Zinc Chemicals Market Size, Share & Trends Analysis Report By Type (Zinc Oxide, Zinc Sulfate, Zinc Carbonate, Zinc Chloride, Other Types), By End-User Industry (Agriculture, Chemicals and Petrochemicals, Ceramic, Pharmaceutical, Paints and Coatings, Rubber Processing, Other End-user Industries) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global zinc chemicals market was valued at USD 10.32 billion in 2022. It is projected to reach USD 15.54 billion by 2031, growing at a CAGR of 4.65% during the forecast period (2023-2031). 

The market under study is projected to expand due to expanding automotive industry utilization and rising demand from the rubber tire sector. On the other hand, it is anticipated that the health risks associated with compounds containing zinc and the poor circumstances brought on by the COVID-19 outbreak will impede the development of the market under study. New prospects for the market under investigation are anticipated to emerge from R&D in using zinc nanoparticles in the medical sector and their expanding use in the electronics and semiconductor industries. U.S. Zinc (Aterian Investment Partners), Zochem Inc., EverZinc, TIB Chemicals AG, and Weifang Longda Zinc Industry Co. Ltd. are a few of the market's significant participants.

Market Dynamics

Market Drivers

Increased Use in the Automotive Industry

Zinc compounds have many different uses, and their use in the automobile industry is growing due to various applications. A growing environmental concern is using glass-fiber sheet molding compound (GF-SMC) in automobiles. It is because of its superior qualities and ecological friendliness that a zinc oxide (ZnO) blended natural fiber-reinforced bio-composite was created and tested to take the role of the industrial automotive GF-SMC. Additionally, the production of zinc dithiophosphates and specific formulations of lubricants and greases, such as high-temperature or high-pressure greases or automobile lubricants, requires the usage of zinc oxide. The primary purpose of zinc oxide in engine oils for cars is to lessen engine oxidation, corrosion, and wear.

Zinc chloride batteries are one of the most promising technologies for medium to large energy storage applications due to their energy density, cell voltage, and cost advantages. The market for zinc chloride grade batteries is expanding due to their expanding use in the automotive industry's production. The automotive industry's switch creates opportunities for producers in the zinc chloride market from zinc-carbon to zinc chloride batteries. Zinc chloride batteries are the least-priced batteries on the market since manufacturers produce them in large quantities.

Market Restraint

Zinc Chemical-Related Health Risk

While humans can tolerate relatively high levels of zinc compounds, excessive zinc can still negatively affect health, including stomach cramps, skin rashes, exhaustion, nausea, and anemia. Zinc contains compounds at extremely high concentrations that can damage the pancreas, interfere with protein metabolism, and lead to arteriosclerosis. Excessive exposure to zinc oxide may have several adverse health effects, such as metal fume fever, the flu, headaches, fever, and cough. Additionally, it can harm the growing fetus. ZnO, a typical component of particle air pollution, can cause acute systemic symptoms when breathed in small or ultra-fine fractions.

Zinc sulfate can cause mortality, respiratory tract irritation, nausea, vomiting, stomachaches, fainting, tiredness, and a metallic taste in the mouth. Skin injury from skin contact can include ulcers, blisters, and scars. Extreme eye irritation can be brought on by zinc sulfate, which causes redness and discomfort. The U.S. Environmental Protection Agency adds it to the list of hazardous substances the public has a right to know about.

Market Opportunities

Rising Industry Demand for Rubber Tires

In the vulcanization or curing process used to create rubber tires, zinc oxide (ZnO) is the chosen activator. It is also used to improve the adhesion of rubber to metal. Similar to larger zinc oxide loadings, too little zinc oxide might cause burning issues, while too much zinc oxide can improve hot air/heat aging qualities. It also lessens heat accumulation and tire wear, making it a crucial sector of the rubber tire industry. As a result, zinc oxide usage is rising along with the tire industry's expansion. The market being investigated is expanding due to the unavailability of alternative materials that may be employed in crucial applications.

Regional Analysis

The global zinc chemicals market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 4.75% during the forecast period. China's "Made in China 2025" plan, the first 10-year action plan for the manufacturing-based strategy, has been made public. The manufacturing sector is the backbone of the economy, the building block of the nation, the key to prosperity, and the engine of a powerful state. Presently, more than one-fourth of the global coatings market is accounted for by China. The China National Coatings Industry Association reports that the sector has recently experienced 7% growth. Nippon has taken advantage of this market circumstance by improving how coatings are produced in its new plants in China.

Europe is expected to grow at a CAGR of 3.60% during the forecast period. Europe's top tire and general rubber goods (GRG) producer is Germany. Some of the largest producers of tires and non-tire products in the nation are Continental AG, Dunlop GmbH, Michelin Reifenwerke AG and Co KGaA, Pirelli Deutschland GmbH, Freudenberg Group, etc. The German tire market, meanwhile, has been experiencing stagnation for some time. In reaction to market shifts in Europe that favor larger rim-diameter tires, the leading players in the tire business are expanding and decreasing in Germany at the same time. One of the top producers of paints and coatings in Europe is Germany. There are about 300 paint and printing ink factories and many small and medium-sized businesses.

The United States is one of the world's largest and most developed economies. Due to its dominant position, the nation has become one of the world's leading producers of zinc compounds. With more than 1,400 manufacturing enterprises, it is one of the top-producing countries for paints and coatings worldwide. As the United States is not a producer of natural rubber, it buys rubber from Asian nations. Imported rubber is used in the manufacturing and processing a wide range of rubber goods. To manufacture and create various rubber goods, the United States employs synthetic rubber. One of the region's top producers of synthetic rubber is the United States. The nation imports natural rubber from Asian countries. Additionally, the government is the biggest consumer of synthetic rubber on the entire American continent.

Brazil is the most significant tire producer in South America, with companies like Pirelli Pneus Ltd. and Bridgestone do Brasil Industria e Comercio Ltda. With 10% of the world's oil supply, Saudi Arabia is the greatest oil exporter in the world. Saudi Arabia's crude oil output grew to 9903 thousand barrels per day in November from 9780 BBL/D/1K in October 2021, according to OPEC (Organization of the Petroleum Exporting Countries). In 2017, 2018, and 2019, the number of operating oil rigs in Saudi Arabia was practically steady. However, starting in May 2020, the number of onshore operating rigs began to decline. Numerous residential and commercial projects in Saudi Arabia are anticipated to boost the nation's building industry. Due to the lack of an automobile industry, the country's market situation for paints and coatings relies heavily on building industry developments.

Segmental Analysis

The global zinc chemicals market is segmented by type and end-user industry.

Based on type, the global zinc chemicals market is bifurcated into zinc oxide, zinc sulfate, zinc carbonate, zinc chloride, and other classes.

The zinc oxide segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.10% during the forecast period. The inorganic compound zinc oxide (ZnO) is found in nature as the mineral zincite; nevertheless, it is commercially manufactured through the high-temperature oxidation of zinc ores or metallic zinc. In most cases, it is a tasteless, white, grey, or yellowish powder. It is soluble in diluted acids and bases but insoluble in water. Three primary processes are used to manufacture zinc oxide in the commercial sector. There are two ways to create zinc oxide, both of which employ the thermal process. In these situations, zinc vapor is produced by heating either zinc ore or zinc metal. To create zinc oxide, the zinc vapor is further reacted with oxygen. The third technique involves a wet process since it creates zinc oxide using an aqueous solution.

An inorganic substance called zinc sulfate (ZnSO4) is created by processing virtually any material containing zinc with sulfuric acid. Metal, minerals, or zinc-containing oxides are all examples of zinc-containing materials. Typically, zinc sulfate is an odorless, white powder. It is soluble in water and non-combustible. It releases harmful sulfur and zinc oxide gases as it breaks down. Numerous sectors, including pharmaceutical, cosmetic, leather, and dyeing, employ zinc sulfate extensively. But it is widely acknowledged as a nutritional supplement, often known as zincate or white vitriol. The World Health Organization lists essential medications that include zinc sulfate. Health, physical tissue development, and growth all benefit from zinc.

Smithsonite, calamine, and zinc spar are some minerals that naturally contain zinc carbonate (ZnCO3). Zinc carbonate is transparent and colorless when it is pure. Iron, manganese, copper, etc., however, add color. Although it is insoluble in water, it is soluble in acidic solutions. A crucial component in the process of extracting zinc metal from ores is zinc carbonate. In addition, it is frequently utilized to make agricultural products, paint pigments, and chemicals. In addition, it is used in accessories like jewelry, rubber, plastics, batteries, and pharmaceuticals. Cleaning inflamed areas use zinc carbonate as an astringent and absorbent. 

Based on the end-user industry, the global zinc chemicals market is bifurcated into agriculture, chemicals and petrochemicals, ceramic, pharmaceuticals, paints and coatings, rubber processing, and other end-user industries.

The rubber processing segment owns the highest market and is estimated to grow at a CAGR of 3.90% during the forecast period. The market under investigation's largest end-user industry is rubber processing. In numerous rubber production operations, zinc compounds are used, most notably zinc oxide. Rubber is vulcanized using zinc oxide, which increases the natural rubber's durability. Additionally, it is utilized for coloring, latex gelation, heat stabilization, light stabilization, and other rubber processing procedures. One of the critical elements that hindered the rubber industry's expansion before 2020 was the decreased demand from the automobile sector. This decline in rubber production constrained the need for zinc oxide in the rubber industry.

In the agricultural sector, micronutrients based on copper are the second most commonly consumed after zinc. Chemical forms of zinc, including zinc oxide, zinc sulfate, and zinc chloride, are employed in fertilizers. About half of the world's zinc sulfate is produced in agriculture. One of the common micronutrient deficiencies in crops worldwide is zinc insufficiency. The deficit brings on significant losses in crop output and crop quality. Chemicals containing zinc can be used directly in soils to rectify zinc deficiency, or they can be used as an ingredient in foliar treatments of zinc, root dipping, and seed coating before crop transplant. Zinc is a vital component of several biochemical processes that impact cellular metabolism, growth, development, and reproduction.

Zinc chemicals are utilized in developing catalysts and adsorbents for massive chemical and petrochemical production processes in the chemical and petrochemical industries. To make polymers more viscous and U.V. resistant, chemicals, and additives are also added during the plastics production process. In 2020, the COVID-19 epidemic significantly impacted chemical manufacturing in Asia-Pacific, the Middle East and Africa, and Europe. The COVID-19 epidemic also hindered the expansion of the global chemical industry by slowing output and upsetting the industry's supply chain internationally. Due to facility closures around the world in 2020, the global chemical industry saw a considerable drop in production volume.

Zinc compounds like zinc oxide and zinc sulfate are used in the ceramics industry to increase the gloss of the surface. By making the ceramic glaze more elastic, they help stop ceramic goods from cracking and shuddering. The recent increase in ceramic product manufacture in Asian nations like China and India significantly influenced the demand for zinc compounds. The need for ceramic products, including ceramic tiles, sanitary ware, and pipes, is being driven by the expanding building sectors in several Asian nations. At the end of 2020, manufacturing and construction activities picked back up, which helped the ceramics industry's use of zinc compounds to revive. 

Impact of covid-19

Recent Developments

• January 2023- Zinc oxide manufacturer JG Chemicals stated that it had filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).