Global Anhydrous Aluminum Chloride Market - 2022-2029

Global Anhydrous Aluminum Chloride Market - 2022-2029

Market Overview

The global anhydrous aluminum chloride market size was worth US$ XX million in 2021 and is estimated to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of XX% within the forecast period (2022-2029).

The odorless, white or yellow crystalline solid anhydrous aluminum chloride (aluminum trichloride, AlCl3) reacts violently with water to generate hydrogen chloride (HCL) gas. Although it is white, it is frequently polluted with iron (III) chloride, which gives it a yellow tint.

AlCl3 is used to produce aluminum metal, but large amounts are also used as a catalyst in many sections of the chemical industry. It's utilized in dyes and pigments, insecticides, hydrocarbon reforming, medicines and as active ingredients in cosmetics, among other things.

Furthermore, some inorganic products, such as titanium dioxide and fumed alumina, are also made with AlCl3. It's used to make ethylbenzene, dyes and pigments, hydrocarbon resins and other inorganic compounds, including fumed alumina, titanium oxide and other chemical intermediates.

At 178 degrees Celsius, AlCl3 will easily sublime, releasing hydrogen chloride gas. The solid and gas byproduct is highly corrosive to eyes, skin and mucous membranes. AlCl3 is not combustible; however, conventional ABC or BC fire extinguishers should never be used.

Chloride Dynamics

Increasing demand for anhydrous aluminum chloride in various industries as a catalyst drives the market share.

Increasing demand for anhydrous aluminum chloride in various industries as a catalyst is driving the market share.

Anhydrous aluminum chloride is majorly utilized as a catalyst in the chemical industry for various purposes, including dyes and pigments, insecticides, hydrocarbon reforming, medicines and cosmetics. Anhydrous aluminum chloride is used to make key dye intermediates like anthraquinone, phthalocyanine green, ethylbenzene and meta phenoxy benzaldehyde.

The growing need for dyes and pigments in the textile, printing ink, plastics, paints and coatings and other specialty sectors drives demand for anhydrous aluminum chloride. Dyes and pigments are important components for painting and coloring various products. Dyes and pigments are used by the paint, plastic, textile and printing industries to achieve the appropriate color for their products. Both dyes and pigments, in general, are chemicals that give a material color. The textile industry is a growing market, with China, the European Union, U.S. and India as major competitors. China is the world's largest producer and exporter of raw textiles and finished garments. U.S. is the world's largest producer and exporter of raw cotton and the world's largest raw textiles and garments importer.

For instance, as per the India Brand Equity Foundation, India is the world's second-largest textile and clothing exporter. Textile demand is expected to be driven by increased organized retail penetration, favorable demographics and rising income levels. In FY20 (through January 2020), cloth output was 63.34 billion square meters and the Indian apparel market is expected to reach US$ 85 billion by 2021.

In addition, South Korea's textile demand has remained stable, with a growing preference for technical textiles in the country. Manufacturers can focus on high-end manufacturing textiles in the country thanks to a strong domestic man-made fiber industry and a powerful non-woven production sector

Furthermore, As anhydrous aluminum chloride is a lewis acid, it is widely utilized as a catalyst in the pharmaceutical industry to make ibuprofen and other medications, boosting the market for anhydrous aluminum chloride. Anhydrous aluminum chloride is used as a major catalyst in Friedel-Crafts processes, including alkylation and acylation, polymerization and isomerization of hydrocarbons, boosting market demand.

Anhydrous aluminum chloride is utilized in the petrochemical industry to make hydrocarbon resins and inorganic chemicals like titanium dioxide and fumed alumina, which propels the market forward. Anhydrous aluminum chloride is also used to manufacture fumed alumina, electrolytic aluminum production and titanium dioxide nucleating agent.

High fluctuating raw materials prices and difficulty in storing anhydrous aluminum chloride.

The raw ingredients needed to make anhydrous aluminum chloride are aluminum scrap and chlorine. Aluminum scrap comes from scrap dealers and chlorine comes from various caustic soda and chlorine suppliers. Because anhydrous aluminum chloride manufacturing is heavily dependent on chlorine supply, the price of anhydrous aluminum chloride varies according to the chlorine supplier's pricing and the availability of aluminum scrap.

Furthermore, anhydrous aluminum chloride should be kept cool, dry and well-ventilated, away from moisture, heat, any source of ignition and very alkaline compounds. Anhydrous aluminum chloride is difficult to store since it is hygroscopic and corrosive. As a result, it is manufactured and delivered in response to demand from various end-use applications and it necessitates excellent distribution packaging. As a result, storage and packaging are critical for maintaining the compound's purity.

COVID-19 Impact Analysis

COVID-19 had a negative effect on the anhydrous aluminum chloride industry. Various nations went into lockdown due to the pandemic, causing supply chain delays and work stoppages—this harmed demand in various industries, including textiles, paints and coatings and others. However, conditions are expected to improve in the coming years, restoring the market's growth trajectory over time. Furthermore, due to the coronavirus outbreak, the customer is also unwilling to invest their money in buying textile goods, thus severely hampering the growth of the product in the 2020-2021 period

However, anhydrous aluminum chloride is widely utilized in medicines and the anhydrous aluminum chloride market will benefit greatly from the dramatic increase in pharmaceutical profits. The outbreak of COVID-19 has shown a positive impact on the growth of the pharmaceutical industry, leading to boost market opportunities for the product to grow in the forecast period. For instance, According to Indian pharmaceutical market research firm Pharma AWACS, the Indian pharmaceutical sector has had double-digit growth of roughly 15% in 2021, led by the growth of COVID-19 medicines, compared to a single-digit growth of 3% the previous year.

Segment Analysis

The global anhydrous aluminum chloride market can be segmented in form, application and region.

Dyes and pigments are the biggest markets for anhydrous aluminum chloride as it is used as a catalyst in the production of pigments and anthraquinone and its derivatives

The global anhydrous aluminum chloride market is segmented on application into dyes & pigments, hydrocarbons resins, fumed alumina, pesticides, pharmaceuticals & cosmetics, electrolytic production of aluminum, titanium dioxide and others. Dyes and pigments are the biggest markets for anhydrous aluminum chloride. It is used as a catalyst in producing pigments (primarily CPC green) and anthraquinone and its derivatives.

The dye and pigment industry has shown signs in the past few years, creating huge market opportunities for anhydrous aluminum chloride to grow in the forecast period. For instance, Organic pigments are the most common form of pigment produced in India, accounting for 58% of total pigment output. The country's cosmetic industry is triggering the growth of the pigment market. The increasing demand for cosmetic items such as skincare, haircare and perfume is increasing due to improving living standards and changing lifestyles, giving the Indian cosmetics industry a boost.

Due to environmental crackdowns in China, which have resulted in the closure of several domestic dye companies, the dyes sector in India is likely to rise steadily in the future years. Furthermore, Due to the availability of the ecosystem, feedstock, technology and industry compliance, India is in a superior position. As a result of these factors, China's customer base is projected to transfer to India in the future years. Thus improving the business of organic pigmentation and growth in technology in various developing countries is more likely to bolster the demand for anhydrous aluminum chloride in the forecast period.

Geographical Analysis

With rapid industrialization, China is predicted to expand the quickest in the area and demand for anhydrous aluminum chloride as raw material and catalyst is increasing in a variety of industries

Asia-Pacific had the majority of the worldwide market share. Anhydrous aluminum chloride is being more widely used in the region, in China, Japan and India.

Because of changing lifestyles, cosmetics and pharmaceuticals are growing in nations like India, China and Japan. During the projected period, the cosmetics sector in the region is expected to increase at a CAGR of up to xx percent. The growth in the cosmetic sector opens up many opportunities for anhydrous aluminum chloride.

Due to rapid industrialization, China is predicted to expand the quickest in the area and demand for anhydrous aluminum chloride as raw material and catalyst is increasing in various industries. Increased government investment in industrial growth, particularly in chemical manufacturing, pharmaceuticals and cosmetics, is likely to boost market demand throughout the projection period in nations like China and India.

Asia-Pacific is home to some of the world's top manufacturers of anhydrous aluminum chloride. BASF SE, Gujarat Alkalies & Chemicals Ltd. and Aditya Birla Chemicals are among the largest producers of anhydrous aluminum chloride. The causes above, combined with government backing, drive growing demand for anhydrous aluminum chloride during the projection period.

Competitive Landscape

The global anhydrous aluminum chloride market is highly competitive with local and global companies. Some prime companies contributing to the market's growth are Gulbrandsen, Base Metal Group, DCM Shriram Industries, Gujarat Alkalies & Chemicals Limited, Kanto Denka Kogyo, Juhua Group Corporation, Nippon Light Metal Company Ltd, BASF, Aditya Birla Chemicals, Kemira Oyj and others.

The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the global growth of the anhydrous aluminum chloride market.

Gujarat Alkalies and Chemicals

Overview: Gujarat Alkalies and Chemicals Limited (GACL) is a state-owned chemical and alkalies manufacturer under the Government of Gujarat Ministry of Chemicals and Petro-Chemicals, Government of Gujarat. Gujarat Industrial Investment Corporation (GIIC) established GACL on March 29, 1973. GACL is owned by the Gujarat government and is a significant promoter. Caustic soda manufacturing began in 1976 at the Vadodara plant, with a capacity of 37,425 MTPA. Gujarat's Dahej and Vadodara are home to the company's manufacturing plants. Caustic soda, sodium cyanide, chloromethanes, sodium ferrocyanide, caustic potash, potassium carbonate, hydrochloric acid, phosphoric acid (85%) and hydrogen peroxide are among the chemicals produced by the company.

Product Portfolio:

Anhydrous Aluminum Chloride: The company offers premium quality products Manufactured with state-of-the-art technologies. Aluminum chloride anhydrous is produced from the reaction of pure gaseous chlorine with high purity molten Aluminum. The product offers low iron content and metal impurities, low insoluble content and purity of aluminum chloride. Furthermore, the product is among various applications such as reforming hydrocarbon, electrolytic production of aluminum titanium dioxide and others.

Key Development

Gujarat Alkalies and Chemicals boosted its anhydrous aluminum chloride production capacity from 63 to 72 TPD by adding four new reactors in Dahej, India. It also intends to build a 16,500-TPA plant in Dahej, India, to manufacture anhydrous aluminum chloride at USD 5.21 million. The increase allows the company to meet the market's overall demand for anhydrous aluminum chloride.

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Target Audience 2022

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