Market Challenges And Opportunities

Global Alumina Trihydrate Market - Drivers

Rising Demand in Paints and Papers and Coatings Industries

Paints and coatings have many different applications, such as finishing for automobiles, buildings, protective coatings, wood coatings, and decorative uses. A large amount of alumina trihydrate is added to the paint to preserve the brilliance and enhance clarity, despite the fact that their functional qualities continue to set them apart from other industrial chemicals on the market. However, it is considered that the additional sustainability benefit will have the strongest significant factor on the prospects for alumina trihydrate in the forecast period. For instance, India's paints and coatings industry is expected to grow to an Rs 1 lakh crore market in the next five years from the current Rs 62,000 crore, said the Indian Paint Association (IPA). IPA functionaries said that the industry has seen a consistent double-digit compound annual growth rate (2023-2030). This factor may propel the growth of the global alumina trihydrate market.

Growing Demand for Flame Retardants without Halogens

Explosions and fire-related accidents are now highly probable as there are more residential and commercial buildings. As a result, several nations in North America and Europe have enacted strict fire safety laws and procedures. In order to comply with these government regulations, flame retardants are now being used more frequently in buildings. Flame retardants are primarily used in the insulation of electric wire in buildings and construction, as well as in transportation. Circuit boards, electronic casing, cables, and wire systems all use flame retardants. The demand for halogen-free flame retardants is being driven by strict fire safety regulations to control the spread of fires in residential and commercial buildings. Demand for non-halogenated flame retardants will rise as consumers turn to more environmentally friendly alternatives, propelling the growth of the global alumina trihydrate market expansion.

Global Alumina Trihydrate Market - Restraints

Fluctuations in Raw Material Prices

Alumina trihydrate is derived from bauxite, which is a naturally occurring mineral. The prices of bauxite can be volatile due to various factors such as supply-demand imbalances, geopolitical issues, and environmental regulations. Any significant increase in the cost of bauxite could lead to a rise in the cost of alumina trihydrate production and hinder the market of global alumina trihydrate. For instance, in 2021, the price of bauxite, the primary raw material used to produce alumina trihydrate, increased due to the closure of mines in Guinea, one of the largest bauxite producers in the world. This led to a rise in the cost of production for companies in the alumina trihydrate market. This factor may hinder the growth of the global alumina trihydrate market.