In 2018, the global zinc chloride market was valued at $272 million. A lot has changed since then, of course, owing to the economic slowdown and innovation in different industries which has influenced the demand for the solution.
So, how does the zinc chloride market looks now? What can we expect this year and beyond?
After one of the longest stretches of boom, the economy saw a slowdown last year. The countless predictions (and announcements) of recession made the case worse, spreading market-wide FUD. The trade war between China and the USA posed its own economic challenges. Collectively, these impacted many segments and players, including zinc chloride suppliers in India. Per the macro trends, the domestic consumption of zinc chloride in the country dropped. The extent of this drop isn’t clear due to the lack of adequate data and reporting.
With India still struggling with economic problems and slowdown across industries, barring the top players who have a good market position, it’s safe to assume that many zinc chloride manufacturers in the country aren’t seeing pretty days. India recorded a GDP growth of just 5 percent the previous year. Global credit rating agency Moody’s Investor Services predicts India’s GDP growth rate to be 5.4 percent in 2020. (Source) The trend and such developments ought to cast negative impact on the zinc industry.
Amid the slowdown, there is a handful of good news for the zinc chloride market.
On the macro level, the requirement for zinc chloride has been on the rise YoY. A significant part of that demand is coming from the chemical and oil & gas industries, which is only growing consistently. In addition, the textile players, too, are demanding more of zinc chloride, owing to the solution’s benefits to the fabric, like acting as a refresher and proofing agent. The upsurge of demand from the chemical industry and other segments remain consistent. In the long run, by the end of this decade, the market is expected to grow considerably in terms of consumption. The revenue of any zinc manufacturer India based will rise as well.
Conclusion
For a zinc chloride manufacturer in India to grow and the market to prosper, the economy must come back on track. How the economy can be back on track depends on so many factors. It will take time. Meanwhile, the market players can only play tactically in the short-run to tap on their brand positioning and boost their sales. In the short-run, the forecast might not be good. In the long-run, however, everything looks great!