Hydrochloric Acid Market Size, Share, Growth & Industry Analysis, By End Use Industry (Food & Beverage Industry, Steel Industry, Oil & Gas Industry, Chemical Industry, and Others), By Grade (Synthetic Grade and Product Grade) and Regional Analysis, 2024-2031

Hydrochloric Acid Market Size

The global Hydrochloric acid market size was valued at USD 1,629.1 million in 2023 and is projected to grow from USD 1,720.2 million in 2024 to USD 2,659.6 million by 2031, exhibiting a CAGR of 6.42% during the forecast period. The demand for hydrochloric acid (HCL) is rapidly increasing in recent years, due to its growing application in the steel, chemical, food, and water treatment industries.

The need for clean water and infrastructure development is increasing in emerging economies, which is boosting the demand for HCL. HCL is used for water treatment and cleaning the concrete before construction. In the scope of work, the report includes products offered by companies such as BASF SE, Dow Chemical Company, Occidental Petroleum Corporation (Oxy), Westlake Corporation, Olin Corporation, AGC Inc., Detrex Corporation, and others. 

The hydrochloric acid market is expected to register significant growth, due to its versatility across developed and developing economies. Developing economies are undergoing significant industrialization, with the steel industry emerging as a major consumer of HCL. HCL has a wide range of industrial applications. This chemical is crucial for pickling steel and removing rust & impurities. It is commonly used for pH adjustment and as a flavoring agent in the food & beverage industry in developed economies.

It is also highly beneficial for oil extraction, as it can dissolve portions of rock to create porous structures that aid the extraction process. Additionally, HCL has extensive applications in the pharmaceutical sector. Given its diverse uses and widespread industrial production, the market for HCL is poised for significant growth in the future.

The chemical industry is poised for significant growth in the coming years, driven by several key factors. Government support and initiatives are encouraging innovation and research and development (R&D) within the industry. Technological advancements are also automating production processes, increasing efficiency and output. This can help chemical companies achieve greater economies of scale, ultimately reducing prices for consumers.

The hydrochloric acid (HCL) market stands to benefit greatly from these industry trends. HCL is a strong, corrosive acid created by dissolving hydrogen chloride gas in water - it is also known as hydrogen chloride or muriatic acid. Advanced automation and process control systems have significantly improved the precision and safety of hydrochloric acid production.

Analyst’s Review

The current market trends suggest that the hydrochloric acid market is poised for growth. Driven by its wide range of applications, the demand for HCL is expected to remain positive in the future. HCL is utilized across both large-scale industrial applications as well as small-scale industries like leather tanning. Electronic-grade HCL is specifically designed for use in the electronics industry, particularly in semiconductor chip manufacturing. 

Detrex Corporation offers three semiconductor-grade hydrochloric acid products: Detrex UltraMax 20 Baume, Detrex UltraMax 22 Baume, and Detrex UltraMax 23 Baume. In addition to automation and advancements in the chemical industry, government safety rules and regulations will help the market achieve sustainable long-term development.

Hydrochloric Acid Market Growth Factors

Access to clean drinking water is a fundamental need for society. HCL has emerged as an invaluable tool in water treatment. It is used to adjust the pH levels of water to make it safe for consumption and industrial use. The primary applications of HCL in water treatment plants include disinfection, pH level adjustment, and corrosion control. The key advantages of using HCL are its speed, efficacy, and cost-effectiveness, leading to its increased demand in water treatment. 

• In October 2024, BASF SE received an Environmental Stewardship Award for reducing off-spec HCL by upgrading its automation controls and adding an analyzer. This allowed for real-time onsite adjustments, resulting in the production of high-quality HCL for use in water treatment plants.

The hydrochloric acid market faces a major challenge in navigating the evolving health and regulatory landscape. Governments globally are imposing increasingly strict and varied rules governing the production, handling, and transportation of the chemical. Chemical companies are continuously adapting to the different regulatory requirements of countries amid growing environmental concerns. Uniform rules and regulations can overcome this challenge.              

Hydrochloric Acid Industry Trends

The hydrochloric acid market is expected to witness an upward trend, driven by the increasing demand from steel manufacturing, construction, chemical production, food processing, and water treatment industries. The Federal Reserve's interest rate cut in 2024 led to an upward growth in the housing market, which is expected to bolster the demand for HCL. HCL is used in construction for cleaning concrete and masonry surfaces, removing impurities from iron, steel, and alloys, and adjusting the pH levels of construction materials. Additionally, it is added to concrete to enhance its strength.

The demand for HCL in the food processing industry is expected to rise, due to several factors. These include the growing consumer demand for processed and packaged foods, increased demand for meat and poultry products, and rapid industrialization in emerging economies. HCL is used as a food preservative to extend shelf life, enhance flavor, clean and sanitize processing equipment, and purify raw sugar for use in soft drinks and other beverages.

Segmentation Analysis

The global market is segmented based on end use industry, grade, and geography.

By End Use Industry

Based on end use industry, the market is segmented into food & beverage industry, steel industry, oil & gas industry, chemical industry, and others. The chemical industry segment is anticipated to witness the highest growth at a CAGR of 7.39% over the forecast period.

As a crucial chemical reagent, HCL facilitates the production of diverse organic and inorganic compounds. It plays a crucial role in chlorination, alkylation, and isomerization processes. The growing chemical industry, which encompasses plastics, pharmaceuticals, and dyes, has led to the increased demand for HCL.

By Grade

Based on grade, the market is segmented into synthetic grade and product grade. The synthetic grade segment secured the highest hydrochloric acid market share of 56.12%% in 2023 with a valuation of USD 914.3 million in 2023. Synthetic grade HCL is produced through a controlled process, ensuring high purity and consistent quality. This is crucial for industries that require precise chemical reactions and demand stringent quality standards.

The high purity and precise concentration of synthetic HCL make it suitable for a wide range of applications across various industries, such as chemical processing, metal finishing, and pharmaceutical manufacturing. Synthetic HCL can be produced in different concentrations to meet specific industry needs, providing flexibility and adaptability.

In contrast, product-grade HCL is a more cost-effective option, but its quality can vary depending on the source and production process. However, the increasing demand for high-quality, consistent HCL, particularly in industries like electronics and pharmaceuticals has led to the growth of synthetic grade over product grade.

Hydrochloric Acid Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and Latin America.

North America emerged as the leading region in the hydrochloric acid market in 2023, attaining a valuation of USD 576.9 million. This can be attributed to the region's well-developed industry network and advanced logistics & infrastructure capabilities. However, the handling and transportation of HCL can be challenging due to its strong and volatile nature, and poses safety risks if not managed properly.

Despite these challenges, North America is known as a hub of technological innovation. U.S. Steel and CarbonFree Chemicals have teamed up to capture carbon dioxide emissions from U.S. Steel's Gary Works facility using CarbonFree's patented SkyCycle technology. This innovative process intercepts hard-to-reduce industrial emissions before they are released into the atmosphere, and then converts the captured CO2 into the specialty chemical precipitated calcium carbonate, with hydrochloric acid as a byproduct.

The market in Asia Pacific is poised for significant growth over the forecast period at a CAGR of 7.63%. Significant growth in the hydrochloric acid market is driven by increased industrial activities, including steel production, oil & gas extraction, chemical manufacturing, food processing, and water treatment. Additionally, rapid industrialization in emerging economies is contributing to the market's expansion.

Competitive Landscape

The global hydrochloric acid market report will provide valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Strategic initiatives, including investments in R&D activities, establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for market growth. 

List of Key Companies in Hydrochloric Acid Market

• BASF SE
• Dow Chemical Company
• Occidental Petroleum Corporation (Oxy)
• Westlake Corporation
• Olin Corporation
• AGC Inc.
• Detrex Corporation
• Tata Chemicals Ltd
• Formosa Plastics Corporation
• ERCO Worldwide

Key Industry Developments

• August 2023 (Expansion): Wacker Chemie AG expanded its HCL production capabilities at its Burghausen site. This increase in production capacity will boast Wacker's specialty chemicals offerings for the semiconductor market

The global hydrochloric acid market is segmented as:

By End Use Industry

• Food & Beverage Industry
• Steel Industry
• Oil & Gas Industry
• Chemical Industry
• Others

 By Grade

• Synthetic Grade
• Product Grade

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America.