ALUMINA TRIHYDRATE MARKET ANALYSIS

Global alumina trihydrate market was valued at US$ 4,613.5 Mn in 2022, exhibiting a CAGR of 6.42 % in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 7,589.3 Mn by 2030. Alumina trihydrate (ATH) is also referred to as alumina trihydrates and has a chemical formula (AI2O3•3H2O). It is mostly used as a flame retardant owing to its versatility and low cost. It is non-toxic, chemically, inert, halogen-free, and has low abrasiveness. It is mainly produced by the Bayer process and is converted to aluminum oxide (alumina), which is mainly used in the production of aluminum. Moreover, alumina trihydrate is also used as an antacid medication for treating gastrointestinal conditions. Because alumina trihydrate acts as a heat sink, it slows pyrolysis and reduces the rate of combustion. The water vapors produced after heating have the additional benefit of diluting toxic fumes and combustion gases. Alumina trihydrate is amphoteric and has four polymorphs: bayerite, gibbsite, nordstrandite, and doyleite. It dissolves in acid and alkali, going on to release hexaaquaaluminum, tetrahydroxidoaluminate, or its hydrolysis products. Alumina trihydrate is also used to make aluminum compounds like calcined alumina, polyaluminum chloride, aluminum sulphate, zeolites, sodium aluminate, alumina nitrate, and others.

Global Alumina Trihydrate Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a negative impact on the global alumina trihydrate market. Due to a significant decrease in alumina trihydrate production, the global alumina trihydrate market is expected to see a moderate decline in growth rate in 2020-2021. Covid-19 affected the market for alumina trihydrate manufacturers who supply the glass and rubber industries, which were previously thought to be non-essential. Furthermore, the majority of global companies operating in this market are based in Asia Pacific, the U.S., and Europe, all of which are negatively impacted by the pandemic. These companies, which have manufacturing facilities in China and other Asian countries, are also severely impacted. As a result, supply chain disruptions have hampered production units due to a lack of raw materials and labor. Moreover, the pandemic had also affected by price volatility. The pandemic has caused significant price fluctuations in the global alumina trihydrate market, with prices increasing or decreasing based on changes in supply and demand. Manufacturers are also struggling to maintain prices due to supply chain disruptions and reduced demands.

Global Alumina Trihydrate Market - Drivers

• Rising Demand in Paints and Papers and Coatings Industries

Paints and coatings have many different applications, such as finishing for automobiles, buildings, protective coatings, wood coatings, and decorative uses. A large amount of alumina trihydrate is added to the paint to preserve the brilliance and enhance clarity, despite the fact that their functional qualities continue to set them apart from other industrial chemicals on the market. However, it is considered that the additional sustainability benefit will have the strongest significant factor on the prospects for alumina trihydrate in the forecast period. For instance, India's paints and coatings industry is expected to grow to an Rs 1 lakh crore market in the next five years from the current Rs 62,000 crore, said the Indian Paint Association (IPA). IPA functionaries said that the industry has seen a consistent double-digit compound annual growth rate (2023-2030). This factor may propel the growth of the global alumina trihydrate market.

• Growing Demand for Flame Retardants without Halogens

Explosions and fire-related accidents are now highly probable as there are more residential and commercial buildings. As a result, several nations in North America and Europe have enacted strict fire safety laws and procedures. In order to comply with these government regulations, flame retardants are now being used more frequently in buildings. Flame retardants are primarily used in the insulation of electric wire in buildings and construction, as well as in transportation. Circuit boards, electronic casing, cables, and wire systems all use flame retardants. The demand for halogen-free flame retardants is being driven by strict fire safety regulations to control the spread of fires in residential and commercial buildings. Demand for non-halogenated flame retardants will rise as consumers turn to more environmentally friendly alternatives, propelling the growth of the global alumina trihydrate market expansion.

Global Alumina Trihydrate Market - Restraints

• Fluctuations in Raw Material Prices

Alumina trihydrate is derived from bauxite, which is a naturally occurring mineral. The prices of bauxite can be volatile due to various factors such as supply-demand imbalances, geopolitical issues, and environmental regulations. Any significant increase in the cost of bauxite could lead to a rise in the cost of alumina trihydrate production and hinder the market of global alumina trihydrate. For instance, in 2021, the price of bauxite, the primary raw material used to produce alumina trihydrate, increased due to the closure of mines in Guinea, one of the largest bauxite producers in the world. This led to a rise in the cost of production for companies in the alumina trihydrate market. This factor may hinder the growth of the global alumina trihydrate market.

Among End User industry, the plastic industry dominated the global alumina trihydrate market, with a revenue share of 42.20% in 2022. The plastic market is anticipated to be driven by rising plastic consumption in the automotive, electrical & electronics, and construction industries. The use of plastics as a replacement for metals in the production of automotive components has been encouraged by regulations that aim to reduce gross vehicle weight in order to increase fuel efficiency and ultimately lower carbon emissions. Alumina trihydrate is widely used in the building and construction industry as a flame retardant. Energy-efficient buildings have emerged as a result of the general public's growing awareness of building safety. As a result, flame-retardant plastics are constantly replacing conventional plastics in these buildings.

Figure 1. Global Alumina Trihydrate Market, By End User Industry, 2022 

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Global Alumina Trihydrate Market - Regional Insights

Asia Pacific held the largest revenue share of XX % in the global alumina trihydrate market in 2022, and is expected to maintain its dominance over the forecast period. Owing to the increase in the growing demand for the material in the construction and automotive industries. China, India, and Japan are the major markets for the alumina trihydrate market.

North America for global alumina trihydrate market is expected to grow due to the increasing demand for flame-retardant materials in the construction and automotive industries. The United States is the largest market share in this region, followed by Canada and Mexico.

The European global alumina trihydrate market is driven by the increasing demand for flame retardant materials in the building and the construction sector. Germany, France, and U.K. are the major contributors to the market growth in this region.

Figure 2. Global Alumina Trihydrate Market, By Region, 2022 

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Global Alumina Trihydrate Market – Recent Developments

• In September 2020, The Fire-Retardant Additives division of Huber Engineered Materials (HEM) announced its plans for a major sustainability project and substantial investment in a new power plant at its Martinswerk facility in Bergheim, Germany. Huber Engineered Materials (HEM) is a global leader in industrial chemical manufacturing and is continuously innovating and transforming to exceed client expectations and industry standards. 
• In April 2020, Sumitomo Chemical Company, Limited acquired four Latin American subsidiaries of Nufarm Limited in Brazil, Argentina, Chile, and Colombia. Through this acquisition, the company expanded its geographical presence in these countries. Sumitomo Chemical started business in 1913 as a producer of fertilizers from sulfur dioxide gas emitted by copper smelters, with the goal to both resolve an environmental problem and increase agricultural production.
• In April 2020, Hindalco Industries Limited company acquired Aleris Corp for US$ 2.8 billion. Aleris became a wholly-owned subsidiary of Novelis, USA. Through this acquisition, it strengthened its business operations in the US. Hindalco Industries Limited is the metals flagship company of Aditya Birla Group. It is one of Asia's largest producers of primary aluminium (excluding China), and with its subsidiary Novelis, a global leader in flat rolled products and the world's largest recycler of aluminium.
• In July 2015, Albemarle Corporation announced a merger with Rockwood Holdings Inc. in order to drive sustainable growth for both companies and create an established premier specialty chemicals company.

Global Alumina Trihydrate Market - Key Players

Major players operating in the global alumina trihydrate market include Alfa Aesar, Sumitomo Chemical Co. Ltd., Albemarle Corporation, Nabaltec AG, Huber Engineered Materials (J. M. Huber Corporation), Showa Denko K.K., NALCO, MAL Zrt., Alcoa Inc., and Aluminum Corp. of China Ltd.

*Definition: Alumina Trihydrate is a white, odorless, powdery, solid substance. Alumina Trihydrate demonstrates a very low solubility in water but is considered to be amphoteric, meaning it will dissolve in both acids and a strong alkali. The most common use of Alumina Trihydrate is for the production of aluminum metal.