PUBLISHER: The Business Research Company | PRODUCT CODE: 1927237
PUBLISHER: The Business Research Company | PRODUCT CODE: 1927237
Sodium hydroxide, commonly known as lye or caustic soda, is a highly alkaline and white deliquescent compound classified as an inorganic substance. Typically, it exists in the form of a white solid at room temperature, consisting of sodium Na+ cations and hydroxide OH anions. Its chemical symbol is NaOH.
Sodium hydroxide is available in two primary product forms such as liquid and solid. The liquid form denotes an incompressible fluid that freely flows but maintains a consistent volume and is pourable. The production processes involved in its manufacturing include membrane cells, diaphragm cells, and other methods. Sodium hydroxide finds application across various sectors such as textiles, pulp and paper manufacturing, soap and detergent production, dye and ink production, pesticide formulation, pharmaceuticals, water treatment processes, petrochemical industries, and various other applications.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the sodium hydroxide market by increasing costs of imported production equipment, membranes, energy inputs, and raw materials used in chlor-alkali processes. Industrial users in North America and Europe are most affected due to high energy dependency, while Asia-Pacific faces cost pressure on export-driven production. These tariffs are increasing operating costs and affecting supply balance. However, they are also encouraging domestic capacity expansion, process optimization, and investments in energy-efficient production technologies.
The sodium hydroxide market research report is one of a series of new reports from The Business Research Company that provides sodium hydroxide market statistics, including sodium hydroxide industry global market size, regional shares, competitors with a sodium hydroxide market share, detailed sodium hydroxide market segments, market trends and opportunities, and any further data you may need to thrive in the sodium hydroxide industry. This sodium hydroxide market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The sodium hydroxide market size has grown strongly in recent years. It will grow from $41.74 billion in 2025 to $44.16 billion in 2026 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to expansion of pulp and paper production, growth of chemical manufacturing industries, increasing demand for water treatment chemicals, availability of chlor-alkali production facilities, rising industrialization in emerging economies.
The sodium hydroxide market size is expected to see strong growth in the next few years. It will grow to $54.29 billion in 2030 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to increasing investments in membrane cell technology, rising demand from textile and pharmaceutical sectors, expansion of water infrastructure projects, growing focus on energy-efficient production processes, increasing adoption of high-grade sodium hydroxide. Major trends in the forecast period include increasing demand from pulp and paper industry, rising use in soap and detergent manufacturing, growing application in water treatment processes, expansion of chemical processing capacity, enhanced focus on high-purity caustic soda.
The growing pulp and paper industry is expected to drive the growth of the sodium hydroxide market going forward. The pulp and paper sector includes businesses that manufacture pulp, paper, paperboard, and related products. Sodium hydroxide, used in the soda pulping or Kraft process, breaks the lignin bonds in wood to produce pulp for papermaking. In the soda pulping process, sodium hydroxide acts as the cooking chemical to create wood pulp. Rising demand from the pulp and paper industry is thus fueling the sodium hydroxide market. For example, in December 2024, the Global Wood Trade Network, a China-based B2B marketplace, reported that trade in wood pulp increased by 3% to reach a record 71 million tonnes. Therefore, the expansion of the pulp and paper industry is driving sodium hydroxide demand.
Major companies in the sodium hydroxide market are developing membranes, such as ion-exchange membranes, to meet growing demand from salt electrolysis plants. An ion-exchange membrane is a selectively permeable barrier that allows the passage of ions while blocking other substances. For instance, in June 2023, AGC, a Japan-based manufacturer of glass, chemicals, and high-tech materials, launched FORBLUE FLEMION F-9060, a new ion-exchange membrane for use in salt electrolysis plants. The membrane lowers electrolysis voltage by approximately 40 mV, reducing power consumption and electricity costs. This development contributes to global efforts to reduce greenhouse gas emissions from salt electrolysis plants, particularly in caustic soda production. Caustic soda is another term for sodium hydroxide (NaOH), a highly versatile chemical used across multiple industries.
In April 2025, ANSA McAL, a Trinidad & Tobago-based diversified conglomerate providing chemical, industrial, and consumer products, acquired BleachTech LLC for US $327 million. Through this acquisition, ANSA McAL aims to expand its global chlor-alkali footprint, increase sodium hydroxide production capacity, and strengthen its presence in North American industrial and municipal water treatment markets. BleachTech LLC is a US-based chemical producer operating two plants in Ohio and Virginia, manufacturing sodium hydroxide, sodium hypochlorite (bleach), and hydrochloric acid for industrial and municipal water treatment and sanitation applications.
Major companies operating in the sodium hydroxide market are Dow Inc., Olin Corporation, Occidental Chemical Corporation, BASF SE, INEOS Group, Formosa Plastics Corporation, Shin-Etsu Chemical Co. Ltd., Tosoh Corporation, Tata Chemicals Ltd., Gujarat Alkalies and Chemicals Ltd., Aditya Birla Chemicals, Hanwha Solutions, Nouryon, AGC Inc., Kemira Oyj, PCC Rokita SA, Grasim Industries Limited, Westlake Corporation, Sabic, Xinjiang Zhongtai Chemical Co., Ltd.
Asia-Pacific was the largest region in the sodium hydroxide market in 2025. North America was the second-largest region in the sodium hydroxide market. The regions covered in the sodium hydroxide market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the sodium hydroxide market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The sodium hydroxide market consists of sales of membrane-grade and diaphragm-grade sodium hydroxide. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Sodium Hydroxide Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses sodium hydroxide market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for sodium hydroxide ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The sodium hydroxide market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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