Zinc Chloride Market - Forecast(2023 - 2028)

Zinc Chloride Market Overview

The Zinc Chloride Market size is forecast to reach US$218.7 million by 2027, after growing at a CAGR of 4.1% within 2022-2027. Zinc chloride is a white, odorless, granular chemical compound that is used in a variety of chemical synthesis processes. Zinc chloride is a useful Lewis acid in organic chemistry and used in the preparation of dye fluorescein from phthalic anhydride and resorcinol. It is also used for activating allylic halides towards substitutions by weak nucleophiles as well. Some common industrial applications of zinc chloride include the manufacture of vulcanized fibre by soaking paper in concentrated zinc chloride, as a metallurgical flux in hot-dip galvanizing process, as a wood preservative and others. The increasing demand for chemical synthesis in various industries and its excellent properties as an electrolyte, moisture absorbent, and flux, are propelling the demand for the Zinc Chloride Market.

COVID-19 Impact

During the COVID-19 pandemic, many industries had suffered a tumultuous time. Many governments across the globe implemented lockdown regulations and factories & production facilities in many sectors came to a halt. Zinc chloride is primarily used in industry verticals such as the textile sector, and the electronic sector. During the pandemic, there was a significant decline in the demand for textiles as the production decreased and the supply chain was greatly disrupted due to lockdown protocols. For instance, according to the International Textile Manufacturers Federation (ITMF), on average, the global turnover for textile companies in 2020 is estimated to be 10.5% lower than 2019, with some companies estimated to have dropped by 17.5%. Thus, the demand for the Zinc Chloride Market also saw a drop in production. However, as the pandemic has largely subsided, most of the world population have undergone vaccination which has led to companies resuming production in facilities. As such, the demand for the Zinc Chloride Market is estimated to grow significantly within the forecast period of 2022-2027.

Report Coverage

The report: “Zinc Chloride Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the zinc chloride industry.

By Application: Dry Cell Batteries, Emulsion Breaker, Metal Etchant and Metallurgical Flux, Organic Synthesis and Catalyst, Water Treatment, Wood Preservative, Herbicide, Deodorant, and Others.

By End-Use Industry: Electronics, Chemical, Printing & Textile, Agriculture, Pharmaceutical, and Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• The Asia-Pacific region will dominate the Zinc Chloride Market within the forecast period of 2022-2027. This is primarily because of the growing demand for the textile industry and the chemical industry in the region where zinc chloride is extensively used.
• The inclining demand for the agriculture sector as well as the medical sector proves to be great driver for the growth of the Zinc Chloride Market within the forecast period.
• Furthermore, zinc chloride is used in an excellent electrolyte, metallurgical flux, moisture absorbent, wood preservative, dehydrating agent, catalyst, and so on. Thus, its wide range of properties is also propelling the demand for the Zinc Chloride Market.
• However, the presence of alternatives for zinc chloride dry cell batteries, such as rechargeable lithium-ion batteries, can hinder the growth of the Zinc Chloride Market.

Asia-Pacific Zinc Chloride Market Revenue 2021-2027 (US $ Million)

Dry cell batteries held the largest share with 21.3% in the Zinc Chloride Market in 2021. Zinc chloride dry cell batteries comprise of stable thin operators, improved seals, and zinc chloride as the electrolyte instead of ammonium chloride as zinc chloride yields substantially improved performance on heavy-drain applications and also has less leakage. Zinc chloride dry cell batteries are low cost, readily available and performance well in various applications. As such, zinc chloride dry cell batteries are widely preferred as a battery source and is the most common application of zinc chloride in the market. Furthermore, new developments in the batteries market are bolstering the demand for zinc chloride as well. For instance, in June 2020, Zinc8, a hybrid flow battery technology Canadian start-up, announced a new type of battery called the Zinc Air Battery, which is cheaper and safer than lithium-ion batteries and it doesn’t degrade over time. As such, new developments, and various advantages of zinc chloride in dry cell batteries, are propelling the growth of the segment in the market.

Zinc Chloride Market Analysis – By End-Use Industry

The chemical sector held the largest share with 28.5% in the Zinc Chloride Market in 2021. Zinc chloride is used in a variety of chemical applications such as a catalyst and reactant for both inorganic and organic chemical synthesis. It is also used in metallurgical fluxes for hot-dip galvanizing, tinning, and soldering, as well as an electrolyte. According to the BASF Report 2021, published by BASF SE, one of the global leaders in the chemical industry, the global chemical production is expected to grow by 3.5% in 2022, with United States having the highest growth of 4.5%. Additionally, according to the European Chemical Industry Council (CEFIC), the chemical output in Europe has increased by 7.0% between January to September 2021, as compared to January-September 2020. As zinc chloride is essential in the chemical industry, the inclining demand for the chemical sector proves to be a great driver for the Zinc Chloride Market

Zinc Chloride Market Analysis – By Geography

The Asia-Pacific region held the largest share with 37.7% in the Zinc Chloride Market in 2021. The key industry propelling the use of zinc chloride in the region is the textile industry, where zinc chloride is used as a fabric refresher and is used as a preservative for dying textiles. Furthermore, the inclining demand for the chemical industry in countries such as China and India are further increasing the demand for zinc chloride as well. For instance, according to the BASF Report 2021, published by BASF SE, China has the world’s largest chemical market with an estimated growth of chemical production by 4.0% in 2022. Additionally, according to Invest India, the domestic textile and apparel industry of India was valued at US$ 103.4 billion in 2021 while according to the China National Textile and Apparel council, China’s export value of textiles and garments was valued at US$ 400 billion in 2020. Thus, the Asia-Pacific region will dominate the Zinc Chloride Market within the forecast period of 2022-2027.

Zinc Chloride Market Drivers

Substantial Growth in the Agriculture Sector:

Zinc chloride is used in a variety of ways in the agriculture sector due to its excellent dehydrating properties and nutritional value. For instance, zinc is primarily used in agriculture as a fertilizer for crops such as maize that can undergo zinc deficiency. Zinc chloride is also added in irrigation water to help reduce the amount of salt and reduce the negative effects of salinity in crop soil which can be toxic to the plants. According to the International Fertilizer Association (IFA), the global fertilizer demand was projected to be at 199 million tons in 2021 with an estimated investment of US$ 110 billion in expansions for increasing global capacity between 2017 to 2021. As such, the growing demand for agriculture and fertilizers proves to be an excellent driver for the Zinc Chloride Market.

The Increasing Demand for Zinc Chloride in the Medical Sector:

One of the key applications of zinc chloride is in the medical sector where it is used as a medication to treat zinc deficiencies and is also used in total parenteral nutrition (TPN), which is a method of feeding that bypasses the gastrointestinal tract, to maintain zinc levels. The recent growth trend in the medical sector, especially after the pandemic, has propelled the demand for zinc chloride as well. For instance, according to the 2020 annual report of GlaxoSmithKline plc., (GSK), a leading pharmaceutical company, the global pharmaceutical sales went up by 4% year-on-year in September 2020, being valued at US$ 968 billion. As such, the increasing demand for the medical sector is also driving the demand for the Zinc Chloride Market.

Zinc Chloride Market Challenges

Alternatives to Zinc Chloride Dry Cell Batteries:

One of the biggest disadvantages of zinc chloride dry cell batteries is that it is not rechargeable and as such, rechargeable batteries have proven to be a common alternative for dry cell batteries. The most used rechargeable battery in industry is the lithium-ion battery which has gained significant popularity in recent times. Lithium-ion batteries consist of lithium and carbon electrodes that have a lightweight and compact form factor with a very high energy density despite its small size. They have a higher energy density, voltage capacity and lower delf-discharge rate than other rechargeable batteries. Thus, the presence of alternatives, such as lithium-ion batteries, is one of the key challenges for the growth of the Zinc Chloride Market.

Zinc Chloride Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Zinc Chloride Market. zinc chloride top 10 companies include:

1. Zaclon LLC
2. American Elements
3. TIB Chemicals AG
4. Flaurea Chemicals
5. Apex Chemical Corporation
6. Eurocontal SA
7. Weifang Dongfangsheng Chemical Co.
8. Global Chemical Co., Ltd.
9. PT. Indo Lysaght
10. Lipmes

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