Sodium Hydroxide Market to reach USD 7.72 billion by 2032 - Coherent Market Insights

Sodium Hydroxide Market to reach USD 7.72 billion by 2032

The global sodium hydroxide market size is expected to be valued at USD 5.63 billion in 2025. It is predicted to touch a USD 7.72 billion valuation by 2032, exhibiting a CAGR of 4.6% during the forecast period (2025-2032).  

The application of sodium hydroxide, an inorganic chemical, in paper & pulp and alumina industries can drive the market growth significantly. Infrastructure development which creates demand for aluminum, a critical mineral, in energy and transportation systems, can open up new market opportunities.

However, the threat of substitutes and fluctuating raw material prices can stagnate the market growth.

Key Market Insights

The sodium hydroxide market is likely to witness an uptick in growth over the forecast period due to rapid industrialization and applications in the production of soaps & detergents, pulp & paper, textiles, alumina, and petroleum products.

• By grade, the 50.5% aqueous solution segment is expected to contribute up to 67% market share in 2025. This method helps sodium hydroxide manufacturers in skipping the granulation or pelletizing process and produce higher volumes. In addition, the liquid form is safer to transport via pipelines or tankers and bypasses the hurdle of packaging dry powder or pellets.
• By production process, the membrane cell technology segment is expected to capture a 43.5% share of the sodium hydroxide market in 2025. This is attributed to its energy-efficient process of capturing maximum volumes of sodium hydroxide and reducing waste generation.
• By application, inorganic chemicals segment is expected to account for a 45.5% market share in 2025. This is attributed to sodium hydroxide being a precursor chemical in most industrial processes. The projected growth in downstream specialty chemicals can drive the demand in the sodium hydroxide market. For instance, sodium hydroxide is required for cleaning equipment used by craft breweries and removing stubborn residues.
• In terms of region, North America is expected to lead the sodium hydroxide market with a 45.1% market share in 2025. The presence of industrial hubs in the U.S. and Canada and application in end-use industries of paper, soaps, and alumina can drive the demand regionally.

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Sodium Hydroxide Market Report Coverage

Market Dynamics

The sodium hydroxide market is mainly driven by a rise in paper production. According to the Vietnam Pulp and Paper Association (VPPA), the consumption of paper used in packaging amounted to 404,711 metric tons in 2021. Investment by paper production mills to increase their production capacity is likely to drive the demand significantly over the forecast period.

The production of aluminum provides new opportunities for the sodium hydroxide market. Sodium hydroxide is used for extracting aluminum from bauxite ore and enhancing the conductivity of alumina through electrolysis. With infrastructure development recovering its pace post the COVID-19 pandemic, aluminum demand will skyrocket and drive the demand for sodium hydroxide.

Market Opportunities

Demand from Alumina and Paper & Pulp Industries

The demand from alumina and paper & pulp industries is expected to open up new opportunities for the sodium hydroxide market. Sodium hydroxide finds application in pulp processing for the production of paper. Araxchemi, an Iran-based company, utilizes inorganic chemical for recycling paper and paper production.  The adoption of membrane cell technology for the production of the chemical can lower energy usage, provide an environmentally-friendly production method without any mercury contamination issues, and reduce waste generation.

Market Challenges

Fluctuating Raw Material Prices

Fluctuating raw material prices for sodium hydroxide can negatively impact the market growth. The prices are surging owing to its use in the smelting process of battery production. Establishment of facilities in South Korea in 2023 for producing the compound have raised domestic prices as manufacturing companies utilize it in paper & pulp production, removing textile impurities, and washing semiconductors.

Analyst’s View

“The sodium hydroxide market is set for a healthy growth rate during the forecast period due to increasing demand from the paper and pulp industry.”, quips Mr. Vidyesh Swar, a consultant working in Coherent Market Insights.

“Asia Pacific is expected to dominate the global market over the forecast period owing to the presence of the vast paper industry across China and India. North America and Europe are also sizable markets owing to their application in chemical processing. Market players will face challenges from raw material prices and strict environmental regulations.”

Recent Developments

Century Lithium Corporation, a U.S. based company, signed a memorandum of understanding (MoU) with Orica Specialty Mining Chemicals in January 2025. The 5-year agreement will allow Orica to purchase sodium hydroxide from Century Lithium and provide a constant supply to manufacturers in Nevada.

Competitor Insights

• Aditya Birla Chemicals
• Xinjiang Zhongtai Chemical Co. Ltd
• Gujarat Alkalies and Chemicals Limited
• BSC Chemicals
• Occidental Petroleum Corporation
• Akzo Nobel N.V
• Covestro
• Bayer AG
• DuPont
• Olin Corporation
• Sanmar Group
• Ottokemi
• Dow
• Vinayak Chemicals
• Vizag chemical
• Tokuyama Corporation.
• Brenntag North America Inc

Market Segmentation

• Grade
• Solid
• 50% Aqueous Solution
• Others
• Production Process
• Diaphragm Cell
• Membrane Cell
• Application
• Organic Chemicals
• Inorganic Chemicals
• Alumina
• Biodiesel
• Soap & Detergent
• Food
• Paper & Pulp
• Textiles
• Others (Water Treatment, etc.)

Regional Insights

• North America
  • U.S.
  • Canada
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America
• Europe
  • Italy
  • Germany
  • U.K.
  • Spain
  • France
  • Russia
  • Rest of Europe
• Asia Pacific
  • South Korea
  • India
  • Japan
  • China
  • Australia
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC Countries
  • Israel
  • Rest of Middle East & Africa