Global Hydrochloric Acid (HCL) Market - 2024-2031

Overview

Global Hydrochloric Acid (HCL) Market reached US$ 2.6 billion in 2023 and is expected to reach US$ 4.3 billion by 2031, growing with a CAGR of 6.5% during the forecast period 2024-2031.

The increasing need for hydrochloric acid from the steel industry is the key driving force behind the hydrochloric acid market globally. Iron oxide and scales are removed off the surface of steel with hydrochloric acid. As a result, rising steel demand will drive market expansion. Hydrochloric acid is used in a variety of activities, including food processing, mineral processing and pool sanitation.

The market has grown significantly in recent years as construction activity has increased in areas such as California, Georgia, New York and Pennsylvania in U.S. Its widespread use in the production of products such as corn syrup, soy sauce and food processing applications drove the need for hydrochloric acid in 2020. HCL is used when drilling oil wells to increase gas and crude oil penetration.

In 2023, North America is expected to be the second-dominant region with over 20% of the global hydrochloric acid market. North America will grow at a healthy rate due to rising water treatment demand. The EPA is still enforcing administrative directives to assure safe drinking water for public water systems. Furthermore, the introduction of the Drinking Water and Wastewater Infrastructure Act of 2021 by U.S. government in May 2021, with funding of US$ 35.0 million, is likely to generate growth prospects for this industry.

Dynamics

Growing Demand for Water Treatment

Hydrochloric acid is commonly used in water treatment procedures for pH control, disinfection and chemical precipitation. As worries about water quality and pollution from the environment grow, so does the demand for water treatment solutions, including hydrochloric acid, in municipal and industrial water treatment facilities.

The Environment Protection Agency established criteria for the quality of drinking water supply under the Safe Drinking Water Act of 1974 and the agency, in collaboration with its partners, executes a variety of financial and technical programs to protect drinking water quality. The Clean Water Act provides the essential framework for managing pollution discharge into waters and regulating surface water quality standards. Thus, increasing emphasis on the quality of water will boost the global HCL market growth.

Rising Steel Production

In the steel business, hydrochloric acid is used to remove rust, scale and other impurities from steel products through pickling and surface treatment. The rise of the construction, automotive and infrastructure sectors increases demand for steel, which raises the demand for hydrochloric acid in steel production facilities globally. As a result, demand for acid increased in some steel plants. It is critical to R&D projects and allows for innovative solutions in other industries.

In January 2022, ArcelorMittal Nippon Steel India signed a deal with the Gujarat government to invest US$ 5,893.25 million at its Hazira steel manufacturing facility. The initiative seeks to increase production capacity to 18 million metric tons per year from 8.6 million MMTPA. The contract extended the expansion opportunities for the global HCL market.

Environmental and Regulatory Concerns

Compliance with environmental and safety requirements has a substantial impact on the hydrochloric acid business. Stringent rules governing emissions, waste disposal and worker safety force businesses to invest in pollution control systems and follow tight operating procedures, raising production costs and compliance burdens. Government-imposed trade restrictions, export taxes or import duties increase costs, hinder market access and limit growth potential for manufacturers and exporters of hydrochloric acid.

Hydrochloric acid is a caustic and dangerous chemical that, if mistreated or released into the environment negatively impact human health and environmental health. Concerns about the health and environmental implications of hydrochloric acid consumption led to tougher regulations, public opposition and the adoption of alternative chemicals or technology in specific applications.

Segment Analysis

The global hydrochloric acid (HCL) market is segmented based on grade, application, end-user and region.

Rising Demand for Pickling in Steel Industry Drives the Segment Growth

Steel pickling is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. In the steel industry, pickling involves the use of hydrochloric acid. Impurities such as inorganic pollutants, stains, rust or scale are removed from ferrous metals, copper, precious metals and aluminum alloys using the pickling process.

Many steel pickling operations now use hydrochloric acid instead of sulfuric acid. As a result, the demand for hydrochloric acid grew in various steel production plants. In accordance to the World Steel Association, globally crude steel output in 2021 reached 1,958.5 million tons, representing a 3.7% rise over 1,881.4 million tons in 2020 and is further predicted to expand during the forecast year.

Geographical Penetration

Rising Production in Various End-User Industries in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global Hydrochloric Acid (HCL) market covering over 30% of the market. Rising production capacities in China, India and other nations, as well as increased demand from the steel, oil and gas and chemical industries, are driving the regional hydrochloric acid market. In the oil and gas sector, HCl is widely used to stimulate wells, especially in carbonate deposits.

With rising demand in countries such as China and India, oil and gas corporations intend to expand their manufacturing operations, resulting in higher hydrochloric acid usage. According to U.S. Energy Information Administration, the region will produce approximately 9.08 million barrels per day of oil in 2021. The steel industry is a major end-user of hydrochloric acid. Asia made 1,382 million tons of crude steel in 2021, a rise of 0.6% from 2020.

Competitive Landscape

The major global players in the market include BASF SE, Covestro, Olin Corp, Westlake Chemical Corp, Occidental Petroleum Corp, Formosa Plastics Corp, Tata Chemicals Ltd, AGC Chemicals, ERCO globally and Detrex Corporation.

COVID-19 Impact Analysis

The pandemic caused changes in demand for hydrochloric acid as a result of interruptions in many end-use sectors. Manufacturing, construction and automotive industries faced slowdowns or shutdowns, resulting in lower demand for chemicals such as hydrochloric acid, which are used in their production processes. Lockdowns, travel restrictions and border closures interrupted global supply networks, affecting hydrochloric acid production and distribution, as well as raw materials required in its manufacturing.

Transportation delays, major ingredient shortages and logistics issues hampered hydrochloric acid availability and had an impact on market dynamics. The pandemic accelerated trends like remote work, e-commerce expansion and consumer behavior changes, resulting in adjustments in demand for hydrochloric acid across industries. For example, growing demand for pharmaceuticals and disinfectants resulted in increased demand for hydrochloric acid as a raw ingredient for manufacturing these items.

Russia-Ukraine War Impact

Russia and Ukraine are major producers of chemicals, notably hydrochloric acid. Any disruptions in production or transportation caused by the conflict resulted in globally supply shortages or delays. It had an impact on companies that use hydrochloric acid for a variety of uses, including chemical manufacture, metal processing and water treatment. Instability in the region caused price volatility in the globally hydrochloric acid market.

Uncertainty over supply availability, geopolitical tensions and potential trade disruptions might all have an impact on pricing dynamics. Fluctuations in hydrochloric acid pricing have an impact on the cost structure of industries that employ chemicals as a raw material or intermediate product. Hydrochloric acid supply disruptions could interrupt downstream industries' operations, disrupting production schedules, inventory management and overall company continuity.

By Grade

• Synthetic
• By-product

By Application

• Steel Pickling
• Oil Well Acidizing
• Ore Processing
• Food Processing
• Pool Sanitation
• Others

By End-User

• Food & Beverages
• Pharmaceutical
• Textile
• Oil & Gas
• Chemical
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In January 2023, BASF FE reported expenditures in boosting polymer dispersion capacity at an Indonesian site. Growth is commensurate with increased demand for high-quality packaging in ASEAN countries, where large paper and board manufacturers are located. By the second half of 2023, new capacity will become online.
• In December 2022, BASF FE introduced automotive coatings based on certified biomass balance procedures and biodegradable raw components. A customer in China received their first supply of the biomass "ColorBrite Airspace Blue ReSource" basecoat. The item will provide around 20% reduction in the product's carbon footprint.

Why Purchase the Report?

• To visualize the global hydrochloric acid (HCL) market segmentation based on grade, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of hydrochloric acid (HCL) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global hydrochloric acid (HCL) market report would provide approximately 62 tables, 57 figures and 197 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies