Market Overview/Outlook (2022 to 2030)
The global industrial salt market was valued at USD 14.53 Billion in 2022 and is projected to reach USD 19.21 Billion by 2030, registering a CAGR of 3.3% for the forecast period 2023-2030.
Market Definition
Industrial salts are defined as sodium chloride manufactured industrially through extraction from rock salt or sea water. It finds usage in applications such as chemical processing, water treatment, de-icing, agriculture, and oil & gas. Industrial salts are used as raw materials for production of different chemicals. In the oil industry, salt is used to increase the density of mud and soil, which creates a more safe and efficient drilling rig. Although salt may not be used extensively in off-shore drilling, enormous amounts of salt are required to facilitate drilling on land.
Pharmaceutical companies also use salt in the process of making capsules, as well as the production of saline solutions, which have widespread secondary uses. Saline solutions are not only useful for contact solution, but also for intravenous formulas. Salt use by the medical and pharmaceutical companies accounts for a large percentage of the total national industrial salt usage. The majority of the world’s industrial salt is used to deice roads and to create a safer driving surface, not only for the public, but for government use as well. 60%-80% of globally mined salt is used to improve the safety of public transit in one capacity or another, but usually to decrease the freezing point of snow and ice. Furthermore, salt is a crucial ingredient in the food industry, used for flavoring, preserving, and enhancing the texture of various food products. As the global population grows and consumer demand for processed foods continues, the demand for industrial salt in food processing also rises.
Market Size:
The global industrial salt market was valued at USD 14.53 Billion in 2022 and is projected to reach USD 19.21 Billion by 2030, registering a CAGR of 3.3% for the forecast period 2023-2030.
Market Definition
Industrial salts are defined as sodium chloride manufactured industrially through extraction from rock salt or sea water. It finds usage in applications such as chemical processing, water treatment, de-icing, agriculture, and oil & gas. Industrial salts are used as raw materials for production of different chemicals. In the oil industry, salt is used to increase the density of mud and soil, which creates a more safe and efficient drilling rig. Although salt may not be used extensively in off-shore drilling, enormous amounts of salt are required to facilitate drilling on land.
Pharmaceutical companies also use salt in the process of making capsules, as well as the production of saline solutions, which have widespread secondary uses. Saline solutions are not only useful for contact solution, but also for intravenous formulas. Salt use by the medical and pharmaceutical companies accounts for a large percentage of the total national industrial salt usage. The majority of the world’s industrial salt is used to deice roads and to create a safer driving surface, not only for the public, but for government use as well. 60%-80% of globally mined salt is used to improve the safety of public transit in one capacity or another, but usually to decrease the freezing point of snow and ice. Furthermore, salt is a crucial ingredient in the food industry, used for flavoring, preserving, and enhancing the texture of various food products. As the global population grows and consumer demand for processed foods continues, the demand for industrial salt in food processing also rises.
Market Size:
- 2022: USD 14.5 Billion
- 2030: USD 19.21 Billion
- CAGR (2023-2030): 3.3%
Industrial Salt Market Dynamics
Drivers Propelling the Demand for Industrial Salt include:
Increasing demand for chemical industry surging the market growth of the industrial salt:
Increasing demand for chemical industry surging the market growth of the industrial salt. Salt is a fundamental raw material in the chemical industry. It is used in the production of various chemicals, including chlorine, sodium hydroxide, and many others. The chemical industry relies on salt for the electrolysis process, which is crucial for manufacturing these chemicals. As industries and economies expand, there is an inherent increase in the demand for chemical products, leading to higher salt consumption. As the global economy grows, so demand for chemical products is increasing. The chemical industry provides essential raw materials and products for various sectors, including manufacturing, agriculture, construction, and healthcare.
Economic growth in both developed and emerging markets leads to increased consumption of chemicals. Rapid urbanization and infrastructure development, especially in emerging economies, require a wide range of chemicals for construction materials, paints, coatings, and other applications. The construction industry is a significant consumer of chemical products. For instance, the construction industry grew to a spending value of close to 12 trillion U.S. dollars before the pandemic. The United States has one of the largest construction industries in the world, with their total value of new construction having grown since the global recession. Thus, the growing construction industry is the major factor that the demand for the industrial salt.
February 2021, Tata Chemicals Ltd., an Indian Global company that manufactures alkali products, and other chemical-based products announced its plans to acquire the salt unit of the Archean’s Group. The acquisition is expected to lead to an increase in the share of the company with the support of Archean’s Group, which is expected to constitute a high growth during the forecast period.
Restraint
Excessive salt consumption may cause the adverse health effects
Excessive salt consumption can have adverse health effects, including hypertension and cardiovascular problems. This has led to health campaigns and initiatives promoting reduced salt intake. These efforts may lead to reduced demand for salt in some applications, particularly in the food industry. It can also cause calcium losses, some of which may be pulled from bone. An estimated 1.89 million deaths each year are associated with consuming too much sodium, a well-established cause of raised blood pressure and increased risk of cardiovascular disease. Reducing sodium intake is one of the most cost-effective ways to improve health and reduce the burden of noncommunicable diseases, as it can avert a large number of cardiovascular events and deaths at very low total programme costs. This is somehow restraining the growth of the global industrial salt market.
Challenges
Environmental concerns regarding its production process and its disposal can have adverse effects on ecosystems and natural resources
Environmental concerns in the industrial salt market pose significant challenges, as the salt production process and its disposal can have adverse effects on ecosystems and natural resources. As a result, terrestrial and aquatic plants and animals can be negatively affected. Elevated salt levels in the soil can harm plant life and reduce soil fertility, impacting agriculture and natural ecosystems. Salt mining operations and the storage of salt piles can potentially contaminate groundwater sources. High salt concentrations in groundwater can make it unsuitable for drinking or agricultural use, and remediation can be costly. Addressing these environmental challenges may impede the growth of the global market.
Opportunities
Increasing need for salt in food industries provide opportunities for growth of the market:
Salt is one of the most widely used additives in food industries because of its low cost and varied properties. It has a preservative and antimicrobial effect as a direct consequence of the capacity of sodium chloride to reduce water activity values. In addition, sodium chloride is a flavour enhancer as a consequence of its effect on different biochemical mechanisms. It also has flavour enhancing effects from reducing or enhancing the enzymatic activity of some enzymes responsible for the development of different organoleptic parameters. Trends in sodium chloride use in food industries point to salt replacement or reduction by means of the use of sodium chloride substitutes such as KCl or phosphates; flavour enhancers and the optimisation of the physical form of salt.
Furthermore, salt brings out natural flavors and makes foods acceptable, protects food safety by retarding the growth of spoilage microorganisms, gives proper texture to processed foods, serves as a control agent to regulate the rate of fermentation in food processing, strengthens gluten in bread, provides the color, aroma and appearance consumers expect and is used to create the gel necessary to process meats and sausages. As a result, more heavily processed foods usually contain more sodium and salt. This will provide the opportunity for the growth of the global market.
Snapshot
| Attributes | Details |
| Market Size in 2022 | USD 14.53 Billio |
| Market Forecast in 2030 | USD 19.21 Billio |
| Compound Annual Growth Rate (CAGR) | 3.3 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Source, By Manufacturing Process, By Application and By Geography |
| By Source |
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| By Manufacturing Process |
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| By Application |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018-2022 |
| Forecast Year | 2023-2030 |
Segment Analysis of the Industrial Salt Market
The industrial salt market is segmented by production source, Manufacturing Process, application, and region.
By Source
Rock salt segment held the largest market share in 2022:
Rock salt dominated the industrial salt market in 2022. Rock salt is the mineral form of sodium chloride, otherwise identified as table salt or referred to as halite, when used industrially. There are various types and grades of salt. Therefore, it’s always a good idea to have a basic understanding of how rock salt originates. Like gasoline and natural gas, rock salt is also an important natural resource that exists on the earth. The rock salt is available in massive amounts, and all levels of purity are useful for one industry or another. Rock salt is often found in places where there was once an inland lake that would have been dried up and covered by thousands of years of sedimentation and geological formations. Rock salt is also used to change the properties of water or other materials used in manufacturing. These factors contribute to the growth of the global industrial salt market.
By Application
The industrial salt market is segmented into chemical processing, de-icing, water treatment, oil & gas, agriculture, and food processing. The chemical processing segment held the largest revenue marker share in 2022. This is due the chemical industry is by far the largest consumer of salt. Its compounds make salt one of the most important materials in the industry as it is used for the chemical synthesis of more than 50% of chemical products. It is also used in the manufacturing of thousands of other commodities such as glass, paper, rubber, and textiles as well as in water softening systems for industry and domestic use. Salt is an essential raw material for the production of chlorine and caustic soda performed through the electrolysis of salt brine. Thus, the demand for chemical processing is increasing the growth of the global market.
Regional Analysis
Asia Pacific occupied the largest market share in 2022:
Asia-Pacific dominates the industrial salts market in terms of market share. This is due to the rapid urbanization and industrialization in countries within this region are key factors driving market growth. Increased public awareness of health and hygiene, particularly in residential areas, has fueled the demand for laundry and disinfection products. With a substantial population, there is a heightened need for food products, leading to increased use of agrochemicals like pesticides and herbicides to enhance crop production. Government investments and public access to construction projects have boosted demand for PVCs, where industrial salts serve as essential raw materials.
Additionally, China, the world's largest salt producer, accounts for a significant 22.48% share and continues to experience rapid growth. In 2020, China's total salt production exceeded 67.01 million metric tons. India holds the third position globally, contributing 8.8% to the total global salt production capacity. Within India, Gujarat stands out, providing 76% of the nation's salt requirements. The presence of developing countries in the region, coupled with increased investments in the chemical industries, has heightened the demand for industrial salts. Furthermore, the region's need for everyday consumer products and salt for the food industry presents abundant growth opportunities for the market.
Segmentation Analysis of the Industrial Salt Market
By Source
- Rock Salt
- Natural Brine
By Manufacturing Process
- Conventional Mining
- Vacuum Evaporation
- Solar Evaporation
By Application
- Chemical processing
- De-Icing
- Water treatment
- Oil & gas
- Agriculture
- Food processing
List of the prominent players in the Industrial Salt Market:
Impact of the COVID-19 Pandemic on the Industrial Salt Market:
COVID-19 pandemic disrupted supply chains worldwide, affecting the production and distribution of industrial salt. Lockdowns, labor shortages, and transportation restrictions led to delays and supply chain bottlenecks. Many salt production facilities faced operational challenges due to workforce limitations, social distancing requirements, and health and safety measures, leading to manufacturing delays.
The post-pandemic era has witnessed increased investment in infrastructure projects, which has driven the demand for industrial salt in applications like road de-icing and construction materials. As economies have gradually reopened, various industrial sectors, including manufacturing, construction, and oil and gas, have rebounded. This has led to increased demand for industrial salt in applications such as chemical processing, de-icing, and water treatment.
- Cargill, Inc.
- Compass Minerals America Inc.
- China National Salt Industry Co.
- Dominion Salt Ltd.
- INEOS
- K+SAG
- Mitsui 7 Co. Ltd.
- Nouryon
- Rio Tinto Group
- Tata Chemical Ltd.
Impact of the COVID-19 Pandemic on the Industrial Salt Market:
COVID-19 pandemic disrupted supply chains worldwide, affecting the production and distribution of industrial salt. Lockdowns, labor shortages, and transportation restrictions led to delays and supply chain bottlenecks. Many salt production facilities faced operational challenges due to workforce limitations, social distancing requirements, and health and safety measures, leading to manufacturing delays.
The post-pandemic era has witnessed increased investment in infrastructure projects, which has driven the demand for industrial salt in applications like road de-icing and construction materials. As economies have gradually reopened, various industrial sectors, including manufacturing, construction, and oil and gas, have rebounded. This has led to increased demand for industrial salt in applications such as chemical processing, de-icing, and water treatment.
