Infinium Global Research Caustic Soda Market -IGR | Page 3

Additionally, caustic soda finds application for the acids neutralization,
pharmaceutical compounds synthesis, and rubber recycling.
Market Insights
Caustic soda garners a share of more than 40% among the inorganic
chemicals in terms of volume of consumption worldwide. Demand from the
organic chemicals industries account for a significant portion of the volume of
caustic soda market. The increasing demand from end user industries such as
pulp, paper, and textiles is expected to the drive the growth of the global
caustic soda market. The increasing demand for alumina from the automobile
industry is boosting the growth of the global caustic soda market during the
estimated period.
Owing to the stringent regulations opted by governments in various countries
for many industries for the environmental harm caused by the highly corrosive
as well as reactive traits of caustic soda is a major restraining factor
hampering the growth of the global caustic soda market. The prospects of
global caustic soda market depend on the demand for chlorine, as caustic soda
is a co-product obtained during the chlorine manufacturing process. The lower
demand for chlorine from PVC manufacturing industry is expected to influence
the volume of production of the caustic soda during the forecast period. As
production of caustic soda involves higher power consumption, market growth
is expected to face a major challenge of higher manufacturing cost. Higher
price fluctuation for caustic soda in the commodities spot market is also
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