Global Alumina Market Set to Experience 1.5x Growth, Reaching USD 102.5 Billion by 2030

The global alumina market is on a robust growth trajectory, envisaged to expand 1.5 times its valuation from 2022, striking USD 102.5 billion by 2030, as per the latest market insights. This remarkable growth, steered by a modest CAGR of 3.7% from 2023 to 2030, is propelled by the escalating demands in the low-carbon economy and burgeoning developments in the primary aluminum industry.

Overview

Being the pivotal raw material in aluminum production, alumina’s applications are manifold, ranging from refractories, ceramics, to high-value special alumina. The sector promises to be a cornerstone in a greener economy, driven significantly by smelter grade alumina, which accounted for over 90% of the demand in 2022.

Market Dynamics

Dominance of Smelter Grade Alumina: Smelter grade alumina, a prime component in aluminum production, spearheads the market with over 90% demand share, aspiring to flourish at a CAGR of 2.9% from 2023 to 2030.
China's Leadership: In 2022, China led the global production scene with a lion’s share of over 50% of the 140 million tons produced globally.
European Market: Despite geopolitical unrest, Russia held a considerable share in European alumina production, responsible for over 40% in 2022.

Challenges and Opportunities Ahead

While the market navigates through challenges including volatile prices and geopolitical tensions, particularly the Russia-Ukraine conflict affecting European production, it also unveils prolific growth avenues.

Investment Spur in India and Indonesia

The recent times saw a surge in investments in the aluminum value chain, with substantial initiatives in India and Southeast Asia. Adani Group's unveiling of a USD 5 billion investment proposal for a new alumina refinery in India stands testament to this growth trajectory.

Pioneering Sustainability

Companies including Aluminium Corporation of China Limited and Alcoa are advancing towards sustainable operations, with a committed focus on reducing greenhouse gas emissions and promoting circular economy principles in production processes.

Future Insights

Rising Aluminum Demand: The global aluminum market, which was valued at USD 245.7 billion in 2021, foresees a steep ascent, targeting USD 498.5 billion by 2030.
Escalating Prices: Amid the rising energy costs and supply disruptions, alumina prices are projected to remain high in the upcoming years, with an average of USD 480 per ton noted in 2022.

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