Market Trends of Zinc Chemicals Industry
The Rubber Processing Segment to Dominate the Market
- The rubber processing segment is the dominating segment due to the large-scale consumption of zinc chemicals in galvanizing and manufacturing tires.
- Zinc chemicals are widely used in manufacturing tires and tubes commonly used in automobiles. The growing automobile industry is expected to augment the overall demand for zinc chemicals shortly.
- According to the International Rubber Study Group (IRSG), the global output of natural rubber reached nearly 6.5 million metric tons during the first six months of 2023, a significant rise compared to 2000, when it stood at approximately 6.8 million metric tons.
- As per the Association of Natural Rubber Producing Countries (ANRPC), in March 2023, worldwide demand for natural rubber increased by 7.9% to 1.306 million tons over the same timeframe.
- The growing popularity of electric vehicles is expected to drive the demand for automotive tires, thereby propelling the consumption of tires in the automotive industry, which, in turn, drives the zinc chemical market.
- Also, higher loadings of zinc oxide can improve hot air/heat aging properties, and too low a concentration of zinc oxide can lead to scorching problems. Furthermore, it reduces heat buildup and wear in tires, thus making it an important segment in the rubber tire industry. Thus, with the growth in the tire industry, the consumption of zinc oxide is also increasing concurrently.
- Asia-Pacific countries like China, India, Japan, South Korea, and Thailand are the primary producers of automobiles. Hence, the market studied is expected to register growth during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific stands to be the dominant region in the market studied owing to the extensive application of zinc chemical derivatives in various applications, including rubber processing, chemical processing, and agriculture.
- China is a hub for chemical processing, accounting for most chemicals produced worldwide. Owing to the encouraging government initiatives and a vast consumer base, the chemical manufacturing sector in China is expected to increase at a consistent rate during the forecast period. The increasing production of chemicals is expected to create an opportunity for the growth of the market in the country in the near future.
- In India, 40 tire manufacturers and around 6,000 non-tire manufacturers produce seals, conveyor belts, and extruded and molded rubber profiles for automotive, railway, defense, aerospace, and other applications.
- Furthermore, India is home to over 2,500 decorative and 800 industrial coating manufacturers. This increasing demand for coatings has prompted the companies to increase their production and production capacities. This is expected to drive the demand for the liquid synthetic rubber market in the country, which may further boost the demand for zinc chemicals in the coming years.
- In China and India, the demand for zinc chemicals is expected to increase due to the growing agrochemical industry and economy. The low cost and easy availability of chemical fertilizers act as key factors in the growth of the market. Zinc sulfate is used as a fertilizer additive in chemical fertilizers, stimulating the zinc chemicals market.
- According to the IRSG (International Rubber Study Group) research, Asia and Oceania account for more than 70% of the world’s rubber consumption, with China and Japan accounting for 40% and 6%, respectively.
- Japan possesses one of the world's largest rubber industries, as it is a major hub for tire production.
- Furthermore, the country is ranked third globally, only behind China and the United States, in terms of the total amount of rubber consumed. The largest producers of tires in Japan, like Tosoh Corporation, Zeon Corp., and Toyo Tire & Rubber Co. Ltd, are undergoing capacity additions, which is expected to present an exciting market arena for zinc chemicals from the rubber processing industry over the forecast period.
- Hence, all such market trends are expected to drive the demand for the zinc chemicals market in the region during the forecast period.
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