Magnesium hydroxide, commonly known as milk of magnesia, is a commercial antacid medication used to treat acid indigestion and heartburn. It inhibits the production of stomach acids and neutralizes excess stomach acid. Magnesium hydroxide also finds applications as a flame retardant additive in thermoplastics. The flame retardant property of magnesium hydroxide makes it a desirable ingredient for products across automotive, construction and electrical industries where fire safety is a regulatory requirement.
The global Magnesium Hydroxide Market is estimated to be valued at US$ 826.34 Bn in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the major trends driving the demand for magnesium hydroxide is the rapid growth of flame retardant industry. Magnesium hydroxide is commonly used as a synergist with aluminum hydroxide in flame retardant formulations due to its endothermic decomposition and ability to release water vapor on heating. It enhances the flame retardant effect of aluminum hydroxide. Magnesium hydroxide consumption is expected to increase significantly due to stricter fire safety norms mandating use of flame retardants in automotive, construction and electrical applications. Its widespread application as a flame retardant in plastics, rubber, textiles, paper and wood is fueling the magnesium hydroxide market growth.
Threat of new entrants: The threat of new entrants to the magnesium hydroxide market is moderate. New players require high capital investments for processing facilities and production lines. In addition, existing players have established brands and supply chains.
Bargaining power of buyers: The bargaining power of buyers is moderate. Magnesium hydroxide has applications in diverse end-use industries such as pharmaceuticals, environmental, and flame retardants. However, buyers have limited influence due to presence of several established suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Raw materials required for magnesium hydroxide production such as magnesium oxide and caustic soda are commoditized. However, suppliers have moderate influence due to long term supply agreements with players.
Threat of new substitutes: The threat of new substitutes is moderate. Alternatives exist for applications of magnesium hydroxide such as aluminum hydroxide and antioxidants. However, substitutes require high switching costs due to change in formulations.
Competitive rivalry: The magnesium hydroxide market features presence of numerous global and regional players. However, market share remains concentrated among the top players. Price competition is moderate due to differentiation in product quality.
Global Magnesium Hydroxide Market Size is expected to witness high growth over the forecast period. Asia Pacific currently dominates the market with largest share. The region is expected to maintain its dominance owing to presence of emerging economies such as China and India with rapidly growing end-use industries.
Regional analysis: North America is expected to grow at a significant rate during the forecast period. This is attributed to increasing pharmaceutical production and flame retardant applications in the region. Europe accounts for notable share of the global market driven by stringent environmental regulations leading to adoption of magnesium hydroxide for wastewater treatment applications.
Key players: Key players operating in the Magnesium Hydroxide Market are Sims Metal Management Ltd., Schnitzer Steel Industries, Inc., Nucor Corporation. Players focus on geographical expansion and new product developments catering to applications such as pharmaceutical binder, environmental protection, and flame retardant. For instance, Sims Metal Management Ltd. operates steel scrap recycling facilities across 15 countries with sales in over 50 countries.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it