The global soda ash market size was valued at USD 11000.00 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.2% from 2022 to 2030. The soda ash market is projected to witness significant growth during the forecast period. The demand for soda ash is driven by a growing number of applications, including glass manufacturing and cleaning. Additionally, this product is used in other industrial processes, including chemical and textile manufacturing. Soda ash is an important intermediate in the production of many products, including glass. The global soda ash market is also driven by technological advancements. Technological innovations have made it possible to mine trona, a non-marine mineral that is used in the manufacturing of commercial soda ash. It is used in various applications, including garbage incineration and coal-fired power generation.
Global Soda Ash Market: Regional Insights
Regionally, Asia Pacific is expected to dominate the global soda ash market over the forecast period owing to the presence of China which is the largest producers of soda ash in the world. For instance, Around 1.4 million metric ton of soda ash is being shipped on vessels yearly from China. The production capacity of soda ash in the country is around 29.7 million metric ton, and demand was around 25.53 million metric ton in 2018. Moreover, According to GHCL Limited, the total soda ash installed capacity in India was about 4.0 million metric ton, with a production of about 3.2 million metric ton in the last.
North America is also projected to dominate the global market over the forecast period owing to the strong presence of economies like US, Canada, and Mexico. According to the Coherent Market Insights analysis, The United States is the world’s largest and most powerful economy and had a per capita income of USD 62,600 (current USD) in 2018. The economy’s growth rate was 2.9% in 2018, and it is expected to increase by 2.3% in 2019. This improvement is attributed to strong consumer expenditure and a rebound in government consumption.
Figure 1. Global Soda Ash Market Share (%) in terms of Value, By Region, 2021
Global Soda Ash Market Drivers:
Growing demand for flat glass from construction industry is primarily fueling growth of the soda ash market. Rapid urbanization and improving living standard across major developing countries is contributing to the growth of the construction sector. This in turn augmenting market growth of soda ash. Flat glass conserve energy, minimize heat penetration into buildings, and offers a striking visual effect.
Increasing global washing soda consumption is again anticipated to foster market growth. According to the Coherent Market Insights analysis, the per capita consumption of toilet/bathing soap and laundry products in India is around 800 grams and 24 kilograms, annually. Around 65% of the demand for laundry products is generated from rural areas. Due to the increasing disposable incomes and growth in the rural markets, consumers are shifting toward premium products, which is further improving the demand for soaps and detergents. The laundry-care market in the country recorded a revenue of over INR 290 billion in 2018, and it is estimated to exhibit an annual growth of 9.8% in 2019.
Global Soda Ash Market Opportunities:
Rising demand for container glass from food and beverage industry is projected to provide lucrative growth opportunities over the forecast period. Key players are investing heavily in production of container glass. For instance, in December 2018, the Glass Container Company (GCC) announced to expand its production by 60%, through an EUR 17 million project backed by EBRD (European Bank of Reconstruction and Development), Société Générale (as part of the European Investment Bank's Filière du Vin project), and the European Union.
As the population in developing regions increases, the demand for soda ash will grow. As a result, several key players are increasing production capacity and expanding their business in developing regions. They are also investing in research and development to create new products. For example, in June 2022, Tata Chemicals Ltd. has started manufacturing soda ash in Gujarat in 2019 and has a capacity of 0.9 Mn tons per annum.
Soda Ash Market Report Coverage
|Base Year:||2020||Market Size in 2021:||US$ 11000.00 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2030|
|Forecast Period 2022 to 2030 CAGR:||6.2%||2030 Value Projection:||US$ 18806.03 Mn|
CIECH SA, Ciner Resources Corporation, Genesis Energy LP, GHCL Limited, Lianyungang Soda Ash Co. Ltd, NIRMA LIMITED, ÅiÅecam Group, Solvay, Shandong Haihua, Group Co. Ltd, and Tata Chemicals Ltd
|Restraints & Challenges:||
Global Soda Ash Market Trends:
Increasing sale of electric passenger vehicle due to growing disposable income of consumers is acting as a major trend for soda ash market. According to International Energy Agency (IEA), in 2030, global electric vehicle sales are expected to reach 23 million as per the New Policies Scenario (excluding two/ three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of the vehicle sales in China are expected to be electric vehicles. Also, half of the vehicles sold in Europe are EVs, 37% in Japan, 30% in Canada and the United States, and 29% in India.
Expanding chemical sector could be a major trend in the global soda ash market. According to BASF, one of the largest chemical manufacturers, chemical production (excluding pharmaceuticals) is expected to grow by 2.7% in 2019, when compared to 2018. In advanced economies, the expansion is expected to be of more than 1.6% by the end of 2019, while for the emerging market, the growth in chemical production is expected to increase by more than 3.3% in 2019.
Global Soda Ash Market Restraints:
Environmental hazards associated with the manufacturing of paper and pulp is projected to hamper growth of the soda ash market. Deforestation, air pollution, water pollution, and overflowing landfills have become major environmental problems.
Availability of substitute such as sodium lauryl sulfate or ethoxylated propylene glycol is another major factor expected to hinder the market growth. Sodium lauryl sulfate or ethoxylated propylene glycol can be used as substitute in detergent in place of soda ash.
Figure 2. Global Soda Ash Market Share (%), By Grade, 2021
Global Soda Ash Market Segmentation:
The global soda ash market report is segmented into grade type, end-use application, and geography
Based on grade type, the market is segmented into Light Grade and Dense Grade. Out of which, Light Grade is expected to dominate the global market over the forecast period and this is attributed to the growing demand from soap and detergent, iron and steel, pulp and paper, water softening and dyeing, aluminum cleaning compounds, fiber–reactive dyes, effluent treatment, and production of chemicals applications. .
Based on end-use application, the market is segmented into Glass, Soaps and Detergents, Chemicals, Water Treatment, Industrial, and Other End-use Applications. Out of which, Glass is expected to dominate the global market over the forecast period. Soda ash plays a crucial role by reducing the furnace temperature required to melt the silica used, thus, reducing the energy required to produce glass. It is a cost-effective source of sodium oxide.
Soaps and Detergents segment is also expected to witness significant growth in the near future and this is owing to the growing hygiene concern among consumers due to rise in prevalence of infectious disease.
Global Soda Ash Market: Key Developments
In September 2019, CIECH Soda Romania temporarily stopped the production of soda in its Romanian soda factory, from September 18, 2019.
In October 2018, CIECH Soda Polska SA completed the merger with Beta Cerium sp. Z o.o. and Cerium Finance Sp. z o.o., on October 31, 2018.
In June 2019, ÅiÅecam Group and Ciner Group announced an equal production partnership contract for the production of natural soda, in the United States.
Global Soda Ash Market: Key Companies Insights
The global soda ash market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global soda ash market are CIECH SA, Ciner Resources Corporation, Genesis Energy LP, GHCL Limited, Lianyungang Soda Ash Co. Ltd, NIRMA LIMITED, ÅiÅecam Group, Solvay, Shandong Haihua, Group Co. Ltd, and Tata Chemicals Ltd
*Definition: Soda ash is a naturally occurring mineral with the chemical formula Na2CO3. It is extracted from the ashes of plants using water. It is not toxic and can be used in a number of applications. Sodium carbonate is used in baking, soap, and cleaning products. It is also used in the production of household items and in the pharmaceutical industry.
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