Chlorine Industry Is Expected to Witness the Fastest Growth Rate During 2020 – 2027 Due to the High Demand for Chlorine From the Construction and Chemical Industry | Grand View Research, Inc.

Grand View Research, Inc.
According to new study by Grand View Research, suppliers that can process sodium chloride more cost-efficiently would have the major advantage in increasing their profit margin for chlorine production.

Procurement Outlook

Chlorine is a naturally occurring chemical element. It is highly reactive and exists chiefly in compounds, bound to other types of atoms such as sodium. To date, more than 2,000 naturally occurring chlorine-based compounds have been identified in all kinds of organisms and places, including the human body.

One of the most common sources of chlorine is sodium chloride (NaCl) naturally available in ocean water and is also found in concentrated mineral deposits remaining from ancient oceans that have dried up over long periods of time. Once NaCl is mined, it must be transported to an industrial chlorine manufacturing facility by dissolving in water to create a brine solution and transported by pipeline or, transporting dry salt by rail or barge to a manufacturing facility and then dissolved in water to make brine. The brine needs to be purified to remove potential contaminants, such as magnesium, calcium, and iron that have the potential to disrupt the electrolysis process. The brine is filtered by ion-exchange membranes that allow only the sodium and chloride ions, along with water, to pass through the membrane. Then electrolysis of brine is conducted to get chlorine. However, this does not completely convert the saltwater to the final products. It gives chlorine gas contaminated with oxygen. Then by cooling the gas, the chlorine turns into a liquid, while the oxygen remains a gas, thus enabling its separation.

Demand Outlook

The global chlorine production is valued at ~100 million MT in 2020 and it is expected to grow at a CAGR of more than 4% from 2021 to 2027 due to rising demand from the pharmaceutical and agrochemical industries and the increasing demand for PVC from the construction industry. APAC is the leading regional market and accounted for more than 50% of the total market volume in 2020. Increasing construction spending in China, India, Indonesia, and Thailand is expected to drive the regional market during the forecast period. The region is also expected to witness the fastest growth rate of 5% over the forecast period due to the high demand for chlorine from the construction and chemical industry.

Grab your copy, or request for a free sample of the “Chlorine Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.

Cost Drivers

The cost of processing sodium chloride holds the key in determining the cost driver of chlorine production. Suppliers that can process sodium chloride more cost-efficiently would have the major advantage in increasing their profit margin for chlorine production. Moreover, the process of chlorine production is also an important aspect while determining the overall cost of chlorine production. This majorly includes fixed costs of machinery, equipment, and maintenance costs.


Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.


Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions


Browse through Grand View Research’s collection of procurement intelligence studies:

Casting, Forging and Stamping Industry Procurement Intelligence – Casting is a process where a metal is treated with heat to reach its boiling point, liquefy, and the liquid material is poured into a mold that contains a hollow cavity of the shape which is desired upon the solidification of the metal. Forging is a process of applying pressure on metals and pressing or hitting it, thereby changing and altering their shape. Stamping is a process that converts flat metal sheets into specific shapes using various techniques like blanking, punching, bending, piercing, etc. The major difference between forging and stamping is in its application. Forging is used for processing metal parts where the thickness of the metal is changed in the process. In the case of stamping, the thickness remains unchanged. It is essentially a process of cutting metals.


Chromatography Resins Industry Procurement Intelligence – The cost components of procuring natural resins and synthetic resins are different. Natural resins are typically extracted from trees like pines and firs. Hence, the processing cost plays a huge role in determining the cost of natural resin production. Whereas, synthetic resins are manufactured industrially via the process of polymerization with help of a chemically processed source of Naphtha, a residual part of crude oil. In this case, the cost of raw material is the key cost component of resin production. Synthetic resin production costs largely depend on the availability of raw materials and crude oil prices.

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