Market Overview

The global industrial salt market size is projected to grow by 40.8 million tons from 2023 to 2028, registering a CAGR of 2.3 percent, according to the latest market data. Industrial salts are of paramount importance in numerous industries, with the chemical industry being a primary beneficiary. Often referred to as the "cornerstone" of the chemical industry, these salts serve as essential raw materials in the manufacturing processes of various fundamental chemical products. Their versatility and widespread application make them indispensable in the production of an array of chemicals, including but not limited to hydrochloric acid, caustic soda, soda ash, ammonium chloride, and chlorine.

In the chemical industry, industrial salts serve as the building blocks for countless chemical reactions and processes. For instance, hydrochloric acid, a pivotal chemical compound widely utilized in diverse sectors, necessitates the use of industrial salts during its production. These salts act as a vital source of chlorine, a key component in the synthesis of hydrochloric acid. Similarly, caustic soda, another essential chemical used extensively in various industrial operations, is derived from the utilization of industrial salts.

The report presents statistical information, including market size, market share within various market segments, growth rate, and forecasts specifically tailored to the industrial salt industry. This data-driven analysis equips industry professionals with essential information to assess the current market landscape, make informed decisions, and identify growth opportunities within the sector.

Research Coverage

This report presents an in-depth analysis and segmentation of the industrial salt market, with market size forecasts extending until 2028. The market has been categorized based on product, application, and region. Furthermore, a comprehensive evaluation of key industry players has been conducted to provide valuable insights into their business profiles, product offerings, strategic approaches, partnerships, expansions, and acquisitions pertaining to the industrial salt market.

The report provides a detailed analysis of the following segments within the industrial salt market:

Product: rock salt, salt in brine, solar salt, and vacuum salt

Application: agriculture, chemicals, de-icing, pharmaceuticals, water treatment, and others

Region: North America, Europe, Asia-Pacific, MEA (Middle East and Africa), and Latin America

By product, the global industrial salt market has been segmented into rock salt, salt in brine, solar salt, and vacuum salt. Solar salt dominated the global salt market in 2022, accounting for a significant consumption volume and securing a substantial market share of 41.3%. This method of salt extraction, known as solar evaporation, is widely recognized for its cost-effectiveness compared to vacuum evaporation of brine solution and rock salt mining. The low production costs associated with solar evaporation are the primary drivers behind the market's growth.

During the forecast period, solar salt is expected to experience the fastest growth in terms of consumed volume, with a projected compound annual growth rate (CAGR) of 2.4%. This growth can be attributed to the increasing demand for solar salt, driven by its cost advantages and widespread availability.

The Asia-Pacific region is anticipated to contribute significantly to the demand for solar salt, particularly in countries such as India, Australia, and Pakistan. These countries have witnessed significant advancements in high-quality salt production, further fueling the demand for solar salt in the region. Moreover, a substantial amount of the produced salt is exported to China, Japan, and other Southeast Asian countries due to their reliance on imported salt products.

To meet the escalating demand for salt, especially in the APAC region, solar evaporation emerges as the preferred method for production due to its cost efficiency and the availability of suitable environmental conditions. Solar salt production facilities utilize vast salt pans, allowing seawater to evaporate under sunlight, thereby leaving behind crystallized salt for harvesting. This method not only minimizes energy consumption but also reduces the impact on the environment.

Based upon application, the global industrial salt market is categorized into agriculture, chemicals, de-icing, pharmaceuticals, water treatment, and others. The global chemical industry is a major consumer of industrial salt, making it a vital component in chemical manufacturing. With over 50% of chemicals relying on industrial salts for their synthesis, these salts serve as crucial raw materials in chemical processes. Additionally, industrial salts find application in the production of various commodities, including textiles, paper, pulp, glass, and water-softening chemicals.

One of the primary uses of salt in the chemical industry is in the chlor-alkali process. This process involves the electrolysis of salt brine to generate chlorine, hydrogen, and caustic soda. These chemicals serve as fundamental building blocks in the production of a wide range of products, such as insulation materials, paper, construction materials, soaps, pharmaceuticals, and aluminum.

Furthermore, the chlor-alkali process relies heavily on industrial salt, making it an indispensable raw material. The resulting caustic soda and chlorine act as essential auxiliaries in the manufacturing of countless finished goods. Industries such as automotive, consumer goods, energy, electronics, and pharmaceuticals heavily depend on industrial salt as a critical ingredient for their productions.

The versatility of industrial salt and its widespread use across multiple industries make it an invaluable resource. It not only facilitates chemical synthesis but also fuels the production of numerous everyday products that contribute to modern life. The constant demand for caustic soda, chlorine, and other salt-derived chemicals highlights the importance of industrial salt as a foundational element in various industrial sectors.

Geographically, the global industrial salt market is segmented into North America, Europe, Asia-Pacific, MEA (Middle East and Africa), and Latin America. Asia-Pacific held the largest volume share in 2022. Notably, China and India alone contributed to approximately 42% of global industrial salt consumption during the same period. The relentless growth of the chemical industry in China plays a significant role in shaping the industrial salt market landscape.

Industrial salt finds extensive usage in the Chlor-alkali industry, specifically in the production of key chemicals such as caustic soda, soda ash, and chlorine derivatives. Remarkably, East Asia, including China, witnessed around 52% of the global consumption of chlor-alkali products. This further underscores the critical role played by the Chinese chemical industry in driving the demand for top-quality industrial salts.

To meet this escalating demand, China imports approximately 25 million tons of high-quality salt from countries like Australia, Mexico, India, and Chile. These countries serve as major suppliers, ensuring a steady supply of industrial salt to support China's thriving chemical industry. The import of such large quantities highlights the significance of these external sources in meeting the growing demand within China.

Competitive Landscape

The global industrial salt market is highly competitive. The industrial salt market is dominated by key players, which are American Rock Salt Company LLC, Amra Salt Factory, Archean Chemical Industries Ltd., Cargill Incorporated, China Salt Industry Group Co. Ltd., CIECH S.A., Compass Minerals International Inc., Dominion Salt Limited, Donald Brown Group of Companies, Exportadora de Sal S.A. de C.V., Groupe Salins, ICL Group Ltd., INEOS Group Limited, Irish Salt Mining & Exploration Co. Ltd., K+S AG, Mitsui & Co. Ltd., Nobian Industrial Chemicals B.V., Rio Tinto Limited, Stone Canyon Industries Holdings Inc., Swiss Salt Works AG, SWS AG, Tata Chemicals Ltd., Wacker Chemie AG, Wilson Salt Limited, Zoutman N.V. These companies play a significant role in driving market growth through their active contributions in innovation and product development within the industrial salt industry.

Industrial Salts Industry Developments

▸ Tata Chemicals Ltd announced the acquisition of the industrial salt business of the Archean Group on August 2, 2019. The acquisition was valued at approximately INR 1,040 crores (around USD 145 million). The acquired unit of the Archean Group was engaged in the production and distribution of industrial salt for various sectors, including the chemical industry, pharmaceuticals, textiles, and water treatment.

▸ On 1 October 2021, Nobian announced the completion of the divestment of its Salt Specialties business. The announcement follows on the agreement signed on 14 February 2021 with the Salins Group, an international salt company headquartered in France.

▸ Nouryon is renaming its wholly-owned industrial chemicals business to Nobian, in support of its global growth and branding strategies. This branding change will allow Nobian to develop its integrated European value chain for essential base chemicals under its own name and brand while Nouryon will continue to focus on growing its leading position in global specialty chemicals.

▸ Stone Canyon Industries Holdings LLC announced that it has closed the previously announced acquisition of the business of Kissner Group Holdings LP, a leading pure-play producer and supplier of salt in North America, for a purchase price of $2.0 billion.

▸ K+S Aktiengesellschaft signed a contract to sell its Americas salt business bundled together as the Americas Operating Unit to Stone Canyon Industries Holdings LLC, Mark Demetree and affiliates. The sales price (enterprise value) amounts to USD 3.2 billion and represents 12.5 times the 2019 EBITDA of USD 257 million. The closing of the transaction is expected to occur in summer 2021, subject to customary closing conditions, including approvals from regulatory authorities.

Key Questions Answered

What is the projected global market size of industrial salt by 2028

Which product segment generates the highest revenue

In the industrial salt market, which application segment attains the foremost position

Which region segment generates the most substantial revenue

Who are the key players with the largest market share in the industrial salt market

What is the estimated global market size for the industrial salt market in 2023

What are the main factors driving the growth of the industrial salt market

What is the expected incremental growth of the industrial salt market during the forecast period