Chlorine Market Size, Share & Trends Analysis Report By Application (EDC/PVC, Organic Chemicals, Inorganic Chemicals, Isocyanates, Chlorinated Intermediates, Others), By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global chlorine market size was valued at USD 35.75 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2030. The market is driven by increasing demand for chlorine derivatives from various industries such as pharmaceutical, plastic, cosmetic, food processing, paints & coatings, and others. Moreover, rapid infrastructure development has been accelerating the demand for construction materials such as pipes, roofing shits, insulation, paints, plastics, and other infrastructure products. The increasing inclination towards water disinfection practices is driving the demand for chlorine in the market.

The growing pharmaceutical industry is discovering various uses of chlorine, contributing significantly to the growth of this market. Major chlorine manufacturers have been catering to the increasing demand for chlorine derivatives by incorporating technological advancements. Growth in the pharmaceutical industry, growing inclination towards the use of chlorine, and rapid pace of scientific advancements are expected to generate greater growth for the chlorine market in the approaching years. According to the India Brand Equity Foundation, the Indian Pharma Industry is projected to grow to USD 130 billion by 2030 and USD 450 billion by 2047 in total market size.

According to the World Health Organization (WHO), one in four individuals worldwide does not have availability of safe drinking water. Government regulations promote the use of chlorine in water treatment to disinfect and purify wastewater. It encourages prominent chlorine producers to provide chlorine to these facilities, driving growth in the chlorine market. These producers collaborate with non-profit organizations and contribute to the lack of access to the clean water crisis. For instance, Occidental Chemical Corporation (OxyChem) collaborated with Water Mission, a non-profit organization, to address the growing need for clean water around the globe.

Application Insights

The Ethylene Dichloride/ Polyvinyl Chloride (EDC/PVC) segment dominated the market and accounted for the largest revenue share of 33.4% in 2023. The increasing need for PVC industries such as construction, automotive, packaging, and other sectors is driving the demand for the chlorine market. PVC is highly durable, available at low cost, and is widely available as a raw material. In addition, it is non-toxic and resistant to moisture. Therefore, it is commonly used in construction materials, manufacturing hearing aids, syringe tubes, ventilation and electrical systems in buildings, and more, driving the market expansion for chlorine.

The isocyanate segment is expected to experience a significant CAGR during the forecast period. Isocyanates are preferred over other chlorine products due to their low molecular weight and highly reactive nature. Growing demand for isocyanates in producing fibres, flexible and rigid foams, coatings such as elastomers, paints, and varnishes, in industries such as auto body repair, automotive industry, and construction insulation materials, driving the chlorine market growth. Spray-on polyurethane products with isocyanates are available in the market for various commercial, retail, and industrial applications, widely used to safeguard materials such as wood, cement, fiberglass, and aluminium, including protective coatings for trailers, truck beds, foundations, boats, and decks.

Regional Insights

Asia Pacific chlorine market dominated the global market with a market share of 48.2% in 2023 due to the significant growth in the demand for polymers, plastics, and several other chlorine derivatives. Factors such as abundant resources and affordable labor attract several market players to develop their regional production plants. Moreover, the growing pharmaceutical, agrochemicals, specialty chemicals, and water treatment industries in the country, such as India, are driving market growth due to the excessive use of chlorine for various purposes.

China Chlorine Market Trends

China chlorine market is expected to grow significantly due to the presence of key manufacturers. According to the U.S. Environmental Protection Agency, China, one of the largest chlor-alkali-producing nations is anticipated to drive future expansion in chlor-alkali production. Moreover, the rising focus on sewage water treatment in the nation is driving the demand for chlorine during the forecast period. These factors drive market expansion during the forecast period.

Europe Chlorine Market Trends

Europe chlorine market was identified as a lucrative region in this industry in 2023. The market is primarily driven by the versatility of chlorine and its derivatives, as it is used in various industries. Over the past few years, there has been a consistent rise in the need for chlorine in the water and wastewater treatment sector, driven by various reasons significant for preserving public health and environmental sustainability. The increase in population results in higher water usage and wastewater production, placing significant strain on water sources. The increasing growth of industrial zones and a greater demand for managing higher amounts of water and wastewater drive the need for chlorine in water purification.

The UK chlorine market is expected to grow significantly due to rapid urbanization and industrialization, necessitating water purification and proper sewage treatment. Several government policies to reduce waste production encourage manufacturers to innovate new chlorine derivatives with low harmful effects on the environment. Moreover, excessive use of PVC and other chlorine products in various industries such as packaging, electronics, and automotive drives the chlorine market in the nation.

North America Chlorine Market Trends

North America chlorine market accounted for a significant revenue share of global industry in 2023. The market is anticipated to experience significant opportunities due to the growing end use industries such as pulp & paper, water & wastewater treatment, pharmaceuticals, plastic manufacturing, and chemicals. The water treatment sector in North America significantly contributes to the need for chlorine. Chlorine is commonly used for disinfection at water treatment facilities to guarantee a clean and drinkable water supply to the public. As the population grows and more people move to urban areas, the need for clean and safe water increases, resulting in higher use of chlorine-based water disinfection products in North America.

U.S. Chlorine Market

The U.S. chlorine market dominated the regional industry in 2023. This is attributed to technology used in chemical manufacturing to improve the process of extracting and storing chemicals. In addition, the strong presence of prominent market players, such as Olin Corporation and Westlake Corporation, drives the market due to the urge to expand their regional production facilities. Continuous export and import trades of chlorine have contributed to the growth of this market in recent years.

Key Companies & Market Share Insights

Some of the key participants in the chlorine market are Olin Corporation, Solvay, Tosoh Bioscience, Hanwha Group, Occidental Petroleum Corporation, INEOS, and others. The major market participants are adopting strategies such as facility expansions, geographical expansion, technology adoption and collaboration with other organisations to address the rising competition in the industry.

• Olin Corporation, a global producer and supplier of various chemical products, specializes in the manufacturing of chlorine, epoxy, and ammunition. The company offers chlor alkali products, vinyl and chlorine derivatives, and global customer service.

• Occidental Petroleum Corporation, a multinational energy company, specializes in the production and exploration of oil, gas, and chemicals. The product portfolio includes chlor-alkali, vinyl, chlorinated organics, and other essential chemicals.

Recent Developments

• In February 2024, INEOS Inovyn launched newly developed range of Chlor-Alkali products, Ultra Low Carbon (ULC). This has ability to offer lower carbon footprint of caustic potash, caustic soda, and chlorine by up to 70% compared to industry standards. With this strategic initiative, the company aims to contribute to sustainability.

Chlorine Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and analyses the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the chlorine market report based on application and region. 

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • EDC/PVC

  • Organic Chemicals

  • Inorganic Chemicals

  • Isocyanates

  • Chlorinated Intermediates

  • Propylene Oxide

  • Pulp & Paper

  • C1/C2, Aromatics

  • Water Treatment

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia