CHLORINE MARKET ANALYSIS

Chlorine derivatives are used for various applications such as disinfection bleaching, organic chemicals, inorganic chemicals, and metal separation. Chlorine is an efficient disinfectant and is widely used for water treatment processes. Growing residential sector and industrial water treatment industry is expected to propel demand for chlorine in water treatment.

Global chlorine market was valued at US$ 16700.18 Mn in 2021 in terms of revenue, exhibiting a CAGR of 5.09 % during the forecast period (2022 to 2030).

Drivers

Surging Wastewater Treatment Projects

Chlorine is often used in water treatment because it kills harmful microorganisms such as bacteria, viruses and parasites. It also helps minimize unpleasant tastes and odors in water. Chlorine also aids in the elimination of slime bacteria, molds and algae that typically form in water supply reservoirs, water main walls and storage tanks. The surge in wastewater treatment projects at the global level is fueling the growth of the water treatment industry. For instance, the construction of the Philippines Aglipay Sewage Treatment Plant in Mandaluyong began in 2020. It will meet stringent national standards that go beyond EU requirements in terms of reducing negative effects on Manila Bay and the Pasig River as well as its environmental footprint. The project is currently under development, expected to be completed by early 2024. Furthermore, the construction work for the future development wastewater treatment project, the "New Upper Thompson Sanitation District Wastewater Treatment Facility" will begin in the U.S in 2023, expected to be completed by 2025. Hence, such projects are fueling the demand for cleaning chemicals, which are expected to propel the chlorine demand, thereby driving the market growth.

 Surging Application in Cleaning Products

In cleaning products such as bleaches, disinfectants, aromatics and more, the use of chlorine ensures higher sanitization and bacterial protection capabilities. Thus, it is often utilized in cleaning products. The surging demand for cleaning products from household and industrial units is accelerating the application of cleaning products. For instance, according to the International Association for Soaps, Detergent and Maintenance Products (A.I.S.E), in 2020, the home cleaning industry in Europe was €32.4 billion (US$ 37 billion), which is an increase of 7.3% over 2021. Furthermore, the industrial cleaning industry of Europe in 2020 was €8.8 billion (US$ 10.1 billion), that is an increase of 22.22% over 2021. Thus, the increasing application of cleaning chemicals is benefiting the market growth.

 The COVID-19 pandemic has had extraordinary consequences on the end-use industries of liquid chlorine. It also has an influence on the supply of pharmaceutical (mostly from Asia-Pacific region), as well as the import and export of pharmaceutical products, where demand has increased to strengthen people's hygiene. Health concerns were not taken seriously before the COVID 19 outbreak. Due to the COVID-19 outbreak, the health awareness among the populace has grown and the pharmaceutical sector has grown during the pandemic. As per the RBI, the pharmaceutical export market turnover was $24.4 billion in 2020-21, witnessing an 18.1% (y-o-y) growth. India’s domestic pharmaceutical market is estimated at US$ 41 billion in 2021 and is expected to grow to US$ 65 billion by 2024 and further expected to reach US$ 130 billion by 2030.

Further, liquid chlorine is used as a pool sanitizer, which is used to keep the water clean and pollutants such as fungus from developing. It also helps prevent the spread of illnesses such as dysentery, fever, and other water-borne illnesses disorders. Furthermore, increased sales of pulp and paper, disinfectant and water treatment items worldwide increase the demand for liquid chlorine in the market during the pandemic. Moreover, the pandemic has called for the augmented usage of disinfectants in transportation, public facilities, hospitals, nursing homes, wastewater treatment facilities, and homes. Therefore, the above mentioned factors are predicted to surge the growth of the liquid chlorine market during the COVID-19 pandemic.

Figure 1. Global Chlorine Market Value Share (%), By Region, 2021

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Market Restraints

Chlorine Market Challenges

Chlorine has superior durability, melting point and advantageous qualities, making it ideal for usage in a variety of end-use industries such as chemical, construction and others. However, its use is governed by a certain body, which limits its market expansion. For instance, according to the Safety Guidelines for Chlorine Applications at Water Treatment Plants of India, chlorine is toxic and may pose a risk. A catastrophic situation may emerge abruptly in a chlorine storage and handling facility. It further states that such incidents should be anticipated; and a robust procedure should be in place to deal with them appropriately. Similarly, such restrictions on chlorine usage in other parts of the world are creating a significant impediment to the market expansion.

Market Trends

Increasing Demand for PVC

• Polyvinyl chloride (PVC) is widely used in construction, building, and infrastructure. Construction and utility parts in buildings are often partly or completely polymeric. This can be implemented as roofing materials, wall panels, seals, piping systems, coatings, and many other products.​
• There are two types of PVC, namely, rigid resins and flexible resins. Rigid resins provide most of the growth opportunities, with major end uses being fittings, pipe and fittings, windows, fencing, roof tiles, and automobile parts. Flexible PVC finds outlets in film and sheets, flooring, wire and cable coating, synthetic leather products, and shower curtains. EDC is being used as a solvent in the metal cleaning, textile, and adhesives industries.

Asia Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market share. With the growing urbanization and the increasing need for fresh water in countries such as China and India, the usage of chlorine is increasing in the region.
• With 2.4% land resource and 4% water resource, India supports nearly 18% of the world's population. Lately, the dwindling quality of agricultural products has raised serious questions on the sustainability of the agricultural practice. To counter the problem, efforts have been made to improve the land's productivity and increase the efficiency of the supply chain (while reducing the carbon footprint) by implementing PVC pipes in field irrigation systems.

Figure 2. Global Chlorine Market value Share (%), By End-use Industry, 2021

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Recent Developments

• In January 2021, INOVYN was selected by Koyuncu Group to supply chlor-alkali technology as part of a US$ 16 million investment at a new production facility in Konya province, Turkey. INOVYN will provide state-of-the-art BICHLOR bipolar electrolyzers for a new facility that will produce chlorine, caustic, sodium hypochlorite, and hydrochloric acid. The new facility will have an annual production capacity of 50,000 tons and is estimated to begin production in 2022.
• In July 2021, Olin Corporation partnered with ASHTA Chemicals, Inc. to purchase chlorine manufactured at ASHTA's Ashtabula, OH factory. This partnership focused on expanding the company's chlorine business. Such partnerships are accelerating market growth at the global level.
• In June 2021, De Nora, a manufacturer of water disinfection and filtration, launched the CECHLO-MS 200, a high-strength on-site chlorine generating system designed to address water and sewage treatment difficulties.

Competitive Section

Major players operating in the global chlorine market include BASF SE, Occidental Chemical Corporation, Ercros SA, Ineos Group Ltd., Olin Corporation, PPG Industries, Tosoh Corporation, Dow Chemical Company, Westlake Chemical Corporation, Solvay S.A., Akzo Nobel N.V., and Covestro AG