The global caustic soda market is expected to grow at a CAGR of around 3% between 2016 and 2020, according to findings of a new study by market research firm, Technavio. The caustic soda market is anticipated to grow at a moderate pace owing to the growth of various end-user industries like alumina, organics, inorganics, pulp & Paper, soaps & detergents, and water treatment chemicals. Asia-Pacific (APAC) accounts for 50% of the overall market share, owing to the rise in population and consumption rates.
“Rising demand for PVC in the construction industry is expected to boost the growth of caustic soda market during the forecast period. Caustic soda is one of the main constituents in the production of construction material like PVC, epoxy resins and polycarbonate. PVC is expected to be the fastest-growing segment in the constructions sector, which will increase the consumption of caustic soda over the next four years.” Observed Mr. Chandrakumar BJG. Lead Analyst, Chemicals & materials, Technavio Research.
The pulp and paper segment accounts for the largest market share of 23%. It was followed by organics with 20.69% inorganics with 15.74%, and soaps/detergents/textiles with 13.80% shares. The least market share was contributed by alumina and water treatment and others with a total of 27.01%. This tred is most likely to continue till the end of the forecast period, the report revealed. The key players in the global caustic soda market include Arkema, Bayer Material Science, Dow Chemical, FMC Kemira, SABIC, and Solvay Chemicals. According to Technavio, intense competition, rapid technological advances, and frequent changes in consumer preferences constitute significant risk factors for vendors in the market. “The market is witnessing consolidation with increased competition. Also, the influx of private labels in the market is also on the rise. Therefore, to survive and succeed in this intensely competitive environment, it is imperative for vendors in the market to distinguish their product and service offerings through a clear and unique vale proposition. The development of innovative products by the vendors is expected to help market growth during the forecast period,” the report stated.