The Global Caustic Soda market has reached approximately 80 million tonnes in 2024 and is expected to further grow at a healthy CAGR of 3.29% by 2035. Caustic soda is an inorganic bulk chemical, strongly alkaline, and odorless, having application in various fields like pulp and paper manufacturing, viscose yarn, staple fiber, aluminum, textiles, soaps & detergent, dyestuffs, drugs and pharmaceuticals, petroleum refining, etc. It occurs in two forms, liquid form which is called lye & solid form which is called Flakes or pellets.
Caustic soda is used to extract alumina from bauxite ore in the Bayer’s process. Concentrated solution of caustic soda dissolves alumina to form sodium aluminate, from which alumina is separated by reverse reaction. Caustic soda is an important raw material in the manufacturing of various chemicals and used as an intermediate, reactant, pH regulator, in acidic waste treatment, etc., in chemical industries. In the textile industry, caustic soda is used for the mercerization of cotton and blended fabrics as well as the production of synthetic fibres. The Caustic Soda market volume is estimated to reach approximately 113 million tonnes by 2035.
The global caustic soda market is predominantly driven by the Asia Pacific region, with China at the forefront as the largest producer and consumer. Key regional producers such as India, Indonesia, Taiwan, South Korea, Thailand, and Japan form a strong manufacturing base. North America, led by the USA with 14% of global capacity and over eight plants, plays a vital role in global trade through substantial exports. Europe, contributing 11% of global capacity with over 50 plants, is dominated by major companies like Dow Chemical, Inovyn, and AkzoNobel. In the Middle East and Africa, Saudi Arabia and Egypt lead production, supporting both local demand and exports. Collectively, these regions and industry leaders shape the global caustic soda market through strategic production, trade, and expanding industrial applications.
The caustic soda market is divided into two primary types: solid flakes and lye. As of 2024, solid flakes dominate the market with a substantial share of around 69%. These flakes play a significant role in various sectors such as paper and pulp, textile processing, and soap and detergent manufacturing. Specifically, in the textile industry, they are utilized for activities like mercerization, fiber processing, dyeing, printing, finishing, scouring, and bleaching. Additionally, flakes are crucial in the production of epoxy resins, paints, rayon, spandex, explosives, glass, ceramics, electroplating, metal cleaning, and electrolytic extraction processes
Caustic soda finds extensive use across diverse sectors, with alumina manufacturing being a leading application. Other applications include organic chemicals, food production, soap and detergent manufacturing, textiles, water treatment, and steel/metallurgy, specifically in the sintering process. Recognized for its high reactivity and strong oxidizing properties, commercial-scale production of caustic soda involves electrolysis of brine in the Chlor-alkali process.
Based on Grade, Caustic Soda market is segmented into Industrial Grade and Pharmaceutical Grade. Among these, industrial grade is the prevalent grade. Organic and inorganic consumption, for example, represent the primary markets for caustic soda, where it functions as a potent acid neutralizer that readily dissolves in water. It finds applications as an intermediate, reactant, pH regulator, and in acidic waste treatment within the chemical industry. Furthermore, caustic soda is applied in diverse sectors such as water treatment, domestic cleaning, metal processing, glassmaking, mining, and more. In the Bayer's process, it plays a role in extracting alumina from bauxite ore. The concentrated solution of caustic soda dissolves alumina to form sodium aluminate, and a reverse reaction facilitates the separation of alumina. Caustic soda finds versatile applications across various end-use sectors, including water treatment, domestic cleaning, metal processing, glassmaking, among others.
Major players in the Caustic Soda market are Olin Corporation, Occidental Petroleum Corporation (OxyChem), Formosa Plastics Corporation, Dow Chemical Company, Westlake Corporation, Asahi Glass Co., Ltd. (AGC), INOVYN, Shintech Inc., Grasim Industries Limited, Tosoh Corporation, ARKEMA, Braskem and Others.
Years considered for this report:
Historical Period: FY2015-FY2023
Base Year: FY2024
Estimated Year: FY2025
Forecast Period: FY2026- FY2035
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Objective of the Study:
• To assess the demand-supply scenario of Caustic Soda which covers production, demand and supply of Caustic Soda Global market.
• To analyse and forecast the Global market size of Caustic Soda.
• To classify and forecast Global Caustic Soda market based on end-use and regional distribution.
• To examine competitive developments such as expansions, green field projects/ brown field expansions. mergers & acquisitions, etc., of Caustic Soda market.
To extract data for Global Caustic Soda market, primary research surveys were conducted with Caustic Soda 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 Soda market over the coming years.
ChemAnalyst calculated Caustic Soda 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 Soda. 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 Soda manufacturers and other stakeholders
• Organizations, forums and alliances related to Caustic Soda 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 Soda 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 Soda 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 2024
80 million tonnes
Market size Volume in 2035
113 million tonnes
Growth Rate
CAGR of 3.29% from 2025 to 2035
Base year for estimation
2025
Historic Data
2015 – 2024
Forecast period
2026 – 2035
Quantitative units
Demand in million tonnes and CAGR from 2025 to 2035
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Capacity by Technology, Operating Efficiency, Production by Company, Demand by Grade, Demand by Type, 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: (Water Treatment, Inorganic Chemical Production, Aluminium Industry, Paper & Pulp, Soaps & Detergents (Surfactants), Organic Chemical Production, Textile, 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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Market Data & Insights
Table of Content
1. Capacity By Company
On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a practically real-time basis for Caustic Soda.
2. Capacity By Location
To better understand the regional supply of Caustic Soda by analyzing its manufacturers' location-based capacity.
3. Capacity By Technology
To better assess the manufacturing capacities with different technologies as well as understand which technology is more in demand.
4. Production By Company
Study the historical annual production of Caustic Soda by the leading players and forecast how it will grow in the coming years.
5. Demand by Type
Learn about the various types of Caustic Soda Lye and Flakes, and their demands. It will allow you to choose which type to concentrate on when designing your strategy.
6. Demand by Grade
Learn about the various grades of Caustic Soda Industrial and Pharmaceutical, and their demands. It will allow you to choose which grade to concentrate on when designing your strategy.
7. Demand by End- Use
Discover which end-user industry (Water Treatment, Inorganic Chemical Production, Aluminium Industry, Pulp & Paper, Soaps & detergents, Organic Chemical Production and Textiles and Others) are creating a market and the forecast for the growth of the Caustic Soda market.
8. Demand by Region
Analyzing the change in demand of Caustic Soda in different regions, i.e., APAC, North America, South America, Europe and MEA, that can direct you in mapping the regional demand.
9. Demand by Sales Channel (Direct and Indirect)
Multiple channels are used to sell Caustic Soda. Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.
10. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Caustic Soda.
11. Company Share
Figure out what proportion of the market share of Caustic Soda is currently held by leading players.
12. Country-wise Export
Get details about quantity of Caustic Soda exported by major countries.
13. Country-wise Import
Get details about quantity of Caustic Soda imported by major countries.
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What was the Global market size of Caustic Soda in terms of volume in 2024?
Ans:
The Global market size of Caustic Soda in terms of volume stood at approximately 80 million tonnes in 2024.
Q2.
Which end-use industry is dominating the Global Caustic Soda market?
Ans:
The Chemical Industries are dominating the Global Caustic Soda market with an estimated share of roughly 17% in 2024.
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