The market for caustic soda is anticipated to register a CAGR of 5.85% during the forecast period 2019-2024. One of the major factors driving the growth of the market is the rising demand for alumina in the automotive industry.

– The increased use of aluminum in automobiles is also expected to increase the consumption of caustic soda, to extract aluminum from its ores, thereby augmenting the growth of the market. – Methods to reduce consumption using oxygen reduction electrodes in place of the traditional ones are in the research phase. This swap in electrodes is expected to save energy by roughly 30%-35%, which is likely to hinder the market growth. – Plant capacity expansions and joint ventures in emerging and developed markets are projected to act as an opportunity for the market, in the future.

– Caustic soda is used in the pulp & paper industry mostly for digesting wood to make wood pulp, and as a ableaching agent for neutralizing bleached pulp and paper. It is also used for deinking of waste papers. – Caustic soda is available in solid, flake, or powder form, while its water solution is mostly used by the pulp & paper industry. Commercially, equivalent to 98% NaOH is quoted on a 76% sodium oxide (Na2O) basis. – In Asia-Pacific, China and India are the major markets for pulp and paper production, while in Europe, Sweden and Finland accounted for approximately 60% of the European pulp production in 2017. – In North America, there are over 110 pulp mills in the United States and Canada combined, which consume over 3 million metric ton of caustic soda per year. – All the aforementioned factors are expected to drive the global market during the forecast period.



In Asia-Pacific, China is the largest economy, in terms of GDP. The annual growth rate of Chinese GDP was 6.6% in 2018, and it is further expected to increase by 6.3% in 2019. The growth in the country remains high, but it is gradually diminishing as the population ages and the economy is rebalancing from investment to consumption, manufacturing to services, and external to internal demand. China is the largest producer, as well as consumer of caustic soda. China is the largest largest pulp and paper producing nation in the world, as a result of its large forest reserves (22.5% of the land area). The industry is modern and highly mechanized, and the labor is cheap. Forest cover is increasing in China, owing to government afforestation initiatives. While this is a positive sign, there are concerns regarding social and environmental issues. As the largest wood importer in the world, with complex and opaque supply chains, significant challenges are also present. With the growth in the pulp and paper industry, coupled with the rising demand from other sectors, the consumption of caustic soda is expected to increase in the country, in the upcoming years.

The caustic soda market is fragmented. In terms of market share, few of the major players currently dominate the market. Key players in the market include Akzo Nobel NV, Arkema, Covestro AG, DowDuPont, Kemira, FMC, SABIC, and Solvay Chemicals, among others.

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4 MARKET DYNAMICS 4.1 Drivers 4.1.1 Rising Demand for Alumina in the Automotive Industry 4.1.2 Increasing Demand for Paper and Paperboards 4.1.3 Growing Demand from the Chemical Industry 4.2 Restraints 4.2.1 Energy-intensive Production Process 4.2.2 Environmental Concerns 4.3 Industry Value Chain Analysis 4.4 Porters Five Forces Analysis 4.4.1 Bargaining Power of Suppliers 4.4.2 Bargaining Power of Consumers 4.4.3 Threat of New Entrants 4.4.4 Threat of Substitute Products and Services 4.4.5 Degree of Competition

5 MARKET SEGMENTATION 5.1 Production Process 5.1.1 Membrane Cell 5.1.2 Diaphragm Cell 5.1.3 Other Production Processes 5.2 Application 5.2.1 Pulp & Paper 5.2.2 Organic Chemical 5.2.3 Inorganic Chemical 5.2.4 Soap & Detergent 5.2.5 Alumina 5.2.6 Water Treatment 5.2.7 Textile 5.2.8 Other Applications 5.3 Geography 5.3.1 Asia-Pacific 5.3.1.1 China 5.3.1.2 India 5.3.1.3 Japan 5.3.1.4 South Korea 5.3.1.5 Rest of Asia-Pacific 5.3.2 North America 5.3.2.1 United States 5.3.2.2 Canada 5.3.2.3 Mexico 5.3.3 Europe 5.3.3.1 Germany 5.3.3.2 United Kingdom 5.3.3.3 Italy 5.3.3.4 France 5.3.3.5 Rest of Europe 5.3.4 South America 5.3.4.1 Brazil 5.3.4.2 Argentina 5.3.4.3 Rest of South America 5.3.5 Middle East & Africa 5.3.5.1 Saudi Arabia 5.3.5.2 South Africa 5.3.5.3 United Arab Emirates 5.3.5.4 Rest of Middle East & Africa

6 COMPETITIVE LANDSCAPE 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements 6.2 Market Share Analysis** 6.3 Strategies Adopted by Leading Players 6.4 Company Profiles 6.4.1 Akzo Nobel NV 6.4.2 Arkema 6.4.3 Covestro AG 6.4.4 DowDuPont 6.4.5 Formosa Plastics Corp. 6.4.6 FMC 6.4.7 Grasim (Aditya Birla) 6.4.8 Hanwha Chemical Corporation 6.4.9 Inovyn 6.4.10 Kemira 6.4.11 Occidental Petroleum Corporation 6.4.12 Olin Corporation 6.4.13 SABIC 6.4.14 Shin-Etsu Chemicals Co. Ltd 6.4.15 Solvay Chemicals 6.4.16 TCI Sanmar Group

7 MARKET OPPORTUNITIES AND FUTURE TRENDS 7.1 Plant Capacity Expansions and Joint Ventures in Emerging Markets

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