LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global caustic soda market to grow to 89.19 million metric tons by 2022, according to their latest market research report.
In this report, Technavio highlights the increase in production capacity of caustic soda as one of the key emerging trends in the global caustic soda market. In regions such as the Americas, the Middle East, and APAC, the production capacity of caustic soda has witnessed an increase. The increase in the production capacity is owing to the surge in caustic soda prices, encouraged by supply cut and global demand for healthy mercury-free environment. Organizations such as the EU has decided to discontinue mercury cell process for chlor-alkali units as it led to a supply shortage of caustic soda, thereby increasing the prices; this proves beneficial to manufacturers, encouraging them to increase the production capacity.
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In this report, Technavio analysts highlight the increase in demand for PVC from the construction industry as a key factor contributing to the growth of the global caustic soda market:
Global caustic soda market: Increase in demand for PVC from the construction industry
PVC is produced using ethylene and chlorine as the key raw materials. Chlorine is the by product of caustic soda production. The increase in the production of PVC will require an increase in the production of chlorine, which in turn, will increase the production of caustic soda. In 2016, regions such as APAC led to the global PVC market, followed by EMEA and the Americas. During the forecast period, the global caustic soda market is expected to witness a firm growth due to an increase in the demand for PVC from the construction industry, especially from APAC.
According to a senior analyst at Technavio for specialty chemicals, “The global construction is expected to witness steady growth during the forecast period. APAC is expected to account for the maximum share with countries such as China contributing the highest share. India and other developing Asian countries will contribute to APAC’s share.”
Global caustic soda market segmentation
This market research report segments the global caustic soda market into the following production processes (membrane cell, diaphragm cell, and mercury cell), end-users (organic chemicals, inorganic chemicals, pulp and paper, surfactants, and water treatment), and key regions (the Americas, APAC, and EMEA).
Of the five major end-users, the organic chemicals segment held the largest market share in 2017, accounting for nearly 35% of the market. The market share for this end-user is expected to increase nearly 3% by 2022. The fastest growing end-user is pulp and paper, which will account for nearly 23% of the total market share by 2022.
APAC was the leading region for the global caustic soda market in 2017, accounting for a market share of nearly 51%. By 2022, APAC is expected to continue dominating the market and register the highest growth of nearly 3%.
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