SODIUM CHLORIDE MARKET: KEY RESEARCH FINDINGS
- The global sodium chloride market size would expand nearly 1.5X over the forecast period of 2020-2030.
- Inexpensive nature and abundance of sodium chloride have enabled its broader adoption in several end-use industries.
- Food and industrial grade sodium chloride remain in-demand; pharmaceutical grade to pick pace.
- Manufacturers would target the chemical industry for bigger margins; pharmaceutical industry to reflect potential avenues.
- Asia Pacific (APAC) continues to shape the revenue pool of sodium chloride market players.
KEY FACTORS SHAPING SODIUM CHLORIDE MARKET
Chemical Processing Industry to Drive 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, among others. It is extensively available and inexpensive, and is a prime source to produce sodium hydroxide and chlorine gas, which is used by numerous industries such as textiles, plastics, chemicals, and agrochemicals, among others, to manufacture consumer products such as paints & coatings, PVC, polymers, and animal feed products.
Emerging economies in South Asia such as China and India are the primary producers and consumers of sodium chloride for chlor-alkali products. Salt suppliers in regions such as North America and the Middle East & Africa are also projected to benefit from increase in chlor-alkali output, owing to low natural gas prices in the region. Growth in the commodity chemicals market is expected to drive chlor-alkali consumption, which, in turn, is expected to boost the demand for sodium chloride over the coming years.
Rise in Demand for Processed & Packaged Food Surging Demand
The food industry consumes sodium chloride for multiple applications; sodium chloride is used as a flavoring agent and preservative. The food industry accounts for a major share of the sodium chloride industry; multiple purity grade of sodium chloride is used in the food industry, varying from 98% to 99.9%.
Salt is extensively employed as a preservative in pickles and processed meats. It inhibits the growth of fungi, and thus, food articles can be preserved for a longer time period. Food grade sodium chloride also varies vastly in prices, as it is used for multiple applications, from table salt to specialty salts. Moreover, changing lifestyles, rise in disposable income, and convenience of consumption are key factors increasing the demand for packaged food, which, in turn, increases the consumption of sodium chloride.
Increasing Demand for Food & Pharmaceuticals Grade Sodium Chloride
Booming population, economic development, and increasing disposable income have surged the demand for food additives in the food industry, which has witnessed steady growth over the recent years, Application in animal feed and agrochemicals is also propelling the demand for sodium chloride.
The pharmaceutical sector has seen immense advancements in recent years, and oral drug delivery has yielded superior results as a route of drug administration for manufacturers and end users. Matrix tablets are important for controlled and sustained release dosage forms in the pharmaceutical world, and pharmaceutical grade sodium chloride is used to synthesize such matrix tablets.
Manufactures in 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 R&D for product growth.
Demand Increase from Other End Users
Industrialization is driving the demand for sodium chloride, owing to its wide range of industrial application. Industrial salts are more economically viable than natural salts, which is further catalysing the growth of the sodium chloride market, or industrial salt growth.
There is also increasing usage of sodium chloride in end-use sectors such as oil & gas as drilling fluids, and as a water softener in water treatment plants.
Food & beverage and chemical industries are the key end users of sodium chloride. 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 due to downtimes of various production facilities, the closure of restaurants and bars has adversely affected the food & beverage sector. These factors are likely to have a negative impact on the sodium chloride market during 2020-21. However, FMI reveals that, the market is poised for a snapback over the next fiscal year.
SODIUM CHLORIDE MARKET: STRUCTURE ANALYSIS
- The global sodium chloride market is fragmented, with leading market players holding 25-30% of the market share. The presence of tier-2 and tier-3 manufactures spread across the world market make the domestic markets highly competitive.
- Tier-I players in the sodium chloride market are focusing on enhancing R&D capabilities and the acquisition of smaller players to strengthen their market positioning across the world, along with product development.
- Base year considered - 2019
- Actual estimates/Historical data - 2015 - 2019
- Forecast period - 2020 - 2030
- Forecast units - Value (USD) Bn
- Segments covered - Grade, Application, Crop, and Region.
- Regions covered - Americas (The US, Canada, Brazil, Mexico, and Rest of Americas), Europe (UK, Germany, France, Spain, Italy, Russia, and Rest of Europe), Asia Pacific (China, Japan, India, ASEAN, and Rest of APAC), and MEA (GCC Countries, South Africa, Turkey, Northern Africa, and Rest of MEA).
- Key Players - Nutrien Ltd., The Mosiac Company, K+S Kali GmbH, Israel Chemicals Ltd., Intrepid Potash, Inc., Uralkali, JSC Belaruskali, EuroChem, Arab Potash Company, and SQM S.A.
- Report coverage - Revenue forecasts, COVID-19 impact, company share, competitive landscape, growth factors, and trends
Sodium Chloride Market Analysis by End Use
Sodium chloride is leveraged as a raw material for several chemical processes, including sodium hydroxide, chlor-alkali, and soda ash production. Growth in the commodity chemicals market is driving the consumption of chlor-alkali, which, in turn, will boost the adoption of sodium chloride in the chemical industry.
Moving on, the food industry consumes sodium chloride as a preservative and flavoring agent. Various purity levels of sodium chloride are utilized in the food industry, ranging from 98% to 99.9%. Together, both the chemical and food & beverage industries capture over half of the total sodium chloride market value.
Regional Outlook of Sodium Chloride Market
Asia Pacific (APAC) would remain the primary producer and consumer of sodium chloride for chlor-alkali products, with China and India leading the pack. In addition, tremendous growth of various industries - food & beverages, water treatment, and chemicals – is offering fertile ground for manufacturers in the sodium chloride market. Given the rise in chlor-alkali output owing to low natural gas prices in North America, players are also tapping white spaces in this developed region. Further, the regional sodium chloride market is witnessing a demand upheaval, as an animal feed and food preservative.
How Growth will Unfold
Upsurge in the consumption of processed & packaged food products has translated to increased demand for food grade sodium chloride, especially as a preservative. Moreover, food grade sodium chloride varies significantly in prices, as it is used for several applications, from table salts to specialty salts. Going forward, industrial sodium chloride will also generate significant total returns to shareholders. This study reveals that, around 9 out of 10 players would place their bets either on food grade or industrial grade sodium chloride.
SODIUM CHLORIDE MARKET TAXONOMY
Grade
- Industrial
- Agricultural
- Pharmaceutical
- Food
Product Type
- Solid
- Liquid
Source
- Solid
- Sea Water & Brine
End Use
- Food & Beverages
- Chemicals
- Oil & Gas
- Industrial
- Deicing
- Pharmaceuticals
- Water Treatment
- Agriculture
- Leather Industry
Region
- North America
- Latin America
- Europe
- South Asia
- East Asia
- Oceania
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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