Caustic Soda Market Size Sector Analysis Report, Regional Outlook & Competitive Share & Forecast



The caustic soda market size was estimated at over 85 million ton, and the market is projected to register a CAGR of less than 6% during the forecast period

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The market was negatively impacted by COVID-19 in 2020. The coronavirus impact on chlorine derivatives demand has squeezed the supply of caustic soda, a by-product of chlorine production. This marks a reversal from the earlier scenario of a price cut that has been in place since 2019. However, to prevent COVID-19, the World Health Organization (WHO) has been encouraging people to wash hands with soap and water when hands are visibly dirty or soiled with blood, other body fluids, or after using the toilet. Such prevention of citing handwashing amid the continued spread of COVID-19 is a key factor for the market growth rate. Some of the companies in Europe started manufacturing soaps to meet the World Health Organization (WHO) guidelines (WHO), which is washing hands for 20 seconds to prevent the virus. For instance, Verve, an agency based across Dublin, London, and Amsterdam, developed the first soap lasting for exactly 20 seconds, the exact time it takes to get hands fully clean.

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– Over the short term, one of the major factors driving the growth of the market is the rising demand for alumina in the transport sector. It is anticipated that 25% of the aluminum consumed in transportation may be used in road and rail commercial transport. Aluminum is used in the construction of passenger coaches for rail transport and manufacturing chassis. Additionally, in road transport, aluminum is used in the subframe designing of tankers and freight carriers.
– The increasing demand for paper and paperboards is also expected to increase the consumption of caustic soda to extract aluminum from its ores, thereby augmenting the growth of the market.
– Energy-intensive production processes and major environmental concerns are likely to hinder market growth.

Increasing Demand from the Soap and Detergent Segment

– Sodium hydroxide (NaOH), also known as lye, is an essential ingredient used in the manufacturing of soaps, cleaners, and detergents. Sodium hydroxide is widely used due to its ability to dissolve oils, grease, fats, and protein-based deposits.
– Caustic soda is used in the saponification process that converts vegetable oils into soap. It is used to manufacture anionic surfactants, a crucial component in most detergent and cleaning products.
– In modern detergents, sodium hydroxide is used to produce active agents or builders and household bleach products. Sodium hydroxide is also used in the production of sodium hypochlorite.
– Detergents are classified in terms of their ionic properties, namely, anionic, cationic, and non-ionic. The major applications of detergents are reflected in household cleaning and fuel additives.