July 15, 2024
Soda Ash Market

Soda Ash Market Increased demand from end use industries

The Soda Ash Market is estimated to be valued at US$ 11000.00 million in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Soda ash or sodium carbonate (Na2CO3) is an essential raw material used in the manufacturing of glass, chemicals, soaps and detergents. It helps in cleaning and lifts dirt from different surfaces. The soda ash market has been witnessing decent growth owing to its applications in various end use industries like glass, soaps and detergents.

Market key trends:
One of the key trends positively impacting the soda ash market growth is increased demand from glass industry. Soda ash is a key raw material used in the manufacturing of glass where it works as a flux and helps in lowering the melting point of ingredients during glass production. With rising construction activities and growth in automotive industry, the demand for glass from these end use sectors has been rising significantly driving the consumption of soda ash. Growing applications of soda ash as a raw material in various industrial sectors is expected to continue driving the soda ash market during the forecast period.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is moderate. The Soda Ash Market Size requires huge capital investment and technical expertise to build manufacturing facilities. This poses a significant barrier for new companies.

Bargaining power of buyers: The bargaining power of buyers is moderate to high. The soda ash industry consists of many established global players supplying to various industries. Buyers can negotiate on price and switch between suppliers.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. There are established supply chains for raw materials and the industry uses standardized production processes. Suppliers have less influence over pricing decisions.

Threat of new substitutes: The threat of new substitutes is low as soda ash has well-defined uses and there are limited alternatives for its applications in glass, chemicals, soaps and detergents industries.

Competitive rivalry: High due to presence of major global players.

SWOT Analysis:

Strengths: Large manufacturing capacity, long-term supply contracts, cost leadership, resource security through integration.

Weaknesses: Vulnerable to fluctuations in raw material prices, heavy dependence on industrial demand, regulatory compliance increases operating costs.

Opportunities: Growing end-use industries, recovery in construction sector will boost glass demand, expansion into Asian and African markets.

Threats: Strict environmental norms, availability of substitutes, cyclical nature of downstream industries.

Key Takeaways:

The global soda ash market size is expected to reach USD 11,000 million by 2030, expanding at a CAGR of 6.2% during the forecast period. Rising demand from glass, soaps and detergents industries is expected to drive the soda ash market. The glass industry accounts for over 70% of global soda ash consumption.

Regional analysis – Asia Pacific dominates the global soda ash market with over 50% share led by China. Asia Pacific is expected to continue its lead in the demand for soda ash due to robust growth of glass and detergent industries in the region. Factors stimulating this growth are rapid industrialization and increasing living standards in developing countries.

Key players – Key players operating in the soda ash market are CIECH SA, Ciner Resources Corporation, Genesis Energy LP, GHCL Limited, Lianyungang Soda Ash Co. Ltd, NIRMA LIMITED, Şişecam Group, Solvay, Shandong Haihua, Group Co. Ltd, and Tata Chemicals Ltd. Major players are focused on capacity expansions and strategic partnerships to cater to rising demand and consolidate their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it