Silicon Dioxide Market Trends

Growth Drivers

• Expanding usage in personal care and pharmaceuticals: The silicon dioxide market is poised to benefit from the expanding applications in the pharmaceuticals and personal care sectors. Silica is an absorbent powder in cosmetics and a key ingredient in makeup and sunscreens. In March 2023, Dow Personal Care announced the acceleration of sustainable portfolio transformation. It launched the EcoSmooth Rice Husk cosmetic powder that contains rice silica obtained from rice agriculture by-product feedstock. The rise of clean beauty trends is poised to drive further demand for the compound, and sustainable cosmetics portfolio expansions by major players indicate the sector’s growth potential.
  Additionally, the healthcare industry’s growing reliance on silicon dioxide for delivery systems drives the sector. Ongoing research on silica-based nanoparticles as therapeutics has the potential to expand applications of silica in the healthcare industry.
• Surge in specialized applications and expansion in emerging markets: Beyond the regular end use applications and industries such as construction, electronics, food & beverage, cosmetics, etc., the silicon dioxide sector is exhibiting a growth curve due to a surge in specialized applications that opens new revenue streams. The rising demand for silicone doll manufacturing where silica is a crucial starting material, and 3D printing are encouraging trends for key market players to invest in expansion of production capabilities. For instance, in October 2024, Evonik announced a major expansion in silica production in Charleston, U.S., supported by customer demands. The boost in silica production is expected to support the domestic supply chain in North America.
  
  Furthermore, scaling up in emerging markets in APAC is positioned to boost the sector’s continued growth. For instance, in November 2024, PQ announced the expansion of specialty silica production in Indonesia which will support the company in meeting demand for high-quality silica in APAC. Key market players are investing to strengthen their revenue share in the domestic markets of developing economies.
• Advancements in curbing emissions: The increasing scrutiny regarding greenhouse gas (GHG) emissions and the global net zero carbon initiatives is prompting businesses to adopt sustainable production methods. Advancements in sustainable manufacturing processes assist in curbing costs in production and boost investor appeal. For instance, in September 2024, Wacker, a German multinational chemical company announced the successful capture of carbon dioxide from the silicon production process, and the ability to reuse or store the GHG to prevent its release into the atmosphere. These advancements are promising for long-term financial benefits by improving profit margins through cost reductions, and increased consumer trust owing to burgeoning sustainability trends globally.
  
  Furthermore, in July 2024, Rover Critical Minerals signed a letter of intent (LOI) to acquire 100% interest in high-purity silica assets in the Silicon Valley Silica Project with Orichalcum Holdings Inc. High-profile acquisitions within the silicon dioxide market are a testament to the market’s promising value for industry stakeholders

Challenges

• Supply chain bottleneck constraints: The global supply chain for silicon dioxide can be prone to logistical disruptions due to geopolitical tensions and transportation inefficiencies. The COVID-19 pandemic and geopolitical conflicts are recent examples of issues causing supply chain bottlenecks. Companies are investing to secure supply chains to mitigate the impact of various events.
• Price sensitivity among small-scale end users: Large-scale industries can absorb the costs of high-quality silica but small-scale end users may struggle with pricing constraints. Budget constraints can limit the adoption of premium materials. The upfront expenses continue to remain a barrier for smaller businesses.