Chlorine Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Chlorine Category Overview

The chlorine category is anticipated to grow at a CAGR of 5.0% from 2023 to 2030. In 2022, the category size was estimated to be valued at USD 35.7 billion with the chemical industry leading the market share as chlorine is a key ingredient in the production of a variety of chemicals, including PVC (polyvinyl chloride), bleach, solvents, pesticides, and pharmaceuticals. This broad range of applications is the primary driver of its growth. The demand for chlorine is closely linked to industrial sectors such as water treatment, disinfection, cleaning agents, etc., that further fuel the category expansion. Another growing factor is the increased consumption of fertilizer in the agricultural business. In June 2022, two new antimicrobial and disinfection products, KEEPER and OXINE, have been introduced by Kemin Food Technologies - Asia, a manufacturer of ingredients. These new solutions treat food, water, and food contact surfaces, including equipment using chlorine dioxide.

As research and innovation continue along with green and sustainable concerns, there is a growing demand for categories to be used in more eco-friendly ways. Green solvents, bio-based polymers, production of lithium-ion batteries and hydrogen are some of the potential approaches that are being implemented in the industry. Chlorinated solvents are utilized among other things, in the aerospace, automotive, and medical industries to clean precise metal. In Feb 2023, Covestro, a leading plastic manufacturer, and thyssenkrupp nucera, a comprehensive solution and technology company, collaborated to develop the first chlorine manufacturing facility of large magnitude using ODC (oxygen depolarized cathode) technology in Spain. When compared to chlor-alkali, the facility saves up to 25% more energy and prevents tons of CO2 emissions each year, providing an effective and sustainable supply of the category.

The category is partially fragmented with multiple suppliers and producers, ranging from large multinational chemical companies to smaller regional or local players. Such type of market offers opportunities to players along with increased competition. As the category exhibit different applications, it leads to multiple niche market taking end use into account, with industries having their own production capacity, distribution network, and customer base. The industrial demand, economic conditions, regulatory framework, and technological advancement influence the category distribution. The high adoption of advanced technology and the presence of large players in North America create ample growth opportunities for the category. The Asia-Pacific region controls most of the worldwide market share. In India, the rapid expansion of industrial sectors and increased demand for freshwater, directly or indirectly impact the category industries.

The cost of producing chlorine includes raw material, energy, labor, and other manufacturing expenses. It can vary depending on the specific production method employed, such as membrane cell, diaphragm cell, or mercury electrolysis. Each method has its own cost considerations and efficiency levels. The primary raw material for its production is salt (sodium chloride), which is widely available and relatively low in cost. The prices are affected depending on the proximity to raw material for example, the Gulf Coast in the United States has lower prices compared to the rest of the region. Irregularities in supply-demand coupled with the volatility in exchange rates have impacted prices of this category in the Asia-Pacific region. In Europe, increased electricity cost and retaliatory tariffs against Russia have inflated the production cost of the category resulting in high pricing around USD 370 MT.

This category can be sourced from various methods, primarily through production plants, hydrocarbons, or globally through import/export activity. North America has a significant presence in the industry and accounts for the largest producer followed by large players from Europe. Countries in the Middle East such as Saudi Arabia and Qatar, which have abundant access to raw materials also contribute to its supply. 

Chlorine Procurement Intelligence Report Scope