Sodium Hydroxide Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Sodium Hydroxide Market Size

Sodium Hydroxide Market Trends & Drivers

Growing Demand for Aluminum Oxide

The demand for aluminum oxide is rising in numerous sectors, such as automobiles and construction, for the manufacturing of body frames, electrical wiring, wheels, lamps, paints, transmissions, air conditioner condensers, anti-corrosion materials, and wear- and abrasion-resistant parts. This is because it is a cost-effective product and offers high durability, low heat radiation, and high stability at elevated temperatures.

According to the International Aluminium Institute, the production of aluminum was 5,861 thousand metric tonnes in July 2023. Building & construction, transportation, and container & packaging are three of aluminum’s primary end-use sectors. The metal is used to create frames for doors & windows, stairways, heating systems, roofing, furniture, and other items in the building & construction sector.

Caustic soda is heavily used to refine raw bauxite into the white powder of alumina, which is then smelted to make elemental aluminum. Hence, the growing consumption of aluminum for a variety of purposes is propelling the demand for sodium hydroxide for the extraction of Al2O3 from bauxite.

Steady Evolution in Chemical Industry

Chemicals are extremely significant in the daily human life, being used for the manufacturing of detergents, in textiles, fragrance products, and paints, among a whole lot of other things. Moreover, the rising demand for eco-friendly products globally could be beneficial for the chemical industry. In tandem, the demand for specialty chemicals is growing due to the surging consumption of construction, water treatment, and electronics chemicals. Moreover, the growing demand for pharmaceutical ingredients and food additives is creating a positive impact on the chemical industry, by driving the consumption of caustic soda as a raw material.

Sodium Hydroxide Market Analysis

Diaphragm Cell Held Significant Market Share

The diaphragm cell category accounts significant revenue share, of 30% in 2023. This is because it produces 71% of the world’s NaOH. The diaphragm cell process utilizes asbestos or its alternatives to separate co-products sodium hydroxide and chlorine. The production of 50% NaOH occurs primarily outside of the electrolytic cell.

Additionally, the diaphragm cell generates an extremely weak ‘cell liquor’, which comprises 12–14% NaOH by weight and a constant amount of common salt. The cell liquid is then evaporated using a three-or four-effect evaporation process, to a nominal final concentration of 50% NaOH by weight.

50% Aqueous Category Held Largest Market Share

By grade, the 50% aqueous category accounts for the largest revenue share, of 45%, in 2023, and it is further expected to maintain its dominance during the forthcoming period. This is because this grade is more hygroscopic and can easily adsorb moisture from the atmosphere. This is why industries that need to utilize caustic soda on a large scale prefer the 50% aqueous variant. On the industrial scale, most of the sodium hydroxide is handled as a 50% aqueous solution, which is generally sold in drums. Furthermore, 50% sodium hydroxide helps in the formation of in-situ sodium methylate in bioethanol and biodiesel processing and aids in the adjustment of the pH.

Moreover, it is handled in this form because it is easy to pump a liquid and because keeping sodium hydroxide in the solid form requires special airtight containers, which can be expensive. Further, most of the NaOH is made in the liquid form; so, it would be a wasted effort to manage it as a solid. In addition, sodium hydroxide 50% aqueous solution is used as a chemical reactant or neutralizing agent in various industries, such as pulp & paper, pharmaceuticals, textiles, metals, biotechnology, cosmetics, chemicals, food, and soaps & detergents.

Regional Analysis

Asia-Pacific Region Is Prime Revenue Contributor

The APAC region holds the largest revenue share of the market, of around 40%, in 2023. This is attributed to the rapid industrial development in the region and advancements in the field of healthcare. Moreover, the growing demand for the base chemical for several applications, such as pH adjustment and soap manufacturing, and rising government spending on the infrastructure, paper, pharmaceutical, and many other industries that use NaOH in some capacity, drive the market.

Therefore, many key players are focusing on expanding their geographical presence, by setting up new manufacturing facilities, distribution centers, and research & development centers. Moreover, the availability of numerous refineries and a large pharmaceutical industry will drive the market at a substantial CAGR.

Moreover, China is the largest revenue contributor in the APAC region, as it is the major producer and user of caustic soda in the world. It is a hub for chemical processing, accounting for a major portion of all chemicals produced globally. It is also the largest pulp- & paper-producing country in the world. Moreover, the need for bleaching chemicals is growing in the region, which will, subsequently, create a high demand for caustic soda over the next few years.

Furthermore, India will show significant growth in the APAC region, due to the rapid industrialization and the presence of a large number of aluminum manufacturers in the country. Moreover, the continuous capacity additions by NaOH producers, to meet the growing demand for it from the textiles and aluminum sectors, will drive the market. The sodium hydroxide industry in India is also expected to witness robust growth due to the rise in the number of pulp and paper mills.

Europe also makes a significant contribution to this market owing to the growing usage of this compound in alumina production and the surging demand for soaps and detergents. Moreover, Germany is leading the market for caustic soda in Europe, due to the growing demand for it in various applications, such as pulp & paper and detergents. Furthermore, the existence of a large number of key market players in the country, such as Globe Chemicals GmbH, BREWTECH GmbH, and Global Bridge Germany, creates an opportunity for the sodium hydroxide market.

Additionally, companies are taking strategic initiatives to meet the growing demand for this compound. For instance, in February 2022, Occidental Petroleum Corporation’s chemical division announced a plan to increase the capacity of a few of its chlor-alkali plants to produce caustic soda with a higher value.

Market Breakdown

This fully customizable report gives a detailed analysis of the sodium hydroxide industry from 2019 to 2030, based on all the relevant segments and geographies.

Based on Production Process

• Membrane Cell
• Diaphragm Cell

Based on Grade

• Solid
• 50% Aqueous Solution

Based on Application

• Biodiesel
• Alumina
• Inorganic Chemicals
• Organic Chemicals
• Food
• Pulp & Paper
• Soaps & Detergents
• Textiles
• Water Treatment

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Sodium Hydroxide Companies