H1 2023: In the first half of 2023, the Caustic Potash market in the Asia Pacific region witnessed dynamic pricing scenario. The persistent economic slowdown in the Asian market also played a role in shaping the Caustic Potash price momentum in the first quarter of 2023.The overall trajectory of Caustic Potash prices exhibited a decline due to reduced inflationary pressure in the Chinese market. March 2023 saw the final Caustic Potash prices in the APAC region influenced by a rebound in demand from the downstream agrochemical sector, driven by seasonal consumption in the regional market. Concurrently, the conclusion of the first quarter of 2023 witnessed a modest uptick in new orders within the Asian market, resulting in mixed sentiments in the Caustic Potash market. Caustic Potash prices experienced a decline in the Asian market in Q2 2023 as well, attributed to low demand from downstream agrochemical and cleaning industries. The market situation observed was bearish till June 2023 in the Asia Pacific region. Moderate to high supply prevailed due to increased manufacturing activities, impacting the Caustic Potash price. However, demand remained low due to the contraction of export orders from overseas and the Labor Day Holidays in China. In the middle of the second quarter, a marginal decline in the price of Caustic Potash occurred as the agrochemical sector improved, bolstered by sufficient domestic supplies, ease in energy prices and output, and a downturn in purchasing activities across Asia. Despite signs of revival, demand remained comparatively low in June due to sluggish overseas demand.
The global Caustic Potash market stood at approximately 2580 thousand tonnes in 2022 and is anticipated to grow at a healthy CAGR of 4.47% during the forecast period until 2035.
Caustic Potash, also known as Potassium Hydroxide (KOH), is an inorganic compound available in various forms, such as pellets, flakes, crystals, powder, and aqueous solutions. It appears as a white, clear liquid or slightly yellow lumps, demonstrating strong alkaline and corrosive properties while being non-combustible and readily soluble in water with heat release. Primarily manufactured through electrolysis of potassium chloride (KCl) using membrane electrolytic cells. Potash’s versatility is evident in applications like fertilizer production, soap and detergent manufacturing, potassium chemical industries, alkaline battery production, and petroleum refining. Additionally, it serves purposes such as pH balancing, dehydrating agent, lubricant in alloy extrusion pressing, methylating agent, and alkaline builder in detergent formulations. In agriculture, it enhances crop drought tolerance and yield, while in the food industry, it acts as a thickening agent, food additive, and pH controller, considered safe by the FDA. Caustic Potash is also widely used in the production of personal care items and cleaning agents, indicating a growing global demand driven by its multifaceted applications. On the basis of Grade, Caustic Potash market is segmented into Industrial Grade, Agricultural Grade, Pharmaceutical Grade, Others (Food, Chemical, Technical, etc.). Among these, industrial grade is the prevalent grade.
The caustic potash market is intrinsically tied to the production and utilization of potassium carbonate, with a focal point on its applications in the fertilizer industry. Derived often through the electrolysis of potassium carbonate solution, caustic potash is a pivotal compound that finds extensive use in numerous industrial processes. The demand for potassium carbonate, a precursor to caustic potash, is notably high in the production of potash fertilizers, essential for enhancing soil fertility and promoting robust crop yields in the agriculture sector. As an indispensable component in liquid fertilizers, caustic potash plays a crucial role in meeting the potassium needs of crops, thus influencing the agricultural landscape. Additionally, its applications extend to the chemical industry, where it contributes to the production of detergents, soaps, and potassium carbonate. The caustic potash market is further impacted by its role in alkaline batteries, water treatment processes, and various chemical applications. Consequently, the market dynamics are intricately linked to the growth and demands of industries relying on potassium carbonate, reflecting the broader interconnectedness of the caustic potash market with key sectors such as agriculture and chemicals. The global Caustic Potash market size is anticipated to reach nearly 4000 thousand tonnes by 2035.
Based on region, Asia Pacific region is the biggest consumer of Caustic Potash. In 2022, this region consumed roughly 45% of the Caustic Potash market. and is poised to assert dominance in the global Caustic Potash market throughout the forecast period. The anticipated surge in demand during the forecast period is driven by a growing global population. The construction sector in the Asia-Pacific (APAC) region, which currently stands as the largest in the world, is experiencing robust growth, contributing to an increased need for Caustic Potash. Notably, countries such as India and China are strategically investing in their construction sectors to foster economic development. Furthermore, the forecast predicts a substantial uptick in the Potassium Hydroxide (KOH) market due to the rising demand for KOH-based fertilizers. This heightened demand is a response to the imperative of enhancing crop productivity to meet the needs of the expanding global population. The agriculture industry, driven by the necessity to feed a growing populace, is expected to contribute to the overall healthy growth of potash market in the forecasted year.
Based on the end-user industry, the global Caustic Potash market is divided into Potassium carbonate, Chemical Industry, Fertilizer, Soap and Detergent, and Others. However, Fertilizer Industry dominates the global Caustic Potash market followed by Potassium carbonate Industry.
Major players in the Global Caustic Potash market are Gujarat Alkalies and Chemical Limited, The Andhra Sugars Limited, TGV SRAAC LIMITED, UNID Company Ltd., Tangshan Sunfar Silicon Industries Co.,Ltd., Inner Mongolia Rida Taifeng Chemical Co., Ltd., Asahi Glass Co., Ltd., INOVYN, Neolyse Ibbenbüren GmbH, Vynova Group, Ercros S.A, Occidental Chemical Corporation (OxyChem), Olin Corporation, and Others.
Years considered for this report:
Historical Period: 2015- 2021
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2035
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Objective of the Study:
• To assess the demand-supply scenario of Caustic Potash which covers production, demand and supply of Caustic Potash market in the globe.
• To analyse and forecast the market size of Caustic Potash
• To classify and forecast Global Caustic Potash market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Caustic Potash market in the globe.
To extract data for Global Caustic Potash market, primary research surveys were conducted with Caustic Potash manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Caustic Potash market over the coming years.
ChemAnalyst calculated Caustic Potash demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of raw material to produce Caustic Potash. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Caustic Potash manufacturers and other stakeholders
• Organizations, forums and alliances related to Caustic Potash distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Caustic Potash manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Caustic Potash market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
2580 thousand tonnes
Market size Volume in 2035
4000 thousand tonnes
Growth Rate
CAGR of 4.47% from 2023 to 2035
Base year for estimation
2022
Estimated Year
2023
Historic Data
2015 – 2021
Forecast period
2024 – 2035
Quantitative units
Demand in thousand tonnes and CAGR from 2023 to 2035
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by Grade, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Foreign Trade.
Segments covered
By End-Use: (Potassium carbonate, Chemical Industry, Fertilizer, Soap and Detergent, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Osaka Gas Co. Ltd
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What was the net market size of Caustic Potash in terms of volume in 2022?
Ans:
The global market size of Caustic Potash had reached approximately 2580 thousand tonnes in 2022.
Q2.
Which region is the major consumer of Caustic Potash?
Ans:
Asia Pacific region is the leading consumer of Caustic Potash globally
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