Anhydrous Aluminium Chloride Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Form (Granule and Powder), By Application (Dyes & Pigments, Pesticides, Pharmaceuticals, Hydrocarbon Resins, Fumed Alumina, Others), By Region and Competition

Market Overview

Global Anhydrous Aluminium Chloride Market has valued at USD 932.46 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.27% through 2028. Anhydrous aluminum chloride, a crystalline solid, is characterized by its odorless, white, and yellow color. It serves as a catalyst in Friedel-Crafts reactions, finding extensive use in various industries. This versatile compound is employed in the processing of dyes, pigments, polymers, agricultural chemicals, pharmaceuticals, flavors, and fragrances. Moreover, it plays a crucial role in manufacturing paint, synthetic rubber, lubricants, wood preservatives, and an array of organic compounds.

The compound is available in granular and powdered forms, catering to diverse industrial applications. Anhydrous aluminum chloride can be obtained through the reaction of dry chlorine or hydrochloric acid gas with overheated aluminum powder. Another method involves heating a mixture of alumina and coke in the presence of chlorine gas. To ensure its potency, anhydrous aluminum chloride should be stored in well-sealed containers in a cool, dry place, away from combustible materials.

Furthermore, anhydrous aluminum chloride serves as a vital component in the production of inorganic products such as titanium dioxide and fumed alumina. Its applications extend to the production of dyes, pigments, ethylbenzene, hydrocarbon resins, and other chemical intermediates. The market for anhydrous aluminum chloride is witnessing significant growth due to its versatile applications across various industries.

Anhydrous aluminum chloride finds extensive use in the chemical industry as a catalyst for dyes, pigments, pesticides, hydrocarbon reforming, pharmaceuticals, and cosmetics. The production of major dye intermediates, including anthraquinone, phthalocyanine green, ethylbenzene, and meta phenoxy benzaldehyde, contributes to the significant demand for anhydrous aluminum chloride. The automotive sector's increasing need for dyes and pigments further fuels the demand for this compound.

Moreover, the Asia Pacific region presents a lucrative growth opportunity for the anhydrous aluminum chloride market. Asia is a major producer and exporter of anhydrous aluminum chloride, supplying global markets. In contrast, North America and Europe have stringent regulations governing the manufacturing of hazardous chemicals, resulting in reduced production of anhydrous aluminum chloride in these regions. Consequently, these regions heavily rely on imports from Asia for domestic applications, with China and India emerging as the largest exporters of anhydrous aluminum chloride worldwide.

The expanding applications of anhydrous aluminum chloride and the thriving export opportunities in the Asia Pacific region contribute to the continuous growth of the market. With its vital role in various industries and the increasing demand for chemicals, the market for anhydrous aluminum chloride is poised for further expansion.

Key Market Drivers

Growing Demand of Anhydrous Aluminium Chloride in Pharmaceutical Industry

Anhydrous aluminium chloride, a crucial compound in organic synthesis, has witnessed a remarkable increase in its utilization across various industries over the years. However, it is the pharmaceutical industry that stands out as the primary consumer of this compound. In the production of numerous drugs, including antihistamines, antacids, and antibiotics, among others, anhydrous aluminium chloride finds extensive application.

The surging demand for anhydrous aluminium chloride in the pharmaceutical industry acts as a significant driver for the global market of this compound. As health concerns continue to rise and pharmaceutical spending experiences a steady increase, the reliance on this vital compound is poised to persist, thereby fueling further growth in the market. The unique properties of anhydrous aluminium chloride, such as its ability to act as a Lewis acid catalyst in various chemical reactions, contribute to its widespread usage and continued importance in the pharmaceutical sector.

With advancements in drug discovery and development, the demand for anhydrous aluminium chloride is anticipated to grow even further. Pharmaceutical companies are constantly striving to develop innovative and more effective medications to tackle various diseases and medical conditions. This pursuit of novel drug formulations and therapies will continue to drive the demand for anhydrous aluminium chloride as an essential component in the synthesis of these groundbreaking pharmaceutical products.

In addition to its significance in the pharmaceutical industry, anhydrous aluminium chloride also finds applications in other sectors such as chemical manufacturing, dyes and pigments production, and petroleum refining. These diverse industries contribute to the overall demand for this compound, further strengthening its market position and ensuring its continued relevance in the global market.

In conclusion, the increasing demand for anhydrous aluminium chloride in the pharmaceutical industry serves as a key factor propelling the growth of the global anhydrous aluminium chloride market. As the need for effective medications and therapies persists, the reliance on this vital compound will continue to expand, fostering market growth and presenting opportunities for manufacturers and suppliers in the years to come.

Growing Demand of Anhydrous Aluminium Chloride in Agriculture Industry

Anhydrous aluminium chloride, a powerful Lewis acid, serves as an indispensable catalyst in organic synthesis. Widely used in the agriculture sector, it plays a crucial role as a catalyst in the production of ethylbenzene, dyes, pigments, fragrances, and flavors. These versatile compounds find applications in the development of a wide range of agricultural products.

For instance, ethylbenzene, a key ingredient derived from anhydrous aluminium chloride, is instrumental in the manufacturing of the herbicide Lasso, which plays a vital role in safeguarding crops. Similarly, the dyes and pigments produced using this compound are utilized in marking sprays for livestock and seed coating, enhancing agricultural practices.

The global anhydrous aluminium chloride market is projected to witness continuous growth in the coming years, primarily driven by the thriving agriculture sector. With a constant demand for crop protection products and the increasing use of dyes and pigments in the agriculture industry, the need for anhydrous aluminium chloride is expected to surge.

Furthermore, the growing emphasis on sustainable agriculture practices offers potential opportunities for the application of anhydrous aluminium chloride. As researchers explore more eco-friendly alternatives to traditional farming methods, the potential applications of this compound expand, driving further market growth.

In conclusion, the rising demand for anhydrous aluminium chloride in the agriculture industry acts as a significant driver for the global market. As the need for effective agricultural products intensifies with the ever-growing global population, the reliance on this vital compound is set to continue, propelling market growth in the process. By providing essential catalyst properties, anhydrous aluminium chloride contributes to the advancement of sustainable agricultural practices worldwide.

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Key Market Challenges

Lack in Supply of Raw Materials

The production of anhydrous aluminium chloride, a crucial compound in various industries, heavily relies on a steady supply of raw materials. The primary ingredients required are aluminium and chlorine, which are currently facing a significant shortage in the global market. This scarcity can be attributed to a multitude of factors, including geopolitical issues affecting mining operations and the escalating demand that surpasses the supply capacities.

The shortage of these essential resources directly impacts the anhydrous aluminium chloride market, causing a ripple effect throughout the industry. Manufacturers are confronted with limited production capabilities, resulting in a reduced supply of the compound in the market. Consequently, the scarcity drives up the prices of anhydrous aluminium chloride, rendering it less accessible for end-use industries. This not only poses challenges for manufacturers but also potentially hampers the growth of the market as a whole.

Addressing this shortage requires a comprehensive approach, involving strategic resource management and potential diversification of raw material sources. By mitigating the impact of the scarcity, the industry can ensure a stable supply of anhydrous aluminium chloride, promoting market growth and enabling sustainable development.

Key Market Trends

Growing Demand in Chemical Industry

Anhydrous aluminium chloride, a highly versatile catalyst, finds extensive usage in the chemical industry. Its pivotal role in the production of dyes, pigments, pesticides, and other chemical intermediates has positioned it as a crucial component in numerous manufacturing processes. As the demand for these products continues to surge, the utilization of anhydrous aluminium chloride has witnessed a corresponding increase, fueling its market growth.

The global anhydrous aluminium chloride market is poised to sustain its upward trajectory, primarily driven by the growing demand within the chemical industry. As this industry expands and diversifies, the need for this indispensable compound is set to grow exponentially, thereby propelling market growth further. Moreover, the increasing demand for anhydrous aluminium chloride across various end-use industries such as pharmaceuticals, dyes, and pigments present additional avenues for market expansion.

In conclusion, the ever-growing demand for anhydrous aluminium chloride in the chemical industry serves as a significant driver for the global market. With the chemical industry's continuous expansion, the reliance on this vital compound is poised to persist, fostering market growth in the process. This trend not only signifies the compound's indispensability but also highlights the immense potential for further advancements and innovations in its applications.

Segmental Insights

Form Insights

Based on the category of form, the granule segment emerged as the dominant player in the global market for Anhydrous Aluminium Chloride in 2022. The granular form segment is expected to contribute significantly to the market growth in the coming years. This demand can be attributed to the remarkable properties of anhydrous aluminium chloride in its granular form. These properties include excellent flow properties, high uniformity in particle size, smaller surface area, and increased compressibility. These characteristics make the granules of anhydrous aluminium chloride more valuable compared to the powder form, thus resulting in an increased demand for the granular form. In the report, a comprehensive study is conducted on the structure of anhydrous aluminium chloride, along with an in-depth analysis of all key aspects related to it.

Application Insights

The Dyes & Pigments segment is projected to experience rapid growth during the forecast period. The growth of the segment can be attributed to the increasing use of this compound as a catalyst to obtain dye compounds, such as phthalocyanine green, which finds extensive applications in the textile industry for coloring fabrics and fibers. Moreover, ethylbenzene is also utilized in the production of various polymers and resins, contributing to the growth of the polymer industry.

In addition to its role in the dye and polymer sectors, ethylbenzene has found significant application in the pharmaceutical industry. It is an essential component in the synthesis of drugs like Ibuprofen, a widely used nonsteroidal anti-inflammatory drug (NSAID) known for its analgesic and anti-inflammatory properties. The increasing demand for Ibuprofen in the pharmaceutical market is expected to drive the growth of the ethylbenzene industry in the coming years.

Furthermore, ethylbenzene is utilized in the cosmetic industry as well. It is employed in the production of various cosmetic products, including perfumes, fragrances, and hair sprays. The ability of ethylbenzene to enhance the fragrance and stability of cosmetic formulations makes it a sought-after ingredient in the cosmetic industry.

Additionally, anhydrous aluminium chloride is widely used as a catalyst in various chemical reactions, including the synthesis of ethylbenzene itself. The increasing demand for ethylbenzene as a raw material in the production of multiple compounds further drives the demand for anhydrous aluminium chloride.

Overall, the booming pharmaceutical industry, coupled with the growth of the textile, polymer, and cosmetic sectors, is expected to have a positive impact on the ethylbenzene industry, driving its market share and contributing to its continued growth in the foreseeable future.

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Regional Insights

Asia Pacific emerged as the dominant player in the Global Anhydrous Aluminium Chloride Market in 2022, holding the largest market share in terms of both value and volume. This can be attributed to the upsurge in the demands for dyes and pigments, which are extensively used in various industries such as textiles, paints, and printing. Moreover, the growing pharmaceutical industries in APAC countries like India, China, and Japan, coupled with the increased consumption of pesticides in these regions, is expected to contribute to a significant market share and growth. The rise in population, urbanization, and agricultural activities in these countries further drive the demand for pesticides.

In North America, the surge in demand for wastewater treatment, attributable to rapid industrialization trends, is expected to fuel significant growth. The increasing awareness about environmental sustainability and the need for effective wastewater management solutions propel the demand for advanced treatment technologies in this region.

Recent Developments

• In March 2020, Gujarat Alkalies & Chemicals took a significant step by expanding the Anhydrous Aluminium Chloride (AAC) plant at Dahej in Gujarat. This expansion involved the addition of a remarkable 16,500 metric tons/year capacity of anhydrous aluminium chloride, contributing greatly to the production capabilities of the plant. This impressive project came with an investment of $4.6 million, showcasing the company's commitment to growth and innovation in the chemical industry.

Key Market Players

• Aditya Birla Chemicals India Ltd.
• Base Metal International
• BASF SE
• DCM Shriram Ltd.
• Gujarat Alkali & Chemicals Ltd
• Gulbrandsen Manufacturing Inc.
• Kanto Denka Kogyo Co. Ltd
• Nippon Light Metal Company Ltd
• Shandong Kunbao New Materials Group Co. Ltd
• Upra Chem Pvt. Ltd

Report Scope:

In this report, the Global Anhydrous Aluminium Chloride Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Anhydrous Aluminium Chloride Market, By Form:

o   Granule

o   Powder

• Anhydrous Aluminium Chloride Market, By Application:

o   Dyes & Pigments

o   Pesticides

o   Pharmaceuticals

o   Hydrocarbon Resins

o   Fumed Alumina

o   Others

• Anhydrous Aluminium Chloride Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Anhydrous Aluminium Chloride Market.

Available Customizations:

Global Anhydrous Aluminium Chloride Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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