Hydrochloric Acid Market Procurement Intelligence Is Expected to Grow Due to Rapid Industrial Expansion and Increasing Demand From Food Processing and Oil & Gas Industries| Grand View Research, Inc

Grand View Research, Inc
The global hydrochloric acid market is valued at USD 1 billion in 2020 and it is expected to grow at a CAGR of 5% from 2021 to 2027 due to increasing demand from food processing and oil & gas industries.

Procurement Outlook

Hydrochloric acid is an aqueous solution of hydrogen chloride gas. It is produced primarily by four basic methods: the chlorination of organic chemicals; the combination of hydrogen and chlorine; the salt-sulfuric acid production process; and, as a co-product in the manufacture of silica. In most cases, hydrochloric acid is produced from the chlorination of organic chemicals with much smaller amounts derived from the other processes. Most of the hydrochloric acid produced in the U.S., Europe, and Japan is generated as a by-product in the manufacture of a wide variety of organic chemicals via chlorination reactions. This supply depends largely on demand for the primary products. A significant amount of by-product hydrochloric acid is generated when ethylene dichloride (EDC) is cracked to make vinyl chloride monomer (VCM). This hydrochloric acid is usually recycled back to the EDC reactor for additional oxychlorination and for the most part, does not enter the commercial market. Similarly, most of the hydrochloric acid generated in the production of chlorinated C1s (primarily methylene chloride and chloroform) is recycled to produce additional methyl chloride.

Demand Outlook

The global hydrochloric acid market is valued at USD 1 billion in 2020 and it is expected to grow at a CAGR of 5% from 2021 to 2027 due to increasing demand from food processing and oil & gas industries. Globally, nearly 37% of all hydrochloric acid consumption is for the production of EDC, and 61% is used in the production of organic compounds, most of which is captive consumption. The remaining consumption is in several inorganic or merchant applications. APAC is leading the global hydrochloric acid market in terms of consumption due to rapid industrial expansion in China, Indonesia, and India. China is expected to witness the fastest growth due to rising ore processing, calcium chloride & ethyl dichloride production, oil & gas industry over the forecast period.

Cost Drivers

Hydrochloric acid can be produced as a by-product for about 40 chemical processes across multiple industries. Hence, the fixed cost of chemical processing including material costs, equipment costs, maintenance costs considered as the major cost drivers of hydrochloric acid production. Moreover, suppliers try to reduce variable costs by outsourcing the production activity in low-cost sourcing destinations like India and China. As these countries offer cheap labor, it significantly reduces the overall cost of one unit of hydrochloric acid production and increases the profit margin.

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

Add-on Services provided by Grand View Research Pipeline:

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

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

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