Aluminum Hydroxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Aluminum Hydroxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The market for aluminum hydroxide (Alumina Trihydrate) is anticipated to register a CAGR of over 4.5% during the forecast period.

• COVID-19 moderately impacted industry growth and temporarily halted production. However, post-pandemic, the consumption of aluminum hydroxide is increasing gradually in various industries.
• Major factors driving the market study include increasing usage in polymer applications, primarily as fire retardants, and a rise in safety standards in building construction. Increasing health risks, primarily due to exposure to aluminum hydroxide, are expected to hinder the market's growth.
• The rising usage of batteries and chemicals is expected to act as a growth opportunity for the market studied over the forecast period. Asia Pacific dominates the global aluminum hydroxide industry due to the surging plastic demand, especially in countries such as China and India.

• Alumina trihydrate is majorly used in plastics as a flame retardant. Almost 40% of the alumina trihydrate produced is being used in the plastics industry. In thermoplastics, flame-retardant substances are added to the polymer matrix in a molten state during extrusion, while in thermosetting plastics, the flame-retardant materials are added to the polymer structure using polycondensation or grafting.
• Plastics are being used in different end-user industries owing to their advantages, such as low cost, less weight, durability, water-resistant, etc. Some of the major end-user industries include automotive and transportation, construction, and electrical and electronics, among others.
• Growing demand for lightweight and fire-resistant materials in the automotive industry to provide increased efficiency and design flexibility is primarily responsible for the growth of the plastics market. High-performance plastics offer manufacturers the advantages of design and comparable strength to steel. Thus, this helps in reducing the overall weight and controlling greenhouse gas emissions (GHG).
• The electrical industry is seeking alternatives to the use of halogens as flame retardants for health, safety, and recycling reasons. Created specifically to address these needs, the non-halogenated material will see widespread use in electrical applications such as insulating elements and housings for circuit breakers, contactors, transformers, and motors.
• Global plastics production was around 390.7 million metric tons in 2021, an annual increase of 4%. Plastic demand is set to continue growing for the foreseeable future, with production set to reach 589 million metric tons in 2050. The demand for eco-friendly solutions such as sustainable plastic packaging is also expected to experience growth.
• China is the leading producer of plastics, accounting for roughly 32% of global production. Despite the economic impacts of the pandemic, the production of plastic products in China increased in 2020. China currently produces 6-8 million metric tons of plastic products monthly.
• Furthermore, India’s plastic industry has grown rapidly since its inception and is now a key player in global plastics production, comprising more than 20,000 processing units. It is a multi-billion dollar industry and a major contributor to India’s economy, employing some four million people. It is also a global supplier, with India’s polymer exports totaling some 1.5 million metric tons in 2021.
• The increase in polymer production activities in the Asia Pacific and European regions will likely drive the aluminum hydroxide market during the forecast period.

• China dominated the Asia-Pacific market. China has one of the world's largest chemical markets, significantly impacting the regional market. In recent years, there was a rapid growth in cross-border mergers and acquisitions by state-owned enterprises and private entities, as well as outbound greenfield investments.
• During the ongoing 13th five-year plan, China's chemical industry is expected to enter a new stage characterized by green development, industrial up-gradation, and structural developments. The Chinese healthcare sector is also growing at a rapid pace. As a part of Beijing's "Made in China 2025" industry plan, President Xi Jinping announced plans to focus on innovation and homegrown R&D concerning the pharmaceutical sector.
• In 2021, the total expenditure on health care in China reached over CNY 7.7 trillion (USD 1.1 trillion). Overall, healthcare spending is expected to increase to USD 2.53 trillion, representing a compound annual growth rate of 8.4%. The share of health spending in China's GDP will increase from 6.6%in 2022 to 9.1% in 2035.
• India accounts for approximately 6% of global plastics consumption, making it the third-largest consumer behind China and the United States. Economic growth and population growth are expected to drive plastics use in the coming decades, with projections showing that plastics consumption in India could rise to more than 160 million metric tons by 2060. Such factors are expected to drive the Chinese aluminum hydroxide market during the forecast period.

The aluminum hydroxide market is fragmented in nature, with several manufacturers across the world. The major companies include Aluminum Corporation of China Limited (Chalco), Nabaltec AG, TOR Minerals International Inc., Huber Engineered Materials, and LKAB Minerals AB, among others.

• The market estimate (ME) sheet in Excel format
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