Global Caustic Soda Market - Procurement Intelligence Report

Global Caustic Soda Market - Procurement Intelligence Report

  • Published: Dec 2019
  • Pages: 130
  • SKU: IRCMSTR21178

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Caustic Soda Market Analysis

 

Spend growth in this market has the potential to touch a value of over USD 9 billion between 2019-2024, with spend momentum accelerating at a CAGR of more than 4%. However, various factors will inhibit this spend growth which will herald uncertainties in the caustic soda market in terms of pricing and demand and supply ratio. Factors like the mandatory adoption of cell membrane technology for the production of caustic soda, extensive application of caustic soda in the wine industry will promote the spend growth in the caustic soda market. On the hand, the gradual decline in the usage chlorine from the PVC industry and the increase in the adoption of substitutes is driving suppliers decrease caustic soda production. These factors will have negative impacts on the spend growth in the caustic soda market.

Top Spending Regions in the Caustic Soda Market

In terms of regional spend, the increasing demand from the aluminum industry and initiatives undertaken by suppliers to offer better quality caustic soda with lesser environmental impact will contribute to the spend growth in the caustic soda market across regions.

Europe

Caustic soda suppliers are witnessing an exponential demand from buyers in the aluminum industry. This chemical is a key material that is used in the extraction of aluminum from its ore, bauxite. It is being widely used as a reactant to produce various organic chemicals, such as epoxypropane, which will drive the demand growth in the caustic soda market.

North America

The caustic soda market in this region will experience a moderate growth during the forecast period. This growth will be mainly attributed to the demand for soaps from countries such as the US and Canada, as they produce one-third of the global supply of soaps. Caustic soda suppliers in the US are entering into joint ventures and strategic partnerships to boost the sales and cement their positions in the market. Suppliers are focusing on developing manufacturing processes to offer high-quality caustic soda, while reducing the adverse impacts of their operations on the environment. This will significantly contribute to the spend growth in the caustic soda market.

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What are the Key Price Trends in this Market?

 

  • Forecasts of fluctuations in the prices of raw materials such as sodium chlorine will have a significant impact on the caustic soda market price.
     
  • Compliance cost will act as a major cost component in caustic soda supplier's cost structure. This cost is related to the upgrading of caustic soda production facilities to adhere to environmental laws. A rise in the compliance costs is a result of the increasing environmental concerns and stringency in laws and regulations.
     
  • The rise in the adoption of high-quality packaging materials to protect this chemical from contaminants, such as heat, moisture, and insects, will lead to an increase in the caustic soda market price.
     

Download the free sample of this report to know what are the key caustic soda procurement best practices that you must adopt to address price dynamism in this market.
 

Insights into Caustic Soda Supply Market
 

  • Caustic soda is corrosive in nature, owing to which the containers that are used to store caustic soda can be subjected to leakage. The leakage of chemicals will lead to suppliers incurring additional cost, which will reduce their profit margins. Global caustic soda suppliers operate on higher profit margins than regional suppliers, owing to their significant reach and easy access to raw materials worldwide. Moreover, global suppliers collaborate with raw material vendors to reduce their procurement costs.
     
  • The production of caustic soda is dependent on the production of chlorine, as caustic soda is a by-product of the chlorine manufacturing process. A decrease in the demand for chlorine from end-use segments, such as the PVC industry will adversely impact the supply of caustic soda in the market. This will lead to a lack of assurance of the supply of caustic soda for buyers.
     
  • In the caustic soda market, buyers are advised to ask suppliers to provide details of production capacities, locations of facilities, and distribution networks during the RFP phase. This will help them analyze the caliber of suppliers to offer uninterrupted supply of caustic soda.

Insights into Some of the Leading Caustic soda Suppliers

Volatile caustic soda price trends coupled with sub-optimal supplier partnership is resulting in declining ROI of a majority of buyers in this market. In view of this, the caustic soda market procurement intelligence report has enlisted the top suppliers, best selection criteria, and negotiation strategies for such suppliers. These insights will aid buyers to take a collaborative approach with the caustic soda suppliers to identify areas where they can optimize their procurement spend. The top caustic soda suppliers highlighted in this report include:

  • BASF SE
  • SABIC   
  • Solvay SA            
  • PPG Industries Inc.         
  • FMC Corp           
  • Akzo Nobel NV                 

 

Criteria to select suppliers in this dynamic caustic soda market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.

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PART 01: EXECUTIVE SUMMARY

PART 02: MARKET INSIGHTS

  • Global category spend
  • Category spend growth
  • Spend segmentation by region
  • Regional spend dynamics
  • Regional influence on global spend
  • Regional spend opportunity for suppliers

PART 03: CATEGORY PRICING INSIGHTS

  • Pricing outlook
  • Supplier cost structure
  • Outlook for input costs
  • Total cost of ownership analysis
  • Overview of pricing models
  • Comparison of pricing models
  • Supply chain margins
  • Cost drivers: Impact on pricing
  • Volume drivers: Impact on pricing

PART 04: COST-SAVING OPPORTUNITIES

  • Supplier-side levers
  • Buyer-side levers
  • Quantifying cost-saving opportunities
  • Quantifying cost savings by negotiation strategies

PART 05: BEST PRACTICES

  • Innovation and success stories
  • Procurement excellence best practices
  • Procurement best practices
  • Sustainability practices
  • Sustainability best practices

PART 06: CATEGORY ECOSYSTEM

  • Market favorability index for suppliers
  • Competitiveness index for suppliers
  • Buyer power
  • Supplier power
  • Threat of new entrants
  • Threat of substitutes
  • Buyer ecosystem
  • Supplier ecosystem

PART 07: CATEGORY MANAGEMENT STRATEGY

  • Category management objectives
  • Supplier and buyer KPIs
  • Outsourcing category management activities
  • Risk management

PART 08: CATEGORY MANAGEMENT ENABLERS

  • Procurement organization
  • Category enablers

PART 09: SUPPLIERS SELECTION

  • RFx essentials
  • Supplier selection criteria
  • Service level agreement
  • Incumbent supplier evaluation metrics 

PART 10: SUPPLIERS UNDER COVERAGE

  • Overview           
  • Supplier positioning       
  • Profile: BASF SE
  • Profile: SABIC    
  • Profile: Solvay SA            
  • Profile: PPG Industries Inc.          
  • Profile: FMC Corp.          
  • Profile: Akzo Nobel NV  

PART 11: US MARKET INSIGHTS

  • Category spend in the US
  • Pricing outlook
  • Supplier cost structure in the US
  • Margins of suppliers in the US
  • Category cost drivers
  • Category volume drivers
  • Overview of best practices in the US
  • Procurement best practices in the US
  • US supply market overview
  • Supplier positioning for the US
  • Regional category risks

PART 12: CATEGORY DEFINITION

  • Category hierarchy
  • Category scope
  • Category map

PART 13: APPENDIX

  • List of abbreviations
  • Key notes

Research Framework

SpendEdge presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Procurement heads
  • Category managers
  • Sourcing consortium professionals
  • Industry experts and thought leaders
  • Procurement managers
  • Category heads of suppliers
  • Client account heads/managers
  • Client and industry consultants

Secondary sources

  • Industry journals and reports
  • Periodicals and new articles
  • Category webinars
  • Internal categiry playbooks
  • Industry and government websites on regulations and compliance
  • Internal databases
  • Industry blogs/thought leader briefings

DATA ANALYSIS

Global Caustic Soda Market - Procurement Intelligence Report
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