Key Market Overview:
Zinc Chloride Market size was valued at USD 341.10 Million in 2022, registering a CAGR of 3.5% during the forecast period (2023-2030), and the market is projected to reach USD 465.10 Million by 2030.
Zinc Chloride (ZnCl₂) is an inorganic chemical compound, either white in color or colorless, formed by heating zinc sulfate and calcium chloride together. The compound is soluble in different mediums, such as water, alcohol, glycerol, and ether. In addition, properties such as high solubility, low melting point, high viscosity, relatively low electrical conductivity, and others make zinc chloride ideal for use in various end use industries.
Zinc chloride is used in a variety of industrial applications including zinc-carbon batteries as an electrolyte in fluxes for galvanizing, brazing and tinning. In the petrochemical industry, ZnCl2 acts as an excellent emulsion breaker, separates oil from water. Further, in wastewater treatment facilities, the compound is used as an odour controller. Zinc Chloride is widely employed in the chemical industry for the production of other industrial intermediate chemicals.
Zinc Chloride Report Coverage:
Growing application of zinc chloride in wastewater treatment processes is propelling the market growth.
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||465.10 Million|
|CAGR (2023-2030)||3.5 %|
|By Grade||High Purity Grade, Battery Grade, Technical Grade, and Commercial Grade|
|By Form||Powder and Liquid|
|By Application||Water Treatment, Catalyst, Fingerprint Detection, Alkyl Chlorides, Antiseptic & Deodorants, Rubber Vulcanization, Cell Batteries, Glue, Wood Preservatives, and Others|
|By End Use Industry||Electronics, Chemical, Cosmetics & Personal Care, Textile, Rubber, Paper & Packaging, Wood Industry, and Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Zaclon LLC, America Elements, TIB Chemicals AG, Global Chemicals Co. Ltd., SA Lipmes, Weifang Dongfangsheng Chemical Co., Ltd., Dongtai Coastal Zinc Industry Group Co., Ltd., Flaurea Chemicals, Pan-Continental Chemical Co., Ltd., and Merck KGaA|
Zinc chloride is widely employed as a catalyst and dehydrating agent in wastewater treatment plants to remove the high concentration of metals and acids from water. The growing demand for water in residential, commercial, and industrial purposes is a major factor driving the water treatment industry. For instance, according to the report by Statista, the global water & wastewater treatment market was estimated to be around USD 281.75 billion in 2021 and is projected to reach USD 489 billion by 2029 at a CAGR of 7.1%. In addition, the rapidly increasing industrialization and population have accelerated the need for wastewater treatment, in turn, creating an optimistic growth prospect for the zinc chloride market.
Stringent government regulations related to the use of zinc chloride is likely to deter market growth.
Zinc chloride has a wide scope of industrial applications such as galvanizing, herbicide, emulsion breaker, electrolyte, condensing agent, and textile processing, among others. However, ZnCl2 is hazardous to living organisms and prolonged exposure to the compound is likely to cause harm. For instance, various regulatory bodies, such as, Occupational Safety and Health Administration (OSHA) and National Institute for Occupational Safety and Health (NIOSH) have included zinc chloride in the hazardous substance list. Moreover, the growing awareness of the regulations for industrial applications along with the availability of safer alternatives may hamper the demand for zinc chloride during the forecast period.
Rising research and development activities for applications of zinc chloride is projected to fuel market growth.
Zinc-chloride batteries are presently under development at Energy Development Associates (EDA) for electric-vehicle, load-leveling, and specialty applications. The key factor driving the demand is the use of zinc chloride as an electrolyte in dry cell batteries. In addition, the sales of electric vehicles have increased tremendously as countries are adopting stricter CO2 emission standards and are moving towards zero-emissions vehicle mandates. For instance, according to the report published by Statista, compared to 2020, the sales of new electric vehicles more than doubled in 2021 with an increase of 108% from the previous year. In addition, electric vehicles market unit sales are expected to reach 16.21 million by the year 2027. Therefore, the aforementioned factors are projected to boost the demand for zinc chloride during the forecast period.
Zinc Chloride Market Segmentation:
On the basis of grade, zinc chloride is segmented into high purity grade, battery grade, technical grade, and commercial grade. The high purity grade segment accounted for the largest market share in 2022. The compound is extensively used for zinc galvanizing, medicine intermediates, pesticide intermediates, coal washing, among others. For instance, American Elements, headquartered in U.S., specializes in manufacturing high purity and ultra-high purity materials for advanced applications. Hence, the wide scope of applications in various end use industries such as chemical, textile, oil and gas, and others is projected to create lucrative opportunities for key players operating in the zinc chloride market.
However, the battery grade segment is projected to grow at the fastest CAGR during the forecast period. Battery grade zinc chloride is majorly used in the manufacturing of dry cell batteries. Weifang Hengfeng Zinc Industry, headquartered in China, produces battery grade zinc chloride tested according to the department standard HG/T2323-2019. For instance, according to the report published by Statista, the electric vehicle battery market is expected to grow to almost 94 billion U.S. dollars worldwide by 2026. Thus, the increasing consumption of batteries from consumer electronics, automotive, and industrial power backup will aid to boost the demand for zinc chloride during the forecast period.
On the basis of form, zinc chloride is segmented into powder and liquid. In 2022, the powder segment accounted for the largest market share and is also expected to grow at the fastest CAGR over the forecast period. This is attributed to the high purity attainted from the crystallized form as compared to solution. Zinc chloride in powder form is widely employed in dry cell manufacturing groups, multinational chemical companies, galvanizing industries, among others. For instance, according to the European Chemical Industry Council, global chemical sales increased by 15.2% from USD 3,858.68 billion in 2020 to USD 4,446.21 billion in 2021. As a result, the growing chemical industry is another factor positively impacting the adoption of zinc chloride over the forecast period.
On the basis of application, zinc chloride is segmented into water treatment, catalyst, fingerprint detection, alkyl chlorides, antiseptic & deodorants, rubber vulcanization, cell batteries, glue, wood preservatives, and others. The catalyst segment accounted for the highest market share in the zinc chloride market. Zinc chloride solution is majorly used as a catalyst for the production of vanillin, rabbit ear-grass aldehyde, anti-inflammatory and analgesic drugs, that are used in the pharmaceutical industry. Hence, the rapidly expanding pharmaceutical industry is one of the key factors, bolstering the demand for zinc chloride.
Moreover, the cell batteries segment is projected to grow at the fastest CAGR during the forecast period. Zinc chloride is widely employed in cell batteries to provide consistent voltage output in high drain applications. Furthermore, zinc chloride batteries are an improved version of the traditional zinc-carbon cells, as they have a longer life and a steadier voltage output. Owing to the improved shelf life and leak resistance, the demand for zinc chloride batteries has grown significantly, in turn, creating an optimistic growth prospect for the market in the following years.
By End-Use Industry
On the basis of end-use industry, zinc chloride is segmented into electronics, chemical, cosmetics & personal care, textile, rubber, paper & packaging, wood industry, and others. In 2022, the chemical segment accounted for the highest market share owing to the wide scope of applications including galvanizing, soldering, and tinning fluxes, odor control, vulcanized fibre, and textile finishing. In addition, the substance is also used in the synthesis of organic products in the laboratories.
Furthermore, the textile segment is anticipated to grow at the fastest CAGR over the forecast period. Zinc chloride solution is used to dissolve silk, cellulose and starch. In addition, the solution is also used as fire proofing agents, fabric refreshers, and to improve the adhesion of fibers. For instance, according to the report published by Statista, in 2020, synthetic fibers accounted for approximately 62% of the global fiber production. Thus, the aforementioned factors are noteworthy factors determining an expected increase in the zinc chloride market.
By region, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. In 2022, the Asia-Pacific accounted for the largest market share in the zinc chloride market due to the prevalence of top textile manufacturing and exporting countries such as China and India. For instance, according to the statistics published by India Brand Equity Foundation, the Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach USD 190 billion by 2025. Moreover, the rising government initiation and policies implemented to cater employment in the rural textile industry is another influencing factor propelling the market growth in the region.
Furthermore, the North America region is expected to register the highest CAGR over the forecast period. This is attributed to the presence of established key players such as Zaclon LLC, American Elements, among others is likely to boost the revenues of the zinc chloride market. Additionally, the increasing use of zinc chloride in various applications such as rubber, wood, antiseptic & deodorants, wastewater treatment and others are likely to create lucrative opportunities for the key players operating in the zinc chloride market.
Zinc Chloride Market Competitive Landscape:
The zinc chloride market is highly competitive comprising numerous players operating in the industry. These players are constantly engaged in product development, innovation, and strategic partnerships and collaborations to expand their market presence. In addition, companies operating in the zinc chloride market are also focused on expanding their presence through mergers and acquisitions, joint ventures, and strategic partnerships. This allows them to increase their market share and gain a competitive edge in the market. The following are the major key players operating in the Zinc Chloride Market:
• Zaclon LLC
• American Elements
• TIB Chemicals AG
• Global Chemicals Co. Ltd.
• SA Lipmes
• Weifang Dongfangsheng Chemical Co., Ltd.
• Dongtai Coastal Zinc Industry Group Co., Ltd.
• Flaurea Chemicals
• Pan-Continental Chemical Co., Ltd.
• Merck KGaA
• Weifang Hengfeng Zinc Industry