Global Zinc Oxide Market Demand & Forecast Analysis, 2016-2032

Zinc oxide is an inorganic compound with the chemical formula ZnO. Zinc Oxide is widely used in cosmetics and personal care products, as well as in various other industries such as rubber compounding, chemicals, agriculture, paints & coatings, and ceramics. The rubber compounding sector is the largest consumer of zinc oxide, accounting for around 60% of the global demand. This is expected to grow at a rate of 3.0% till 2032 due to the high demand for tires in the automotive sector. Zinc oxide is used in rubber as a vulcanizing agent, improving the durability of rubber and enhancing its hot air/heat aging properties. However, low levels of zinc oxide can lead to burning problems. Zinc oxide is also known to reduce heat build-up and tire wear, making it an essential component for the automotive industry. The increased demand for automobiles is expected to drive the demand for zinc oxide in developing countries, as there is an increase in discretionary spending and growth of nuclear families, leading to more purchases of new vehicles.

Zinc oxide finds its primary use in the agriculture sector as a source of zinc in fertilizers or as a feed additive. The demand for zinc oxide is majorly driven by its use in fertilizers, which accounts for approximately 40% of the total demand, while the rest is attributed to feed additives. The Asia-Pacific and North American regions are the leading markets for zinc fertilizers and account for 50% of the global demand. The increasing focus on enhancing nutrient management practices to augment food production, nutritional value, and economic benefits for farmers in developing countries is expected to propel the demand for zinc oxide in this segment.

Zinc oxide accounts for around 9% of the global zinc market. Global zinc production has been falling since 2014 owing to closure of a number of zinc mines and production cuts due to falling zinc prices. Production increased in 2018 by around 1.9% over 2017 and has been witnessing an upward trend since then. Zinc Production witnessed a downfall in 2020 owing to the global COVID-19 pandemic which led to reduced mining activities globally. Nation-wide lockdowns and reduced consumer confidence impacted a number of zinc oxide end-use industries. However, Zinc production returned to pre-COVID-19 levels in 2021 and is forecast to increase in 2022 as well. The uncertainty revolving around zinc production impacts the global zinc derivatives, including zinc oxide supply chains. 

According to Prismane Consulting estimates, the global zinc oxide demand is expected to grow to nearly 1,600 kilo tons by 2032, at a growth rate of 3.1%.