Sales of Chlor-Alkali Market to Surge with High Profit Margins as Vinyl Production Soars

The global chlor-alkali market has witnessed significant momentum over the historical period on the back of rising per capita consumption of caustic soda and a surge in building & construction. Furthermore, manufacturing technologies have changed tack owing to a global rise in mercury pollution levels. This will create a huge impact across the developed economies of Europe and North America and coax key players to adopt sustainable manufacturing practices in the chlor-alkali market.

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The highly matured and diverse industry of chlor-alkali is expected to witness traction from emerging economies of Asia Pacific owing to new Greenfield investments and enhanced operating margins of global and local manufacturers in this region. Primed to unlock significant value, market size of chlor-alkali is expected to reach a valuation of over US$ 141 Bn by 2027 at a growth rate 5.4 % during the forecast period as per the newly published report by Fact.MR.

Key Takeaways from Global Chlor-Alkali Market:

  • China’s emergence as the world’s largest producer of chlor-alkali is well supported by the use of cost effective methods of using acetylene to make vinyl chloride. This will have a profound effect on the demand and supply dynamics of the domestic and international chlor-alkali market
  • The demand for chlor-alkali for PVC production has accounted for over 1/3rd of the global demand in 2018 on the back of its extensive use in construction activities and infrastructure development
  • Currently, about 500 chlor-alkali producers and 650 production plants are in working condition for production of chlor-alkali across the globe. Addition of new plants or capacity expansion will reduce the supply – demand gap in the near future
  • Asia Pacific is expected to remain a power house in global chlor-alkali market by 2027 on the back of increasing per capita consumption of caustic soda. Asia Pacific is anticipated to create an incremental opportunity of ~US$ 31 Bn over the long-term forecast period (2019-2027).

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Global Chlor-alkali Market: In-Depth Assessment on Key Segments

The global chlor-alkali market is segmented on the basis of product, application, and region.

  • Chlorine
  • Caustic Soda
  • Soda Ash
  • Glass Manufacturing
  • Vinyl Production
  • Organic Chemical Production
  • Inorganic Chemicals Production
  • Pulp & Paper Production
  • Chlorinated Intermediates
  • Water Treatment
  • Other Applications

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Moderately Consolidated Market Structure with Supply Fluctuation Dynamics

Currently, manufacturers are engaged in expanding production capacities and installing new plants to reduce the supply-demand gap. Usage of shale gas at low energy costs in North America along with trade disputes with China are coaxing manufacturers to strengthen their in-house production capabilities. Also, new capacity expansions across Europe by prominent players such as Kemira and AkzoNobel will create remunerative opportunities in chlor-alkali market. The ongoing and future investments in new technology for chlor-alkali is expected to boost the overall consumption of chlor-alkali market over the mid-term forecast.

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