Sodium Hydroxide Market

2021 Analysis and Review: Sodium Hydroxide Market by Product Type – Lye and Flakes for 2021 – 2031

Sodium Hydroxide Market Snapshot

The sodium hydroxide market revenue is forecast to total US$ 28.6 billion in 2021, according to Future Market Insights (FMI). Exhibiting a CAGR of 4.3% for 2021-31, the market is expected to reach US$ 43.7 billion by 2031.

Despite the impact of the COVID-19 outbreak, sodium hydroxide sales are expected to increase marginally increase in 2021. FMI has identified FMC Corporation, Occidental Petrochemical Corporation, The Dow Chemical Company, Olin Corporation, and Westlake Chemical Corporation as top companies, accounting for nearly 22% to 24% of sodium hydroxide sales through 2031.

Key Points Covered in the Sodium Hydroxide Market Survey

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Global Sodium Hydroxide Market and How to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Sodium Hydroxide Market Outlook Compared to 2021-2031 Forecast

Driven by increasing demand from diverse industries, sodium hydroxide sales as a raw material are expected to rise at 4.3% CAGR between 2021 and 2031 in comparison to the 0.9% CAGR registered during 2016-2020.

Key manufacturers of sodium hydroxide are expanding their production capacities to meet regional and global demand. Government efforts to implement favourable policies, coupled with investments by key players in emerging markets presented a positive sodium hydroxide market demand outlook.

Amid soaring completion, leading players have resorted to mergers, acquisitions, and collaborations to cement their position in the global sodium hydroxide market for the foreseeable future.

Sodium hydroxide sales grew at an impressive pace, particularly in countries across East Asia. In the coming years the market is expected to gain as demand continues rising in textile and allied industries.

The sodium hydroxide production process is an energy-intensive process that leads to significant production costs. This can hamper market growth. Price fluctuations in the sodium hydroxide market is another challenge that small that leading market players are facing in recent years and this barrier will continue influencing market developments during the forecast period.

Manufacturers have been increasing production, besides focusing on quality and efficiency to cater to industry specific requirements. Also, research and development in the field of chemical production and processing is creating a conducive environment for use.

Asia Pacific will continue exhibiting strong growth owing to increasing consumption sodium hydroxide across verticals from automotive materials to water treatment. Apart from this, the organic application of sodium hydroxide in chemical formulations also accounts for a lucrative market stake in global demand.

The growth of the sodium hydroxide market is directly related to expansion in terms of production capacities. Increasing demand from pulp and paper and textile industries is expected to foster market growth over the forecast period.

How will COVID-19 Crisis Effect Sodium Hydroxide Market?

The COVID-19 outbreak has impacted various industries. In the short term, the world has seen a rise in demand for sodium hydroxide for water treatment applications. The sodium hydroxide market has been moderately impacted by the crisis.

However, for the long-term growth outlook, the market has displayed gradual recovery in the past few months and is expected to reach its pre-pandemic levels by the end of 2021, supported by the resurgence of the end users.

Sodium hydroxide is used in the chemical industry as a catalyst, reactant, and more. The use of sodium hydroxide has been increased significantly in the last few years and is expected to continue its growth soon. Strong economic activity is supporting sodium hydroxide demand in all segments.

Country-wise Insights

How is the Sodium Hydroxide Market Faring in India?

India is predicted to remain one of the most attractive markets during the forecast period. According to FMI, India is expected to account for over 37% of the South Asia Pacific market through 2031.

India is registering expansion of the chemical industry owing to factors such as labor and material cost benefits, investments in production for export, and research and development (R&D) to introduce new applications and products.

India also is one of the world's largest markets for textiles, making it a lucrative market for sodium hydroxide manufacturers.

In line with this, the country’s sodium hydroxide industry largely focuses on the domestic consumer base. Historically, around 3-5% of total production is exported to African countries where the chemical industry is undeveloped and sodium hydroxide is required for basic goods such as for textile processing and soaps and detergents.

Why is China Gaining Traction among Sodium Hydroxide Manufacturers?

China is estimated to account for more than 63% of the East Asia market through the end of the projection period in 2031. According to the United Nations Comtrade database, in 2020, China accounted for approximately US$ 10 million for aqueous sodium hydroxide, and over US$ 6 million for solid sodium hydroxide.

The presence of large-scale end-user verticals in the country, coupled with major production facilities is expected to support growth in the long term. The country will account for major export volumes, making substantial contributions to the global market for the foreseeable future.

Why is the Demand for Sodium Hydroxide Increasing in the U.S.?

Demand in the U.S. market is expected to increase at nearly 4.2% CAGR over the forecast period. The market in the U.S. is expected to reach US$ 8,152.6 Mn by the end of 2031. Key players across the value chain are adopting inorganic strategies in the market.

Germany based distributor Brenntag acquired caustic soda distribution business of Suffolk Solutions Inc., to strengthen its business network in the U.S. market.

In 2021, the U.S. sodium hydroxide market grew by 4.2% year on year, bucking initial scepticism about how the market would perform during a global pandemic. Across North America, total demand of sodium hydroxide reached 14,004.7 Kilo Tons.

How is the Germany Sodium Hydroxide Industry Contributing to Growth?

Germany is well known for a strong presence of its manufacturing sector including specialty chemicals. The chemical industry across Europe is growing at a rapid pace owing to the diversified product portfolio offered by end-use industries.

The country is also bridging the infrastructure gap between the manufacturers and end users. The country is expected to grow at a CAGR of 3.4% during 2021-2031.  According to FMI’s analysis, the Germany market is estimated to reach US$ 1.3 Bn in 2021.

Category-wise Insights

Why is the Demand for Caustic Lye on the Rise?

Based on product type, caustic lye is the leading product type, accounting for nearly 68% of the global market in 2021. Caustic lye is available in liquid form and is used in multiple verticals.

Caustic lye is estimated to remain the top choice for many end users and is expected to dominate the market in the near future owing to ease of availability and competitive cost.

Revenues in the caustic lye segment of the sodium hydroxide market grew a robust 4% year over year in 2021. Demand for flakes increased 3.5% between 2020 and 2021, giving the combined sodium hydroxide market year-over-year growth of 3.8% in 2021, according to the FMI report.

Which Application is Generating the Highest Demand?

Textile applications are expected to dominate the market over the forecast period, accounting for about 23% of the global market share by 2021 end. This can be attributed to significant growth in the textile Industry followed by alumina and inorganic chemical applications.

The sodium hydroxide market, textile segment, alumina segment, and inorganic segment collectively totalled US$ 12,048.2 Mn for 2021, according to the market analysis conducted by Future Market Insights.

Competitive Landscape

Major players in the market include Olin Corporation, Tosoh Corporation, BASF SE, Formosa Plastics Corporation, Dow Chemical Company, Shin-Etsu Chemical Co Ltd, Westlake Chemical Corporation, Covestro AG, Solvay S.A., Gujarat Alkalies and Chemicals Limited, Occidental Petrochemical Corporation, Tata Chemicals Ltd., Xinjiang Zhongtai Chemical Co. Ltd, Vynova Group, CJ Chemicals, ProChem, Inc., Chemical Store Inc, GFS Chemicals, Inc.

Companies operating in Sodium Hydroxide market are aiming at expanding the production capacities by acquisitions and collaborations with other manufacturers to relish the increase in demand.

For instance,

  • In April, 2021, India Based Chemfab Alkalies planning to increase its production capacity from 45,600 tons to 56,575 tons through membrane cell production technology process.
  • In November, 2020, India based Meghmani organics decided to invest around US$ 3.2 Mn to expand its production capacity of caustic soda from 294 Kilo tons to 400 Kilo tons. The plant is expected to be operational by the end of 2022 first quarter.
  • K-Petro researchers unveiled a new method of extracting bio-diesel through black soldier fly larvae, which is processed using sodium hydroxide, for applications in the automotive and logistics sector.

Scope of Report



Forecast Period


Historical Data Available for


Market Analysis

USD Million for Value and Kilo Tons for Volume

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, GCC Countries, Turkey, and South Africa

Key Segments Covered

Product Type, Application and Region

Key Companies Profiled

  • FMC Corporation
  • Olin Corporation
  • Tosoh Corporation
  • Formosa Plastics Corporation
  • Dow Chemical Company
  • Shin-Etsu Chemical Co Ltd
  • Westlake Chemical Corporation
  • Covestro AG
  • Solvay S.A.
  • Gujarat Alkalies and Chemicals Limited
  • Occidental Petrochemical Corporation
  • Tata Chemicals Ltd.
  • Xinjiang Zhongtai Chemical Co. Ltd.
  • Vynova Group
  • CJ Chemicals
  • GJ Chemical
  • ProChem, Inc.
  • Chemical Store Inc.
  • GFS Chemicals, Inc.

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current valuation of the sodium hydroxide market?

    The sodium hydroxide market is expected to surpass a valuation of US$ 28.6 Bn by 2021 end.

  • At what rate did the sodium hydroxide market expand in the last 5 years?

    The sodium hydroxide market exhibited steady growth at a CAGR of 2.7% in the last five years from 2016 to 2020.

  • What is the sodium hydroxide market demand outlook?

    The sodium hydroxide market will register a moderate rise in demand after the slump amid the COVID-19 pandemic in 2020. The market will register a CAGR of 3.4% between 2021 and 2031.

  • What are the key trends prevailing in the sodium hydroxide market?

    Leading sodium hydroxide manufacturers are focusing on cost effective production technologies. Also, there is a growing focus on diversification of supply chains to curtail the effects of the pandemic.

  • What are the key factors driving the sales of sodium hydroxides?

    Increasing requirements in chemical production and processing, applications in the automotive and construction sectors are important factors boosting sodium hydroxide sales.

  • Who are the key importers of sodium hydroxide?

    Vietnam, Nigeria, Indonesia and Ghana are the leading importers of sodium hydroxide.

  • What is the cumulative share of the top five companies in the sodium hydroxide market?

    The top five companies operating in the sodium hydroxide market are FMC Corporation, Occidental Petrochemical Corporation, the Dow Chemical Company, Olin Corporation, and Westlake Chemical Corporation. These companies will cover 20-22% of the overall market in 2021.

  • Who are the key exporters of sodium hydroxide?

    China, India, Poland and Russia are the leading exporter countries for sodium hydroxide.

  • Which are the top 5 countries exhibiting high demand for sodium hydroxides?

    The U.S., China, South Korea, Japan, and India are among the leading markets for sodium hydroxide, exhibiting consistently high demand.

  • Which countries are the key producers of sodium hydroxide?

    As per Future Market Insights, the U.S., Germany, India, and China are the top producers in the global sodium hydroxide market.

Sodium Hydroxide Market by Category

By Product Type:

  • Flakes
  • Caustic Lye

By Application:

  • Alumina
  • Textile
  • Pulp & Paper
  • Soaps & Detergent
  • Dyes & Inks
  • Pesticides
  • Pharmaceuticals
  • Water Treatment
  • Petrochemicals
  • Power & Steel
  • Food Processing
  • Organics
  • Inorganics
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia Pacific
  • Middle East and Africa

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Sodium Hydroxide Market