Industrial Salt Market - Global Outlook & Forecast 2023-2028

INDUSTRY INSIGHTS

The global industrial salt market size was valued at USD 13.67 billion in 2022 and is expected to reach USD 17.43 billion by 2028, growing at a CAGR of 4.13% during the forecast period. The main use of salt is in the chemical sector, primarily producing chloralkali and synthetic soda ash. Solar evaporation, rock salt mining, and solution mining are the primary methods of salt production. Further, salt being a low-cost commodity, the fluctuating demand for de-icing salt, and growth in logistics and transportation costs determine the cost of salt products and the revenue of the producers.

The global industrial salts market shipments are expected to reach 389.51 million tons by 2028. Industrial salt is used for non-food purposes such as chemical manufacturing, water treatment, and de-icing. It has over 14,000 applications, including dye setting, glass production, and tire manufacturing. Salt production is one of the most ancient and widely distributed industries in over 100 countries. Nearly 60% of global salt production is intended for industrial applications. The industrial salt market is becoming more competitive, with Asia expected to show the strongest regional growth. The international trade of industrial salt has witnessed enormous growth, with traditional European salt producers competing with new suppliers from as far away as Australia, Mexico, and Chile. The salt market provides industry players with enormous growth opportunities.

MARKET TRENDS & OPPORTUNITIES

Increased Use of Salt in Chemical and Pharmaceutical Industries
Salt is an essential component of the chemical and pharmaceutical industry, where it is used for chemical synthesis and manufacturing of several commodities such as rubber, glass, paper, and textiles. Chloride, commonly used for cleaning, produces various chemicals, drugs, and plastics, with over 85% of medicines, including lifesaving drugs, produced using chlorine. Caustic soda and soda ash, produced using salt, are critical components in various industrial operations, including pulp and paper, chemical processing, and detergent. The pharmaceutical industry, which is growing rapidly, is a major end-user of industrial salt, with over 50% of all drugs administered by salt. The increasing demand for pharmaceutical products, particularly in developing countries, is driving the growth of the industrial salts market.

Rising Demand for Water Treatment
Water quality is a crucial factor in various industrial sectors, such as textile and tanning, as hard water can result in adverse effects such as bleaching, uneven dyeing, and decreased lifespan of fabrics. Soft water, on the other hand, decreases the cleaning cost, increases the equipment's lifespan, and improves efficiency. In both residential and industrial settings, water softeners are widely used to mitigate the negative impacts of hard water. The global water softener market is expected to cross USD 5.7 billion in 2027, with salt-based water softeners accounting for most of the market share. The demand for portable water consumption, coupled with the rise in water-borne diseases and strict regulations related to water treatment in various sectors, is expected to drive market growth. Asia Pacific dominates the water treatment market, followed by Europe. China, Japan, South Korea, and India are the key markets in the former, and the U.K., France, Italy, and Germany in the latter.

INDUSTRY RESTRAINTS

Winter Weather Variability Affecting Salt Sales for De-icing
Industrial salt is widely used for de-icing, which accounts for approximately 20% of global consumption. Studies conducted in Wisconsin indicate that using salt for snow melting can significantly reduce road accidents by 88% and accident costs by 85%. Key markets for salt de-icing include the U.S., Canada, and Northern Europe, where a considerable amount of salt is used for de-icing roadways, sidewalks, and walkways. In the U.S., around 19 million tons of salt is used for de-icing annually, while in Canada, the number is around 5 million tons. However, the industrial salt market is significantly impacted by any fluctuations in the winter climate as it directly impacts the demand and price of salt for de-icing.

SEGMENTATION INSIGHTS

INSIGHTS BY PROCESS
The global industrial salt market by process type is divided into extractor and steamer. Industrial salt can be obtained from different sources, including steam and extraction methods. The steaming process involves the evaporation of seawater or brine under controlled conditions. There are two types of steaming methods: solar and vacuum evaporation. Solar evaporation involves using large, shallow ponds or lakes where seawater or brine evaporates naturally under the sun. This process takes some months to complete, and the resultant salt is called solar salt. The streamer process is a promising technology for the salt industry that offers more sustainable and higher-quality salt production methods. The availability of saline seawater for the production of saltwater or brine has primarily driven market consumption.

On the other hand, vacuum evaporation involves boiling seawater or brine in large vessels under vacuum conditions, reducing water's boiling point, and allowing for faster salt production. The resultant salt is called vacuum salt, which is purer than solar salt. Further, the extraction method involves mining underground salt deposits, commonly known as rock salt and solution mining. The mining process involves drilling and blasting the rock salt deposits, which are then transported to the surface for processing. The rock salt is crushed, washed, and screened to remove impurities, then either packaged as a product or further processed to produce different types of salt, such as iodized or table salt.

INSIGHTS BY PRODUCT TYPE
Salt is an essential natural resource that has various applications across diverse industries. The global industrial salt market by product types segments such as solar salt, rock mining salt, salt in brine, and vacuum salt. Salt is a significant raw material used in multiple manufacturing industries. Common sectors include chemical industries, oil, and gas, de-icing, paper, pulp, etc. Trusted producers and suppliers distribute millions of tons of salt to consumers worldwide. To manage the large volume efficiently of industrial salt, various strict protocols and standards need to be taken into consideration to ensure the quality and purity level and efficiency level of the product

INSIGHTS BY END-USER
The global industrial salt market has various end-users across various sectors. Some key end-users of industrial salt include the chemical industry, where salt is used as a raw material for producing diverse chemicals such as soda ash, chlorine, and caustic soda. The chemical industry is the largest global industrial salt market end-users, accounting for approximately 51% share in 2022. The oil and gas industry uses salt in drilling operations as a component of drilling fluids.

The industrial salt market has a significant role in preserving, seasoning, and curing food products in the food processing industry. The water treatment industry utilizes salt for water softening and purification, while the pharmaceutical industry uses it to manufacture medicines and medical products. Additionally, salt is a widely used de-icing agent for clearing roadways, sidewalks, and walkways during the winter season. Millions of tons of salt are distributed worldwide by trusted producers and suppliers. Strict protocols and standards are in place to manage this large volume efficiently to ensure the product's quality, purity, and efficiency level. Overall, the industrial salt market is driven by diverse end-users across various sectors, and its significance as a natural resource cannot be overstated.

GEOGRAPHICAL ANALYSIS

APAC dominated the global industrial salts market, accounting for over 45% of the global consumption by volume. The Asia-Pacific region is the fastest-growing market, driven by growing industrialization, population growth, and increasing demand for processed food and chemicals. India, China, and Japan are the key markets in this region, with China being the largest producer and consumer of industrial salt globally. The growth in urbanization in East Asian countries is driving the construction market in the region. PVC and glass are the key materials of construction. Again, industrial salt is used as a primary raw material for producing PVC and glass, thus, boosting the growth of the industrial salt market in the region.

In North America, owing to the colder weather, especially in Northern U.S., and Canada, a huge amount of de-icing salt is consumed yearly. In the U.S., approximately 19 million tons of salt is used yearly for de-icing the roads, sideways, and walkways. Further, Europe's largest salt-producing countries include Germany, the U.K., France, Poland, and Russia. Salt is usually present in the European market in two forms, rock salt and salt in brine. The widespread usage of rock salt in de-icing and the chemical industry primarily drives the industrial salt market in the region.

In Latin America, Brazil is the leading consumer of industrial salt, driven by the demand for chemicals and the growing mining industry. The Middle East and Africa are also important industrial salt markets, with the United Arab Emirates, Saudi Arabia, and South Africa being the critical consumers. These regions have a growing chemical and oil and gas sector, which drives the demand for industrial salt.

COMPETITIVE LANDSCAPE

The global industrial salt market is favorably competitive, with several global and regional players operating. Cargill, Compass Minerals, Akzo Nobel, K+S AG, Tata Chemicals, INEOS Salt, and China National Salt Industry Corporation are some of the key players in the global industrial salt market, with significant industry shares. These players use various strategies to maintain their competitive edge, including product innovation and development, mergers and acquisitions, and expanding production capacity. For example, some companies focus on producing low-sodium salt for the food industry. Others are investing in expanding their de-icing business in Europe or strengthening their position in the Latin American market by building a new salt plant in Chile. The industrial salt market is expected to witness intense competition in the coming years due to increasing demand and evolving customer preferences.