Global Anhydrous Aluminum Chloride Market Size and Share Analysis 2023-2028

Market Overview

The Global Anhydrous Aluminum Chloride Market is projected to experience significant growth during the forecast period (2023-2028), expanding from 1,401 kilotons in 2023 to 1,858 kilotons by 2028, at a CAGR of 5.81%.

Anhydrous aluminum chloride is an odorless inorganic solid, typically white to grey in appearance, but it can exhibit a yellow hue due to traces of iron chloride. Its prominent usage in the chemical industry as a catalyst during the Friedel Crafts reaction and as a Lewis acid underscores its importance. This chemical compound is denoted by the formula AlCl3.

Product Type

Market Report

No. of Pages


Release Date

April 2023

Base Year


Forecast Period


Market Size

1344 thousand tons in 2021

Market Segments

Form, Application, and Geography



No. of Companies Mentioned


Key driving factors for the market include the increasing application of anhydrous aluminum chloride in manufacturing pesticides for the agriculture sector and its growing demand as a catalyst in chemical production. However, the market growth might face hindrance due to raw material price volatility and concerns regarding harmful waste effluents.

The anhydrous aluminum chloride market is currently witnessing a surge, propelled by its expanding use as a catalyst in pharmaceuticals and various chemical manufacturing processes, including agriculture chemicals, polymers, flavors, and fragrances. With the chemical manufacturing and cosmetics industries experiencing growth, ample opportunities are expected to arise for the anhydrous aluminum chloride market during the forecast period.

In the global market, Asia-Pacific holds a dominant position, with significant consumption in countries such as China and India. These regions contribute substantially to the demand for anhydrous aluminum chloride.

Market Segmentation

The market is segmented based on various factors, including form, application, and geography.

Segmentation by Form

Segmentation by Application
Chemical Manufacturing
Other Applications

Segmentation by Geography
North America – United States, Canada, Mexico
Europe – United Kingdom, Germany, France, Italy, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, and Rest of Asia-Pacific
Latin America – Brazil, Argentina, and Rest of Latin America
Middle East and Africa – Saudi Arabia, South Africa, and Rest of Middle East and Africa

The global anhydrous aluminum chloride market is characterized by pigments holding a significant share due to their extensive use in the dyes sector. Additionally, anhydrous aluminum chloride serves as a nucleation agent in the chloride process for TiO2 pigment production. Its role as a Lewis acid makes it a crucial catalyst in the pharmaceutical industry for producing medications like ibuprofen, thereby driving demand.

The market for anhydrous aluminum chloride is expected to flourish, driven by its increased usage as a catalyst in the production of chemical intermediates such as dyes, anthraquinone, ethylbenzene, and meta phenoxy benzaldehyde. The demand is further stimulated by its application as the primary catalyst in various reactions, including Friedel-Crafts alkylation and acylation, hydrocarbon polymerization, and isomerization. Furthermore, its utilization in the petrochemical industry for hydrocarbon resins and the production of inorganic chemicals like titanium dioxide and fumed alumina contributes to market growth.

The Indian chemical sector, particularly the dyestuff and pigment industries, holds about 17% of the global market, with dyes and pigments production reaching 327 kilotons in 2021. The textile industry is a major consumer of dyes and pigments, and players who cater to its requirements stand to benefit significantly.

In North America, Europe, and other regions, the demand for pigments remains high, leading to capacity expansions by companies such as DCL Corporation. This expansion reflects the rapid growth expected in the anhydrous aluminum chloride market over the forecast period.

The Asia-Pacific region leads the global anhydrous aluminum chloride market due to high consumption in the Chinese pigment and pharmaceutical industries. The region’s rapid industrialization, particularly in China, India, and ASEAN nations, is expected to drive significant growth in demand for anhydrous aluminum chloride as a raw material and catalyst in various manufacturing industries.

China is the world’s largest market for dyes and pigments, with the textile industry and demand for paints and coatings being major growth drivers. The growing population and increasing disposable income further contribute to the demand for dyes and pigments in China. China’s pharmaceutical industry also experiences substantial growth, with significant government spending on industrial development in chemical manufacturing, pharmaceuticals, and cosmetics.

India, heavily dependent on agriculture, represents another promising market for anhydrous aluminum chloride. The country’s agricultural and allied sectors contribute significantly to the economy, further propelling the applications of anhydrous aluminum chloride in various end-use industries.

The anhydrous aluminum chloride market is poised for rapid growth, driven by its diverse applications in the dyes, pharmaceutical, and petrochemical industries, along with the increasing demand in emerging economies, especially in the Asia-Pacific region.

Competitive Landscape

The anhydrous aluminum chloride market exhibits fragmentation, with various players holding marginal shares. Among the key market participants are Aditya Birla Chemicals, BASF SE, DCM Shriram, Gujarat Alkali and Chemicals Ltd., and Kanto Denka Kogyo, along with other companies (not specified in any particular order).

BASF SE emerges as the market leader in the global anhydrous aluminum chloride market, primarily attributed to its substantial production capacity and extensive distribution network worldwide.

Key companies profiled in this report include Aditya Birla Chemicals, Anmol Chloro Chem, Base Metal Group, Basf SE, Dcm Shriram, Gujarat Alkali And Chemicals Ltd, Gulbrandsen Manufacturing Inc., Kanto Denka Kogyo Co. Ltd, Nippon Light Metal Company Ltd, Shandong Kunbao New Materials Group Co. Ltd, Upra Chem Pvt. Ltd.

Key Questions Answered

What is the study period of this market?

The Anhydrous Aluminum Chloride Market is studied from 2018 to 2028.
What is the growth rate of Anhydrous Aluminum Chloride Market?

The Anhydrous Aluminum Chloride Market is experiencing a growth rate of 5.81% over the next 5 years.
What is the size of the Anhydrous Aluminum Chloride Market?

The Anhydrous Aluminum Chloride Market is projected to reach 1,401 kilotons in 2023 and is expected to grow at a CAGR of 5.81% to reach 1,858 kilotons by 2028.
Which region has the highest growth rate in the Anhydrous Aluminum Chloride Market?

The Asia Pacific region is experiencing the highest CAGR over the period from 2018 to 2028.
Which region has the largest share in the Anhydrous Aluminum Chloride Market?

Asia Pacific currently holds the highest market share as of 2022.
Who are the key players in the Anhydrous Aluminum Chloride Market?

The major companies operating in the Anhydrous Aluminum Chloride Market include Aditya Birla Chemicals, Kanto Denka Kogyo, BASF SE, Gujarat Alkali and Chemicals Ltd., and DCM Shriram.

USD 2,850

Scroll to Top

Request Free Sample Report

Global Anhydrous Aluminum Chloride Market Size and Share Analysis 2023-2028

Please fill out our form and we will get back to you.