Zinc Chemicals Market - Growth, Trends, Covid-19, and Forecast (2023 - 2028)

Zinc Chemicals Market - Growth, Trends, Covid-19, and Forecast (2023 - 2028)

The global zinc chemicals market is estimated to reach over 4,000 kilotons by the end of this year and is expected to register a CAGR of over 4% during the forecast period.

The outbreak of COVID-19 brought several short-term and long-term consequences in the construction, petrochemical, and other industries, which affected the zinc chemicals market across the world. However, presently the market has returned to the pre-pandemic level.

• Over the short term, the rising utilization in the automotive industry and increasing demand from the rubber tire industry are likely to drive the demand for the zinc chemicals market.
• On the flipside, factors such as health hazards related to zinc-based chemicals are expected to hinder the growth of the market.
• The emerging research and technological advancement in the field of zinc nanoparticles employed for diagnosis, imaging, as well as treatment of cancer offer great opportunities for the zinc market over the upcoming years.

• The rubber processing segment is the dominating segment owing to the large-scale consumption of zinc chemicals in galvanization and manufacturing tires.
• Zinc chemicals are widely used in manufacturing tires and tubes commonly used in automobiles; the growing automobile industry is expected to augment the overall demand for zinc chemicals shortly.
• According to the International Rubber Study Group (IRSG), global natural rubber production increased positively by 5.4% in 2021, reaching 13.770 million tons from 13.065 million tons produced in 2020.
• In 2021, the global demand for rubber increased by 9.4% (year over year), surpassing pre-pandemic levels with a total of 29.57 million tons. Pent-up demand from the tire and non-tire sectors, particularly in the first half of 2021, contributed to the strong rebound.
• The growing popularity of electric vehicles is expected to drive the demand for automotive tires, thereby propelling the consumption of tires in the automotive industry, which in turn goes to the zinc chemical market.
• Also, higher loadings of zinc oxide can improve hot air/heat aging properties, and too low a concentration of zinc oxide can lead to scorching problems. Furthermore, it reduces heat buildup and wears in tires, thus, making it an important segment in the rubber tire industry. Thus, with the growth in the tire industry, the consumption of zinc oxide is also increasing concurrently.
• Asia-Pacific countries like China, India, Japan, South Korea, and Thailand are the primary producer of automobiles; hence the requirement for the zinc chemical market is projected to increase from this region in the forecast period.

• Asia-Pacific region stands to be the dominating region owing to the vast and extensive application of zinc chemical derivatives in various applicationa including rubber processing, chemicalsprocessing, and agriculture among others.
• China is a hub for chemical processing, accounting for most chemicals produced worldwide. Owing to the encouraging government initiatives and a vast consumer base, the chemical manufacturing sector in China is expected to increase at a consistent rate during the forecast period. The increasing production of chemicals is expected to create an opportunity for the growth of the studied market in the country in the near future.
• In India, there are 40 tire manufacturers and around 6,000 non-tire manufacturers producing seals, conveyor belts, and extruded and moulded rubber profiles to be used in automotive, railway, defence, aerospace and other applications.
• Furthermore, India is home to over 2,500 decorative coatings and 800 industrial coatings manufacturers. This increasing demand for coatings has prompted the companies to increase their production and production capacities. This is expected to drive the demand for the liquid synthetic rubber market in the country, which further will boost the demand for zinc chemicals in coming years.
• In China & India demand for the zinc chemical expected to increase due to the growing agrochemical industry & economic growth. Low cost and easy availability of chemical fertilizers act as key factors for the growth of the market. Zinc sulfate is used as a fertilizer additive in chemical fertilizers, thereby stimulating the zinc chemicals' market size.
• Japan possesses one of the world's largest rubber industries as it is one of the major hub of tire production. According to the Japan Automobile Tyre Manufacturers Association, the consumption of rubber recorded about 1.01 million tons of rubber in 2021. Among both the rubber types (including natural and synthetic rubber), the synthetic rubber accounted about 402,597 tons in 2021.
• Furthermore, the country is ranked third globally, only behind China and United States, in terms of the total amount of rubber material consumed. The largest producers of tires in Japan, like Tosoh Corporation, Zeon Corp., and Toyo Tire & Rubber Co. Ltd, are undergoing capacity additions, which is expected to present an exciting market arena for zinc chemicals from the rubber processing industry over the forecast period.
• Hence, all such market trends are expected to drive the demand for zinc chemical market in the region during the forecast period.

The global zinc chemical market is fragmented, with no player capturing a significant share. Some of the key companies in the market include U.S. Zinc, Zochem Inc, EverZinc, TIB Chemicals AG, and Weifang Longda Zinc Industry Co. Ltd., amongst others.

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