Aluminum Hydroxide Market Expands Amid Rising Demand from Plastic and Rubber Industries

The global aluminum hydroxide market is projected to reach USD 12.05 billion by 2024, with an anticipated compound annual growth rate (CAGR) of 4.1% from 2025 to 2030. This growth is primarily fueled by rising demand across a wide range of industries, including pharmaceuticals, water treatment, and flame retardants. Aluminum hydroxide’s unique properties—such as flame retardancy, chemical stability, and non-toxicity—make it highly suitable for use in polymer manufacturing and emerging applications like electric vehicles (EVs), battery technologies, and 5G infrastructure.

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Increased emphasis on health and safety regulations, especially in the construction and automotive sectors, is accelerating the adoption of aluminum hydroxide as a halogen-free flame retardant. Additionally, its cost-effectiveness and broad utility in coatings and fillers continue to support steady demand. Expanding polymer production in Asia-Pacific and Europe, along with growing use in lightweight, fire-resistant automotive components, is also boosting market expansion.

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End-use Industry Insights

  • Construction: Accounted for 41.9% of market share in 2024. The use of aluminum hydroxide as a flame retardant in plastics, insulation materials, and coatings is critical to enhancing building safety. Growing regulatory emphasis on fire safety in residential and commercial projects supports continued demand.

  • Automotive: Increasingly utilized in heat-resistant and fire-retardant automotive components. Aluminum hydroxide’s lightweight, halogen-free properties are especially relevant in EV manufacturing, where safety and performance are top priorities.

Grade Insights

  • Industrial Grade: Dominated the market in 2024 with a 59.0% revenue share. Its widespread use as a flame retardant, filler, and precursor in applications such as ceramics, glass, coatings, and water treatment is supported by increasing safety regulations in construction and automotive sectors.

  • Pharma Grade: Known for its exceptional purity, this grade is used in antacids and as a vaccine adjuvant. Rising cases of gastrointestinal conditions and expanding global immunization programs continue to drive demand for pharmaceutical-grade aluminum hydroxide.

  • Market Drivers, Challenges, and Opportunities

    Aluminum hydroxide plays a crucial role in water purification processes, making it indispensable amid rising demand for safe drinking water. Increasing global population, rapid industrialization, and stricter government regulations around water quality are contributing significantly to the compound's growing use in municipal and industrial water treatment systems.

    However, concerns persist regarding the health risks posed by prolonged exposure. Inhalation of fine aluminum hydroxide dust may lead to respiratory conditions and inflammation, while excessive exposure has been linked to neurotoxicity. These safety concerns, along with growing scrutiny from environmental regulators and the emergence of alternative flame retardants, are expected to influence future market dynamics.

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