Silica Gel Market

• Increasing use in the food & beverages industry as food additives drive market growth

Market CAGR for silica gel is driven by its increasing use as a food additive in the food & beverages industry. Silica gel can improve the taste and quality of non-alcoholic beverages, liquors, essential oils, and snacks. It also improves the smoothness of beverages, for which additives such as precipitated this gel is widely used in food and beverage products. This gel removes turbid polymers that create haziness or cloudiness in liquids, making the drink finer and more visible.

Many food products and supplements contain silica gel, as it helps prevent clumping, allowing for easier packaging, transit, eventual consumption, and flowability. All such advantages are expected to increase demand for silica gel and, thus, drive revenue growth in the market.

Additionally, the rapid industrialization and increase in the use of desiccants in various industries have led to the expansion of the silica gel market. Silica gel is used as pellets in paper envelopes to dry the immediate environment. It is extensively utilized in the shipping and packaging industry, where the transported materials must be kept safe from moisture. Because of its qualities, such as being non-toxic, tasteless, and chemically inert, silica gel is used in the food and beverages industry to increase the shelf life of packaged food by keeping it moisture free.

It is also used to absorb the foul odor from refrigerators, automobiles, shoes, lockers, etc. Silica gel column is also a major component used during the chromatographic separation of drugs in the pharmaceutical industry.

Additionally, silica gel makes the skin appear supple and radiant. Pharmaceutical packaging typically utilizes this gel to protect medications from moisture and other contaminants. Silica gel column chromatography is utilized in the pharmaceutical industry to collect or split distinct medication components. Since the gel is utilized in the pharmaceutical industry as glidants, lubricants, viscosity agents, colorants, solvents, preservatives, and others, the rising pharmaceutical industry has augmented medication production and boosted revenue growth of the silica gel market.

Since silica gel is only utilized for preservation and packaging to maintain the items moisture-free, the increase in the production of medications is boosting the silica gel market revenue.

Clariant, a focused and inventive specialty chemical firm, has launched a new standard tube/desiccant stopper product designed and sized to meet the needs of the Vietnam market. The new product includes a 25 mm x 132 mm tube and a spiral closure for packaging and protecting effervescent tablets from breakage and moisture damage. The design also works well with chewables and lozenges.

July 2023: Among the recent market novelties have been bio-based silica gels. The latter is seen as a better alternative to the traditional silica gel derived from petroleum due to environmental concerns. Renewable raw materials such as rice husk ash or bamboo are used in the manufacture of these environmentally friendly gels, which reduces the industry's carbon footprint.

The Global Silica Gel Market Industry experiences a notable surge in demand from the packaging sector, driven by the need for moisture control in various products. Silica gel is extensively utilized in packaging to prevent moisture damage, thereby preserving product integrity. As the global packaging market expands, particularly in food and pharmaceuticals, the demand for silica gel is projected to increase. In 2024, the market value is estimated at 0.74 USD Billion, reflecting the growing awareness of product quality and shelf life. This trend is expected to continue, with the market potentially reaching 1.03 USD Billion by 2035, indicating a robust growth trajectory.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American silica gel market area will dominate this market, owing to its usage as a catalyst in the petrochemical industry and the refining and processing of natural gas, silica gel is in high demand in the petrochemical and oil & gas sectors in the region. Further, the US silica gel market held the largest market share, and the Canada silica gel market was the fastest-growing market in the North America region.

Further, the prominent countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SILICA GEL MARKET SHARE BY REGION 2022 (%) Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe silica gel market accounts for the second-largest market share due to the region's established and innovative industrial infrastructure, which is anticipated to increase demand for the gel in the region. Further, the German silica gel market held the largest market share, and the UK silica gel market was the fastest-growing market in the European region.

The Asia-Pacific silica gel market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising demand from the packaging industry and the high demand for electronics and food & beverage products in the region. Moreover, China silica gel market held the largest market share, and the Indian silica gel market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the silica gel market grow even more. Market participants are also undertaking several strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The silica gel industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the silica gel industry to benefit clients and increase the market sector. Major players in the silica gel market, including Clariant, Solvay, Merck KGaA, China National Bluestar (Group) Co, Ltd., Fuji Silysia Chemical Ltd., SiliCycle Inc., Multisorb, PQ Corporation, and others, are attempting to increase market requirement by investing in research and development operations.

DuPont de Nemours, Inc., commonly known as DuPont, is an American multinational chemical corporation first formed in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. The enterprise played a significant role in the development of Delaware and first arose as a major supplier of gunpowder. In February 2022, DuPont launched a new online sales portal for the needs of bioprocessing industry purchasers. DuPont bioprocessing enables sophisticated separations and purification for therapeutics, with different DuPont brands such as AmberChrom and AmberLite being very well established in the biopharma industry.

Merck KGaA is a pharmaceutical and chemical organization. The Company researches drugs in oncology and neurodegenerative as well as autoimmune and inflammatory diseases. Also, it markets cardiovascular, fertility, endocrinology, and over-the-counter products, as well as products for flat screens and pharmaceuticals, food, cosmetics, packaging, and coatings. In Sept 2021, Merck KGaA opened a new production facility in Gernsheim to strengthen its Xirona and Colorstream Silica-based product line, used in numerous applications for the paints and coating industry.