Potassium Hydroxide Market

The global potassium hydroxide market is projected to experience a positive growth trend in both consumption and value from 2022 to 2030. Key insights include the dominance of China in consumption and production, the rapid growth of the Netherlands in market size, and the significant role of Belgium as a major exporter. Import/export figures, price variations, and growth rates in key markets provide a comprehensive overview of the potassium hydroxide market landscape.

Market Forecast

Driven by increasing demand for potassium hydroxide (caustic potash) worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.2% for the period from 2022 to 2030, which is projected to bring the market volume to 7.8M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.4% for the period from 2022 to 2030, which is projected to bring the market value to $8.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Potassium Hydroxide (Caustic Potash)

In 2022, the amount of potassium hydroxide (caustic potash) consumed worldwide rose sharply to 7.1M tons, with an increase of 8.9% on 2021 figures. The total consumption volume increased at an average annual rate of +2.9% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2020 with an increase of 9.2%. As a result, consumption attained the peak volume of 7.3M tons. From 2021 to 2022, the growth of the global consumption remained at a lower figure.

The global potassium hydroxide market value expanded rapidly to $6.8B in 2022, picking up by 8.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.1% over the period from 2012 to 2022; however, the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The pace of growth appeared the most rapid in 2020 when the market value increased by 9.7% against the previous year. Global consumption peaked in 2022 and is likely to see gradual growth in the immediate term.

Consumption By Country

China (1.7M tons) remains the largest potassium hydroxide consuming country worldwide, comprising approx. 23% of total volume. Moreover, potassium hydroxide consumption in China exceeded the figures recorded by the second-largest consumer, India (696K tons), twofold. The United States (610K tons) ranked third in terms of total consumption with an 8.6% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in China totaled +3.7%. In the other countries, the average annual rates were as follows: India (+3.2% per year) and the United States (+2.3% per year).

In value terms, the largest potassium hydroxide markets worldwide were China ($1.4B), India ($797M) and Japan ($693M), with a combined 42% share of the global market. The United States, Germany, Brazil, Spain, the Netherlands, the UK, Ethiopia, Thailand, Denmark and France lagged somewhat behind, together comprising a further 25%.

Among the main consuming countries, the Netherlands, with a CAGR of +11.7%, saw the highest growth rate of market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of potassium hydroxide per capita consumption was registered in Denmark (22 kg per 1000 persons), followed by the Netherlands (8.3 kg per 1000 persons), Germany (6.3 kg per 1000 persons) and Spain (4.2 kg per 1000 persons), while the world average per capita consumption of potassium hydroxide was estimated at 0.9 kg per 1000 persons.

From 2012 to 2022, the average annual rate of growth in terms of the potassium hydroxide per capita consumption in Denmark stood at +10.5%. In the other countries, the average annual rates were as follows: the Netherlands (+7.8% per year) and Germany (+12.2% per year).

Production

World Production of Potassium Hydroxide (Caustic Potash)

Global potassium hydroxide production expanded remarkably to 7.2M tons in 2022, increasing by 8.7% compared with the year before. The total output volume increased at an average annual rate of +3.9% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 16% against the previous year. Over the period under review, global production attained the peak volume at 7.3M tons in 2020; however, from 2021 to 2022, production stood at a somewhat lower figure.

In value terms, potassium hydroxide production rose modestly to $6.3B in 2022 estimated in export price. The total output value increased at an average annual rate of +2.1% from 2012 to 2022; however, the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The most prominent rate of growth was recorded in 2018 with an increase of 14% against the previous year. Over the period under review, global production reached the maximum level at $6.5B in 2020; however, from 2021 to 2022, production stood at a somewhat lower figure.

Production By Country

China (1.7M tons) remains the largest potassium hydroxide producing country worldwide, accounting for 24% of total volume. Moreover, potassium hydroxide production in China exceeded the figures recorded by the second-largest producer, the United States (816K tons), twofold. India (678K tons) ranked third in terms of total production with a 9.5% share.

In China, potassium hydroxide production expanded at an average annual rate of +3.9% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: the United States (+3.3% per year) and India (+3.4% per year).

Imports

World Imports of Potassium Hydroxide (Caustic Potash)

In 2022, global imports of potassium hydroxide (caustic potash) soared to 1.9M tons, with an increase of 77% compared with the previous year's figure. Overall, total imports indicated a buoyant increase from 2012 to 2022: its volume increased at an average annual rate of +6.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +72.9% against 2019 indices. As a result, imports attained the peak and are likely to continue growth in the immediate term.

In value terms, potassium hydroxide imports skyrocketed to $1.5B in 2022. In general, imports posted a buoyant expansion. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports By Country

In 2022, Germany (413K tons), distantly followed by France (184K tons), Denmark (133K tons), the Netherlands (113K tons) and Spain (108K tons) represented the major importers of potassium hydroxide (caustic potash), together committing 50% of total imports. Brazil (86K tons), Belgium (74K tons), Malaysia (59K tons), Israel (46K tons), Sweden (40K tons), the UK (37K tons), Poland (34K tons) and Canada (31K tons) took a little share of total imports.

From 2012 to 2022, average annual rates of growth with regard to potassium hydroxide imports into Germany stood at +14.0%. At the same time, Brazil (+25.9%), Spain (+20.9%), Poland (+16.7%), France (+14.6%), Denmark (+11.4%), Belgium (+10.3%), the Netherlands (+7.2%), Israel (+4.9%), Sweden (+4.4%) and the UK (+2.1%) displayed positive paces of growth. Moreover, Brazil emerged as the fastest-growing importer imported in the world, with a CAGR of +25.9% from 2012-2022. Canada and Malaysia experienced a relatively flat trend pattern. Germany (+11 p.p.), France (+5.2 p.p.), Spain (+4.1 p.p.), Brazil (+3.7 p.p.) and Denmark (+2.7 p.p.) significantly strengthened its position in terms of the global imports, while Malaysia saw its share reduced by -2.3% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Germany ($220M) constitutes the largest market for imported potassium hydroxide (caustic potash) worldwide, comprising 15% of global imports. The second position in the ranking was taken by Brazil ($89M), with a 6.1% share of global imports. It was followed by the Netherlands, with a 6% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Germany stood at +11.9%. The remaining importing countries recorded the following average annual rates of imports growth: Brazil (+26.5% per year) and the Netherlands (+12.8% per year).

Import Prices By Country

In 2022, the average potassium hydroxide import price amounted to $765 per ton, growing by 9.9% against the previous year. Over the last decade, it increased at an average annual rate of +1.5%. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Israel ($1,673 per ton), while France ($438 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Israel (+6.2%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Potassium Hydroxide (Caustic Potash)

In 2022, approx. 1.9M tons of potassium hydroxide (caustic potash) were exported worldwide; picking up by 74% compared with the previous year. In general, exports showed a prominent increase. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

In value terms, potassium hydroxide exports skyrocketed to $1.3B in 2022. Over the period under review, exports continue to indicate resilient growth. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

Exports By Country

Belgium represented the main exporter of potassium hydroxide (caustic potash) in the world, with the volume of exports amounting to 594K tons, which was approx. 31% of total exports in 2022. South Korea (266K tons) ranks second in terms of the total exports with a 14% share, followed by Italy (12%), the United States (12%) and the Czech Republic (10%). The following exporters - France (83K tons), Germany (78K tons), China (73K tons) and Jordan (34K tons) - together made up 14% of total exports.

From 2012 to 2022, average annual rates of growth with regard to potassium hydroxide exports from Belgium stood at +17.2%. At the same time, Italy (+21.8%), the Czech Republic (+18.5%), Germany (+12.4%), China (+9.9%), South Korea (+7.6%), the United States (+6.8%) and France (+1.7%) displayed positive paces of growth. Moreover, Italy emerged as the fastest-growing exporter exported in the world, with a CAGR of +21.8% from 2012-2022. By contrast, Jordan (-5.7%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Belgium, Italy and the Czech Republic increased by +31, +6.7 and +4.2 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Belgium ($267M), South Korea ($266M) and the United States ($175M) constituted the countries with the highest levels of exports in 2022, with a combined 53% share of global exports.

Among the main exporting countries, Belgium, with a CAGR of +21.1%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average potassium hydroxide export price amounted to $692 per ton, picking up by 6.6% against the previous year. Overall, the export price, however, saw a mild descent. The most prominent rate of growth was recorded in 2021 when the average export price increased by 8.5%. Over the period under review, the average export prices hit record highs at $785 per ton in 2013; however, from 2014 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Jordan ($1,463 per ton), while Belgium ($451 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Jordan (+15.1%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform