The Magnesium Hydroxide Market Is Estimated To Witness High Growth Owing To Rising Demand From Flame Retardants
The Magnesium Hydroxide Market is estimated to be valued at US$ 826.34 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Magnesium hydroxide is an inorganic compound with white powder appearance and it is an important feedstock for producing other magnesium compounds. It acts as a flame retardant in plastics and is also used as an antacid in pharmaceuticals for its abilities to neutralize excess stomach acid. Magnesium hydroxide provides protection against fire hazards and enhances mechanical strength and thermal stability of plastics.
Market key trends:
The major driving factor for growth of magnesium hydroxide market is increasing demand from flame retardant applications. Magnesium hydroxide is an effective and eco-friendly flame retardant used in plastics, rubber, and coatings. It acts as a barrier that delays the start of a fire protecting surrounding materials from ignition. According to International Organization for Standardization (ISO), magnesium hydroxide meets criteria of self-extinguishing property when properly distributed in polymers, making it a desirable flame retardant. Additionally, rising use of magnesium hydroxide in pharmaceuticals is also fueling market growth. It is primarily used in formulations for acid indigestion, heartburn, and stomach upset given its antacid properties. Further, growth of end-use industries such as construction and plastics where magnesium hydroxide finds application is augmenting market expansion over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as magnesium hydroxide market is dominated by established players and requires high initial investments for production facilities.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of substitutes and fragmented supplier base offering price bargaining.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials used in production are widely available.
Threat of new substitutes: The threat of new substitutes is high as substitutes like aluminum hydroxide are readily available.
Competitive rivalry: Intense due to presence of many regional and international players.
SWOT Analysis
Strengths: Wide applications in industrial sectors like construction, environmental applications and flame retardants. Used in pharmaceuticals due to its antacid properties.
Weaknesses: High production and transportation costs. Volatility in raw material prices affect the overall costs.
Opportunities: Growing construction industry globally increases demand for flame retardants and precipitation. Increasing environmental regulations support usage in flue gas desulfurization.
Threats: Growth of substitute products like aluminum hydroxide and calcium hydroxide. Stringent regulations regarding mining activities.
Key Takeaways
The Global Magnesium Hydroxide Market Growth is expected to witness high, exhibiting CAGR of 6.9% over the forecast period, due to increasing usage in pharmaceuticals and construction industries. Magnesium hydroxide finds widespread application as an antacid in pharmaceuticals due to its acid neutralizing properties. It is also used as a flame retardant in electrical cables and wires.
Regionally, Asia Pacific dominated the global market in 2023, accounting for around 35% share. China dominates the Asia Pacific magnesium hydroxide market owing to presence of manufacturing facilities of major players and availability of raw materials. Europe is the second largest market for magnesium hydroxide owing to stringent environmental regulations favoring its use in flue gas desulfurization applications.
Key players operating in the magnesium hydroxide market are Nedmag Industries Mining & Manufacturing B.V., Nabaltec AG., Huber Engineering Materials, Kyowa Chemical Industry Co. Ltd., Konoshima Chemicals Co. Ltd., Tateho Chemical Industries Co., Ltd., Baymag Inc., Sakai Chemical Industries Co. Ltd., Lehmann & Voss & CO. KG., Martin Marietta Materials Inc., Xinyang Mineral Group, Premier Periclase Ltd., Israel Chemicals Ltd., and Premier Magnesia LLC.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
