The zinc oxide market has seen rapid growth in recent years due to a wide range of applications for zinc oxide products across numerous industries. Zinc oxide possesses antibacterial and UV protection properties making it useful for cosmetic, healthcare and other consumer products. It is widely used as an additive in rubbers, plastics, ceramics, glass, cement, lubricants, paints, ointments, adhesives, sealants, and more.

The Global zinc oxide market is estimated to be valued at US$ 6.34 Mn in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the zinc oxide market are MorphoSys US Inc., Bristol Myers Squibb, Karyopharm Therapeutics, F. Hoffmann-La Roche AG, Merck & Co., Inc., Gilead Sciences, Inc., and Novartis AG. These leading manufacturers are focusing on new product development and capacity expansion activities to meet the burgeoning demand from various end-use industries.

The demand for zinc oxide is experiencing significant growth due to its increasing usage in the cosmetic industry for sunscreens, lotions, and other personal care products. Zinc oxide delivers UV protection, antimicrobial properties and is non-comedogenic, making it very useful for sun protection creams and foundations. The rising health awareness among consumers regarding skin damage from UV rays is supporting the market growth.

The global zinc oxide market is expanding rapidly with growing sales across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region holds a dominant share backed by large cosmetic, rubber, and healthcare industries in countries such as China, India, Japan, and South Korea. Furthermore, developing nations are attracting major manufacturers with low-cost manufacturing options.

Market Drivers

One of the key drivers for the zinc oxide market is the wide range of applications in industries such as healthcare, personal care, rubber, plastics, paints & coatings, chemicals, and more. It acts as an effective UV blocking agent, active ingredient in ointments, excipient in pharmaceuticals, and reinforcing filler in rubber and plastics. The unique optical and antibacterial properties along with resistance to humidity, cracking and weathering have led to diverse commercial uses of zinc oxide. This widespread demand from the end-user industries is expected to propel market growth over the forecast period.

Current Geopolitical Situation and its Impact on Zinc Oxide Market Growth:

The global zinc oxide market is witnessing headwinds due to ongoing geopolitical tensions and conflicts across several regions. The Russia-Ukraine war has severely disrupted the supply chains of key raw materials. Ukraine is one of the largest producers of zinc in Europe, accounting for over 10% of global exports. With mining and transportation facilities in Ukraine getting destroyed due to attacks, zinc supply to major European and North American markets has decreased substantially over the past year. This has put upward pressure on zinc oxide prices globally. Additionally, renewed COVID lockdowns in China have temporarily halted mining and production activities in some key industrial zones. As China contributes over 30% of global zinc output, this has negatively impacted the availability of zinc for downstream zinc oxide producers worldwide. Rising logistical challenges and freight costs associated with interrupted operations in conflict zones as well as lockdown regions have increased production overheads for zinc oxide manufacturers. Geopolitical risks emanating from increased tensions between Russia and Western nations are likely to keep volatility high in the zinc and zinc oxide markets over the medium term. Producers will need to devise alternative sourcing strategies and invest in building strategic stockpiles to mitigate supply disruptions. However, rising costs remain a challenge.

Geographical Regions with Highest Zinc Oxide Market Concentration:

The Asia Pacific region accounts for the largest share of the global Zinc Oxide Market Share  in terms of value. Countries such as China, India, Japan and South Korea contribute over 60% to the total revenues. This is due to the massive scale of end-use industries such as rubber, plastics, paints & coatings in the Asia Pacific. China, in particular, is a manufacturing powerhouse with a huge concentration of tire, automotive, construction and other chemical companies that are the biggest consumers of zinc oxide. North America holds the second largest market share led by the United States. Presence of prominent paints, pharmaceutical and personal care industries has propelled zinc oxide demand growth. Western Europe is another major regional market supported by countries such as Germany, UK, France and Italy. Meanwhile, Latin America and Middle East & Africa are expected to exhibit faster gains due to rapid infrastructure development and rising disposable incomes in the upcoming decade.

Fastest Growing Region for Zinc Oxide Market:

The Middle East and Africa region is poised to emerge as the fastest growing regional market for zinc oxide over the next decade. This is driven by continuous GDP growth, strong investment in manufacturing and construction activities as well as petrochemical infrastructure projects planned across GCC countries and Africa. In countries such as Saudi Arabia, UAE, Nigeria and Egypt, improving macroeconomic conditions favouring industrialization will augur well for the adoption of end-use goods that require zinc oxide. Rising population and urbanization also bode well for the packaging, pharmaceutical and personal care sectors. Moreover, governments in the MEA region are implementing special economic zones and new trade agreements to boost local manufacturing and import substitution. This is expected to attract global zinc oxide producers to set up production facilities and expand imports in the coming years. As availability issues with Chinese and European suppliers arise due to escalating geopolitical risks, the MEA region could capitalize on its strategic location and relatively stable political environment.

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