Sodium Chlorate Market Trends

Growth Drivers

• Rising growth in the mining sector: According to the U.S. geological survey, in 2021, the U.S. mines produced approximately USD 90.4 billion in mineral commodities which is a 9.7 billion increase over the total of USD 80.7 billion in 2020. This growing revenue in the mining sector is positively impacting the sodium chlorate market as a key oxidizing agent in metal extraction processes. Increasing global investment in mining activities is hence projected to boost the sodium chlorate industry growth significantly.
• Increasing use of sodium chlorate for tanning and finishing leather, and manufacturing of dyes: It is gaining traction in the leather industry for its role in tanning and finishing processes with enhanced leather quality and durability. Additionally, it is a key ingredient in the production of dyes. According to IBEF 2024, India accounts for 13% of the world’s total leather production, employing nearly 4.42 million people in the country. The rising demand for high-quality leather products and textiles in India, and globally, in addition to the growth of the fashion and apparel industry, is driving the usage of sodium chlorate.

Challenges

• Negative impact on the environment: Sodium chlorate production relies heavily on electrolysis, which is energy-intensive and often leads to significant greenhouse emissions, depending on the energy source. Improper disposal of sodium chlorate leads to soil and water contamination, posing risks to biodiversity and human health, pushing people to invest in cleaner technologies which creates a challenge for the manufacturers in the sodium chlorate market.
• Stringent regulations associated with the usage of sodium chlorate: Countries particularly in Europe and North America have implemented strict regulations governing the production, handling, and disposal of sodium chlorate. Compliance with these often requires adopting advanced, environmentally friendly production processes, which involves costly upgrades to existing facilities.