Sodium Chlorate Market

Sodium Chlorate Market Outlook (2022-2032)

The Sodium chlorate market share is projected to reach US$ 4,619.9 Mn in 2032. The growing demand from various End-Use Industry industries such as dyes, wood, pulp & paper industries are anticipated to bolster the market growth during the projected period.

According to FMI, the Sodium chlorate market is estimated to be valued at US$ 3,217.9 Mn in 2022 and is projected to increase at a CAGR of 4.1% in the forecast period from 2022 to 2032.

Sodium chlorate is mostly used to make chlorine dioxide, which is used as a bleaching agent in the paper and pulp industries. Sodium chlorate is odourless and white/off-white in colour. Sodium chlorate dissolves readily in water. Sodium chlorate is inflammable in its pure form, but when it decomposes, it releases oxygen, acting as an accelerant in the presence of flammable substances.

In the mining industry, sodium chlorate is used to extract uranium and vanadium. Sodium chlorate is also used as an herbicide in the control of weeds. Sodium chlorate has been widely used in the production of chemical intermediates such as potassium chlorate and sodium perchlorate in recent years.

The overall market for sodium chlorate is expected to remain positive over the forecast period, but at a slower pace due to the availability of alternatives such as hydrogen peroxide for bleaching pulp.

Historic Market Outlook for Sodium chlorate

The analysis of Sodium chlorate demand from 2017 to 2021 showed a historical growth rate of less than 2.6% CAGR, with the general expansion of the wood, pulp & paper, agrochemicals industry due to an increase in consumer income, urbanization as well a growing population.

Due to decreased sales at industrial manufacturers, store closings, disruptions in the production cycle, and stricter regulations, the COVID-19 pandemic initially caused recessionary downturns that momentarily dashed growth expectations.

However, since infection curves started to flatten starting in 2022, industrial production activity has resumed in significant markets. As a result, by 2032, the sodium chlorate demand projection from FMI anticipates a CAGR of 4.1%. During the anticipated period, it is anticipated that increased end-use consumption will increase sales.

What are the Various Factors Driving the Sodium chlorate Market?

The growth of the paper and pulp industry is driving the global sodium chlorate market. Since approximately 80-90% of total sodium chlorate consumption is used to produce chlorine dioxide, which is used in the paper and pulp industry, the demand for sodium chlorate is heavily dependent on the growth of the paper and pulp industry. Its growing popularity in emerging markets such as India and China, as well as the increasing demand for wood pulp in craft paper manufacturing, will drive segment growth.

Sodium chlorate is increasingly used for a variety of purposes, such as tanning and finishing leather and producing dyes, due to its oxidising properties. In the upcoming years, market growth is anticipated to be aided by the rising demand for sodium chlorate in these industries.

Sodium chlorate is used as a non-selective herbicide to control the growth of a variety of plants because it is phytotoxic to all green plants. During the forecast period, herbicide is anticipated to be the second-largest market segment for sodium chlorate. Herbicide demand is being driven by a decline in arable land availability. This is also regarded as a significant driver of the sodium chlorate market globally.

Nikhil Kaitwade

Principal Consultant

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Which Factors May Hinder the Sodium chlorate Market Growth?

The existence of substitutes for sodium chlorate, such as hydrogen peroxide and ozone, which can be used to bleach pulp, is one of the main factors limiting the growth of the global sodium chlorate market.

Furthermore, the use of papers for newspaper publishing and related industries has decreased as e-media has grown in popularity. On the basis of product availability and price, a change in consumer preferences is seen. The aforementioned elements are anticipated to significantly impede market expansion.

What are the Sales Prospects of Sodium chlorate in the forecast period?

The production of high quality, environmentally friendly white paper frequently uses sodium chlorate as a bleaching agent. Therefore, during the forecast period, the sodium chlorate market is expected to experience significant growth. In the near future, there will likely be an increase in demand for sodium chlorate as a bleaching agent due to a growing trend of using environmentally friendly paper production methods. Sodium chlorate is increasingly being used as a bleaching agent due to environmental regulations in the United States and Canada.

For the production of sodium chlorate, two important feedstocks are sodium chloride and water. Sodium chlorate is a widely available commodity because of the low price and abundance of these raw materials. This makes it ideal for a variety of applications, along with storage convenience.

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What are the growth prospects for the crystalline form of sodium chlorate during the projected period?

Crystalline sodium chlorate holds the majority of the market share among the two main types of sodium chlorate that are traded on the market, crystalline and solution, since it has more clearly defined surface area than solution, which aids in better bleaching.

The production of sodium perchlorate, potassium chlorate, and sodium chlorite as well as their increasing use in weed control will drive growth in the crystalline sodium chlorate market. Given its higher production cost, the crystalline form is discovered to be quite expensive in comparison to solution. Increased developments in the pulp and paper industry and increased use of explosives will both contribute to the segment's growth. The market will expand despite the price swings for crystalline materials.

What is Regional Analysis of Sodium chlorate Market Share?

The global sodium chlorate market is predicted to grow slowly over the upcoming years, with a positive outlook. Due to the region's significant paper and pulp industry base, Asia Pacific currently holds a dominant share of the global sodium chlorate market and is expected to maintain this position throughout the forecast period.

Additionally, China is the world's largest consumer of sodium chlorate. China has a sizable base for the use of sodium chlorate in specialised uses like fireworks in addition to paper and pulp. There is a significant demand for sodium chlorate in regions like Latin America as there has been significant growth in the paper and pulp sector in that region. According to projections, Japan and MEA will have relatively small market shares for sodium chlorate worldwide.

Market Competition

Key players operating in the Sodium chlorate market include Hunan ERCO Worldwide, Arkema, Kemira Oyj, American Elements, Nouryon, Shree Chlorates, ChemTrade, Tronox, Chemfab Alkalis Limited, GFS Chemicals, ALDON Corporation, Inner Mongolia Lantai Industrial, H. K. Group and others.

The sodium chlorate market is comparatively well consolidated. Among the top players are Nouryon, Kemira, and Arkema. These companies are anticipated to collectively hold more than 40% of the global sodium chlorate market share in 2021. Key manufacturers have been seen collaborating with important paper and pulp producers to increase their market share as part of an organic approach to business growth.

• Kemira Oyj and UPM-Kymmene Corp. signed a long-term agreement in May 2020 to expand and multiply their capacity for hydrogen and sodium peroxide chlorate in Uruguay. The new agreement includes the ability to support both the currently operating pulp mill in Fray Bentos and the 2.1 million tonne UPM pulp mill that is currently being built in Paso de los Toros.

Scope of the Report

Key Segments Profiled in the Sodium chlorate Market

By Form, Sodium chlorate Market is segmented as:

• Crystalline form
• Solution form

By Application, Sodium chlorate Market is segmented as:

• Bleaching agent
• Oxidizing agent (chemical synthesis)
• Herbicide

By End-Use Industry, Sodium chlorate Market is segmented as:

• Paper and Pulp Industry
• Fireworks
• Chemical Industry
• Mining
• Aerospace and Marine
• Electronics
• Automotive

By Region, Sodium chlorate Market is segmented as:

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