Chlor-Alkali Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Chlor-Alkali Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The chlor-alkali market was valued at 251,809.53 kilotons in 2021, and it is expected to register a CAGR of 3.11% during the forecast period (2022-2027).

COVID-19 has negatively affected the demand for chlor-alkali in 2021. The COVID-19 pandemic has brought a downturn in the production of coated and uncoated paper for journals, schools, and offices, which leads to the decrease in demand for chemicals such as chlor-alkali used in paper production.

• In the short term, the major factor driving the growth of the market is the high demand for caustic soda and its derivatives.
• Caustic soda is used to manufacture products in industries like paper and pulp, soap and detergents, and textiles and in the synthesis of many organic and inorganic chemicals. Therefore, the product has high demand, which is expected to boost the market studied.
• The Asia-Pacific region is expected to be the largest market due to the large-scale production and consumption of chlor-alkali products and their derivatives.

• Chlorine occurs naturally but not in its elemental (gas) form (as Cl2). Chlorine and caustic soda/sodium hydroxide are produced by passing an electrical current through brine (common salt dissolved in water). This process is called chlor-alkali.
• The chlorine and sodium hydroxide produced in this process are widely used in the chemical industry. In chlorine production, the three raw materials used are salt, water, and electricity. As a result, three products can come out, chlorine, caustic soda, and hydrogen.
• Chlorine has many industrial uses, including making bulk materials like bleached paper products, plastics, such as PVC, and solvents like tetrachloromethane, chloroform, and dichloromethane. It is also used to make dyes, textiles, medicines, antiseptics, insecticides, and paints.
• Additionally, clinical uses of chlorine in healthcare facilities include hyper chlorination of potable water to prevent Legionella colonization, chlorination of water distribution systems used in hemodialysis centers, cleaning of environmental surfaces, disinfection of laundry, local use to decontaminate blood spills, disinfection of equipment, decontamination of medical waste prior to disposal, and dental therapy.
• Moreover, owing to the pandemic, the demand for chlorine in water treatment is expected to grow excessively in the forthcoming years.

• The Chinese textile industry is the largest in the world in terms of production and exports. The textile industry in China is also booming with increasing investments and government support from the 13th Five Year Plan. Investment in the country’s textile industry has been increasing due to cheaper electricity rates, transportation subsidies, and lower raw cotton prices.
• In addition, through the Belt & Road initiative, the country saw an in-flow of huge investments, both domestic and foreign, mainly focusing on increasing production capacity and exports of textiles and apparel. This, in turn, increases the demand in the chlor-alkali market.
• China is a hub for chemical processing, accounting for a major chunk of the chemicals produced globally. The growth in the country accounts for half of the growth of the global chemical market. The chemical market in China is growing at 4-5% annually compared to the ~3% growth in the rest of the world.
• Overall, the market for chlor-alkali is projected to witness healthy growth in the country over the forecast period, even though the market remained affected due to the COVID-19 outbreak.

The overall chlor-alkali market is partially fragmented in nature, but the market concentration differs from product to product. Some of the major players in the market include Olin Corporation, Occidental Petroleum Corporation, Solvay, Ciner Resources Corporation, and Westlake Chemical Corporation, among others.

• The market estimate (ME) sheet in Excel format
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