BROMINE MARKET ANALYSIS

Global bromine market is expected to reach US$ 5.12 Bn by 2031, from US$ 3.76 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 4.5% during the forecast period. Bromine is a naturally occurring chemical element that is primarily used as a catalyst and synthesizing agent for the production of various products like disinfectant, flame retardants, photographic chemicals, and water disinfectant. Automotive, agriculture, and electronics are some of the major end-use industries of bromine.

Global Bromine Market- Regional Insights

• Asia Pacific held the largest market share of over 37.0% in 2023 due to huge demand from applications such as flame retardants and oil and gas drilling
• North America accounted for 31% share of bromine market in 2023. U.S., Canada, and Mexico are key players in the North America bromine market.
• Europe accounted for 20% share of the bromine market in 2023. Rising water disinfection services across developed countries in Western Europe including Italy, the U.K., Germany, France, and Spain can drive the market growth in the region.

Figure 1. Global Bromine Market Share (%), By Region, 2024

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Analyst’s Views:

Global bromine market growth is driven by increasing demand for brominated flame retardants from various end-use industries, such as construction and automotive. Strict fire safety regulations across major economies are compelling manufacturers to increase the use of flame retardants in furniture, electronic appliances, and vehicles. This can boost bromine consumption globally. Strong demand from the water treatment sector can also drive the market growth as bromine and its derivatives are used as disinfectants.

However, environmental and health concerns around bromine compounds can hamper the market growth. Certain derivatives of bromine are suspected endocrine disruptors, and their use is already restricted in Europe and other developed markets. The market also faces challenges from substitutes such as aluminum hydroxide and calcium carbonate. Furthermore, the oversupply situation in China is keeping global prices under pressure.

Growing applications in agriculture as a fumigant and biocide offer opportunities for the market growth. The market sees potential growth of bromine in medical applications such as cancer treatment and anesthetics. Recovery in the construction sector after COVID-19 can boost demand for flame-retardant. 

Global Bromine Market Drivers:

Growing use in flame retardants: Flame retardants have become increasingly important in manufacturing of various materials and consumer goods as safety regulations have strengthened worldwide. Brominated flame retardants are some of the most widely used types of flame retardants due to their effectiveness and versatility. These are commonly added to plastics, electronics, textiles, and other polymers to slow or prevent the spread of fire. As product safety standards continue to get more stringent in industries like construction and transportation, the use of brominated flame retardants is growing substantially.

According to the United Nations Environment Programme, the annual demand for flame retardants had increased by 6% between 2018 and 2020. This growth can be attributed to rising use of bromine in polyurethane foams used for insulation and upholstery in buildings, as well as aircraft interiors and motor vehicles. Asia Pacific countries witnessed huge demand due to rapid industrialization and stricter fire safety laws in countries like China, India, and South Korea.

Rising demand for water treatment applications: Water disinfection plays a key role in public health by eliminating waterborne diseases. Bromine compounds are widely used in purifying drinking water supplies across the world. Bromine is an effective biocide and is commonly used in form of bromine solutions or bromide salts for disinfecting municipal water supplies. With growing global populations and rapid urbanization, the need for sustainable and safe drinking water has increased. According to the WHO, over 2 billion people used drinking water sources contaminated with feces in 2021. Ensuring access to clean water remains one of the biggest public health challenges. As urban centers swell in developing nations, water disinfection needs will rise dramatically in the coming decade.

Increasing application in mercury emission control: The strict emission norms for mercury control across various industries are anticipated to boost demand for bromine in the global market. Mercury is a hazardous air pollutant that is emitted from coal-fired power plants, and is regulated by the Clean Air Act in the U.S. Bromine compounds are increasingly being used as an alternative to control mercury emissions. For example, brominated powdered activated carbon is injected into plant flue gases to absorb and capture mercury before it is emitted into the air. According to the data by United States Environmental Protection Agency, over 60% of U.S. coal-fired plants will need to install activated carbon injection or other technologies to meet emission standards by 2023.

Global Bromine Market Opportunities:

Increasing demand from oil & gas industry: The increasing demand from oil and gas industry represents a major opportunity for growth of market. Bromine and bromine-based chemicals play a vital role in the oil and gas operations. These are widely used as drilling and completion fluids, well cleaning agents, and production chemicals in unconventional oil and gas recovery processes like hydraulic fracturing. With growing energy needs coupled with depleting conventional reserves, there is a rising focus on unconventional hydrocarbon resources like tight oil, shale gas, and deepwater reserves around the world. According to the International Energy Agency (IEA), the share of tight oil and shale gas in global oil and gas supply is expected to increase significantly from 7% in 2020 to over 15% by 2030. This will boost demand for chemicals and technologies required in complex extraction processes involving hydraulic fracturing and horizontal drilling. Bromine chemical manufacturers can leverage this opportunity by focusing on solutions for various applications in unconventional oil and gas upstream activities.

Growing demand for mercury emission control: The global effort to reduce mercury emissions from coal-fired power plants presents a major opportunity for the bromine industry. Coal combustion is a primary source of mercury emissions, and many nations are implementing regulations to restrict these emissions. Mercury is a dangerous neurotoxin that accumulates up the food chain. Controlling mercury at its source can significantly improve public health and environmental outcomes. Bromine-based technologies have proven effective at capturing mercury from coal plant flue gases. As regulations tighten around the world in line with the Minamata Convention, the need for bromine-based emission control systems will grow drastically in the coming decades.

Leading bromine producers like Israel Chemicals and Albemarle Corporation have already seen revenue growth from their emission control product lines in step with recent U.S. regulations. As the Convention's targets are enacted in developing nations like China and India that rely heavily on coal power, demand will continue escalating.

Expanding application scope in agriculture: Expanding application scope in agriculture could provide significant opportunities for growth in the market. Bromine compounds have several applications in agriculture, including as fumigants, pesticides, and fertilizer additives. Theseplay an important role in crop protection and enhancing yields.

Several new agricultural applications for bromine are emerging. For instance, bromine-based fumigants are being increasingly used as alternatives to traditional fumigants that are being phased out or restricted due to environmental concerns. Methyl bromide, an ozone-depleting substance, is being replaced by bromine-containing fumigants for soil disinfestation in many countries, according to data from UN Environment Programme. Bromine salts are also finding greater use in preventing bacterial and fungal diseases in important cash crops like bananas, grapes, and tomatoes. Some countries have also approved the use of bromine-based herbicides for weed control.

Global Bromine Market Trends:

Rising preference for bromine over chlorine: The preference for bromine over chlorine is having a significant effect on the market. There is a growing concern about the use of chlorine in certain applications due to its environmental and health impacts. Chlorine is known to produce harmful by-products like dioxins when it reacts with organic materials. Many countries and organizations are restricting the use of chlorine in applications like water treatment.

As a result, industries that traditionally used chlorine are switching to alternative chemicals like bromine. For example, the bromine-based biocides are increasingly becoming popular substitutes for chlorine-based products in applications like managing algal blooms and biofouling in industrial water systems. Their effectiveness, even at low concentrations, and minimal impact on the environment make them attractive alternatives. This shift towards more sustainable bromine products is clearly visible in industries like flame retardants and mercury emission control as well. The mercury control market that was dominated by activated carbon is now shifting towards bromine-based technologies to control mercury emissions from coal-fired power plants.

Increasing mergers and acquisition (M&A) activities: The market has been witnessing increasing mergers and acquisition activities in recent years, which hints towards promising opportunities going forward. More companies are consolidating their operations to gain access to diverse product portfolios, additional resources, and expand their geographical footprint. For instance, in 2022, Israel Chemicals acquired the remaining 49% of shares in Dead Sea Bromine Company, the sole authorized producer and marketer of elemental bromine in Israel. This merger strengthened Israel Chemicals' leadership position in the bromine value chain.

Global Bromine Market Restraints:

Regulations over flame retardant usage: Regulations over flame retardant usage are significantly impacting the growth of the market. Stringent fire safety standards across many countries led to higher usage of bromine containing flame retardants in various applications over the last few decades. However, in recent years, various studies have highlighted potential health risks associated with certain brominated flame retardants.

For instance, the European Union had placed significant restrictions on the use of decabromodiphenyl ether (DecaBDE) and hexabromocyclododecane (HBCD) in electronic appliances and building materials since 2008. Several states in the U.S. have also banned or restricted the use of certain brominated flame retardants in various products and materials. These regulatory changes have forced major electronic and construction material manufacturers to look for alternatives to such bromine containing flame retardants.

Counter Balance: The industry can focus on developing sustainable and eco-friendly flame retardants that are not harmful to human health and the environment. The industry can also work on increasing the usage of bromine compounds to cut down on emissions of mercury, which is a possible strategy for reducing mercury emissions.

Easy availability of substitutes: The easy availability of substitutes is greatly impacting the growth of the market. Bromine finds extensive applications across several end-use industries like water treatment, flame retardants, and others. However, the easy and wide availability of alternatives for bromine-based products can hamper demand and consumption of bromine.

For instance, in water treatment industry, chlorine is offered as a cheaper substitute for bromine. While bromine is highly effective in water disinfection, chlorine provides similar benefits at a much lower cost. Many parts of Asia Pacific and Latin America still rely on chlorine for municipal water treatment due to its affordable price as compared to bromine. Similarly, in flame retardants industry, aluminum hydroxide, magnesium hydroxide, and antimony trioxide are used as easy substitutes for brominated flame retardants. These alternatives are not only economical but also considered more environment-friendly than brominated variants. This has led to declining sales of bromine in recent years in some application areas.

Counterbalance: The industry can work on increasing supply chain resilience, source diversity, and stakeholder industry cooperation to decrease the impact of geopolitical risks on bromine production.

Recent Developments:

• In August 2023, Palmer Holland, a specialty chemical and fine ingredient distributor, announced expanded its distribution partnership with LANXESS' Polymer Additives Business. The partnership will offer flame retardants manufactured from bromine derivatives.
• In January 2023, JM Financial announced collaboration with Archean Chemical Industries Ltd (ACIL). ACIL is India’s one of the largest producers of bromine-based products. 

Figure 2. Global Bromine Market Share (%), By Derivatives, 2024

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Top Companies in this market

• Albemarle Corporation
• Israel Chemicals Limited
• Chemtura Corporation
• Tosoh Corporation
• Gulf Resources Inc.
• Tetra Technologies Inc.
• Tata Chemicals Limited
• Hindustan Salts Limited
• Honeywell International Inc.
• Agrocel Industries Pvt. Ltd.

*Definition: Bromine is a nonmetallic chemical element of the halogen group. It is a dark reddish-brown liquid that readily changes into a gas. Bromine is used in various industries, including the production of flame retardants, photographic materials, pharmaceuticals, water treatment, and as a disinfectant or antimicrobial in applications such as swimming pools. It is also a key ingredient in electric-car batteries and is used in cooling towers for controlling bacteria, algae, fungi, and zebra mussels. Bromine is known for its strong, distinctive odor and its toxic properties. It is a rare element found in nature as soluble and insoluble bromides, with some enrichment occurring in ocean water, the Dead Sea, and rare insoluble silver bromide minerals. Commercially, bromine is easily extracted from brine evaporation ponds, mainly in the United States and Israel. The element is highly reactive and does not occur as a free element in nature. Bromine has various industrial applications and is a significant component in the global chemical industry.