Industrial Salt Market Analysis
In 2016, the global industrial salt market was worth USD 12.98 billion. The market will gain momentum over the forecast period due to rising demand in key industries such as highway deicing and the oil & Gas industry. This industry is expected to grow significantly due to its wide variety of uses, including agriculture and deicing. There are also indirect uses in the chemical processing industry that produce chlorine and caustic soda. Due to the inability to find an economical substitute, the primary consumer of the product is the chlor-alkali industry in the chemical sector.
Vacuum pan technology, a technological innovation that produces high-purity salts, will drive market growth. The technology is not widely adopted due to low-cost production methods such as solution mining, conventional mining, and solar evaporation. Nearly every country has a deposit or solar evaporation operation with different production capabilities. The majority of countries that are landlocked import the product. However, some countries in Africa have rock salt deposits to supply the product. In addition, growth is expected to be driven by the inability to find perfect substitutes.
The industry is regulated by regulations like the Mine Health and Safety Act, which regulates the safety and health of miners, and the Environmental Protection Agency (EPA), which enforces environmental protection regulations. Manufacturers must also comply with rules regarding permits issued by the government, which are expected to limit growth. To ensure reliable distribution at competitive terms and conditions, the supply chain management within the industry manages and monitors all channels. Major players in the industrial salts industry use a variety of transport options, including railway lines, waterways, and their own logistics services, to increase supply chain efficiency.
Source Type Analysis
Brine is an essential source of industrial salts because it is derived from solution mining or large saline water bodies. The brine is usable in will use the brine in various applications industries due to the growing restrictions on mining. The high demand for brine is due to its primary use in chemical processing.
The processing cost of brine to make crystals is high due to the increased energy required to evaporate the brine. Additionally, vacuum pan boiling can result in increased energy consumption and increased prices. This technology is therefore used for high-purity applications.
Salt mines hold a significant market share. They are expected to see growth due to increased consumption in the application industries. The demand for deicing products is also likely to be positive. However, several regulations apply to mining activities which will limit growth.
The approval, license, and permits required to obtain the product from the mines are subject to several requirements; this is expected to slow down growth. The operating rate of mine facilities fluctuates according to the demand for deicing applications, which will slow down overall growth.
Product Type Analysis
Brine, a concentrated saline solution that is high in concentration, is obtained from large bodies of water and the dissolution of mine deposits by solution mining. Chemical companies use a significant portion of this product to produce chlorine and caustic soda. The USGS statistics show that brine was responsible for 38% of U.S. consumption in 2016.
Due to its high demand for water treatment and agricultural uses, solar salt is 40% of global production. It is expected to see the fastest growth. Market growth will be slowed by production cost, time, purity, harvesting based upon climatic conditions, and production cost.
Rock salt demand is dependent on the winter weather conditions in cold regions. Deicing is the main application. The product’s market growth will be driven by demand from other industries, such as agriculture and food processing.
Vacuum pan technology produces high-purity products such as pellet, mini cube, and unique purity salt. These products are used in hospitals, food plants, and the medical industry. Vacuum pan technology is expected to experience substantial growth. The growth will be supported by increased penetration in the chemical- and food processing industries.
Application Type Analysis
The forecast period will see an increase in demand for agricultural products, chemical processing, deicing, water treatment, and oil & gas. The product is expected to increase demand in chemical processing and chlor alkali applications, especially in China and India.
In 2016, the chemical industry accounted for more than half of global consumption. The product is available in many grades, including brine, rock, and high purity. Major chemical companies prefer artificial brine high in righteousness for captive consumption using the solution mining technique.
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Because of its low cost and abundant supply, deicing is second in popularity. This application is mainly made with rock salt, which does not need any purification. The effectiveness of brine in road deicing has increased over the years due to its lower temperature (i.e. below 25 orF).
The market is expected to grow due to the rising demand for water treatment applications in developing countries. Market growth in water treatment is expected to be supported by increasing industrialization, higher water quality standards, more complex manufacturing processes, better access to safe drinking waters, and better sanitation facilities.
The U.S. and China shared the largest revenue share in 2016. China’s production has increased due to rising demand. It is projected to grow at 2.7% during the forecast period. Consumption is expected to rise due to the increasing industrialization in the Asia Pacific and the rising demand in the chemical industries.
North America’s due to the widespread use of deicing in extreme conditions. Due to increasing product demand in chemical processing and highway deicing, 16.4% of global consumption in 2016.
The region of Central and South America is rich with natural resources, which have high production capabilities. Brazil and Chile are the dominant producers and consuming countries in the region. They export a lot of the product to North America, Europe, and North America. The region’s growing interest in the product for agricultural purposes is expected to increase captive consumption.
Markets in the Middle East and Africa are expected to experience 3.3% growth over the forecast period due to the increase in demand from industrial diversification, especially the expansion of chemical production capacities and chemical processing capabilities.
Industrial Salt Market Insights
K+S Group is one of the established players that benefit from the proximity to production sites in Europe, North & South America. Global players can respond to weather-dependent deicing demand more quickly than local competitors, which ensures reliable supply to customers.
Companies in this industry are very competitive. They compete based on the quality of their product and regional expansion. Morton Salt and Compass Mineral have established players in the industry and compete for regional development. They place a strong emphasis on high-margin sectors such as food processing and pharmaceuticals.
List of Key Industrial Salt Companies Covered in This Report
- Akzo Nobel
- Cargill Inc.
- China National Salt Industry Corporation
- Compass Minerals Company
- Dow Chemical limited
- Exportadora De Sal SA de CV
- Hubei Shuanghuan Science and Technology stock co., Ltd.
- INEOS Chemicals Company
- K + S Chemicals Company
- Kopalnia Soli Klodawa Spolka Akcyjna Co., ltd.
- Lluka Resources mining Company