As per a detailed study by FMI, the global zinc chloride market is estimated to reach US$ 321.2 Mn in 2022. Increasing application across diverse end-use sectors such as agriculture, pharmaceutical, electronics, and textile is propelling the demand for zinc chloride. On account of this, the market is expected to exceed US$ 426.4 Mn by the end of 2028.
Demand for zinc chloride is rapidly growing across the chemical industry owing to its attractive chemical properties and cost advantage. It is increasingly being used for applications such as soldering, galvanizing, tinning fluxes, odor control, chemical synthesis, and others.
Zinc chloride is granular solid and deliquescent salt that functions as an electrolyte offering excellent electrical conductivity and high corrosion resistance. Attributed to these properties, it is finding a wide range of applications for manufacturing batteries such as primary dry cell batteries.
Hence, increasing demand for batteries from consumer electronics, automotive, and industrial power backup is projected to create lucrative growth opportunities in the market. Driven by this, the sales of zinc chloride are estimated to rise at 4.8% CAGR during the forecast period 2022-2028.
On the basis of grade, high purity grade zinc chloride is anticipated to remain the most preferred grade type in the market, accounting for sales of total US$ 34.8 Mn between 2022 and 2028. Increasing demand for the pharmaceutical industry for the formulation of medication to treat zinc deficiencies and others deficiency syndromes is favoring the growth in the segment.
“Increasing demand for highly water-soluble crystalline salts for the purification of contaminants in textile processing and water treatment infrastructure is augmenting the growth in the market,” says a FMI analyst.
Key Takeaways from Zinc Chloride Market Study
- The U.S. zinc chloride market size is estimated to total US$ 52.1 Mn in 2021, exhibiting sales by 4% year-on-year between 2020 and 2021.
- Germany is expected to register swift growth in the Europe market, owing to the increasing demand for primary and dry cell batteries in the country.
- China is projected to emerge as the most lucrative zinc chloride market, accounting for more than 1/3rd of the global sales in 2021.
- India is anticipated to account for a significant share in the South Asia market, expanding at 5.1% CAGR over the assessment period.
- Based on application, the dry cell battery segment is forecast to account for the maximum share, growing at a 4.7% CAGR from 2022 to 2028.
- Increasing use of commercial grade zinc chloride for vulcanization of rubber and wood preservative solutions owing to its moisture absorbing properties is propelling the demand in the commercial grade segment.
- Growing application of zinc chloride for the formulation of fertilizers to prevent zinc deficiency in crops such as maize is accelerating the sales across the agriculture sector.
- High toxicity and adverse effects associated with zinc chlorides such as diarrhea, nausea, vomiting, peeling skin, hoarseness, and abdominal pain among others are hampering the growth in the market.
- Increasing preference towards adopting rechargeable batteries rather than primary dry cell batteries for consumer electronics, such as cameras, is hindering the sales across the dry cell battery segment.
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Leading players are focusing on adopting strategies such as new production facility development, collaboration, merger, and acquisition to increase their production capacity to meet the surging demand for zinc chloride. Some of the players are emphasizing on promoting green zinc salt to gain competitive edge.
In May 2021, the Shanghai Nonferrous Network Co., Ltd. a leading zinc processing quality supplier, together with other industry representative downstream enterprises announced undertaking an initiative to promote sustainable, healthy and high-quality development of the domestic zinc salt industry in China. This will assist zinc chloride companies in China to counter restraints such as environmental protection concerns.