India Zinc Oxide Market Outlook to 2030

India Zinc Oxide Market Overview

• The India Zinc Oxide market is valued at USD 388 million based on a five-year historical analysis. The market is driven by several industries, including rubber manufacturing, which is crucial for the automotive sector, and the increasing use of zinc oxide in agriculture and cosmetics. The demand for zinc oxide in rubber compounding, particularly in tire production, plays a pivotal role in its growth. Other applications such as pharmaceuticals and cosmetics further enhance the demand due to zinc oxides antibacterial and UV-blocking properties.

• The dominance of specific regions in the market is attributed to their industrial infrastructure and resource availability. Northern and Western India dominate the market due to their large-scale automotive and construction industries. Cities such as Mumbai, Pune, and Delhi serve as industrial hubs for automotive manufacturing, rubber production, and construction, making them key players in zinc oxide consumption.
• The Indian governments "Make in India" initiative continues to encourage the domestic production of key materials, including zinc oxide. In 2024, the government has allocated more than 12,000 crore for the promotion of domestic manufacturing and reducing import dependence. This initiative is expected to boost investments in zinc oxide manufacturing facilities, especially as part of the development of industrial corridors and special economic zones.

India Zinc Oxide Market Segmentation

By Process Type: The market is segmented by process type into Indirect (French) Process, Direct (American) Process, and Wet Chemical Process. The Indirect Process currently holds a dominant market share due to its ability to produce higher purity zinc oxide, which is essential for high-end applications such as cosmetics and pharmaceuticals. The Indirect Process is also preferred in rubber and ceramics industries, where quality consistency is crucial.

By Application: The market is segmented by application into Rubber & Tyres, Ceramics & Glass, Pharmaceuticals & Cosmetics, Agriculture, and Paints & Coatings. The Rubber & Tyres segment leads the market due to its extensive use in automotive tire manufacturing. Zinc oxide plays a critical role in the vulcanization process of rubber, enhancing the durability and heat resistance of tires. The increasing demand for electric vehicles (EVs) and advancements in tire technology further fuel this segment.

India Zinc Oxide Market Competitive Landscape

The market is highly competitive, with several domestic and international players. This consolidation is largely driven by the demand from multiple industries, particularly rubber and pharmaceuticals. Key companies leverage innovations in zinc oxide processing and invest in R&D to gain a competitive edge.

India Zinc Oxide Market Analysis

Market Growth Drivers

• Increasing Demand from the Rubber Industry: Indias expanding rubber industry, which consumed over 800,000 metric tons of rubber in 2023, is a key driver for zinc oxide demand. Zinc oxide is essential in vulcanization, making rubber more durable, particularly for automobile tires and industrial products. With the Indian automotive industry expected to manufacture more than 32 million vehicles in 2024, the demand for rubber-based products is anticipated to grow further, directly increasing zinc oxide consumption for tire production.
• Growth in the Pharmaceutical and Cosmetic Industries: The Indian pharmaceutical industry is forecasted to surpass $65 billion by 2024, creating a substantial market for zinc oxide, which is widely used as an ingredient in skin ointments and sunscreens due to its antibacterial properties. Similarly, the Indian cosmetic industry, expected to reach over $20 billion by 2025, increasingly uses zinc oxide in sunscreen lotions and skincare products.
• Expanding Paints and Coatings Sector: The paints and coatings industry in India is estimated to grow by approximately 15 million tons in 2024 due to rising infrastructure projects, housing developments, and industrial activities. Zinc oxide is used as an additive to enhance the durability and weather resistance of paints. The booming real estate sector, with the governments push for affordable housing, is expected to propel further growth in the paints market.

Market Challenges

• Environmental Regulations on Mining Activities: Indias zinc oxide production relies heavily on the mining of zinc ores. However, stringent government regulations on mining activities, including new emissions norms and environmental clearances, have led to a slowdown in zinc mining. In 2024, the Indian government rejected more than 100 mining applications due to non-compliance with environmental laws.
• Volatile Raw Material Prices: The price of zinc ore, which is the primary raw material for zinc oxide production, has been volatile due to international market fluctuations. In 2023, India imported over $3 billion worth of zinc ore, and any disruption in global supply chains, such as political instability or supply shortages, can drastically affect the pricing.

India Zinc Oxide Market Future Outlook

Over the next five years, the India Zinc Oxide industry is expected to exhibit steady growth, driven by increasing demand from the automotive and agricultural sectors.

Future Market Opportunities

• Sustainability and Green Manufacturing: The next five years will see Indian zinc oxide manufacturers increasingly shift toward sustainable production practices. With the government incentivizing green manufacturing, companies are expected to invest more in renewable energy sources for production, and this will lead to the development of eco-friendly zinc oxide products aimed at the global market.
• Increased Application in Agriculture for Crop Enhancement: The demand for zinc oxide as a micronutrient in fertilizers is forecasted to increase by 2028, driven by the governments push to enhance agricultural productivity. Zinc deficiency affects nearly 50% of Indias arable land, and initiatives to address this will drive up zinc oxide consumption in the agriculture sector.