Zinc Oxide Market Size
The global Zinc Oxide market size is expected to reach USD 4.5 billion at a CAGR of 4.9% by 2032. Zinc oxide is an inorganic compound with the chemical formula ZnO. Zinc Oxide is widely used in industries such as rubber compounding, chemicals, agriculture, paints & coatings, and ceramics. Zinc Oxide accounts for more than 50% of the total Zinc market.
Zinc Oxide Demand Analysis
The global Zinc Oxide market has grown at an annual average growth rate of 5.5% in the historical period of 2016-2023. The Zinc Oxide market is further projected to grow from USD 3.1 billion in 2023 to cross USD 4.5 billion by the end of 2032 at a CAGR of 4.9% from 2023 to 2032. In terms of volume, the market is projected to cross 1,800 kilotons by 2032. The global Zinc Oxide demand is forecast to grow in line with the global automotive demand growth.
Zinc oxide accounts for around 9% of the global zinc market. Global zinc production experienced a decline starting in 2014 due to the closure of several zinc mines and production cuts driven by falling zinc prices. However, there was a notable increase in production in 2018, growing by around 1.9% compared to 2017, and the trend has been upward since then.
Zinc Production witnessed a downfall in 2020 owing to the global COVID-19 pandemic which led to reduced mining activities globally. Nationwide lockdowns and reduced consumer confidence impacted several zinc oxide end-use industries. However, Zinc production returned to pre-COVID-19 levels in 2021 and is forecast to increase in 2022 as well. The uncertainty revolving around zinc production impacts the global zinc derivatives, including zinc oxide supply chains.
Global Zinc Oxide Demand, By Application 2023 (Kiloton)
Source: Secondary & Primary Research and Prismane Consulting Estimates
Zinc Oxide Demand by Application
Based on Zinc Oxide demand by applications, the market is bifurcated into Rubber compounding, Chemicals, Agriculture, Paints & coatings, Ceramics, and Others. The rubber compounding sector is the largest consumer of zinc oxide, accounting for around 60% of the global zinc oxide demand. During the forecast period, the Rubber compounding market is projected to grow at a CAGR of 3% on the back of high demand for tires in the automotive sector. Zinc oxide is used in rubber as a vulcanizing agent, improving the durability of rubber and enhancing its hot air/heat aging properties. However, low levels of zinc oxide can lead to burning problems.
Global Zinc Oxide Demand, By Region 2023 (Kiloton)
Source: Secondary & Primary Research and Prismane Consulting Estimates
Zinc Oxide Demand, by Region
Asia Pacific is the largest Zinc Oxide market with around 50% market share followed by North America and Western Europe together accounting for around 40% of the global Zinc Oxide demand. In the forecast period, the Asia Pacific is projected to witness strong growth owing to strong automotive, pharmaceutical, construction, and end-use industries in the region. The increasing focus on enhancing nutrient management practices to boost food production, nutritional value, and economic benefits for farmers in countries like China, India, and Japan will further boost the Zinc Oxide market in the coming years.
More than 55% of the soil in the world has zinc deficiency. With the increasing population worldwide and the rising awareness of the benefits of zinc used in food, the demand for zinc oxide is seeing growth. Countries like China, Brazil, India, and Turkey have started adding zinc oxide to fertilizers to increase the yield of the crop.
Key Players in the Zinc Oxide Market
BASF SE, Elementis Specialties, HakusuiTech, Akrochem Corp., American Chemet Corp., Grillo-Werke, Numinor, Rubamin Limited, Seyang Zinc Technology, Weifang Longda Zinc Industry are some of the key players in global Zinc Oxide manufacturers.
Increasing Zinc Oxide demand from the Rubber and tire Industry is boosting the market growth.
The rubber industry needs zinc oxide to meet the high demand for tires in the automotive sector. Zinc oxide is used as a vulcanizing agent in the vulcanization process to improve the durability of rubber. The consumption of zinc oxide is expected to increase during the forecast period as rubber is widely used to make tires, which are in high demand in the automotive industry. High zinc oxide levels enhance the hot air/heat aging properties of rubber, while low zinc oxide levels can cause burning problems. Additionally, it helps reduce heat buildup and tire wear. Furthermore, there has been an uptick in tire production within developing regions. The heightened demand for automobiles has consequently led to an increased need for zinc oxide over the past few years.
The Chinese government has outlined plans to achieve an annual tire production target of around 704 million units by the year 2025. This ambitious goal includes the production of 527 million passenger radial tires, 150 million bus tires, 30 million truck tires, 25,000 extra-large industrial tires, 13 million agricultural tires, and 54,000 aircraft tires. Therefore, as the tire and rubber industries continue to grow, the demand for zinc oxide will increase.
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