Global Zinc Oxide Market By Process(Wet Chemical, Direct, Indirect, Others), By Form(Powder, Pellets, Liquid), By Grade(Standard, Treated, USP, FCC , Others), By Application(Chemicals, Rubber, Pharmaceuticals, Ceramics, Paints & Coatings, Cosmetics and Personal Care, Agriculture, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Market Overview

The Zinc Oxide Market size is expected to be worth around USD 9 billion by 2033, from USD 5.4 billion in 2023, growing at a CAGR of 5.8% during the forecast period from 2023 to 2033.

This development is a result of the high heat conductivity and high refractive index characteristics of zinc oxide (ZnO). They also provide UV protection and antibacterial properties. It is used in many industries. These include ceramics, pharmaceuticals, and the cosmetics industry. Over the forecast period, the market will see a lot of growth due to the rising demand for zinc oxide particles.

*Actual Numbers Might Vary In The Final Report

Key Takeaways

• Market Growth Projection: The Zinc Oxide Market is poised to reach a significant worth of around USD 9 billion by 2033 from USD 5.4 billion in 2023, experiencing a compound annual growth rate (CAGR) of 5.8%.
• Production Methods: Various production processes for Zinc Oxide include wet chemical, direct, indirect, and other less common methods, each offering distinct advantages based on factors like efficiency, cost-effectiveness, and purity requirements.
• Forms and Grades: Powder form dominates the market (over 76.5%), followed by pellets and liquid forms. Different grades like standard, treated, USP, FCC, and specialized grades cater to specific industrial standards and application requirements.
• Industry Dominance: Automotive and chemicals emerge as major players, with automotive securing over 40.5% of the market share due to Zinc Oxide’s use in rubber formulations for tires and various components.
• Regional Influence: The Asia Pacific (APAC) leads with over 52.2% revenue share in 2023 due to its substantial manufacturing base, while North America holds a 17.1% revenue share, boosted by the cosmetics and pharmaceutical industries.
• Key Market Players: Leading companies include U.S. Zinc, EverZinc, Zinc Nacional, Tata Chemicals Ltd., among others, investing in research and development to produce high-performance Zinc Oxide products.

Process Analysis

The Zinc Oxide market encompasses various methods for producing this essential compound, and these methods are categorized based on the processes involved in creating Zinc Oxide.

The wet Chemical Process method involves chemical reactions carried out in liquid solutions to produce Zinc Oxide. It often includes dissolving zinc-containing materials in a solution and then precipitating Zinc Oxide through a series of chemical reactions. Direct Process approach, zinc metal undergoes a process where it’s vaporized and then oxidized directly to form Zinc Oxide.

This method skips some intermediary steps, directly converting zinc into the oxide form. Indirect Process, zinc vapors are produced through a specific controlled method, usually through heating or smelting zinc-containing materials. These vapors are then carefully oxidized under controlled conditions to create Zinc Oxide.

Other Process categories cover alternative or less common methods used for Zinc Oxide production. These methods might have unique approaches beyond the primary three, sometimes employed in specific situations or for particular applications. Each of these processes has its advantages, and their choice often depends on factors like efficiency, cost-effectiveness, purity requirements, and the specific applications for which the Zinc Oxide will be utilized.

By Form

In 2023, the Zinc Oxide market saw the dominance of Powder form, securing over 76.5% of the share. Zinc Oxide in powder form is widely used across various industries for forms like pigments, rubber manufacturing, ceramics, and pharmaceuticals due to its versatility and ease of integration into different processes.

Pellets held a smaller yet significant market share of about 18.2%. This form of Zinc Oxide finds use in specific forms like chemical reactions, where controlled release or specific shapes are required. Liquid form accounted for a smaller segment, approximately 5.3% of the market. This form of Zinc Oxide is utilized in certain specialized forms such as coatings, paints, and some pharmaceutical formulations where liquid dispersion is preferred.

The dominance of Powder form in the Zinc Oxide market signifies its widespread utilization and adaptability across multiple industries, while Pellets and Liquid forms cater to specific and niche forms within their respective sectors.

By grade

The Zinc Oxide market is segmented based on different grades, each designed to meet specific industry standards and application requirements:

Standard Grade is the baseline quality of Zinc Oxide used across various industrial sectors. It serves as a fundamental type suitable for general industrial applications. Treated-grade Zinc Oxide in this category undergoes specific treatments or modifications to enhance its properties for particular applications. These treatments could include surface modifications or chemical alterations to improve performance in specific industrial processes.

USP Grade is grade adheres to the standards outlined by the United States Pharmacopeia (USP). It is of higher purity and quality, meeting strict criteria suitable for pharmaceutical applications where purity and safety are critical. FCC Grade is Zinc Oxide meeting the standards set by the Food Chemicals Codex (FCC). This grade ensures that the Zinc Oxide is safe for use in food and beverage applications, meeting regulatory requirements for these industries.

Other Grade categories encompass various specialized grades of Zinc Oxide tailored for specific uses beyond the primary categories mentioned. These specialized grades might target unique applications or industries, offering specific properties or characteristics. Each grade caters to different industries and applications, ensuring that Zinc Oxide meets the required standards, quality benchmarks, and regulatory compliance necessary for its use in diverse sectors such as industrial manufacturing, pharmaceuticals, food production, and beyond.

Application Analysis

In 2023, Automotive emerged as a dominant player in the Zinc Oxide market, securing over 40.5% of the share. Zinc Oxide finds extensive use in automotive applications, contributing to rubber formulations for tires and other components due to its durability and performance-enhancing properties.

Chemicals held a substantial market share of about 22.3%, employing Zinc Oxide in various chemical processes and manufacturing applications. Rubber followed closely, with a share of approximately 18.7%, utilizing Zinc Oxide as a key ingredient in rubber manufacturing for its reinforcement properties.

Pharmaceuticals and Ceramics secured smaller yet significant shares, around 9.5% and 5.8%, respectively. Zinc Oxide plays a role in pharmaceutical formulations and ceramic production processes. Paints & Coatings, Cosmetics and Personal Care, and Agriculture covered the remaining segment, each employing Zinc Oxide in specific applications within their respective industries.

The dominance of Automotive in the Zinc Oxide market showcases its significant use in rubber formulations for automobiles, while the compound’s versatility extends to various sectors like chemicals, pharmaceuticals, ceramics, and more, highlighting its diverse range of applications.

*Actual Numbers Might Vary In The Final Report

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By Process

• Wet Chemical
• Direct
• Indirect
• Other Processes

Wet Chemical

• Direct
• Indirect
• Others

By Form

• Powder
• Pellets
• Liquid

By Grade

• Standard
• Treated
• USP
• FCC
• Others

By Application

• Chemicals
• Rubber
• Pharmaceuticals
• Ceramics
• Paints & Coatings
• Cosmetics and Personal Care
• Agriculture
• Other Applications

Drivers

Zinc oxide’s importance in rubber production is undeniable. It serves as a vital activator that speeds up the vulcanization process in rubber. With over 65% of rubber utilized in manufacturing tires and various automotive components like ventilation flaps, radiator seals, and airbags, the demand for Zinc Oxide has surged.

Its unique properties, including effective gelation, high heat resistance, and UV ray absorption, have made it a sought-after ingredient in the rubber industry, especially in response to the rising demand for rubber in the automotive sector.

Furthermore, Zinc Oxide’s role in the paints & coatings industry is equally significant. Often recognized as Chinese white, it acts as a white pigment in paints, offering various advantages. These include UV absorption, stain-blocking capabilities, corrosion inhibition, mildew resistance, water resistance, and enhanced color retention.

Moreover, it neutralizes harmful acids, toughens paint films, and improves durability while providing biocidal properties. The escalating global demand for paints and coatings across various sectors is expected to fuel the Zinc Oxide market growth, attributing to its multifaceted benefits and wide-ranging applications in this industry.

Restraints

Regulations limiting Zinc Oxide use in animal feed applications are impacting market growth. Previously used to address zinc deficiency in animals, Zinc Oxide additives have shown adverse effects, including reduced feed intake, impaired wound healing, alopecia, thymus atrophy, parakeratosis, and compromised immune function.

European countries have imposed restrictions, limiting Zinc Oxide usage to 1500 mg, except in cases of diarrhea or similar digestive issues.

The European Food Safety Authority (EFSA) Panel on Additives and Products in Animal Feed has proposed new maximum content limits for zinc in complete feeds. These proposed limits are set at 150 mg per kg for piglets, rabbits, sows, salmonids, cats, and dogs, 120 mg per kg for turkeys, and 100 mg per kg for other species and categories. These stringent regulations are aimed at reducing Zinc Oxide consumption as a feed additive in Europe, thus impacting its market growth in this region.

Opportunities

Zinc Oxide in Cosmetics and Personal Care Products: Growing Demand in Cosmetics and Personal Care: Zinc oxide’s UV protective properties offer significant opportunities. With increasing awareness regarding skin protection, demand for Zinc Oxide cosmetics and personal care products should only increase further.

Medical and Pharmaceutical Applications: Zinc Oxide has many uses within the healthcare sector, from wound healing and ointments to pharmaceutical applications that utilize its antiseptic and antibacterial properties. With healthcare becoming an ever more critical priority and technological innovations driving demand for this substance in this sector.

Zinc Oxide’s Applications in Electronics and Semiconductors Present Opportunities: Zinc Oxide’s wide array of electronic applications in sensors, transducers, and optoelectronic devices presents opportunities. Advancements in electronics and semiconductor industries should further exacerbate its demand.

Zinc Oxide’s Wide Applications in Construction and Infrastructure: Zinc Oxide-based products have become an indispensable component in various applications within construction such as paints, coatings, ceramics, and glass manufacturing – especially given global infrastructure development activities which continue to fuel an expansion in this sector. With global construction development efforts under way worldwide, demand is on the rise for such products made of Zinc Oxide.

Challenges

Regulatory Limitations in Animal Feed: Restrictions on Zinc Oxide use in animal feed due to health concerns, particularly in European countries, have affected its market growth. These limitations have led to reduced Zinc Oxide consumption in feed additives, impacting this segment of the market.

Volatility in Raw Material Costs: Fluctuations in the prices of raw materials, such as zinc ore and energy, directly influence Zinc Oxide production costs. These cost variations pose challenges for manufacturers in maintaining stable pricing and profitability.

Competition from Substitutes: The availability of alternative products offering similar functionalities at competitive prices presents a challenge. With substitute materials entering the market, there’s a risk of diverting demand away from Zinc Oxide-based products.

Environmental Concerns and Regulations: Increasing environmental awareness has led to concerns regarding the ecological impact of Zinc Oxide production processes. Stricter environmental regulations and sustainability requirements are posing challenges that the industry needs to address to ensure compliance and minimize environmental impact.

Regional Analysis

The Asia Pacific (APAC) had the largest revenue share at over 52.2% in 2023. The large regional manufacturing base, which houses many end-use industries, including pharmaceuticals, rubber, and ceramics, is responsible for this high revenue share. The region’s market growth will be driven by the rising demand for skincare products and the increase in tire manufacturing in India and China.

China is the largest ZnO producer and consumer worldwide. The growing population, increasing urbanization, and increasing disposable income in China and India will all drive demand for paints & coatings. Shortly, paints and coatings will be more in demand due to the growing housing and construction industry in China.

With a 17.1% revenue share in 2023, North America is a major player in the zinc oxide market. Due to its presence of major industry players, the U.S. plays a significant role in the North American market. Market growth will be boosted by the increasing demand for ZnO in the cosmetics and pharmaceutical industries, which is due to the growing geriatric population.

*Actual Numbers Might Vary In The Final Report

Key Regions and Countries

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Players Analysis

Large multinational companies are present in the market with a strong global distribution network. To produce high-performance products, players are increasing their research and development investments. U.S. Zinc is a leading global manufacturer of ZnO. It serves many end-use industries such as rubber, chemicals, and ceramics.

Маrkеt Кеу Рlауеrѕ

• EverZinc
• Ace Chemie Zynk Energy Limited
• AG CHEMI GROUP s.r.o.
• CCL
• EverZinc
• Zinc Nacional
• HAKUSUI TECH
• LANXESS
• IEQSA
• Neo Zinc Oxide
• Pan-Continental Chemical Co., Ltd.
• Rubamin
• Tata Chemicals Ltd.
• TOHO ZINC CO., LTD.
• TP Polymer Private Limited
• Upper India
• Weifang Longda Zinc Industry Co., Ltd.
• Yongchang zinc industry Co., Ltd.
• Zinc Oxide Australia
• Zochem, Inc

Recent development

June 2022: Aterian Investment Partners merged U.S. Zinc and EverZinc, two of the world’s largest producers of zinc chemical products, to form the world’s leading zinc chemistry company.

February 2022: Zochem announced that it would expand its zinc oxide production capacity at its Dickson, TN, facility. The new furnace will add another 15,000 metric tons of capacity to the Central Tennessee facility.