Anhydrous Aluminum Chloride Market Size, Share, Opportunities, And Trends By Form (Powder, Granules, Crystals), By End-Use Industry (Pesticides, Pharmaceuticals, Cosmetics, Chemical Manufacturing, Dyes & Pigments, Electrolytic Production Of Aluminum), And By Geography - Forecasts From 2023 To 2028

Anhydrous aluminum chloride is an odorless form of aluminum chloride that does not possess any water content. Anhydrous aluminum chloride is manufactured in powder, granular, and crystal forms for application in the production of fertilizers, cosmetics, pharmaceuticals, dyes, pigments, and chemicals. It is majorly used as a Lewis acid and a catalyst in reactions applying Friedel Crafts principle. Moreover, it is used as a nucleating agent in the production of titanium dioxide pigments as well as in ion exchange resins, lubricants, wood preservatives, and crude oil refining. Therefore, the growth in the respective end-use industries consuming anhydrous aluminum chloride in their manufacturing processes is projected to expand the anhydrous aluminum chloride market. 

Market Drivers

The need for catalysts in the pharmaceutical sector

Anhydrous aluminum chloride is predominantly used as a catalyst in several chemical processes across different industries for the manufacture of pharmaceuticals, chemical compounds, and fragrances. The recent developments in the pharmaceutical sector are fueled by the increase in medicine production activities for the growth of the anhydrous aluminum chloride market. For instance, anhydrous aluminum chloride is used in the production of ibuprofen, a medication commonly used to cure inflammation and lower pain in consumers. The rise in healthcare spending across major economies and the substantial rise in pharmaceutical consumption fueled by the spread of medical awareness and unhealthy lifestyle choices among an increasing portion of consumers offers an opportunity for the rise in the consumption of anhydrous aluminum chloride. For example, the Department of Pharmaceuticals of the Government of India revealed that the total turnover from the pharmaceutical sector of India amounted to approximately Rs. 2,89,998 crores in 2020. In addition, the pandemic situation further promoted the growth of the pharmaceutical industry as approximately 4,904,413 coronavirus cases were registered by the World Health Organization in 2020. Therefore, the need for an increase in the production of medications is anticipated to drive the demand for the anhydrous aluminum chloride market.

The growing demand for dyes in the retail and construction industries

An anhydrous form of aluminum chloride is used in the production of chemical compounds such as anthraquinone, styrene, and green pigment dyestuff that assist in the production of dyes to be used across paint and textile production factories. The increased consumer expenditure in the retail sector and the increasing population housing needs are resulting in excessive consumption of dyes and paints in the construction and textile sector. The Oxford Economics Department projected that the international construction and real estate sector will reach a market value of $15.5 trillion in 2030 with major contributions by the US, China, and India. Apart from this, the Indian Union Ministry of Textiles revealed that textile exports from India in 2022 increased by 41% to reach US$44.4 billion. The growing retail and construction market inevitably creates demand for the manufacture of paints and dyes which is expected to be a significant factor in stimulating the expansion of the anhydrous aluminum chloride market.

The health hazards associated with anhydrous aluminum chloride could result in restricted growth of the market.

Exposure to anhydrous aluminum chloride has the potential to burn skin tissues and its ingestion has toxic effects on humans which limits the enlargement of the anhydrous aluminum chloride market. In addition, anhydrous aluminum chloride has the tendency of reacting vigorously and aggressively in contact with water due to which the International Maritime Dangerous Goods Code has released regulations and principles to be adhered to while the transportation of anhydrous aluminum chloride. In addition, Switzerland also announced the ban on deodorants and antiperspirants that comprise aluminum salts. The dangers associated with human exposure to anhydrous aluminum chloride are causing the implementation of government regulations and restrictions over the use of anhydrous aluminum chloride which has the potential of slowing down the development of the anhydrous aluminum chloride market over the forecast period.

Key Developments

In March 2023, Gulbrandsen, a leading company in the chemical industry manufacturing different types of chemicals including anhydrous aluminum chloride opened an aluminum alkyl production plant in Dahej City of India.

In March 2020, the Dahej unit of Gujarat Alkalies & Chemicals underwent modification to increase the production capacity of its anhydrous aluminum chloride plant to 16,500 metric tons/year by incurring an investment of approximately US$4.6 million.  

Asia Pacific region holds a significant share of the anhydrous aluminum chloride market and is expected to grow in the forecast period.

The increase in the usage of fertilizers, cosmetics, and petrochemicals in the Asia Pacific region is a key factor encouraging the development of the anhydrous aluminum chloride market in the region. In the cosmetics area, anhydrous aluminum chloride is used as a catalyst to produce perfumes and deodorants. The growing demand for all types of cosmetics and personal care products in the region indicates that the consumption of deodorants and perfume products will also simultaneously increase. The India Brand Equity Foundation estimated that the cosmetics and personal care products market in India will increase to US$20 billion in 2025 which suggests that there is potential for an increase in the consumption of anhydrous aluminum chloride to generate fragrant cosmetic products. In addition, the Ministry of Chemicals & Fertilizers estimated that the total manufacture of fertilizers in 2021 amounted to 478.99 LMT and increased by 12.46% from its 2020 production value. The enormous utilization of fertilizers in Asian economies such as India, Malaysia, China, and Indonesia will further expand the anhydrous aluminum chloride market in the Asia Pacific region over the forecast period.

Key Market Segments:

• BY FORM

• • Powder
  • Granules
  • Crystals
• BY END-USE INDUSTRY

• • Pesticides
  • Pharmaceuticals
  • Cosmetics
  • Chemical Manufacturing
  • Dyes & Pigments
  • Electrolytic Production of Aluminum
• BY GEOGRAPHY

• North America

• • USA
  • Canada
  • Mexico

• South America

• • Brazil
  • Argentina
  • Others

• Europe

• • Germany
  • France
  • United Kingdom
  • Spain
  • Others

• Middle East And Africa

• • Saudi Arabia
  • UAE
  • Israel
  • Others

• Asia Pacific

• • China
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Taiwan
  • Others