The global industrial salt market size will reach $19 billion by 2025, growing at a cumulative average growth rate of more than 4% during 2020-2025. The market is expected to witness a steady growth in terms of consumption. The chemical sector is one of the major end-users, where it is primarily used in the production of Chlor-alkali (chlorine and caustic soda) and synthetic soda ash. Chlor-alkali production holds the maximum market share, accounting for approximately 36% of world consumption in 2018. Around 52% of the global consumption was witnessed in East Asia, followed by North America (18%) and Western Europe (14%). The growing demand for products such as caustic soda and soda ash is driving the growth of Chlor-alkali.
- Nearly 60% of global production is meant for industrial applications; therefore, the demand will grow during the forecast period.
- The global water softener market to exceed $11 billion by 2025. Salt-based water softeners accounted for approximately 91% of the worldwide water softener market by revenue in 2019.
- The global chlorine production is expected to grow to 98 million tons by 2028, with China producing 63%.
INDUSTRIAL SALT MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY APPLICATION
The chemical industry holds the largest industrial salt market share. It is used as a raw material for the production of soda ash, caustic soda, and chlorine. The growing demand in the Chlor-alkali is primarily driving the growth. Further, the growth in construction activities is also supporting the growing demand for PVC and glass. Industrial salt constitutes a key component in manufacturing PVC and glass; hence, the growth in construction activities is likely to generate demand in the region.
Highway de-icing forms the major market for industrial salt in North America and Europe. According to research conducted in Wisconsin, the increasing demand for industrial salt for snow melting is estimated to reduce accidents by 88% in the US. Cold and frosty winters in North America and Europe have also resulted in a high import of salt for de-icing, thereby increasing the market share.
INSIGHTS BY PRODUCTS
The solar segment is expected to account for the majority of the industrial salt market share during the forecast period. The low-production cost is primarily responsible for the growth of the segment. This segment will witness the fastest growth in terms of consumption during the forecast period. It is likely to witness the highest demand in the APAC region owing to the rapidly growing production of high-quality products, especially in India, Australia, and Pakistan.
Vacuum evaporated salt usually has the highest purity levels. Chemical industries, especially Chlor-alkali production, require high-quality products, which is primarily driving the demand for vacuum evaporated products. Further, in the food processing industry, the wide range of demand from quality-conscious consumers for pure products is growing.
INSIGHTS BY SOURCE
Mining accounted for approximately 32% of the industrial salt market share in 2019. The growing demand for brine in chemical industries is expected to drive the segment. The demand will witness high growth in consumption during the forecast period, as compared to mining. Seawater is practically inexhaustible as compared to mining. Mining, however, have a restricted capacity of production. Rock salt produced in mines have lower purity levels and have limited usage in de-icing and chemical industries. The rapidly growing market for chemical processing and de-icing is primarily driving the market growth.
Seawater salt is primarily used in oil and gas exploration, paper and pulp industry, metal processing industry such as aluminum, tanning, and leather treatment, textile, and dyeing industry. Seawater salt accounts for approximately 66% of the global consumption, primarily owing to the abundance in the availability of saline seawater. The application of industrial salt is increasing in food processing, refrigeration, and cooling systems. It is also used as heat-transfer media because of low freezing temperatures or as a vapor-absorption agent because of low vapor pressure. Brine is also extensively used in steel and aluminum industries, thereby driving the segment growth.
INSIGHTS BY GEOGRAPHY
APAC is the largest industrial salt consumer globally. The rapidly growing Chlor-alkali industry in China is primarily driving the growth of the market in 2019. Industrial salt is one of the largest minerals consumed by volume globally. It has over 14,000 applications in industries, including chemical, de-icing, paper and pulp, water treatment, pharmaceutical, textile, food processing, oil, and gas, among others. The consumption will remain high in the US as meteorologists predict continued colder weather in the region. Further, the increasing cross border trade is expected to create enormous opportunities for global traders.
The UK is one of the leading markets in Europe. De-icing and food processing account for the primary application in the country. The presence of the large-scale chemical industry in Germany is primarily driving the consumption demand in Europe.
INSIGHTS BY VENDORS
The market is comparatively mature, with the presence of a large number of regional and domestic players. Salt is a commodity, which limits the potential for product differentiation and increases competition. The presence of low entry barriers in the consumer and industrial markets increases competition. Primarily, advantageous geographical locations, superior assets, and distribution networks strengthen the competitive position of the manufacturers. Global vendors have been investing in capacity expansion into salt-producing countries to stay better sheltered from unbalanced climatic and economic situations that are constantly leading to price fluctuations and consecutively hampering the investments and pricing decisions of producers. Cargill, China National Salt Industry Group Co. Ltd, Tata Chemical Limited, Compass Minerals, INEOS Group, and K+S are the leading vendors in the market.
The global industrial salt market research report includes in-depth coverage of the industry with growth rates, revenues & forecasts for the following segments:
Segmentation by Source
- Rock Salt
- Salt in Brine
- Water Treatment
- Oil &Gas
Middle-East & Africa