Top Caustic Soda Suppliers Across the World

June 29,2023

Top Caustic soda suppliers Across the World

A number of businesses use the inorganic, odorless, and alkaline chemical Caustic soda. It is a crucial component of numerous goods, including detergents and soaps.

The pulp and paper sector uses it extensively to treat and bleach wood fibers as well. Aluminum manufacture also makes use of it.

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Due to rising demand from numerous end-use industries, including pulp and paper, chemicals, alumina, soaps and detergents, and textiles, the global market for caustic soda is anticipated to rise during the forecast period. The market for caustic soda is forecast to reach USD million in value in 2022 and is projected to grow at a CAGR of 1.7% from 2023 to 2028.

The Dow Chemical Company, Formosa Plastics Corporation, PPG Industries, INEOS Group Limited, Tosoh Corporation, Hanwha Chemical Corporation, Solvay SA, and FMC Corporation are some of the major producers of caustic soda. They offer a wide variety of goods and innovations for the global market.

Increasing demand for non-medical uses, an older population, a growth in use in the food processing sector, and a greater emphasis on energy saving are a few of the important trends in the worldwide caustic soda market. Additionally, firms are anticipated to enhance their R&D efforts in the global caustic soda market in order to create new products and production processes for growing their markets.

During the projected period, Asia-Pacific is anticipated to grow at the fastest rate. Most of the world's Caustic soda flakescaustic soda pr oduction, imports, and sales are located in this area. In China and India, there has been an ongoing rise in the demand for caustic soda.

The major factors driving the growth of the Asia-Pacific caustic soda flakes market are the increasing elderly population and soaring healthcare expenditure in the region. The market is also expected to witness significant growth in the countries of Thailand, Malaysia, Indonesia, Vietnam, and Singapore due to the high demand for caustic soda flakes in these countries.

Nevertheless, the major challenges faced by the caustic soda flakes market include the price volatility of the commodity. In addition, the energy-intensive process of caustic soda flakes manufacturing will hamper the growth of the market.

The Asia-Pacific Caustic Soda flakes Market is expected to be valued at USD million in 2022, and is projected to grow at the highest rate during the forecast period. The regional market is expected to witness significant growth in the countries of Malaysia, Indonesia, Philippines, and Vietnam.

A worker at Vasu and Co. Goli soda factory in Chennai aerating the contents of a soda bottle



One of the biggest markets in the world for caustic soda, which has several industrial uses, is Europe. It is a key ingredient in many different sectors, including pulp & paper, chemicals, soaps, and detergents.

Europe ranked third in terms of production and consumption of caustic soda in 2021. The market in the area has expanded significantly, with yearly sales growing by roughly 11%.

In 2022, the European chlor-alkali market will face a number of difficulties, with producers being adversely affected by increased energy prices and a constrained supply. Contractual caustic soda prices as a result increased beyond EUR2,000/dmt across the continent in the fourth quarter, and these pressures are anticipated to last until the first quarter of 2023.

Nevertheless, there are indications that the demand for chlor-alkali and Ciscose staple fiber may increase in the first quarter. The forecast for demand is boosted by the Chinese Lunar New Year as well as increased consumption from the downstream water treatment and alumina production sectors. The pricing pressure put on the market by the European economic slowdown is anticipated to ease to some extent, but this should not be interpreted as sufficient justification for the demand-supply imbalance.

As a consequence, production is slated to remain at a lower level in 2023 than it has been in recent years. This is despite a large build-up of inventory, and the lack of any real ramp-up in operating rates for local producers.

Caustic Soda is a key ingredient for a wide variety of uses, including water treatment and purification, cleaning and maintenance, and starch production. It is also used in the petrochemical, pharmaceutical and cosmetics industries.

The European chlor-alkali sector remained in a difficult position in the fourth quarter of 2022, with production at the majority of plants stymied by rising energy costs. As a result, producers and buyers face margin concerns in the market.

The leading European suppliers of caustic soda include Globe Chemicals GmbH, BdvBehrens, Grasim Industry, and PCC SE among others. This market is driven by growing demands from the pulp and paper,zhongtai chemicals, and soaps and detergents industries in the region.

North America

The leading producers of caustic soda in North America are Vynova, Solvay, and AkzoNobel. In addition to pellets, flakes, and solutions, they also produce caustic soda flakes in other forms.

To make soap, detergents, and other surfactants, caustic soda flakes are utilized. The flakes remove protein, fat, and grease buildup since they are water soluble. They are also extensively utilized during the process of saponification, which turns vegetable oils into soap.

Other significant uses for caustic soda include the extraction of alumina, the creation of organic chemicals, the manufacture of pulp and paper, glass and ceramics, bleaching of textiles, and the production of fuel cells (drain cleaners often contain lye) as well as polyethylene resin. Caustic soda's market size was estimated at 74.0 million tons globally in 2015, and it is anticipated to expand moderately over the coming years.

The global caustic soda market is expected to increase with increasing product demand from the alumina extraction industry, along with expanding end-use industries such as chemicals and soaps & detergents. Growth in membrane cell technology, which has lower energy requirements and environmental friendliness, is another major driving factor for the market.

In addition, the growing demand for lye and its applications in water treatment is expected to accelerate market growth in the coming years. However, the high corrosive and reactive nature of the compound has a harmful impact on the environment. This may affect the overall demand for caustic soda in the future.

Aside from its primary application in organic chemicals, the caustic soda market is also anticipated to grow with increasing product consumption in metallurgical applications. This is mainly attributed to its alkali properties and ability to easily react with zinc and aluminum.

Moreover, the caustic soda market is expected to expand with increased product demand from textiles. The use of caustic soda in the textile industry is likely to increase due to its ability to remove waxes and oils, making fibers more receptive to bleaching and dying processes.

In addition to this, the caustic soda market is expected grow with expanding applications in the pulp and paper industry. The market for caustic soda is estimated to reach USD 8.0 billion by 2024.

South America

The leading producers of caustic soda offer competitive prices and high-quality goods. Additionally, they offer a range of services that let customers pick the best caustic soda supplier for their particular requirements and financial constraints.

Chemicals like caustic soda have a wide range of uses, including cleaning, food processing, and water treatment. It has a high water solubility and may take up carbon dioxide from the atmosphere. It comes in liquid and solid forms with different concentrations (available as flakes, prills, and briquettes).

Due to the rise in soap and detergent use, there has been an increase in demand for caustic soda on a global scale. The need for caustic soda in Asia Pacific has also increased due to rising demand for alumina, which is produced from bauxite.

In terms of volume, Asia Pacific is the largest market for caustic soda, and it accounted for more than 50% share of the global market in 2021. In addition, the region is expected to continue its lead in terms of value during the forecast period.

South America is another major market for caustic soda, and it accounts for a significant portion of the global demand. The region is known for its large mineral resources and a growing population.

The market in the region is expected to expand at a rapid pace during the forecast period. In addition, rising consumption of organic and inorganic chemicals worldwide is anticipated to fuel growth in the caustic soda market.

Moreover, the growth of the global detergent market is predicted to boost the caustic soda market over the forecast period. The rise in the demand for detergents is driven by the increase in the number of households and its widespread use.

Some of the key players in the caustic soda market include Occidental Petroleum, The Dow Chemical Company, and Bayer CropScience. These companies are focusing on innovation, research and development, and competitive pricing to maximize market share.

One of the biggest cost components for caustic soda suppliers is compliance cost, which primarily refers to the cost of upgrading their production facilities to comply with environmental regulations. This costs are usually passed on to buyers.