Key Highlights from Report
Which is the most lucrative market for sodium chloride?
China has emerged as one of the key markets for sodium chloride. Driven by rising sales, the China market will reach a valuation of over US$ 8.4 Bn in 2021.
Which is the top-selling type of sodium chloride products?
Sodium chloride sourced from sea water and brine will be valued at US$ 27.9 Bn in 2021. Demand is expected to remain high owing to versatile applications in a wide range of industries, especially in chemical applications.
Who is the leading end user of sodium chloride?
Sodium chloride is extensively used in the chemical sector. In terms of end use, the chemicals segment is expected to reach a valuation of over US$ 11.8 Bn in 2021.
Which are some of the leading companies producing sodium chloride?
Some of the leading companies manufacturing Sodium Chloride are Akzo Nobel N.V., Tata Chemicals Limited, Südwestdeutsche Salzwerke AG, INEOS GROUP HOLDINGS and others. The market is moderately fragmented with Tier 2 and 3 companies accounting for over 70% of the market.
Key Points Covered in Sodium Chloride Market Study
- Market estimates and forecast 2015-2031
- 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 Sodium Chloride and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Sodium Chloride Market Outlook Compared to 2021-2031 Forecast
According to Future Market Insights’ analysis, sodium chloride sales have grown at 3.8% CAGR from 2016 to 2020. The growth in the market is expected to continue in the upcoming years owing to increasing demand for products such as sodium hydroxide and chlor-alkali for applications as chemical and medical sectors, as cleaning agents, osmotic agents, and use in peritoneal dialysis.
Chemical and food and beverage industries are the leading end users of sodium chloride. Primarily, economic development, booming population, and increasing disposable incomes are fuelling the demand. Sodium chloride is widely used in animal feed and agrochemicals.
Industrial salts are economically viable in comparison to natural salts, which influences the growth of the sodium chloride market. There is also increasing usage of sodium chloride in other end-use sectors such as oil & gas and water treatment. The sodium chloride market is projected to reach a value of US$ 61.71 Bn by 2031, expanding at a CAGR of nearly 4.2% over the forecast period of 2021-2031.
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How are Product Innovations Contributing to Expansion?
Sodium chloride has been consistently used in industrial, pharmaceutical, and chemical industries. In terms of sales, the food and beverages industry for processed and packed foods are expected to drive sodium chloride sales. The food industry accounts for a leading share in the sodium chloride market with purity of sodium chloride used in the food industry, varying from 98% to 99.9%.
Cargill Salt has launched sea salt which adheres to food better, thereby resulting in lower wastage of salt. It blends effectively in foods allowing for consistent distribution. The product is harvested authentically with exposure to sun and wind, with a purity of 99%.
The coronavirus (COVID-19) pandemic has compelled governments in several countries to impose nationwide lockdowns and social distancing regulations. While the chemical industry is suffering from the shutdown of production facilities.
These factors are likely to have a negative impact on the sodium chloride market during 2020-2021. However, not all segments have been impacted in the same way, as the sales of pharmaceutical grade sodium chloride has actually increased in this period owing to a spike in demand from healthcare sector. FMI reveals that the market in other end use sectors is poised for a fast recovery over the next fiscal year.
Will Emerging Applications Influence Demand for Sodium Chloride?
The pharmaceutical sector accounts for less than 5% of the overall market in terms of volume. However, it is one of the fastest growing segments in the sodium chloride market, with relatively higher profit margins.
The industry has seen notable advancements in recent years, and oral drug delivery has yielded superior results, making the use of sodium chloride for flavoring important. Matrix tablets are important for controlled and sustained release dosage, and pharmaceutical grade sodium chloride is used increasingly to synthesize such products.
What is the Commercial Potential of Sodium Chloride?
Asia Pacific dominates the overall market in terms of production and consumption. Manufacturers in developed regions such as North America and Europe are expected to be front runners in the production of pharmaceutical grade sodium chloride, owing to better healthcare infrastructure and investments in research and development for product growth.
The chemical industry is suffering from a short-term slump amid COVID-19 crisis due to restrictions on production facilities. Also, the closure of restaurants and bars has adversely affected demand in the food & beverage sector.
How will focus on Product Innovation Drive Sodium Chloride Market?
Manufacturers are focusing on product innovation and health-enhancement products to meet the escalating market demand. For instance, Phyto Corporation, a Korean plant-based product manufacturer in May 2020 launched a plant-based salt in the country.
PhytoSalt is a salt product made for consumers who are health conscious. It cuts down sodium content by 20% in food and has been proven in its effectiveness in reducing blood pressure. The product is 100% microplastics free and contains sodium chloride, potassium chloride, magnesium chloride and calcium chloride contributing to taste and glutamic acid acting as a natural enhancer.
Initiatives such as this undertaken by some of the leading companies will pave the way for the expansion of the market in the forthcoming years.
What Makes China a Leading Market for Sodium Chloride?
According to Future Market Insights, China is estimated to hold nearly 25% of the global market share by the end of 2031. The consumption of sodium chloride is high in this country.
Further, the growing demand from the China chemical sector for the production of soda ash, Chlor-alkali, and sodium hydroxide is likely to propel demand in the market throughout the coming decade.
How Large is the Opportunity for Growth in India?
The Indian market is projected to reach a value of US$ 709.0 Mn by 2031, and is expected to provide lucrative business opportunities to sodium chloride producers. Growth in the regional chemical industry has increased demand for applications in the production of chlorine gas, rubber, and paper & pulp.
Sodium chloride is extensively available and inexpensive, and is a prime source for the production of sodium hydroxide and chlorine gas, which is used by numerous industries such as textiles, plastics, chemicals, and agrochemicals to manufacture paints & coatings, PVC, polymers, and animal feed products.
Which End-use Industry is Driving Demand for Sodium Chloride in the U.S.?
The U.S. will account for a 19% market share in the global market of sodium chloride in 2021. Relatively higher demand for processed & packaged food in the U.S. will remain a key factor driving growth in the coming decade. Salt is extensively employed as a preservative in pickles and processed meats in the food industry.
It also inhibits the growth of fungi, thereby bolstering shelf life of food articles. Food grade sodium chloride also varies vastly in price, as it is used for multiple applications, from table salt to specialty salts. Moreover, changing lifestyles, a rise in disposable income, and the convenience of consumption are key factors increasing the demand for packaged food, which in turn, increases the consumption of sodium chloride.
How is the Russia Market for Sodium Chloride Set to Fare?
Russia is projected to reach a value of US$ 933.5 Mn by 2031. Salt sourced from sea water and brine will hold the lead in the Europe market. Manufacturers in Russia are investing in the development of salt products for health foods and supplements without compromising on flavor.
As Europe has a mature healthcare infrastructure and with frequent investments in research and developments, sodium chloride market is expected to grow at a rapid rate in the foreseeable future in the country.
How Large is the Share of Brazil in the Sodium Chloride Market?
The sodium chloride market in Brazil is projected to reach a value of US$ 1,674.8 Mn by the end of the forecast period growing at a growth rate of 3.2%. The consumption of sodium hydroxide and soda ash is relatively higher in this country
As a result, the demand for chemical grade sodium chloride is expected to witness substantial growth in Brazil in the coming years. On the other hand, the lack of production facilities for high purity variants will remain a matter of concern.
Why is Demand for Sodium Chloride Higher in Chemical End Use Industry?
Accounting for over 25% of the overall market through the forecast period, the chemical industry is a major factor, driving the sodium chloride market. Sodium chloride is used as a raw material for multiple chemical processes, such as chlor-alkali, sodium hydroxide, and soda ash production.
Sodium chloride is used extensively for the production of chlorine gas, rubber, and paper & pulp production. It is also a preferred source to produce sodium hydroxide and chlorine gas, which is used for textiles, plastics, chemicals, and agrochemicals.
Which Grade of Sodium Chloride is Preferred More?
Sodium chloride is produced in varying grades of purity as per end users’ requirements. These include agriculture, food, industrial, and pharmaceutical options. Of these food grade products will hold the largest market share accounting for over US$ 21.7 Bn in 2021.
The expansion of global food and beverage processing sector, coupled with the rising demand for sodium chloride as an everyday use item in most households will support demand in the long-term.
What Form of Sodium Chloride is Key to Revenue Generation?
Sodium chloride is available in both liquid and solid forms. Solid sodium chloride accounts for a larger market share of more than 50% in 2021. This is likely to continue throughout the assessment period.
Extensive applications of solid sodium chloride in the food and pharmaceutical sectors will support developments in the market for the foreseeable future.
How is Sodium Chloride Sourced from Sea Water and Brine Set to Fare?
Sodium chloride is primarily sourced from sea water and brine, which will account for a valuation of more than US$ 27.9 Bn in 2021. This can be largely attributed to the easy access of raw materials and low infrastructural requirements that support production activities even in low-income countries.
Solid sources on the other hand are rarer to source and can be comparatively expensive for consumers. However, higher disposable incomes will support growth prospects in the long-term.
The sodium chloride market is a moderately competitive space dominated by global players offering cost-competitive raw materials. The market is a moderately fragmented, where tier 2 and 3 players account for approximately 70% of the market.
It is characterized by a large supplier base and strong B2B networks. The market has robust partnerships throughout the value chain. There is ample focus on strong research & development activities. Companies are aiming for strategic collaborations with end users and regional distributors to address the needs of an expanding customer base.
Suppliers of sodium chloride seek acquisition and regional expansion strategies to establish a stronger foothold. However, brand consciousness and aggressive marketing make it challenging for new entrants in this space. Furthermore, the advent of online sales is also expected to create positive growth prospects for market players.
In May 2021, Sandhage announced positive results from the use of super-hot sodium chloride as a way to cut costs of solar power facilities, by allowing easier conversion of heat to electricity at more than 1300 degrees Fahrenheit.
In April 2021, Stone Canyon Industry Holdings LLC reached an agreement with the Department of Justice to divest all assets related to evaporated salt to proceed with its ongoing acquisition of Morton Salt Inc.
In January 2021, Aurobindo Pharma received the approval of the FDA to manufacture and distribute Dexmedetomidine Hydrochloride in 0.9% Sodium Chloride Injection for the U.S. healthcare sector.
Some of the leading companies operating in the market are:
- Cargill incorporated
- Compass Minerals International.
- K+S AKTIENGESELLSCHAFT
- Wacker Chemie AG
- Akzo Nobel N.V.
- Tata Chemicals Limited
- Südwestdeutsche Salzwerke AG
- INEOS GROUP HOLDINGS S.A
- Hindustan Ltd
- Dampier Salt Limited
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of Report
Historical Data Available for
USD Million for Value and Kilotons for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Oceania, Turkey, Northern Africa, and South Africa
Key Segments Covered
Grade Type, Source, Product Form, End Use, and Region.
Key Companies Profiled
Market Forecast, Brand Share Analysis, Competition Intelligence, DROT analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
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Market Segmentation by Category
By Grade Type
- Sea Water & Brine
By product Form
By End Use
- Food & Beverage
- Leather Industry
- Oil & Gas
- Water Treatment
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa