PPG Industries, FMC Corporation, Brenntag North America Inc. |
| Key Market Opportunities | The use of products that are related to caustic soda has increased very much such as paper bags, paper cups, pharmaceuticals, industrial chemicals, and many more. |
| Key Market Drivers | The alumina production has increased a lot in the past few years that affected the caustic soda market. |
Caustic Soda Market Highlights:
Frequently Asked Questions (FAQ) :
Among all the other regions, Asia Pacific is expected to dominate the global caustic soda market. The market of Asia Pacific in 2019 was estimated to be around USD 25.2 million. This region is expected to grow with the increasing rates of interest, customer expenditure, government subsidies, and others.
As the market is growing rapidly in most of the regions, many companies are entering the caustic soda market. However, the key layers in this market are Tata Chemicals Limited (India), Hanwha Chemical (South Korea), Aditya Birla Chemicals Limited (India), Formosa Plastics Corporation (Taiwan), Gujarat Alkalies and Chemical Limited (India), Olin Corporation (US), Xinjiang Zhongtai Chemical Company Limited (China), and others.
Some of the major driving factors for increasing the global market growth of caustic soda are increasing demand for alumina, pulps, increasing rates of interest, government fundings, rising demand for paper, and others. Apart from that, there are plenty of other factors that are supporting and propelling the growth of the caustic soda market.
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