The Asia Pacific Caustic Soda market size is projected to grow from USD 19.8 Billion in 2022 to USD 31 Billion by 2032. exhibiting a CAGR of 4.6% during the long term forecast period (2023-2032).

Asia Pacific is the largest producer and consumer of caustic soda in the world accounting for more than 60% of the global production and 60% of consumption in 2022. The Caustic Soda demand in Asia-Pacific has been estimated to grow at a CAGR of 3.5% between 2023-2032. Most of the demand for Caustic Soda in the region is from Alumina applications accounting for one fourth of the demand followed by followed by Food, Pulp & Paper at 15%.

Asia-Pacific is the largest caustic soda-producing region with a capacity of around 64,000 kilo tons and accounts for about 60% of the global caustic soda capacity. There are over 150 players in the region having 200+ plants located at different locations. The average operating rate in the region is 81% from 2016-2021 owing to high demand in end-use industries mainly in China. Capacities of caustic soda in China have increased from 39,500 kilotons in 2016 to 46,400 kilo tons in 2022. China accounts for more than 45% of the global caustic soda capacity and 70% of the regional capacity. Asia-Pacific accounted for the largest share of the global caustic soda market and is also expected to grow the fastest among the other regions during the forecast period with a CAGR of 3.5%. The region dominates the caustic soda market, representing 60% of the caustic soda demand globally. 

China is a net exporter in caustic soda trade, with exports ranging between 1,050 to 1,450 kilo tons, primarily in the form of aqueous solution. A significant portion of the trade in 2021, about 1,095 kilo tons, was in the aqueous form, while 388 kilo tons were

 in the solid form. Several countries such as Australia, Indonesia, Vietnam, Philippines, Singapore, and Brazil are essential trade partners for China. In 2021, Australia alone imported around 450 kilo tons of caustic soda from China, making it the largest importer of this product. Meanwhile, the ASEAN is the second-largest importer of caustic soda.

China’s caustic soda consumption was estimated to be around 37,000 kilo tons in 2022, it is anticipated to cross 53,550 kilo tons by 2032 registering a CAGR of 3.8% between 2022-2032. Majority of the demand is from Alumina, accounting for 31% of total demand in the country, translating to over 11,570 kilo tons in 2022. It is poised to grow with a compounded annual growth rate of 3.5% to reach 16,358 kilo tons in 2032. China is currently the largest consumer as well as producer of pulp and paper globally, but unlike other major markets like Europe and the US, it significantly relies on imported wood pulp due to the uneven distribution and shortage of domestic forest resources. Furthermore, in comparison to more matured markets, China s pulp and paper industry is less concentrated. The per capita consumption of paper in China is relatively very low as against the US, Europe, and Japan. However, changing consumer behaviour, urbanization and increasing number of middle-class citizens is contributing to the growth of the industry. Caustic soda is used in the food processing industry to clean and sanitize equipment and containers. As the food processing industry in China continues to expand, the demand for caustic soda as a cleaning agent is anticipated to witness strong growth in the long-term forecast. Also, with the increasing demand for paper and packaging materials in the country, the demand for caustic soda in the pulp and paper industry is expected to grow.

Indian caustic soda capacity stood at 5100 kilo tons in 2022. Majority of the market use the environment friendly membrane cell technology for caustic soda production. Aditya Birla is the largest caustic soda producer in the country with a market share of around 26% in 2022. Aditya Birla operates seven caustic soda plant at different location with annual production capacity of 1,147 kilo tons. The company became the largest producer of Caustic soda post-acquisition of Kanoria Chemicals, Solaris Chemtech Industries, Jayshree Chemicals, KPR and Bihar Caustic and Chemicals and merger with Grasim Industries. DCM Shriram is second largest caustic soda manufacturer in the country with 690 kilo tons of total production capacity. Kutch Chemical Industries limited (KCIL) has started its 109 kilo tons plant located at Varsana, Gujarat in 2019. The company is further planning to add more 18 kilo tons of caustic soda capacity to cater the growing domestic demand. Meghmani Finechem Ltd (MFL), DCM Shriram, Gujarat Alkalies and Chemicals Ltd (GACL), Lords Chloro Alkali Limited, Kutch Chemical Industries Limited (KCIL), Punjab Alkalies & Chemicals Ltd. (PACL), TGV SRAAC and GACL-NALCO Alkalies & Chemicals have announced to expand or start new caustic soda production line in next few years. In 2022, the caustic soda market in India stood at 3831 kilo tons and it is further projected to grow at a CAGR of 4.2% during 2023-2032 to cross 5800 kilo tons.

Asia Pacific caustic soda market is experiencing robust growth, driven by various factors such as increasing demand from key industries, rapid industrialization, production capacities expansion and increasing demand from applications will further drive the Asia Pacific Caustic Soda in the coming years.

Hanwha Solutions is the largest producer of caustic soda in Korea and produces around 840 kilo tons of caustic soda annually as of 2021 in Yeosu, Korea. Hanwha Solutions announced plan to invest USD 282.3 Million to expand its capacity of caustic soda by 270 kilo tons annually at Yeosu facility. This investment is in response towards rising demand of electric vehicles batteries where caustic soda is used as a cleaning agent.

Meghmani Finechem successfully completed the expansion of its caustic soda at its facility in Dahej Gujarat. The company commissioned an addition of 106 kilo tons caustic soda capacity in December 2022.

In April 2023, PT Chandra Asri Petrochemical Tbk and the Indonesia Investment Authority (INA) has signed igned a Memorandum of Understanding (MoU) to build world scale cautic soda plant with capacity of around 400 kilo tons in Indonesia.