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Latin America Soda Ash Market- Forecast (2021-2026)

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  • 148 Pages
  • December 2020
  • Region: Latin America
  • IndustryARC
  • ID: 5308979

Latin America Soda Ash Market Overview

Latin America Soda Ash Market size is forecast to reach $1,351.5 million by 2026, after growing at a CAGR of 5.3% during 2021-2026. Growth of the Latin America soda ash market is mainly attributed to its wide-ranging applications across chemical, soaps & detergent, water treatment, and various other end-user industries. Increasing usage of soda ash in the manufacturing process of various glass and glass products is anticipated to raise the growth of the market. Additionally, the rising demand for light, medium, and dense grade soda ash due to its alluring properties from various end use sectors will also drive the market growth. Furthermore, the broader use of naturally available raw materials, i.e., Trona, due to their low-cost advantages, will upsurge the Latin America soda ash industry over the forecast period.

Impact of Covid-19

The rapid surge of coronavirus has had a huge effect on Latin American markets as large markets had been locked-up mode in 2020. Because of this major lockdown, the consumer market has started to show zero interest in purchasing soda ash materials. The shutdown of all forms of domestic transport within countries is one of the major difficulties faced by the industry. Also, the temporary shutdown of large sections such as the construction and automotive industries in several countries due to increasing COVID-19 cases among people working in manufacturing sites and to tame the spread of COVID-19 in the Latin America region has significantly dropped the soda ash market growth.

Report Coverage

The report “Latin America Soda Ash Market- Forecast (2021-2026)” covers an in-depth analysis of the following segments of the Latin America soda ash market.

By Source: Natural (Trona) and Synthetic {Limestone, Salt (brine), Others (Ammonia, Carbon Dioxide, etc.)}

By Process: Solvay, Leblanc, Trona Based, and Others.

By Type: Light Sodium Carbonate, Granular Soda Ash, and Refined Sodium Hydrogen Carbon.

By Grade: Light, Medium, and Dense.

By Application: Glass (Flat Glass, Container Glass, and Other Glass), Cleaning Products (Detergent and Soaps), Food & Feed (Food and Nutrition and Animal Nutrition), Metallurgy (Non-ferrous & Ferrous Ores, Recycling of Aluminum & Zinc, and Others), Adhesives & Sealants, Paper & Pulp, Oil & Gas, Water Treatment, Pharma & Medical, Coatings, Agriculture, Cosmetics & Personal Care, Solvents & Lubricants, and Others.

By Country: Mexico, Brazil, Argentina, Colombia, Chile, and Rest of Latin America.

Key Takeaways

  • Mexico dominated the Latin America soda ash market due to the rising construction activities in this country. Since soda ash acts as the most common material of choice in the construction industry to increase the efficiency of products, there can be seen a potential growth in the market.
  • Increasing use of soda ash in the soap & detergent industry, in Latin America, due to the continuous improvement of health & hygiene standards, will also drive the soda ash market growth during the forecast period.
  • Further, the fluctuating prices of soda ash in global markets will hinder the growth of the market, as the region is highly dependent on soda ash imports due to less production.

Latin America Soda Ash Market Segment Analysis - By Source

Natural (Trona) held the largest share in the Latin America soda ash market in 2020 and is expected to rise at the highest revenue CAGR of 5.8% during 2021-2026. Natural Soda Ash is produced by mining naturally occurring Trona ore and is then processed via a simple process of filtering, concentration, crystallization and drying into Soda Ash. In the glass and ceramics, chemical manufacturing, cleaning and bleaching, and metallurgy industries, natural soda ash plays a critical role. The cost of producing and processing soda ash from trona is more cost-competitive than other production techniques, partly because the cost of sourcing the materials needed for synthetic production is greater than the cost of producing trona for trona-based production. Natural soda ash is preferable to synthetic types because, it has no harmful environmental effects, its production is purer and requires less energy. Thus, owing to these advantages of natural soda ash over synthetic one, the demand for natural (trona) soda ash is on an upsurge during the forecast period.

Latin America Soda Ash Market Segment Analysis - By Process

Trona process held the largest share of 73.5% in the Latin America soda ash market in 2020. Trona is a combination of sodium carbonate, sodium bicarbonate, and water, and is the richest and most regularly utilized form of soda ash. Now mined from the trona deposits, soda ash is one of the most available natural products in Latin America. Trona (sodium sesquicarbonate Na2CO3 NaHCO3 2H2O) is extracted by mining solution and is a safe and environmentally sustainable mining method used for the production of soda ash. The trona solution, i.e., the brine undergoing a monohydrate phase, can be converted into Dense Soda Ash and Sodium Bicarbonate products. Today, the trona-based process is a widespread source of soda ash production, which is a significant economic commodity due to its mass usage in the manufacture of detergents, paper, chemicals, glass, and textiles.

Latin America Soda Ash Market Segment Analysis - By Type

Granular soda ash held the largest share in 2020 and is estimated to grow at the revenue CAGR of 5.3% during the forecast period. Granular soda ash, free from dirt and other foreign matter, is a white, odorless, uniform product. It has a tendency to absorb atmospheric moisture. The granular sodium carbonate is obtained by hydrating the monohydrate (Na2CO3. H2O) with light sodium carbonate and then dehydrating it to give an increased crystal size and density of the product. These crystals have a particle size similar to that of sand so that the two make a homogeneous mixture which is important for glass making, which is the major end-use for granular soda ash. Granular soda ash is being used in the steel industry for the removal of sulphur from iron ore in blast furnaces. It also imparts slag fluidity, thus ensuring smoother and continuous operation of the blast furnace.

Latin America Soda Ash Market Segment Analysis - By Grade

Dense soda ash held the largest share of 74.6% in the Latin America soda ash market in 2020. Dense soda ash is produced from the Trona based process with ‘environmentally friendly’ methods. It is a white powder that is used in many industries, including aerospace, glass, pulp and paper, and detergents. The production of natural dense soda ash requires much less energy and much less water when compared to synthetic soda ash production. Dense soda ash is usually favored over light soda ash in the processing of glass because the particles are equal in size to silica sand. This allows a homogeneous mixture of raw materials which results in a high-quality finished product. It is preferred for all kinds of glass manufacture like flat glass, float glass, container glass, and others. Thus, the increasing demand of dense soda ash in various applications would drive the market for Latin America soda ash in the forecast period.

Latin America Soda Ash Market Segment Analysis - By Application

Glass sector held the largest share with 59.0% in the Latin America soda ash market in 2020 and is estimated to rise at a CAGR of 5.8% in terms of revenue during the forecast period 2021-2026. Soda ash is used as a key ingredient in manufacturing glass, as it reduces melting temperatures and its alkali feature effectively supports the shaping of the glass item. With the result of increased glass demand in the LATAM market, many glass manufacturing companies have expanded their production capabilities and increased the product offering. Further, rising per capita glass consumption will also influence the domestic manufacturers to increase production which results in the rising soda ash demand. Therefore, with the rising glass sector, the growth for Latin America soda ash market is anticipated to rise in the forecast period.

Latin America Soda Ash Market Segment Analysis - By Country

Mexico dominated the market in terms of revenue with a share of 36.7% in 2020 and is projected to dominate its leading position during the forecast period. Mexico is one of the major economies in the Latin American region with a diverse range of end use industries including construction, chemicals, personal care, and food & beverages. The rising glass, cleaning products, and increased metallurgy industry usage are the major driving forces contributing to the increased demand for soda ash in Mexico. Mexico produces very less amount of soda ash which only fulfils its domestic demand by about 10% only; the rest of the demand is met by the import. The US is the largest exporter of soda ash to Mexico with more than 70% of share in import. Thus, growing demand for Latin America soda ash from various end use industries in this region will further drive the market growth in the forecast period.

Latin America Soda Ash Market Drivers

Rapid Growth in the Building and Construction Sector Boosts the Demand for Glass Products and Drives the Demand for Soda Ash

With the rising construction of new houses and buildings, the need for glass windows and insulation is also intensifying. After being mined and refined, high quality soda ash is used to produce two essential things required for the construction of each building- fiberglass insulation and flat glass (glass panels, windows, and doors) with superior properties. The industry is constantly developing new and revolutionary glass innovations that deliver substantial and attractive performance advantages over older models, which will continue to push the trend of replacing the installed glass stock with high-performance products, thereby boosting demand for Latin America's soda ash market. Flourishing construction industry in various countries of Latin America region will drive the market growth in the forecast period. According to International Trade Administration (ITA), Mexico's construction industry is gradually shifted towards more private sector involvement. In 2019, the private construction increased by 2.1 percent. Thus, with the rising building and construction industries in Latin America, the market for Latin America soda ash is estimated to grow in the forecast period.

Increasing Demand for Soda Ash from Soaps and Detergents Industry is Driving the Market Growth

Soda ash is used in a slew of laundry and cleaning compound formulations to improve cleaning properties: as a builder to emulsify oil stains, to provide alkalinity for cleaning, to reduce the deposit of dirt during washing and rinsing, and to soften laundry water. In comparison, sodium ash is a part of sodium tripolyphosphate (STPP), another major component in detergent formulations. Typically, medium dense or lighter grades of soda ash are used in detergents. The products serve as builders in the formulation of soaps, detergents and other washing compounds, preparing wash water to reach an optimum degree of soil removal. Soda ash also profits by assisting agglomeration, being a carrier for surfactants and an alkali supply for pH change as well. Therefore, rising demand for soda ash due to its alluring properties from soaps and detergents industry is projected to fuel the market for Latin America soda ash market during the forecast period.

Latin America Soda Ash Market Challenges

Price Volatility Can Hinder the Market Growth

Every industry in Latin America from supermarkets to white goods, construction, and automobiles have an adverse effect with the fluctuations in the soda ash prices. Production of soda ash is very less in this region. So, it has to be dependent on other countries for import of soda ash in bulk amount. Any change in the price in international market is estimated to hinder the growth of the Latin America soda ash market. According to the trade map ITC, Mexico and Brazil are the major importers of disodium carbonate (soda ash). The import value in 2019 for Mexico was 352,353 Thousand USD Dollar whereas the value in 2018 was 338,142 Thousand USD Dollar. Similarly, for Brazil, the import value in 2019 was 299,872 Thousand USD Dollar and in 2018 the value was 277,868 Thousand USD Dollar. Thus volatility in the price of soda ash in global markets can hinder the Latin America soda ash market growth.

Latin America Soda Ash Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Latin America soda ash market. Major players in the Latin America soda ash market are Solvay S.A., DECCO LATAM, Vikudha Overseas Corporation Ltd., Tata Chemicals Limited, Ciner Resources Corporation, CIECH S.A., Minerals Technologies Inc., Genesis Energy LP, Vitro, and Innova Corporate among others.

Table of Contents

1. Latin America Soda Ash Market- Market Overview
1.1 Definitions and Scope
2. Latin America Soda Ash Market- Executive Summary
2.1 Key Trends by Source
2.2 Key Trends by Process
2.3 Key Trends by Type
2.4 Key Trends by Grade
2.5 Key Trends by Application
2.6 Key Trends by Country
3. Latin America Soda Ash Market- Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Latin America Soda Ash Market- Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Porters Five Force Model
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Powers of Buyers
4.3.3 Threat of New Entrants
4.3.4 Competitive Rivalry
4.3.5 Threat of Substitutes
5. Latin America Soda Ash Market - Strategic Analysis
5.1 Value/supply Chain Analysis
5.2 Opportunity Analysis
5.3 Product/Market Life Cycle
5.4 Distributor Analysis - Major Companies
6. Latin America Soda Ash Market- By Source (Market Size -$Million, KT)
6.1 Natural (Trona)
6.2 Synthetic
6.1.1 Limestone
6.1.2 Salt (brine)
6.1.3 Others (Ammonia, Carbon Dioxide, and Others)
7. Latin America Soda Ash Market- By Process (Market Size -$Million, KT)
7.1 Solvay
7.2 Leblanc
7.3 Trona Based
7.4 Others
8. Latin America Soda Ash Market- By Type (Market Size -$Million, KT)
8.1 Light Sodium Carbonate
8.2 Granular Soda Ash
8.3 Refined Sodium Hydrogen Carbon
9. Latin America Soda Ash Market- By Grade (Market Size -$Million, KT)
9.1 Light
9.2 Medium
9.3 Dense
10. Latin America Soda Ash Market - By Application (Market Size -$Million, KT)
10.1 Glass
10.1.1 Flat Glass
10.1.2 Container Glass
10.1.3 Other Glass
10.2 Cleaning Products
10.2.1 Detergent
10.2.2 Soaps
10.3 Food & Feed
10.3.1 Food and Nutrition
10.3.2 Animal Nutrition
10.4 Metallurgy
10.4.1 Non-ferrous & Ferrous Ores
10.4.2 Recycling of Aluminum & Zinc
10.4.3 Others
10.5 Adhesives & Sealants
10.6 Paper & Pulp
10.7 Oil & Gas
10.8 Water Treatment
10.9 Pharma & Medical
10.10 Coatings
10.11 Agriculture
10.12 Cosmetics & Personal Care
10.11 Solvents & Lubricants
10.12 Others
11. Latin America Soda Ash Market -By Country (Market Size -$Million, KT)
11.1 Mexico
11.2 Brazil
11.3 Argentina
11.4 Colombia
11.5 Chile
11.6 Rest of Latin America
12. Latin America Soda Ash Market- Entropy
12.1 New Product Launches
12.2 M&As, Collaborations, JVs and Partnerships
13. Latin America Soda Ash Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
13.1 Solvay S.A.
13.3 Vikudha Overseas Corporation Ltd.
13.4 Tata Chemicals Limited
13.5 Ciner Resources Corporation
13.6 CIECH S.A.
13.7 Minerals Technologies Inc.
13.8 Genesis Energy LP
13.9 Vitro
13.10 Innova Corporate