Market Trends of Europe Caustic Soda Industry
This section covers the major market trends shaping the Europe Caustic Soda Market according to our research experts:
Organic Chemicals Segment to Dominate the Market
- Caustic soda is mainly a reagent or basic solution to manufacture organic chemicals. Organic chemicals use caustic soda to manufacture major organic chemicals, such as methanol, sulfites, phosphites, hydroxyl ethyl cellulose, carboxymethyl hydroxyethylcellulose, cellulose ether, methylcellulose, propylene oxide, polycarbonate, ethylene amines, epoxy resins, acetic acid, and epichlorohydrin. Moreover, many organic chemical manufacturers use it for neutralization and gas scrubbing.
- Epoxypropane (propylene oxide), another important organic chemical, also uses caustic soda for manufacturing polyurethanes.
- Caustic soda is also an intermediate for various organic chemicals such as dyes, pigments, and agrochemicals.
- Germany, Belgium, and Spain are the major countries producing organic chemicals, with the increasing demand for caustic soda in the production of polycarbonate, methanol, polyurethane, epoxy resin, acetic acid, etc.
- According to the United Nations COMTRADE database on international trade, the European Union's organic chemical exports totaled USD 67.95 billion in 2021, and imports of organic chemicals was USD 81.52 billion in 2021.
- Owing to the above-mentioned factors, the demand for caustic soda from the organic chemical segment is expected to increase over the forecast period.
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Germany to Dominate the Market
- Germany is expected to be the leading market for caustic soda in Europe. The increasing demand for caustic soda from various applications such as pulp and paper, chemicals and soap, and detergents, is expected to drive the caustic soda market in Germany.
- Some of the manufacturers and suppliers of caustic soda in Germany are Globe Chemicals GmbH, BdvBehrens GmbH, Wiechers& Helm GmbH & Co. Kg, PCC SE, BrewtechGmbH, Global Bridge Company, and Vanguard Logistics Serv, among others.
- The German pulp and paper industry represents one of the world's largest pulp and paper industries. According to Germany's Federal Statistical Office, the country's recycled paper import volumes reached 5.3 million tons in 2021. growing by 21% compared to 2020 when German paper mills imported 4.4 million tons of recycled paper.
- The German chemical industry represents one of the largest chemical manufacturing industries across Europe, generating an estimated contribution of about 27% of Europe's chemical industry's total revenue. The German chemical industry plays an important role and remains a European leader in chemical sales, exports, investments, and spending. Local companies still export more chemicals than any other European country and more than China.
- According to VCI, the country reflected a strong performance in 2021, with chemical sales increasing by about 11% in 2021 annually, thus amounting to EUR 220 billion. Moreover, chemical industry capacity utilization accounted to 86% in 2021, with every one of five manufacturers hitting full capacity.
- Hence, owing to the above-mentioned factors, the demand for caustic soda in Germany is expected to further grow over the forecast period.
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