Zinc Oxide Market Analysis

Zinc Oxide Market (Global, 2024)

Introduction

Zinc Oxide Market is expected to grow significantly in the coming years as zinc oxide continues to play an important role in the pharmaceutical, rubber, and cosmetics industries. The versatile properties of zinc oxide have made it an essential component in the preparation of zinc ointments and sun screens, thereby driving its demand from both the consumer and the industrial sectors. The rising awareness about the protection of the skin and the emergence of skin-related disorders are also expected to drive the growth of the cosmetics and pharmaceutical industries. Moreover, zinc ointments have been widely used in the rubber and plastic industries for the past few decades. In addition, the advancements in production technology and the growing focus on sustainable practices are expected to create new opportunities and challenges in the market. The key to capturing the full potential of zinc ointment is to understand the supply and demand for zinc ointment.

PESTLE Analysis

Political

The zinc sulphate market in 2024 is influenced by several political factors, such as the protectionist policy and the tariffs. For example, the United States imposed a 25 percent tariff on some zinc products, which directly affects the price and availability of zinc sulphate in the domestic market. Also, the European Union introduced a law on the limitation of heavy metal emissions, which can affect the production of zinc sulphate, because companies will have to comply with stricter requirements for the environment. These political factors create a complex environment for manufacturers and suppliers operating in the zinc sulphate market.

Economic

In 2024, the zinc oxalate market is characterized by fluctuating raw material prices and demand from the main industries. In the period under review, zinc was quoted at about $ 2,800 per metric ton, which influenced zinc oxalate production costs. The zinc oxalate market was characterized by the following trends: The zinc oxalate market is characterized by the presence of significant competition in the form of zinc oxalate. zinc oxalate in the tire industry in 2024 is expected to increase from 1.3 million tons in 2023 to 1.4 million tons in 2024. This demand is a prerequisite for the economic viability of zinc oxalate producers.

Social

In 2024, there is a growing demand for products which are both sustainable and sustainable. According to a recent survey, a majority of consumers (about 65%) would prefer products containing non-toxic materials, such as zinc in cosmetics and personal care products. This new way of thinking is leading manufacturers to focus on sustainable sourcing and production, thereby affecting the market for zinc. Furthermore, consumers are becoming more aware of the importance of sun protection and skin care, thereby boosting the demand for zinc in sun protection and skin care products.

Technological

TECHNOLOGICAL ADVANCEMENTS ARE PLAYING A PIVOTAL ROLE IN THE ZINC OXIDE MARKET IN 2024. In recent years, zinc-oxide production has been able to reduce its energy consumption by up to 20 per cent. In addition, the automation and the integration of artificial intelligence in the production process are boosting productivity and quality control, allowing zinc-oxide producers to produce a higher quality of zinc-oxide at a lower cost. These technological improvements are essential for maintaining a competitive edge in a rapidly changing market.

Legal

In 2024, the zinc market was regulated by the laws and regulations that governed the manufacture and use of chemicals. By the end of the year, over 150,000 registrations were expected to be submitted under the REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulations. In order to avoid fines and to keep their markets open, manufacturers were obliged to abide by these regulations. The litigation that was underway on the safety of certain chemicals was also expected to have an impact on the regulatory environment for zinc-based products.

Environmental

By 2024, the zinc-oxide market is largely influenced by considerations of the environment. Production of zinc oxide is associated with various types of emissions and waste production. In response, about 30 % of zinc-oxide producers have adopted cleaner production methods to reduce their carbon footprint. Moreover, the government is imposing stricter regulations on the zinc-oxide industry, with the goal of reducing emissions by 40 % by 2030. This focus on the environment is leading to greater innovation and investment in cleaner production methods.

Porter's Five Forces

Threat of New Entrants

The zinc-oxide market has medium-sized entry barriers, resulting from the need for special technical knowledge and technology in the production processes. Although the zinc-oxide market requires a high level of capital investment, the growing demand for zinc-oxide in various applications such as rubber, ceramics and cosmetics may also attract new participants. The established companies with their strong brand awareness and distribution networks may, however, present a challenge to new entrants.

Bargaining Power of Suppliers

The power of the zinc-oxide suppliers is relatively small. zinc-oxide is made primarily from zinc ore, which is plentiful, and there are many suppliers in the market. Consequently, the buyers can easily change suppliers, and no one supplier can exercise much control over the prices and conditions.

Bargaining Power of Buyers

The zinc-oxide market has a medium degree of buyers’ power. There are many suppliers, but big buyers, such as the rubber and paint industries, can buy in large quantities, and so can obtain better prices. However, zinc-oxide’s unique properties and its wide range of uses limit the buyers’ options, which in turn gives suppliers some power.

Threat of Substitutes

Threats of substitutes for zinc sulphate are moderate. Titanium dioxide is a substitute for zinc sulphate in some applications. However, zinc sulphate has unique properties which make it indispensable in certain areas. Threats of substitutes are therefore variable.

Competitive Rivalry

Competition is fierce in the zinc-oxide market, and many players compete for the market. The presence of well-established companies in the market, along with new entrants, intensifies competition. In order to reduce production costs and to enhance the quality of their products, companies are constantly working on their production processes and marketing strategies.

SWOT Analysis

Strengths

• High demand in the cosmetics and personal care industry due to its UV protection properties.
• Versatile applications in various industries including rubber, ceramics, and pharmaceuticals.
• Established supply chain and production processes leading to cost efficiency.

Weaknesses

• Environmental concerns related to mining and production processes.
• Limited availability of high-quality raw materials in certain regions.
• Potential health risks associated with inhalation of zinc oxide dust during manufacturing.

Opportunities

• Growing demand for eco-friendly and sustainable products can drive innovation in production methods.
• Expansion in emerging markets where industrial growth is increasing the need for zinc oxide.
• Rising awareness of the benefits of zinc oxide in skincare products can boost market growth.

Threats

• Intense competition from alternative materials and substitutes.
• Regulatory changes and stricter environmental laws impacting production.
• Volatility in raw material prices affecting overall profitability.

Summary

Zinc Oxide Market is expected to be driven by the high demand for zinc in the cosmetics and personal care applications. However, the market is expected to face challenges such as increasing concerns about the environment and the emergence of substitutes. Opportunities for growth exist in emerging economies and the growing trend towards green products. To stay competitive, companies must cope with the regulatory landscape and the volatility in the price of raw materials.