Magnesium Chloride Market - Forecast(2023 - 2028)

Magnesium Chloride Market Overview

Magnesium Chloride Market Size is estimated to reach US$261.1 million by 2027 after growing at a CAGR of 4.2% from 2022-2027. Magnesium Chloride is an inorganic compound that is obtained as mineral salt from seawater and brine. The compound as sea salt concentrate is known as bischofite which is highly soluble in water and has a tendency to absorb moisture from the environment. Magnesium chloride has various industrial applications like it is used in the construction sector for cement production, in agriculture for crop yielding, in medical as medicine ingredient and also it is used in anti-icing of roads. The drivers for the magnesium chloride market are an increase in construction activities, a growing volume of textile production, and an increase in demand for salt from cold climate countries. However, magnesium chloride due to its high solubility does not work appropriately under wet conditions on roads and also its storage cost is high. The availability of substitutes such as earthbound has become a friendly option for magnesium chloride in road care work, which can hamper the growth of magnesium chloride industry.

COVID-19 Impact

The lockdown and other restrictions like social distancing, quarantining imposed by the governments in countries to prevent the spreading of COVID-19, harmed industrial productivity. Magnesium chloride is used in the construction sector in cement, wall lining and in the textile sector, it is used in stabilization for fabric dying. Hence all these sectors halted their operations due to shortage of labor, restriction on movement of people, and supplies of raw material. For instance, as per International Construction and Infrastructure Surveys, the construction and infrastructure activities across the world went down in Q1 of 2020 with China in the Asia-Pacific region having the sharpest workload contraction followed by U.S and UK. Also, as per European Union reports the production and retail sales in Q3 of 2020 for EU countries dropped by 15% & 9.4% for clothing and 7% & 9.7% for textiles. Hence such a decrease in activities in the construction and textile sector will lead to less usage of magnesium chloride, thereby harming the magnesium chloride industry.

Magnesium Chloride Market Report Coverage

The report: “Magnesium Chloride Market – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Magnesium Chloride Market

By Product Type – Anhydrous Magnesium Chloride and Hexahydrate Magnesium Chloride.
By Application – Pharmaceutical Ingredient, Building Material, Alloying Element, De-icing application, Road Stabilization, and Others.
By End User – Metallurgy, Construction (Residential, Commercial), Infrastructure (Highway roads, Street roads), Textiles, Paper, Pharmaceutical, and Others.
By Geography - North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East and Africa).

Key Takeaways

• Asia-Pacific dominates the magnesium chloride market as the region is a hub for major construction, paper, textile, and pharmaceutical industry in countries like China, India, Japan 
• The extreme winter condition faced by the North American region can create demand for magnesium chloride salt for road maintenance and de-icing, thereby providing growth opportunities for the magnesium chloride global consumption scenario industry.
• Magnesium chloride is a mobile nutrient and helps to correct magnesium deficiency in plants via foliar feeding. Hence such application will create a demand for magnesium chloride in gardening and horticulture.

Figure: Asia-Pacific Magnesium Chloride Market Revenue, 2021-2027 (US$ Million)

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Magnesium Chloride Market Segment – By Product Type

Hexahydrate magnesium chloride held the largest share in the magnesium chloride market in 2021, with a share of over 32%. These inorganic salts have high water solubility and are rich moisture absorbent, hence they have high applications in sectors like construction, paper, textiles, medicine, etc. Hexahydrate magnesium chloride is used in the construction sector during cement production and as raw material in paper and textile mills. The growing developments in these sectors have increased their production output, which will have a positive impact on the demand for hexahydrate magnesium chloride in them. For instance, in 2021 US$58 billion worth of construction projects were tendered in Saudi Arabia in June, showing a rapid acceleration in projects undertaking. As per the July 2019 report of the Indian Paper Manufacturing Association, the Indian Paper Industry grew by 7%. Moreover, as per the U.S Bureau of Economic Analysis, the output of textile manufacturing in the US in 2019 was US$18.79 billion which was 23.8% more from 2009. The increase in output in such sectors will lead to more usage of hexahydrate magnesium chloride in them, which will have a positive impact on the magnesium chloride industry.

Magnesium Chloride Market Segment – By Application

Building material held the largest share in the magnesium chloride market in 2021, with a share of over 41%. This owns to factors like the magnesium chloride-based foam concrete, tiles, building boards are used in the construction industry as an alternative to gypsum plasterboard, fiber cement, and other sheeting material. They are also used in interior-exterior applications like sheathing, wall/ceil lining, and prefabricated wall systems. The growing number of construction & infrastructure projects in various countries will have a positive impact on the usage of magnesium chloride as a building material. For instance, as per the 2021 report of the U.S Census Bureau, construction activities in the U.S increased with residential construction showing an increase of 4.1% in November. In preparation for the 2021 Expo, Dubai awarded about 47 construction contracts with a total value of US$ 3 billion. Also, in 2021, Oman’s Ministry of Housing and Urban Planning five new integrated projects that would provide 4800 housing units. Hence, the undertaking of such new projects will lead to more usage of magnesium chloride for tiles, plasterboard, and wall lining.

Magnesium Chloride Market Segment – By End User

The construction segment held the largest share in the magnesium chloride market in 2021, with a share of over 35%. Magnesium chloride is high in moisture absorption, rapid hardening, strength and also is good fire resistance. Hence due to such high features, it is used in cement production in the construction sector. The increase in the volume of construction activities has positively impacted the demand for magnesium chloride. For instance, in the December 2021 report of the European Union, building construction increased by 4.6% from last year and civil engineering by 3.3%. The Sultanate Ministry of Finance of Oman, in 2021 $3.4bn will be spent on infrastructure projects including basic facilities like hotels, resorts, etc. Also, as per October 2021 reports of Infrastructure Australia, the major infrastructure activity relating to commercial buildings, civil infrastructure, and residential will double in the next three years. Such an increase in productivity of the construction sector will lead to more usage of magnesium chloride for cement, thereby having a positive impact on the magnesium chloride industry.

Magnesium Chloride Market Segment – By Geography

Asia-Pacific held the largest share in the magnesium chloride market in 2021, with a share of over 43%. This owns to factor like the region consisting of countries like China, India, Japan that have major end-user of magnesium chloride such as construction, textile, paper, etc. with China being the largest producer of paper. The rapid development in these sectors has positively impacted the demand for magnesium chloride in them. For instance, in 2019 National Development and Reform Commission of China approved 26 infrastructure projects estimated to be completed by 2023. Also, as per the Ministry of Textiles, total cloth production in India was increased by 9% during April-Jan 2020, and cloth production in the decentralized sector was increased by 9% in 2020. Moreover, as per the National Bureau of Statistics, paper production in China increased by 8% in 2020 compared to last year. Magnesium Chloride is used in the construction sector for cement production and other interior application, in textile for dye process, and as raw material for making printing paper. Hence increase in productivity of such sectors will lead to more usage of magnesium chloride in them, which will have a positive impact on the growth of the magnesium chloride industry in the Asia-Pacific region.

Magnesium Chloride Market Drivers

Increase in construction activities

Emerging economies, rapid urbanization, and various infrastructural developments undertaken by countries have increased the scale of construction activity. For instance, in 2021 Bahrain’s Ministry of Housing launched the Salman City Expansion project in which 1382 apartments will be constructed by the second quarter of 2023. Also, as per the State Council for the People’s Republic of China, in July 2021 China has approved projects related to the development of affordable rental homes. The building board made from magnesium chloride is used in the construction sector as an alternative to plywood, fiber cement. Hence the growing volume of construction activities will lead to more usage of magnesium chloride in the construction sector, thereby having a positive impact on the magnesium chloride industry.

Growing volume of textile production

Magnesium chloride is commonly used in textile mills during fabric dyeing and its high solubility in water makes it an efficient agent to neutralize and purify the textile wastewater containing reactive dye. The increase in the volume of textile manufacturing will have a positive impact on the demand for magnesium chloride in the textile sector. For instance, as per the 2021 report of the European Union, the production of non-durable goods like clothing items increased by 2.8% in July. Also, as per the Ministry of Industry and Information Technology in 2021, the operating revenue of textile enterprises increased by US$650 billion showing a massive increase in production capacity. Such an increase in production volume will lead to more usage magnesium chloride to be used in the dying process and for treatment of textile wastewater, thereby having a positive impact on the growth of magnesium chloride market.

Magnesium Chloride Market Challenges

Availability of other substitutes

There are certain challenges regarding the use of magnesium chloride during road care work. The moisture-absorbing and water solubility abilities of magnesium chloride make it unfit to be used in rain-sensitive areas as the salt creates a slippery surface for roads with high content when it’s wet. Other environmental options like Earthbind which is a bio-based emulsion specifically formulated for dust suppression on unpaved surfaces are being considered as an effective substitute for magnesium chloride in road dust control and anti-icing work. Availability of such substitute can harm magnesium chloride market in North American region market where the countries face extreme winters.

Magnesium Chloride Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. Magnesium Chloride top 10 companies include:

1. Compass Minerals International
2. Intrepid Potash Inc.
3. Merck KGaA
4. Skyline Chemical Corporation
5. Shouguang Dingsheng Chemical Co. Ltd
6. Weifang Yuze Chemicals Co. Ltd
7. DEUSA International
8. ICL Group Ltd.
9. NikoMag
10. Nedmag B.V

Recent Developments

• In 2021, Compass Minerals acquired a minority ownership stake in FORTRESS a North American fire retardant company. Hence the 45% investment will increase Compass Minerals mineral salt supplies to FORTRESS. 
• In 2020, Merck KGaA opened its first inorganic salt production plant in Nantong, China. Hence the addition of such a new facility will enable the company to increase the global production and supply of its inorganic salt like magnesium chloride

Relevant Reports

Inorganic Salts Market - Forecast (2022 - 2027)
Report Code – CMR 0420

Magnesite Market - Global Forecast (2020 – 2025)
Report Code – CMR 79321

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