Global aluminum chloride demand is anticipated to be valued at USD 905.5 million in 2023. The market is forecast to grow at a CAGR of 4.6% to be valued at USD 1,419.7 million by 2033. Growth is attributed to a global upsurge in industrialization.
| Data Points | Key Statistics |
|---|---|
| Growth Rate (2018 to 2022) | 3.4% CAGR |
| Expected Market Value (2023) | USD 905.5 million |
| Anticipated Forecast Value (2033) | USD 1,419.7 million |
| Projected Growth Rate (2023 to 2033) | 4.6% CAGR |
Aluminum chloride is available in crystal form as well as powdered form in white color. It is one of the major compounds of aluminum and chlorine. Some of the key applications of aluminum chloride include wastewater treatment, inks, metal precipitation, and food among others. Further, it is used as a catalyst for Friedel-Crafts reaction in organic synthesis and also for cracking of oil.
Moreover, it is also deployed in the manufacturing of various petrochemicals which include ethyl benzene, ethyl chloride, alkylbenzene, and alkyl aryl ketone. In addition, it also finds application as a key ingredient in the polymerization reaction of various hydrocarbons.
The demand for aluminum chloride is powered by diverse applications of the product. In wastewater treatment systems, its use as a sludge dewatering agent has helped to proliferate demand. In particular, the use of low-cost aluminum chloride coagulants in domestic wastewater treatment has increased its popularity in the market for aluminum chloride. The demand has been boosted by increased research on the use of aluminum chloride as a coagulant in developing countries is also driving the market growth during the forecast period.
On the other hand, fluctuating raw materials prices and difficulty in storing aluminum chloride are the major factors that are anticipated to limit the growth of the aluminum chloride market in the near future.
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Aluminum Chloride experiencing Growing demand from the Pharmaceuticals Industry
Aluminum chloride is an intermediate in the manufacture of various pharmaceuticals including Ibuprofen (analgesic) and is used for treating pain, fever, and inflammation. The number of obese persons has risen by shifting diets and unhealthy eating patterns. This is one of the major factors that is expected to accelerate the growth of the aluminum chloride industry during the forecast period.
The growth of the aluminum chloride industry is motivated by growing health issues among citizens in the United States and increasing pharmaceutical spending. The United States healthcare expenditure rose 4.6 percent in 2018, hitting USD3.6 trillion or USD11,172 per person, according to National Health Expenditure Reports (NHEA). Continuous investment in the pharmaceutical industry is also expected to support the growth of the demand for aluminum chloride.
Additionally, the upswing in industrialization is another major factor that is anticipated to propel the demand for waste water treatment solutions so as to reduce pollution levels, which in turn is expected to boost market growth. Waste water treatment is one of the major application areas for aluminum chloride, demand for aluminum chloride is expected to in turn witness steady growth during the forecast period.
Increasing demand for aluminum metal powder from various industries is also a major factor that is expected to fuel the growth of the aluminum chloride industry during the forecast period. The increasing production of pigments and dye-stuffs especially in countries in the Asia Pacific region is expected to drive growth of the global aluminum chloride industry over the analysis period.
Anhydrous aluminum chloride is usually stored in a cool, dry, and well-ventilated area, and away from moisture, heat, any source of ignition, and strongly alkaline materials. Being hygroscopic and corrosive in nature, anhydrous aluminum chloride is difficult to store. Hence, it is manufactured and supplied based on the demand from various end-use applications and requires excellent packaging for distribution. Therefore, storage and packaging play an important role in maintaining the quality of this compound. This factor is expected to limit the growth of the aluminum chloride market during the forecast period.
Moreover, aluminum scrap and chlorine are the raw materials required for manufacturing anhydrous aluminum chloride. Aluminum scrap is obtained from scrap dealers, and chlorine is sourced from various caustic soda and chlorine producers. As the production of anhydrous aluminum chloride is highly dependent on the supply of chlorine, the production price of anhydrous aluminum chloride varies as per the supplier price of chlorine and availability of aluminum scrap. This is another factor that is anticipated to hinder the market growth in the near future.
In terms of regional platforms, North America holds the largest market share in the aluminum chloride industry. The region is expected to accumulate a market share of 20.9% in 2023. The United States and Canada are expected to remain at the forefront in terms of aluminum chloride industry share in the forthcoming years, owing to the increase in the number of obese people in the region during the forecast period.
Additionally, the growing demand for dyes and pigments from emerging economies such as US and Canada is likely to drive the aluminum chloride market in the region over the analysis period. In addition, the United States is one of the major producers and consumers of pesticides, pharmaceutical drugs, cosmetics, and metallurgy in the region. Therefore, all these factors influence a positive outlook in this region.
In terms of regional platforms, North America holds the largest market share in the aluminum chloride industry. The region is expected to accumulate a market share of 20.9% in 2023. The United States and Canada are expected to remain at the forefront in terms of aluminum chloride industry share in the forthcoming years, owing to the increase in the number of obese people in the region during the forecast period.
Additionally, the growing demand for dyes and pigments from emerging economies such as US and Canada is likely to drive the aluminum chloride market in the region over the analysis period. In addition, the United States is one of the major producers and consumers of pesticides, pharmaceutical drugs, cosmetics, and metallurgy in the region. Therefore, all these factors influence a positive outlook in this region.
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| Country | Germany |
|---|---|
| Market Share % (2023)Germany | 12.6% |
According to Future Market Insights, Europe is expected to hold significant growth opportunities for aluminum chloride and is expected to reach a share of 17.6% in 2023.
In Europe, Germany is expected to be highly attractive in terms of market share as well as incremental opportunity. The growth of the aluminum chloride market in Germany is attributed to the increasing demand for aluminum metal powder from various industries.
| Country | Market CAGR % (2023 to 2033) |
|---|---|
| China | 3.4% |
| India | 4.1% |
According to Future Market Insights, Asia-Pacific is expected to grow with lucrative growth opportunities for the aluminum chloride industry and is expected to reach a significant share of 12.4% in 2023.
Asia Pacific has demonstrated vast potential in recent years as a steadily growing market for aluminum chloride. The rapid speed of industrialization in Asia has encouraged the manufacturing of aluminum chloride for a number of industrial applications. In addition, the use of the compound in commercial and sanitary waste water systems has contributed to comprehensive specifications.
Output in the region has also thrived owing to the rapidly rising demand in its developing economies for aluminum-based antiperspirants and personal care products over the past decade. According to the trade map, 408,430 tons of aluminum chloride were shipped worldwide in 2019, while only India and China exported 95,023 tons. Building activities throughout the country have also been enhanced by increased buying power and high living standards, increasing the use of aluminum chloride for dyes and paints in turn. In 2017, 53.2 percent of the overall pesticides in Asia were used, according to the Food and Agriculture Organization of the United Nations. In countries such as India, China, Indonesia, and Malaysia, excessive pesticide use also helps the development of the demand for aluminum chloride.
According to Future Market Insights, Middle East & Africa is expected to provide significant growth opportunities for the aluminum chloride industry and is expected to reach a share of 8.1% in 2023.
The demand for the aluminum chloride industry in the region is driven, attributed to an increase in dyes and pigments in growing textile, printing ink, plastics, paints & coatings, and other niche industries.
In the Middle East and Africa, aluminum chloride is also used as a raw material in the production of fumed alumina, electrolytic production of aluminum, and as a nucleating agent in the production of titanium dioxide. Therefore, the use of anhydrous aluminum chloride in various applications drives the market in the region.
There are many prominent market players in the Aluminium Chloride Market such as N.R. Chemicals, and Smp Coke and Chemicals, Ratnadeep Chemicals, among others, that are working hand-in-hand to provide the best-in-class Acrylic BoxCleaes for enhancing the global arena. However, there are many global start-ups in the aluminum chloride industry, which are stepping forward in matching the requirements of the aluminum chloride domain.
Some of the key participants present in the global aluminum chloride industry include Gulbrandsen, Gujarat Alkalies & Chemicals Limited, BASF, Aditya Birla Chemicals, Kemira Oyj, NipponLight Metal, Kemira, NipponSoda Co., Ltd, Dongying Kunbao Chemical, Kanto Denka Kogyo, Base Metal Group, Umiya Group Of Companies, Nike Chemical India, Vanchlor, Seabert Chemicals, Upra Chem, Avi-Chem Industries, Weifang Menjie Chemicals, American Elemants, Lynwon Group, Anmol Chloro Chem, Real Metalchem Private Limited, Chemtex Specialty Limited, Alfa Aesar, and DCM Shriram Industries, among others.
Attributed to the presence of such a high number of participants, the market is highly competitive. While global players such as Gulbrandsen, Gujarat Alkalies & Chemicals Limited, BASF, and Aditya Birla Chemicals, account for a considerable market size, several regional-level players are also operating across key growth regions, particularly in North America.
Recent Developments:
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 4.6% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Market Value in 2023 | USD 905.5 million |
| Market Value in 2033 | USD 1,419.7 million |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million, Volume in Kilotons and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Production Method, Application, End-use Industries, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, South Africa, Israel |
| Key Companies Profiled | GFS Chemicals; Gulbrandsen; Cellmark AB; Skyhawk Chemicals; Southern Ionics; Tokyo Kasei Kogyo Co. Ltd.; Kemira Kemi AB; GEO Specialty Chemicals Inc.; Noah Technologies Corporation; Ruigeng Chemical |
| Customization | Available Upon Request |
The aluminium chloride market CAGR for 2033 is 4.6%.
The market is valued at USD 905.5 million in 2023.
The projected market value of the market for 2033 is USD 1,419.7 million.
Key players are developing the market by introducing new applications.
BASF SE, Kemira Oyj, and Aditya Birla Chemicals are key market players.
| Expected Market Value (2023) | USD 1,62,187.9 million |
|---|---|
| Anticipated Forecast Value (2033) | USD 2,98,779.7 million |
| Projected CAGR (2023 to 2033) | 6.3% |
| Expected Market Value (2022) | USD 168 Billion |
|---|---|
| Anticipated Forecast Value (2032) | USD 260 Billion |
| Projected CAGR (2022 to 2032) | 4.5% |
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Aluminium Chloride Market
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