Sodium Chlorate Market

Growing Prevalence of the pulp and paper industry boosts the market growth

Sodium chlorate, often known as NaClO3, is an industrial salt made by electrolyzing sodium chloride (NaCl). It is typically utilized in the chemical bleaching procedure that is elemental chlorine-free (ECF). According to the EU Chemical Agency, 93% of the pulp in the European Union that has undergone chemical bleaching is produced using the ECF technique. The substance finds widespread application in the pulp and paper sector and is also employed as a chemical intermediary in creating explosives and plant protection products. Additionally, it produces colors, cosmetics, medicines, defoliants, and leather.

The expansion of the pulp and paper sector significantly impacts the market. Approximately 80–90% of sodium chlorate is used to create chlorine dioxide, a bleaching chemical used in pulp manufacturing. Chlorine dioxide demand is rising due to the rising need for hygiene items such as sanitary products, tissues, wipes, and paper toilets, which in turn is fueling the expansion of the worldwide sodium chlorate market. For instance, the production of paper and paperboard worldwide was estimated to reach 390 million tonnes in 2018 and 490 million tonnes in 2020. During the projection period, this is anticipated to increase its demand.

Additionally, the e-commerce industry's increased demand for cardboard packaging will probably increase its requirement for manufacturing paper.

Since sodium chlorate is phytotoxic to all green plants, it is used as a non-selective herbicide to control the growth of several plants, including morning glory, creeping thistle, johnsongrass, bamboo, ragwort, and St. John's wort. It is mostly utilized for spot treatments on non-cropland and for controlling vegetation along roadsides, fence ways, etc. The two main raw materials needed to make sodium chlorate are sodium chloride and water. Because of the low price and abundance of these raw ingredients, sodium chlorate is widely available.

This, together with how simple it is to store, makes it perfect for various uses and has enhanced the sodium chlorate market CAGR across the globe in recent years.

Sodium chlorate is frequently used as a bleaching agent to produce high-quality, environmentally friendly white paper. As a result, there will probably be a big demand for sodium chlorate throughout the projection period. The growing demand for environmentally friendly paper production methods will probably increase the need for sodium chlorate as a bleaching agent shortly. The use of sodium chlorate as a bleaching chemical is driven by environmental restrictions in the US and Canada, another factor driving the growth of the sodium chlorate market revenue.

November 2023

A lubricant additives firm in Lawrence, Kansas, formerly owned by Chemtrade, has been bought by Trecora LLC. Trecora's Specialty Chemicals division, which has its headquarters in the Woodlands, Texas, will include the company, which is one of the most prominent contributors to the production of phosphorus pentasulfide (P2S5) in North America.

Aodium chlorate, sulfuric acid, wasted acid processing services, inorganic coagulants for water treatment, sodium nitrite, and sodium hydrosulfite are some of the products that Chemtrade is a major provider of in North America. Not only that, but Chemtrade is also the most significant manufacturer of high-purity sulfuric acid for the semiconductor sector in the North American region. Among the most prominent suppliers of sulphur, chlor-alkali products, zinc oxide, and liquid sulphur dioxide in the area, Chemtrade is a market leader. Additionally, Chemtrade offers a variety of industrial services, including the processing of waste streams and processed by-products.

The Global Sodium Chlorate Market Industry is projected to experience substantial growth, with estimates indicating a market value of 4.51 USD Billion in 2024 and a potential increase to 7.27 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 4.43% from 2025 to 2035. Such projections reflect the increasing applications of sodium chlorate across various industries, including pulp and paper, water treatment, and agriculture. The anticipated expansion underscores the importance of sodium chlorate in meeting global demands and highlights its role as a key player in the chemical market.

The Global Sodium Chlorate Market Industry is significantly influenced by the agricultural sector's evolving needs. Sodium chlorate is employed as a herbicide, aiding in weed control and enhancing crop yields. As global food production demands intensify, farmers are increasingly turning to effective herbicides to optimize their agricultural practices. This trend is particularly pronounced in regions with high agricultural output, where the need for efficient weed management solutions is paramount. The agricultural sector's reliance on sodium chlorate is expected to bolster market growth, contributing to the overall increase in market value projected to reach 7.27 USD Billion by 2035.

The Global Sodium Chlorate Market Industry benefits from the ongoing expansion of the chemical manufacturing sector. Sodium chlorate is a vital intermediate in the production of various chemicals, including herbicides and dyes. As the global chemical industry continues to grow, driven by increasing industrialization and urbanization, the demand for sodium chlorate is likely to rise correspondingly. This trend is particularly evident in regions experiencing rapid economic development, where the need for chemical products is escalating. The market's growth trajectory suggests that sodium chlorate will remain a crucial component in the chemical manufacturing landscape.

The Global Sodium Chlorate Market Industry is witnessing a notable increase in applications related to water treatment. Sodium chlorate is utilized in the production of chlorine dioxide, a powerful disinfectant that effectively eliminates pathogens in water systems. As global water quality concerns escalate, municipalities and industries are increasingly adopting chlorine dioxide for water treatment processes. This shift is indicative of a broader trend towards sustainable and effective water management solutions. The anticipated growth in this segment is expected to contribute significantly to the market, aligning with the projected CAGR of 4.43% from 2025 to 2035.

The Global Sodium Chlorate Market Industry experiences a robust demand surge driven primarily by the pulp and paper sector. Sodium chlorate serves as a bleaching agent, essential for producing high-quality paper products. As global consumption of paper continues to rise, the industry is projected to expand significantly. In 2024, the market value is estimated at 4.51 USD Billion, reflecting the increasing reliance on sodium chlorate for efficient bleaching processes. This trend is likely to persist as manufacturers seek to enhance product quality while minimizing environmental impact, thereby solidifying sodium chlorate's role in the pulp and paper industry.

The Global Sodium Chlorate Market Industry is poised for growth due to technological advancements in production processes. Innovations in manufacturing techniques are enhancing the efficiency and sustainability of sodium chlorate production. These advancements not only reduce production costs but also minimize environmental impacts, aligning with global sustainability goals. As manufacturers adopt more efficient production methods, the overall supply of sodium chlorate is expected to increase, meeting the rising demand across various sectors. This trend indicates a positive outlook for the market, as improved production processes contribute to the industry's long-term viability.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific market accounted for USD 1.71 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. It is mostly caused by the product's strong demand in the pulp and paper industry. The regional market is projected to increase due to the rising demand for products made of paper. China, India, Japan, and South Korea are the main drivers of the robust expansion of the regional market.

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

Figure 3:  SODIUM CHLORATE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe sodium chlorate market accounts for the second-largest market share. The region had strong growth due to the high demand for paper-based packaging and hygiene products. Regional market expansion is also anticipated to be fueled by the expanding e-commerce sector. Further, the Germany sodium chlorate market held the largest market share, and the UK sodium chlorate market was the fastest-growing market in the European region.

The North America Sodium Chlorate Market is expected to grow at the fastest CAGR from 2022 to 2030. Due to stringent laws governing uranium mining and a rising need for leather tanning saw the region's fastest growth. The regional sodium chlorate market is projected to expand due to the rising demand for high-end leather products, including coats, upholstery, and shoes. Moreover, the US sodium chlorate market held the largest market share, and the Canada sodium chlorate market was the fastest-growing market in the North America region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the sodium chlorate market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the sodium chlorate industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the sodium chlorate industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the sodium chlorate industry has provided some of the most significant benefits. The sodium chlorate market major player such as Arkema SA (France), Nouryon (The Netherlands), ERCO (Canada), Kemira (Finland), Merck KGaA (Germany), China First Chemical Holdings Limited (China), HARKE GROUP (Germany), and others are working on expanding the market demand by investing in research and development activities.

Located in Colombes, close to Paris, France, Arkema S.A. is a publicly listed multinational manufacturer of specialized materials. Adhesives, advanced materials, and coatings are its three specialized materials segments (or divisions). Chemical intermediates are covered in a later section. The business was established in 2004 due to French oil giant Total reorganizing its chemicals division, and it went public on the Paris Stock Exchange in May 2006. In 2021, revenue was €9.5 billion. With 20,200 people, 13 research centers, and 144 production facilities, Arkema has operations in more than 55 countries.

In 2021, Arkema S.A. purchased Ashland's Performance Adhesives division for $ 1.65 billion.

Also, The Merck Group, also known as Merck, is a multinational science and technology firm with its headquarters in Darmstadt with operations in 66 different countries. Around 250 businesses comprise the organization, with Merck KGaA in Germany serving as its centerpiece. Three business segments comprise the company: healthcare, life sciences, and electronics. As one of the biggest pharmaceutical corporations in the world and the oldest continuously operational chemical and pharmaceutical company, Merck was established in 1668. In April 2019, Versum Materials' acquisition by Merck was announced.

The deal, which had an equity value of nearly $5.8 billion, was finalized in October 2019.