Our-in depth analysis of the industrial sodium chloride market includes the following segments:
On the basis of regional analysis, the industrial sodium chloride market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia-Pacific is the dominating region in terms of consumption and production of sodium chloride, with China reported for more than one-fourth of the market share owing to its increasing demand for water treatment, chemical, and food & beverage industries. North America is the second largest consumer of NaCl, in reference to its use in deicing. The consumption in deicing application varies substantially depending on climatic conditions.
Industrial sodium chloride Market is further classified on the basis of region as follows:
The factor that drive the industrial sodium chloride market is the increasing demand for chlor-alkali, e.g. consumption of chlorine in ethylene dichloride production, etc. Increasing demand and consumption of preserved food items along with demand for NaCl as a chemical reagent and growing demand for pharmaceutical grade sodium chloride are some of the other factors that boosts the market. In addition, low-cost and simplicity of the solar evaporation production process catalyze the market growth from the supply side.
Currently the industrial sodium chloride market is observing fragmented growth owing to increasing competitiveness. Industrial sodium chloride market is expected to record a CAGR of 5% over the forecast period.
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The demand for NaCl is on the surge from the chemical industry, where it is widely used for the manufacturing of chlor-alkali products, such as chlorine, soda ash, and caustic soda. These products are further used for producing a wide range of products such as PVC, detergents, glass, dyes, and soaps. The rising demand for these products is expected to spur the demand for sodium chloride.
The F&B industry across the world is anticipated to increase substantially on the back of rising disposable income and change in food habits of consumers. In food sector, sodium chloride is used for seasoning, coloring, curing meats, preserving fish, etc. The medical application of sodium chloride is in catheter flush injections or intravenous infusions and also for cleaning objects such as contact lenses. Inhaling sodium chloride helps remove certain bacteria in body secretions.
Major market restraint has been the impact of sodium chloride on the water quality. This impact on environment has become a great concern as wildlife, vegetation and aquatic life are being affected, due to the chloride discharge into the water bodies. In addition, stringent regulations imposed by the government are restricting the market growth.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel