Caustic Soda (sodium hydroxide) is a white alkaline in solid and liquid form with no odor. It is used in several applications, including pulp & paper, organic chemical and inorganic chemical, soaps and detergents, water treatment and metal processing, etc. According to BlueQuark Research & Consulting, the global Caustic Soda market is expected to have moderate growth over the forecast period. The significant factor responsible for developing the global market is the increasing demand from pulp & paper gents, among other applications. However, environmental concerns related to chlorine and related products and energy-intensive production processes will hinder the market's growth.

Caustic Soda, along with sodium sulfide, is used to dissolve wood chips in the pulping process known as Kraft pulping process (dominant papermaking process). Pulp & paper is the most extensive application of Caustic Soda globally. Caustic Soda is also used in the deinking process for recycled paper. More than one-third of the municipal waste, which contains solid caustic Soda, is made of paper. This paper's recycling reduces greenhouse emissions and landfills compared to virgin paper manufacturing. The global usage of recycled paper has doubled over the past 20 years and is expected to grow further in the foreseeable future. Due to the economic advantage over its substitutes/alternatives, pulp & paper manufacturers prefer Caustic Soda over other chemicals (sodium carbonate, soda ash, etc.). In the North American region (the second-largest paper producing region after Asia-Pacific), the Southern part of the US is the largest pulping region, followed by Western US, Western Canada, Northern United States, and Eastern Canada. Amid the COVID-19 pandemic, the need for writing and printing paper has reduced. However, this is offset by the increasing demand for paper and tissue product packaging. In 2019, the global tissue & hygiene paper market was valued at USD 1.28 billion. The market is awaited to grow significantly due to the increasing demand from emerging economies, particularly in the Asia-Pacific region. Asia is the top paper & pulp producing region in the world. China is the largest paper-producing country globally, with an annual production of around 130 million tons in 2019. China's pulp & paper industry is flourishing rapidly due to continuous investments by domestic and international players in the area. In November 2019, Finnish forest-based bio-sector company UPM Group made more than EUR 40 million in investments in its paper plant in Changshu, Jiangsu province in China. The market is also driven by the surging demand from the chemical industry. The continuing research and innovations in the manufacturing process of Caustic Soda are predicted to provide opportunities for a further surge in the market in the forecasted period.

There is a substantial interest in novel technologies to produce Caustic Soda without the co-production of chlorine. Cells will be used as modern membranes and electrode materials and fabricated to convert non-halogen sodium salts into aqueous Caustic Soda. Such processes are projected to be economically viable and energy-efficient, and the introduction of a novel Caustic Soda manufacturers process from seawater desalination brine. The integrated system comprises concentration via evaporation or mechanical vapor compression, chemical softening, nanofiltration, further ion-exchange softening, dechlorination, and membrane electrolysis.

The global Caustic Soda Market is fragmented based on phase, production technology, and application. The application segment is further segmented as Pulp & Paper, Alumina, Organics, Inorganics, Soap & Detergents, Food Industry, Water Treatment, Textile Industry, and Others.

Alumina, also known as aluminum oxide, is produced from bauxite. Caustic Soda is deployed in the refining process of bauxite to produce alumina. The market for Caustic Soda has been driven by the increasing production of alumina across the globe. In 2019, the global production of alumina was valued at 132.4 million tonnes. The average alumina cost in 2019 was USD 332 per ton compared to USD 473/ton in 2018. The price decrease was due to increased alumina supply and less demand for primary aluminum. However, the manufacturing of smelter-grade aluminum grew by 3.8% outside of China, driven by the continuation of the partially curtailed Alunorte refinery in Brazil and ramping up of the Al Taweelah refinery in UAE, Friguia refinery in Guinea, and the Lanjigarh refinery in India. The domestic alumina production in China (a significant alumina producer globally) reduced by about 1.2% in 2019 amid stringent environmental policies, lower prices, and a rise in alumina net imports. During the second half of 2019, reducing margins forced refineries in Northern China to curtail. China returned to a net importer in 2019, with net imports totaling 1.4 million tonnes. The extra smelting manufacturing will require more alumina in the coming years, and additional supplies are anticipated to support this demand. In the medium and longer-term, the need for aluminum is forecast to grow continuously, driven by increasing intensity of use and economic expansions. In the short term, the demand for alumina and aluminum is expected to be affected by the outburst of the Covid-19 pandemic, which has delayed manufacturing facilities across the globe. The surging trend of alumina production contributed to the growth in Caustic Soda consumption in recent years. However, the decreasing trend of alumina production in 2020 is likely to restrain the Caustic Soda market. Nevertheless, the ongoing growth in aluminum demand is expected to drive the production of alumina, which is further expected to propel the usage of Caustic Soda in the forecast period.

The global Caustic Soda Market is consolidated into Asia Pacific, North America, South America, Europe, and Middle East & Africa based on geography. The Asia-Pacific region was a huge market for global Caustic Soda due to the high usage from the end-user industries in the area.

With the continuing Covid-19 pandemic in the US, the GDP increase rate for the first quarter of 2020 was -4.8%, in contrast to the growth rate of 2.1% in the fourth quarter of 2019. In between the Covid-19 pandemic, there is an impact on the country's production and consumption of paper. Due to low business, the packaging sector has been walloped, resulting in the low demand for paper and its products. The US has been the largest exporter of paper and pulp products to china since 2010. With reduced demand for paper packaging, the need for paper and pulp products is anticipated to decrease, and the demand recovery would start in at least Q3 2020. Health officials have stressed the significance of hygiene and sanitizing as efforts to contain Covid-19 intensify. This trend is anticipated to increase the demand for paper and pulp products domestically and internationally. The growth trend in paper production is expected to propel Caustic Soda consumption in the forecasted period. The US pulp and paper industry is on the cutting edge of science and technology. It is the second-largest producer of pulp & paper in the world. It uses renewable and recyclable resources to meet the needs of paper, paperboard, and various by-products from pulp and papermaking processes. The pulp & paper industry is growing fast, and Caustic Soda is an essential chemical compound for paper manufacturing and recycling. The industry is developing due to the surging adoption of new manufacturing technologies and the high usage of paper and paper products. Approx 28% of the trees harvested in the US are utilized to produce wood pulp for making paper and paperboard. In the US, paper consumption has surged from 92 million tons in 2000 to 208 million tons in 2019, showing extreme growth of 126%. An increase in e-commerce is one of the primary reasons for the country's high consumption of paper products. An increase in paper and cardboard consumption for packaging is responsible for boosting the country's paper and pulp sector. The consumption of hygiene-related products like disinfectants, hand sanitizers, liquid hand soap, etc., is also anticipated to grow significantly due to the ongoing lifestyle changes due to the Covid-19 pandemic.

The global Caustic Soda market is partially fragmented in all regions. Major players in the regional market were Olin Corporation, Nouryon, Occidental Petroleum Corporation, Inovyn, Dow Chemical, and Grasim Industries Limited.

On 27th Mar 2020, Nouryon is widening its partnership with Sumitomo Chemical to consist of a new plant Sumitomo is building in Oita, Japan. The new plant will supply a critical raw material for Nouryon's Perkadox 14 organic peroxide.

On 1st Apr 2020, Nouryon completed the divestment of its re-dispersible polymer powders business to Celanese Corporation.

On 2nd Apr 2020, Nouryon agreed to acquire Sasol's merchant triethyl aluminum (TEAL) business, including its specialty fleet of returnable cylinders.

A consortium comprising Nouryon, Gasunie, and four other partners will receive an €11-million European grant towards their proposed green hydrogen project in Delfzijl, the Netherlands. The project is a front-runner among several hydrogen initiatives aimed at cutting carbon emissions and will be a significant milestone in the transition to a more sustainable, circular economy, the companies say.

In February 2020, Olin Corporation and Westlake Corporation announced domestic caustic soda price increases in the United States and Canada. Caustic soda prices were under pressure throughout 2019.

Our Global Caustic Soda Market report provides deep insight into the current and future state of the Caustic Soda Market across various regions. The study comprehensively analyzes the Caustic Soda Market by segments based on Phase (Solid and Liquid), By Production Technology (Mercury Cells, Membrane Cells, and Diaphragm Cells), By Application (Pulp & Paper, Alumina, Organics, Inorganics, Soap & Detergents, Food Industry, Water Treatment, Textile Industry, and Others), and by Geography (Asia Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market drivers and restraints, along with the impact of Covid-19 on market growth, in detail. The study covers & includes emerging market trends, market developments, market opportunities, market analysis, market dynamics, caustic soda market size, and challenges in the industry. This report also covers extensively researched competitive landscape sections with profiles of prominent companies, including their market share and projects.