Global Caustic Soda Market By Grade (Industrial Grade and Technical Grade), By Application (Alumina, Organic Chemicals, Inorganic Chemicals, Food, Pulp and Paper, Soap and Detergents, Water Treatment, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Global Caustic Soda Market size is expected to be worth around USD 73.4 Bn by 2032 from USD 4.48 Bn in 2022, growing at a CAGR of 5.2% during the forecast period from 2022 to 2032.

Caustic soda is utilized in manufacturing paper and pulp, petroleum, and oil & gas. In addition, due to its low weight, it has been used for household cleaning in various countries.

Caustic soda, also well-known as (NaOH) sodium hydroxide, is a solid and white-colored ionic compound including sodium cations Na+ and hydroxide anions OH-.

It is alkaline and is chemically obtained by electrolyzing sodium chloride (NaCl). It has a high solubility in water, moderate solubility in alcohol, and is typically insoluble in ether and non-polar solvents.

The market expansion of caustic soda can be attributed to its extensive applications in various industries like paper, chemical, textiles, and automotive. In addition, due to its reactive and corrosive nature, it is used to formulate various chemical products.

Market Scope

Grade Analysis

The industrial grade segment dominated the market in 2022

The global caustic soda market is divided into industrial grade and technical grade. Among these, the industrial grade segment accounted for the highest revenue share of the total market in 2022.

Industrial-grade caustic soda contains impurities and is utilized for industrial and commercial manufacturing, such as spandex, paper, rayon, explosives, glass, epoxy resins, paints, and ceramics. It is most widely used in the textile industry manufacturing of dyes, processing of cotton fabric, metal cleaning and processing, bleaching, and oxide coating.

Caustic soda has various properties, including tenacity, dyeability, stiffness, luster, and resistance to light and weather effects. About 57% of the NaOH is used for industrial purposes, while 25% is used in the paper industry. However, in food & beverage products, it is not suitable to use. As a result, the industrial segment is likely to grow significantly over the forecast period.

Application Analysis

The organic chemical segment held the largest revenue share in 2022

Based on application, the market for caustic soda is segmented into alumina, organic chemicals, inorganic chemicals, food, pulp and paper, soap and detergents, water treatment, and other applications.

Among these types, the organic chemical segment accounted for the largest market share in 2022. In producing various organic chemicals, the caustic soda is a necessary reactant. More than 25% of caustic soda is used to produce organic chemicals in Europe.

Apart from organic applications of (NaOH), the product has numerous applications in inorganic chemical formulations. Moreover, most demand for caustic soda is due to the inorganic chemicals such as glass, cosmetics, paints, and ceramics utilized in fuel cell production.

During the forecast period, the textile sector is the fastest-growing segment in the global market. In the textile industry, caustic soda is used to remove oils and waxes from fiber, making it receptive to dying, bleaching, etc. In addition, treating textiles with caustic soda provides luster to the fabric and greater tensile strength.

Key Market Segments

Based on Grade

• Industrial Grade
• Technical Grade

Based on Application

• Alumina
• Organic Chemicals
• Inorganic Chemicals
• Food, Pulp, and Paper
• Soap and Detergents
• Water Treatment
• Other Applications

Drivers

Rising demand for caustic soda in the healthcare sector and Increase in usage of caustic soda in the food sector to boost the market growth

Caustic soda primarily produces several pharmaceutical products, such as aspirin. This medicine works as an anticoagulant and also as a cholesterol-reducing medication. Therefore, the growing demand for caustic soda in the healthcare sector is anticipated to grow the market over the forecast period. Furthermore, caustic soda is used widely for various food processing purposes, such as giving food a different crunch. It also helps to remove the skin from vegetables and fruits.

In addition, caustic soda is also used as a food preservative that helps protect the food by preventing bacterial growth. As a result, the rising use of caustic soda in the food sector is expected to drive market growth positively.

Rising use of aluminum in beauty and skincare products

Various manufacturers widely use caustic soda in cosmetics, beauty, and skincare products. It is also a pH stabilizer in shampoos, conditioners, hand creams, body washes, and face lotions. In addition, it also maintains the acidity level, helps to keep moisture inside, and protects the skin from damaging elements such as UV rays, environmental toxins, microorganisms, and other pollutants.

Furthermore, daily caustic soda usage includes liquid hand soaps and bars, toothpaste, hand creams, and other products. As a result, the rising use of aluminum in beauty and skincare products highly contributes to market expansion.

Restraints

Highly corrosive nature to restrict market growth

Sodium hydroxide (NaOH) reacts with aluminum, copper, zinc, tin, and their alloys to produce hydrogen and hence can form an explosive gas mixture. It is also highly reactive with materials such as oxidizers, organic molecules, chlorinated compounds, and nitro compounds. In addition, the chemical reaction with amine and ammonium compounds can also release toxic substances.

If animals or humans are exposed to it, the highly corrosive nature of the caustic soda constitutes a serious threat. Its contact with the eyes may cause severe damage that may be irreversible if not treated immediately.

Furthermore, its concentrated ingestion can cause severe damage to the mucous membrane and other tissues exposed to the substance. Hence, its corrosive nature and high chemical reactivity releasing toxic gases affect the environment, restraining the market growth.

Opportunity

Expansion of the chemical industry to offer numerous growth opportunities

Caustic soda is being widely used chemical in various applications. In manufacturing several valuable organic chemicals, it is a feedstock in the production of different chemicals and constitutes an important reactant. It is mainly used as an intermediate and a reactant in the production processes of pharmaceuticals, inks, fabrics, solvents, dyes, synthetic fibers, bleach, coatings, adhesives, and herbicides.

It is also used for scrubbing and neutralizing acid waste sources. The saponification or conversion of vegetable oils, tallow, and fat in the production of surfactants for soaps and detergents are the other product applications.

Moreover, it extracts acidic compounds from hydrocarbons and gases in the petroleum industries. On the other hand, it is used in cotton processing in the garment industry and in the dying of synthetic fibers.

In addition, it is primarily used in the synthesis of medicinal compounds, the neutralization of acids, and the recycling of rubber. Therefore, the high demand for organic chemicals in emerging countries such as China and India is expected to surge the demand for caustic soda during the forecast period.

Trends

Rising scarcity of water worldwide to boost market growth

Caustic soda is the most commonly used chemical in water treatment that raises the pH of water by absorbing carbon dioxide and water. Extreme water stress, water scarcity, and strict regulation to control the contamination of water bodies are likely to boost the global caustic soda market growth. According to the Food and Agriculture Organization of the United Nations, water scarcity is one of the significant problems in the 21st century.

It affects human health, and environment, and the local economies that rely on industries, businesses, and water for agriculture. Such facts lead to an increasing need for wastewater treatment facilities, but it can take years for new plants to be approved, funded, installed, and commissioned. As a result, the market is projected to expand more during the forecast period.

Regional Analysis

The Asia Pacific region dominated the global caustic soda market in 2022

The Asia Pacific held the highest revenue share of 54% and is projected to be the fastest-growing regional market during the forecast period. Rising product demand can mainly be influenced by the expansion of the textile industry in developing countries such as China, India, and Vietnam. The growing demand for caustic soda in Asia is anticipated to increase the consumption of soaps, detergents, aluminum, and organic chemicals.

North America is anticipated to experience steady growth during the forecast period. The regional market is also expected to grow significantly owing to the higher demand for textile, detergent, and soap applications. The caustic soda demand has grown to a moderate level from a balanced level. However, the high temperatures in the United States in the North American region have led to longer formulation times, decreased production volumes, and lower operating rates at fewer plants which could limit the market growth.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Emerging key players in the market are implementing various strategies to expand their portfolios, thereby supporting market growth. Significant players can expect to have numerous growth opportunities due to the increased investment in research & development activities to develop new products as well as production methods.

Moreover, they are involved in collaborations, partnerships, mergers & acquisitions, and competitive pricing, forming the competitive landscape in the global market.  Major market stakeholders are expected to expand capacity and joint ventures in developing countries such as China and India to meet the rising demand. As a result, the market for caustic soda is expected to expand significantly in the coming years.

Market Key Players

• Shin-Etsu Chemical Co., Ltd.
• Occidental Petroleum Corporation
• Formosa Plastics Corporation
• Saudi Basic Industries Corporation
• Solvay SA
• FMC Corporation
• The Dow Chemical Company,
• Hanwha Solutions Corporation
• Tata Chemicals Limited
• Tosoh Corporation
• Nirma Ltd
• Other Key Players

Recent Developments

• In February 2022, the Chemical division of Occidental Petroleum was focused on considering an overhaul of some chloralkali plants in order to increase the capacity to manufacture higher-value caustic soda. This will likely offer a chance to significantly change its existing capacity to meet the rising demand for its key products.

• In January 2021, Shin-Etsu Chemical Co, Ltd. revealed its plans to expand its caustic soda manufacturing capacity by 390,000 m.t. /year. This project construction is anticipated to be completed by the end of the year 2023.

Report Scope