Zinc Oxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Zinc Oxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Zinc Oxide Market was valued at over 1,400 kilotons in 2020 and the market is projected to register a CAGR of over 4% in terms of volume during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Owing to the pandemic scenarios, several countries around the world went into lockdown to curb the spreading of the virus. Major tire manufacturers have shutdown plants due to the losses that occurred in 2020. For instance, the world's biggest tiremaker has shut 8 tire plants between April and May 2020, also including its main passenger vehicle tire factory in Hikone, western Japan, and its main truck and bus tire manufacturing plant in Amagi, southern Japan. Thus, the COVID-19 impact is expected to negatively affect the market growth.

Key Highlights

• Over the medium term, the growing demand from the rubber industry is expected to drive the market growth.
• However, the poisonous nature of zinc oxide fumes whose exposure can cause metal fume fever which is a flu-like illness with symptoms of metallic taste in the mouth, headache, fever, and chills are likely to hinder the growth of the studied market.
• The Asia-Pacific region dominates the market, owing to growing application of zinc oxide in rubber and ceramic sectors in the country.

Key Market TrendsGrowing Demand from Rubber and Tire Industry

• Rubber industry stands to be the dominating segment owing to the high demand for tires from the automotive industry.
• Zinc oxide is used as a vulcanizing agent in the process of the vulcanization of rubber to increase the durability. As rubber is used to manufacture tires which are extensively utilized in the automotive industry, so the consumption of zinc oxide is expected to increase in the forecast period.
• Similarly, the higher loadings of zinc oxide can improve hot air/heat aging properties and too low of a concentration of zinc oxide can lead to scorching problems. Furthermore, it reduces heat buildup and wear in tires. Thus, making it an important segment in the rubber and tire industry. Thus, with the growth in tire and rubber industry, the consumption of the Zinc Oxide is also increasing concurrently.
• Asia-Pacific region is known as the manufacturing hub with 1/4th of the automotive manufacturing. Some of the dominating countries include China, Japan, India, and Thailand.
• The United States represents one of the largest and the most advanced tire market in the world by providing home to some of the largest tire manufacturers in the world, such as Goodyear Tire & Rubber Co., Cooper Tire & Rubber Co., Michelin and Bridgestone Americas Tire Operations. Over the years, the might of the US rubber industry has grown by leaps and bounds.
• Also, in Egypt, Pyramids Tires, a new tire manufacturer has started Egyptian factory started its first tire roll production line on 9 May 2020 with around USD 350 million. However, the factory currently manufactures motorcycle, forklift, and agricultural tires as part of the first phase of the plant’s development.
• All the aforementioned factors, in turn, are projected to drive the demand for zinc oxide during the forecast period.

Asia Pacific Region to Dominate the Market

• Asia-Pacific region stands to be the dominating market for zinc oxide. Factors, such as the growing consumption of zinc oxide in the rubber, tyres, and ceramic sector will drive market growth.
• China is projected to produce 704 million tires per year by 2025, including 527 million passenger radial tires, 148 million truck/bus radial tires, 29 million bias truck tires, 20,000 extra-large industrial tires, 12 million agricultural tires and 54,000 aircraft tires. In addition, China will produce 120.7 million motorcycle tires and 420 million bicycle tires annually by 2025.
• From June 2020, Indian government has restricted the imports of tires to boost domestic manufacturing in the country. The government has restricted imports of tires used for cars, buses, lorries and motorcycles, including radial and tubeless, in a move aimed at curbing imports and boosting domestic companies.
• The Indian government is more inclined for ‘Aatmanirbhar Bharat’ and created the ‘Go Vocal for Local' slogan in a bid to make India self-sufficient in the post COVID-19 phase. Moreover, the Indian tire manufacturers have been demanding restrictions on imports from China and other destinations.
• According to a report published by the Ministry of Economy and Industry, the beauty and personal care (BPC) industry in the country is expected to reach more than USD 10 billion by 2021, at an estimated growth rate of 5%-6% annually.
• India is the third-largest pharmaceuticals in terms of volume and thirteenth most significant in terms of value as it has a large raw material base and availability of a skilled workforce. According to the India Brand Equity Foundation, India's pharmaceutical export stood at USD 19.13 billion in 2018-2019, reached USD 13.69 billion in 2019-2020 (till January 2020)
• Hence, all such market trends are expected to drive the demand for zinc oxide market in the region during the forecast period.

Competitive Landscape

The zinc oxide market is partially fragmented in nature with large number of players operating in the market. Some of the major companies are Zochem, Inc., EverZinc, Weifang Longda Zinc Industry Co., Ltd., Silox S.A., and U.S. Zinc, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
BASF SE
EverZinc
HAKUSUI TECH
Hindustan Zinc
Pan
Continental Chemical
Rubamin
SURAJ UDYOG
Zinc
Co
India
Zochem, Inc.
Zinc Nacional, S.A.
Weifang Longda Zinc Industry Co. Ltd
Silox S.A.
U.S. Zinc.

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