Industrial Salt Market Size:

The Industrial Salt Market size was USD 15.2 Billion in 2023 and is expected to reach USD 21.1 Billion by 2032 and grow at a CAGR of 3.6 % over the forecast period of 2024-2032.

Increasing use of industrial salt in the chemical industry is a major growth driver for the market. This salt is an important raw material in the manufacturing of basic, chlorine, caustic soda, and soda ash chemicals, which are fundamental to industrial processes. Chlorine is a key component in the production of polyvinyl chloride (PVC), solvents, and disinfectants, whilst caustic soda is used in paper production, textiles and water treatment. Soda ash is an important conventional glass and detergents production raw material derived from industrial salt. An increase in these chemicals' demand from industries like construction, pharmaceuticals, and water treatment is translating directly into a buoyancy in industrial salt consumption. Moreover, the rapid growth of the chemical industry in emerging economies along with the development of production technologies has also increased the dependence on better quality industrial salt to comply with ever-tightening process requirements.

The increasing demand for industrial salt in India's chemical industry is substantiated by government data. According to the Indian Minerals Yearbook 2021, the country's annual requirement for industrial salt is estimated at 11.8 million tonnes.

The food processing industry has expanded significantly, therefore, the industrial salt market, especially as it is important for the preservation of food and enhancing its taste. One such application is the use of industrial salt as a preservative which is a common way to preserve the food products where it restricts the growth of microorganism and prevents spoiling. It is another ingredient in seasoning and food formulation helps impart characteristic flavor and texture to food products. The demand for packaged and convenience foods in recent years has been tremendous as consumers around the world are opting for more processed including snacks, ready-to-eat or frozen foods. We see this trend especially strongly in developing countries with a growing urban population and disposable income increasing the use of processed foods.

The Ministry of Food Processing Industries (MoFPI) has implemented schemes to boost processing capacities, aiming to enhance the sector's contribution to the economy. These efforts align with the observed increase in industrial salt consumption, supporting the industry's expansion.

Industrial Salt Market Dynamics

Drivers

• Growing applications in water treatment drive market growth.  

The increasing use of industrial salt in water treatment is one of the key drivers bolstering the growth of global industrial salt market & industrial salt play a vital role in water purification and softening. Industrial salt is commonly used in water treatment for the regeneration of ion exchange resins in water softeners to remove hardness ions, such as magnesium and calcium from the water. This promotes proper operation of equipment, particularly in industrial and municipal applications. Rapid industrialization, urbanization, and the increasing need for domestic, commercial, and industrial usage of clean water have led to an increase in demand for treated water. Moreover, with the rise in the number of waterborne diseases and awareness regarding sustainable management of water supply, the adoption of advanced water treatment solutions has also increased. Global governments and regulatory bodies have set stringent policies to enhance the quality of standards regarding the quality of water, thus fueling the demand for industrial salt. All these trends are pointing towards increasing dependence on salt, even though it is an industrial commodity used in a myriad of water technologies.

According to the Indian Minerals Yearbook 2022, the country's annual industrial salt requirement is estimated at 11.8 million tonnes, reflecting its extensive use across various industries, including water treatment.

Restraint

• Environmental impact of mining activities may hamper the market growth.

Mining processes of salt is one of the major concerns in industrial salt market. Mining salt especially underground deposits or salt flats can result in habitat loss, soil degradation and pollution of neighboring water sources. At times, the salt extraction process affects local communities and agricultural work by depleting ground water resources. Further, land and nearby water bodies may become heavily saline, damaging plant and aquatic life, from the waste material disposal from mining. As a result of this impact to the environment, there has been increasing pressure to change to sustainable and eco-friendly mining. To reduce the environmental impact of salt extraction, governments and regulatory authorities are imposing stringent environmental standards, thereby creating a demand for environmentally friendly technologies and efficient mining techniques. Nonetheless, ongoing demand for industrial salt needs to strike a careful balance between economic development and environmental protection.

Industrial Salt Market Segmentation

By Source

Brine held the largest market share around 68% in 2023.  It is used for a variety of applications across industries. Brine, a solution of salt in water, is used mainly in the chemical industry where it is an important component in the chlor-alkali process to produce chlorine, caustic soda and soda ash. Thus, it is a key ingredient in producing numerous chemical products such as PVC, many solvents, and detergents. Brine is also commonly used in water treatment, for example in softening and desalination, to treat water by removing impurities and minerals. Brine is also an essential part of the food industry, used for preservation and curing in many types of meat, dairy products, and pickle processing applications. Since brine can act as a major raw material across various industries and provides some of the wide variety of work it can be used in at low prices, its dominant position of generating industrial salt in the market is quite justifiable.

By Product

The solar salt segment held the largest market share around 40% in 2023. owing to their low-cost availability, natural production process, and high utilization in core industries. Solar salt is produced through the evaporation of seawater or brine in large ponds that are made use of solar energy, making it the cheapest and the most environmentally friendly method for the production of solar salt compared to any other type of industrial salt. This production method is gaining popularity, particularly for places with high UV radiation levels and high levels of seawater. Solar salt is extensively applied in food processing industry as a preservative and seasoning; and chemical industry for chlorine and caustic soda production. It can be found behind also de-icing, water treatment, and the manufacturing of detergents and pharmaceuticals. Due to its low cost, relative simplicity of production, and versatile uses, solar salt has become the largest industrial salt market segment. In addition to this, its market leadership is fuelled by a global trend towards more resource-efficient and sustainable, industrial, practices.

By Application

Chemical Processing held the largest market share around 37% in 2023. It is owing to it being a key component in the manufacture of various important chemicals. Industrial salt is one of the basic raw materials in chlor-alkali process to manufacture some of the most important chemicals such as chlorine, reflecting on the variety of industries like caustic soda, and soda ash. These chemicals are central to the production of items found in many sectors of industry such as plastics, detergents, paper, textiles, and medicine. One of the reasons that industrial salt finds application in chemical processing is because of the wide assortment of compounds created from them that are essential to everyday life. Furthermore, the increasing demand for chemicals worldwide in growing markets along with rising industrialization and urbanization continues to drive growth of the industrial salt market in chemical processing

Industrial Salt Market Regional Analysis

North America held the largest market share around 40% in 2023. It is owing to a matured industrial base and varied industrial applications along with sustaining infrastructures. Salt is a key raw material that is integral to the large domestic chemical processing industry especially chlorine, caustic soda, and soda ash driving demand for industrial salt in the region. Industrial salt is also heavily used in North America for the purpose of food processing and water treatment to be utilized mainly for preservation, softening, and de-icing. Western Canada has a well-established infrastructure such as large existing distribution channels, to provide the industrial salt to a range of industries. As well as, strict environmental regulations in North America are also opening up new applications such as eco-friendly processes such as solar salt operations and sustainable water treatment solutions. The increase in the key end-use industries comprising agriculture, pharmaceuticals, automotive, etc. also bolster the market for industrial salt. Moreover, increasing technological advancements, and continuous demand in end-user industries, North America continues to dominate the global industrial salt market.

Key Players

• Compass Minerals (Solar Salt, Rock Salt)

• Cargill, Inc. (Food Grade Salt, Industrial Salt)

• K+S Aktiengesellschaft (Kali und Salz, Winter Salt)

• Israel Chemicals Ltd. (Dead Sea Salt, Salt for Water Treatment)

• AkzoNobel N.V. (Salt Chemicals, Salt for De-Icing)

• Domino Specialty Chemicals (Food Grade Salt, De-Icing Salt)

• Salt Union Limited (De-Icing Salt, Industrial Grade Salt)

• American Rock Salt Company (Rock Salt, Industrial Salt)

• Wegmans Salt (Water Softener Salt, Industrial Salt)

• Morton Salt, Inc. (Ice Melt Salt, Table Salt)

• Tata Chemicals Ltd. (Sodium Chloride, Industrial Salt)

• Nippon Soda Co. Ltd. (Caustic Soda, Industrial Salt)

• Hutchison Salt (Industrial Salt, Evaporated Salt)

• Nordic Salt AS (Sodium Chloride, Solar Salt)

• Lantic Inc. (Food Salt, Industrial Salt)

• Sinai Industrial Salt (Industrial Salt, Potassium Salt)

• Sichuan Chuanxi Salt Chemical Co. Ltd. (Industrial Salt, Sodium Bicarbonate)

• China National Salt Industry Corporation (CNSIC) (Salt for Food Processing, Industrial Salt)

• Saltworks Technologies Inc. (Industrial Salt, Solar Salt)

• SABIC (Sodium Hydroxide, Industrial Salt)

Recent Development:

• In 2023: Compass Minerals announced an expansion of its North American solar salt production capabilities with a new facility in the Great Salt Lake, Utah, to meet the increasing demand for industrial and de-icing salt.

• In 2023: AkzoNobel introduced an innovative range of water softening salts that support efficient water treatment, responding to the increasing demand for water purification in industrial applications.