SODIUM HYDROXIDE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Sodium Hydroxide Market Size and Trends

The sodium hydroxide market is estimated to be valued at USD 5.38 Bn in 2024 and is expected to reach USD 7.28 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.

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Sodium hydroxide, also known as lye or caustic soda, has widespread applications in industries like alumina, textiles, pulp & paper, soap & detergents, and petroleum products among others. Its demand is projected to increase with rapid industrialization and economic growth in various regions across the globe. The market is expected to witness fruitful opportunities and maintain a steady growth trend during the forecast period. Rising demand from end-use industries like paper & pulp and alumina along with growth in other industries will drive the sodium hydroxide market growth during this period. Additionally, increasing investment in infrastructure development and focus on renewable energy in different regions will also contribute to the growth of the sodium hydroxide market. However, availability of substitutes and fluctuating raw material prices may hamper the market growth.

Sodium hydroxide is used in the production of paper and pulp

One of the major drivers propelling the growth of the sodium hydroxide market is the rise in paper production across the globe. For instance, according to data published by the Vietnam Pulp and Paper Association (VPPA) in 2021, the consumption of paper for packaging in Vietnam in May 2021 was 404,711 metric tons, an all-time high. The domestic paper industry has witnessed positive growth over the last five years (2015–2020), and it is expected to grow continuously over the forecast period. Thus, increasing paper production to meet the growing demand from the packaging sector and capacity expansion of paper production mills are expected to drive demand over the forecast period. Sodium hydroxide, commonly known as caustic soda, is one of the key ingredients used in the manufacturing process of paper. It acts as a bleaching agent that removes remaining lignin from the pulp to give paper its characteristic whiteness. With economies worldwide witnessing a boom in digitalization, the demand for all types of paper such as copier paper, cardboard, newsprint and tissue paper is growing steadily. The e-commerce revolution has led to a surge in cardboard packaging material being used for product delivery. Meanwhile, tissue papers find widespread application in households as well as commercial establishments like offices and public restrooms. The packaging industry is also augmenting the consumption of boxboard and containerboard. All these end-use sectors are major consumers of virgin and recycled fibers that serve as the raw materials in paper production. With paper consumption rising on the back of expanding digital content and ever-growing e-commerce volumes, the sodium hydroxide demand from the paper and pulp sector continues to rise at a favorable pace. Leading global corporations are heavily investing in setting up new paper mills as well as expanding the capacities of existing units, which will invariably drive more sodium hydroxide consumption going forward.

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Accelerating the sodium hydroxide market is the aluminum industry. Sodium hydroxide acts as an essential feedstock material that is used widely in the electrolytic production of primary aluminum. It enhances the conductivity of alumina and allows the metal to be readily dissolved out of the smelting pot. With infrastructure development activities picking up pace globally, fueled by post-pandemic economic recovery programs of various nations, the aluminum demand is surging significantly. Aluminum finds multifold applications as a lightweight, corrosion-resistant, and sustainable construction material used in buildings, vehicles, equipment, and machinery. The boom in residential and commercial construction due to rapid urbanization is propelling aluminum extrusion needs. At the same time, investments in modernizing national infrastructure through projects focused on roadways, railways, urban mass transit, and power grids involve the substantial use of aluminum. Even the renewable energy sector is relying more on aluminum for setting up wind and solar farms.