Inorganic Salts Market - Forecast (2022 - 2027)

The inorganic salts market is forecasted to grow at a CAGR of 4.9% during 2022-2027 due to increasing demand from the agricultural industry. Inorganic salts are the largest group of inorganic compounds. They do not contain a carbon-hydrogen bond and can dissociate into ions. There are various types of inorganic salts such as sodium salts, magnesium salts, aluminium salts, potassium salts, calcium salts, ammonium salts, etc. Inorganic salts are essential for nutrition. They are mostly in the combination form when in food, and often dissociated into inorganic salt ions in the body fluids. Inorganic salts can be utilized in some diverse applications. The use of inorganic salts in manufacturing pharmaceutical products act as a market driver during the forecast period.

COVID-19 Impact

The pandemic has disrupted economies worldwide, impacting almost every industry. The core industries such as the agricultural and food industry too were not spared. Due to lockdowns and social distancing, hotels and restaurants had to shut leaving farmers with no buyers for their produce. Global exports were also hit hard by stringent customs regulations, transport and logistic issues, and lockdowns at the global, national, and regional levels. Many parts of the world also experienced labor shortages as workers chose to wait out the lockdowns in their homes. On the other hand, as food is an essential commodity, the demand for agricultural production increased. To meet this growing demand and make sure that the crops are not damaged, the use of fertilizers and pesticides increased. For instance, Moroccan phosphates giant, OCP, sold 11.3 million tons of finished fertilizers in 2020, up from 9 million tons in 2019. Hence, the increased use of fertilizers and pesticides impacted the inorganic salts market in 2020.

Report Coverage

The report: “Inorganic Salts Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Inorganic Salts Market.

• By Type: Sodium Salts, Magnesium Salts, Aluminium Salts, Potassium Salts, Calcium Salts, Ammonium Salts and Others
• By Grade: Food Grade, Industrial Grade, Pharmaceutical Grade, Reagent Grade and Others
• By Form: Crystals, Powder, Pellets and Others
• By Application: Fertilizers, Catalysts, Reagents, Pharmaceuticals, Food Additives, Pigments and Others
• By End-Use Industry: Agriculture (Fertilizers, Pesticides, Soil Treatment and Others), Food (Flavourants, Colour Enhancers, Rising Agents, Preservatives, and Others), Pharmaceuticals (Supplements; Therapeutics- Astringents, Antimicrobials, Antacids, and Others; Electrolytes, IV Fluids and Others), Chemical, Explosives, Paints and Coatings, Cosmetics and Personal Care (Skin Care- Sunscreen, Lotions, Creams and Others; Hair Care- Shampoos, Conditioners, Hair Colour and Others; Make Up, Personal Care- Oral Hygiene, Deodorants, Soaps, and Others), 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 (the Middle East, and Africa)

Key Takeaways

Asia-Pacific dominates the Inorganic Salts market, owing to the predominant agricultural industry in the region. According to Invest India, India’s agriculture technology can grow to $24.1 billion by 2025.

The human body weight is about 60% water, which contains various mineral salts and other elements. Sodium chloride is one of the main inorganic salts in the body fluid. An optimum level of salts in circulation is essential for good health. Hence, saline (sodium chloride) IV Infusion is used for the treatment of fluid loss and to restore sodium chloride balance.

Inorganic salts are used in various pharmaceutical products. The pandemic has helped fuel the growth of the pharmaceutical industry.

Inorganic Salts Market Segment Analysis - By Type

The sodium salts segment held the largest share of more than 25% in the inorganic salts market in 2020 due to their broad spectrum of applications across various industries. In sodium salts, sodium is the cation. Sodium chloride or common salt is the most commonly used flavor enhancer in food. Large quantities of sodium chloride are employed in the production of other industrial chemicals as well as being used directly for ice and snow removal, for water conditioning, and its use to manufacture chlorine. Pharmaceutical substances are often converted into sodium salts because they are more stable and more soluble or bioavailable. Hospitals use an intravenous sodium chloride solution (IV fluid) to supply water and salt to patients to alleviate dehydration. Sodium salts of long-chain sulfonic acids are used in shampoos and toothpaste. Sodium bicarbonate or baking soda is widely used in the food industry, as an antacid, and as a dry fire extinguisher. Sodium sulphate is used in paperboard, glass, and detergents and as a raw material for the production of various chemicals. Sodium nitrate is used as a nitrogen fertilizer and as a component of dynamic. Owing to these myriad applications, sodium salts are set to dominate the market during the forecast period.

Inorganic Salts Market Segment Analysis - By Grade

The food-grade segment held the largest share of more than 30% in the Inorganic Salts market in 2020. Sodium salts can be used as a flavour enhancer, preservative, leavening agent and reducing agent. Ammonium salts are used as leavening agents and as an aroma chemical. For instance, licorice products mainly consist of sugar, licorice extract and ammonium chloride. Potassium salts are used as reducing agents and as a preservative. Due to all these uses in the food industry, the food-grade segment is growing and is set to dominate the inorganic salts market.

Inorganic Salts Market Segment Analysis - By Form

The powder segment held the largest share of more than 40% in the Inorganic Salts market in 2020. Most of the inorganic salts are available in powder form which makes it ready to use as it is and the powder form readily dissolves in water. Inorganic salts dissociate in solutions into ions (or electrolytes). These ions are essential in different metabolic activities of the cells in the body. The ions of inorganic salts regulate nerve impulses, heart function, and muscle contractions. Inorganic salts are used in everyday life, for example, common salt (sodium chloride), baking powder (sodium bicarbonate), and calcium carbonate as a dietary source for calcium.

Inorganic Salts Market Segment Analysis - By Application

The food additives segment held the largest share in the Inorganic Salts market in 2020. Inorganic Salts are used as food additives such as stabilizers, preservatives, flavour enhancers, colour enhancers, etc. Ammonium salts are used as a food additive and yeast nutrient in the making of bread. Magnesium salts are used as flavour enhancers, firming agents, anticaking agent,s and to enhance the colour. Magnesium sulphate is used as a brewing salt in beer production to enhance enzymatic activity or promote the desired flavor profile in a beer. Sodium salts take on various roles, they act as a preservative, flavour enhancer, improve the texture and appearance and enhance the colour. Many processed foods use inorganic salts as preservatives. For instance, Sauerkraut, a traditional German dish, is one of the most common and oldest forms of preserving cabbage. It uses large amounts of salt as a preservative and is then allowed to ferment. According to e-commerce data from software firm Bloomreach, Sauerkraut sales surged 960% year-over-year in March 2020 while overall grocery sales rose just 62.5%. Hence, the usage of inorganic salts as food additives is set to dominate the market during the forecast period.

Inorganic Salts Market Segment Analysis - By End-Use Industry

The agriculture segment held the largest share in the Inorganic Salts market in 2020 and is growing at a CAGR of 4.6% during 2022-2027 due to the use of inorganic salts in augmenting the soil nutrients and thereby improving the yield. Asia is a predominantly agrarian society. Most of the world’s fruits, vegetables, and food crops come from Asia. Therefore, the agriculture industry is flourishing here. Hence, pesticides and fertilizers are required to maintain a high yield. Potassium salts are widely used to manufacture fertilizers. Of commercially produced potassium salts, almost 95% of them are used in agriculture as fertilizers. In general, ammonium salts are used as nitrogen fertilizers. Fertilizers provide the major nutrients (nitrogen, phosphorus, and potassium) that plants need. Unless the nutrients are replenished, the soil’s productive capacity declines with every harvest. As per the International Fertilizer Industry Association, China accounts for 30.0% of the global fertilizer usage. Hence, to ensure food security and increase the productivity of crops, demand for fertilizers is expected to rise which fuels the growth of the inorganic salts market.

Inorganic Salts Market Segment Analysis - By Geography

The Asia-Pacific region held the largest share in the Inorganic Salts market in 2020 up to 46%, owing to the increased usage of agrochemicals in the region. China was the world’s largest producer of nitrogen and phosphate fertilizers, 40 million tons and 110 million tons respectively, in 2019. According to FAOSTAT, China ranks first in the world in terms of the production of cereals, cotton, fruits, and vegetables. China has succeeded in producing one-fourth of the world’s grain and feeding one-fifth of the world’s population with less than 10 percent of the world's arable land. According to OECD-FAO Agricultural Outlook, China accounted for 16% of the total global wheat production, 26% of the total global rice production, and 17% of the total global roots and tubers production in 2020. This in turn has led to an increased demand for agrochemicals in the country. Another factor contributing to the growth of the inorganic salts market in this region is the presence of a large number of chemical industries. China is the world’s largest exporter of inorganic salts. Inorganic salts are used to manufacture several important chemicals. For instance, the electrolysis of aqueous sodium chloride produces sodium hypochlorite, a compound used in large quantities in household chlorine bleach. Sodium hypochlorite is also utilized as an industrial bleach for paper pulp and textiles, for chlorination of water, and in certain medicinal preparations. Hence, the inorganic salts market is set to grow steadily in this region.

Inorganic Salts Market - Drivers

High Usage of Dietary Supplements

When the pandemic hit, people were confined to their homes. In the initial stages of the contagion, infection rates soared and many people were affected by the virus, hospitals were over capacity leading to the doctors and governments asked people with mild symptoms to quarantine at home. For asymptomatic and mild cases of infection, the Center for Disease Control and Prevention (CDC) proposed using Vitamin C and Vitamin D. Vitamin D has potent antimicrobial and anti-inflammatory effects. Multiple researchers concluded that people with Vitamin D deficiency are at a risk for COVID-19. A study found that people with low levels of vitamin D had a 7.2% chance of testing positive for COVID-19. Calcium and vitamin D work together to protect bones, calcium helps build and maintain bones, while vitamin D helps the body effectively absorb calcium. Vitamin C and zinc were prescribed as it helps in reducing the duration of symptoms in patients diagnosed with coronavirus disease. According to data provided by SPINS on the U.S. mainstream dietary supplement channel, the sales of vitamin C grew 61.8% to $576 million during the 52 weeks ending November 29, 2020. Due to the pandemic, the sales of vitamins and other supplements skyrocketed thereby acting as a driver for the inorganic salts market.

Increasing Use of Antacids

Antacids are used for the relief of mild gastroesophageal reflux disease (GERD) associated with heartburn. Antacids are medications that do not require a prescription. Antacids are a combination of various compounds with various salts of calcium, magnesium, and aluminum as active ingredients. The antacids act by neutralizing the acid in the stomach and by inhibiting pepsin, an enzyme. The estimated prevalence of heartburn at least once per week in North America ranges from 18% to 28%, with 25% of adults reporting heartburn daily. Inorganic salts in particular, calcium salts, magnesium salts, and aluminium salts work as antacids. OTC antacids are used for occasional symptoms of heartburn and indigestion. Thus, the usage of inorganic salts as antacids acts as a market driver.

Inorganic Salts Market - Challenges

Hazards

Ammonium Nitrate is used as a fertilizer and explosive. Ammonium nitrate has three main hazards, toxic decomposition products, fire due to its oxidizing nature, and explosion. On August 4, 2020, one of the world’s biggest-ever, non-nuclear explosions destroyed much of Beirut’s port. The blast was caused by a fire in a warehouse which Lebanese authorities admit held a vast stockpile of ammonium nitrate for six years approximately 2,750 tons of Ammonium Nitrate. The huge explosion left more than 200 dead, and more than 6,500 injured. Previous such incidents were also reported in various parts of the world. Such factors have become the major challenge of inorganic salts which constrains the growth of the market.

Inorganic Salts Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Inorganic Salts market. Inorganic Salts market top companies include:

1. Merck KGaA
2. Thermo Fisher Scientific Inc.
3. Emerald Performance Materials
4. Lanxess
5. Eastman Chemical Company
6. LobaChemie Pvt. Ltd.
7. BEHN MEYER
8. Otsuka Chemical Co., Ltd.
9. Lenntech
10. Arkema
11. GFS Chemicals Inc.
12. Pro Chem Inc.
13. Hunter Chemical LLC.

Acquisitions/Technology Launches

In August 2021, specialty chemicals company LANXESS AG completed the acquisition of Emerald Kalama Chemical for US$1.04 billion. Following the acquisition, LANXESS said it's poised to expand its product portfolio to the consumer care sector including personal care products, cosmetics and exclusive fragrances, but also those found in food and beverages.


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