Cobalt Sulphate Market Expected to Reach $1.9 Billion by 2030

According to a new report published by Allied Market Research, titled, "Cobalt Sulphate Market by Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global cobalt sulphate market was valued at $1.0 billion in 2020, and is projected to reach $1.9 billion by 2030, growing at a CAGR of 6.4% from 2021 to 2030. Cobalt sulphate is odorless monoclinic crystalline solid that is soluble in water and liquefies slowly at around 100 °C.

Use of hydrated cobalt sulphate during formulation of cobalt salt products and cobalt containing pigments is anticipated to drive the demand in the global market. It can also be used as additive to soils and animal feeds. Electro winning, surface treating agents, processing agents used for petroleum production, and water treatment products drive the demand in the global market. However, cobalt sulphate is considered as topical irritant and a recognized cause of occupational contact dermatitis is anticipated to hamper the market growth.  

Cobalt sulphate can be used as catalyst during synthesis process, chemical intermediate compound, increasing biogas production process, production of feed grade materials, and production of frits, ceramic wares, & water treatment chemicals. This factor is anticipated to create lucrative opportunities for the expansion of the cobalt sulphate market in the future.

The cobalt sulphate market is segmented on the basis of application and region. 

By application, the market is divided into super alloy, additives, color & pigments, battery, and others. The battery application dominated the global market in terms of revenue in 2020, with over half of the total share. Employing cobalt phosphate as the cathode of rechargeable batteries efficiently improves their energy density, power, and performance as compared to batteries that lacks cobalt. The cobalt industry is expected to be driven by the investments by market players and demand for cobalt containing Li-ion batteries for EVs.

Region-wise, the cobalt sulphate market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The LAMEA cobalt sulphate market size is projected to grow at the highest CAGR during the forecast period and accounted for 48% cobalt sulphate market share in 2020. Madagascar and D.R. Congo are the most active players for cobalt sulphate market in the African region. At present, the cobalt sulphate supply was done from the copper belt of the D.R. Congo and Zambia. The government of D.R. Congo has regularly imposed restriction on the export of ores & concentrates to encourage the downstream processing in the country.

Key players operating in the global cobalt sulphate market include Jervois Finland, Ganzhou Tengyuan Cobalt Industrial Co. Ltd., Zhangjiagang Huayi Chemical Co. Ltd., Nantong Xinwei Nickel & Cobalt Hightech Development Co. Ltd., Norilsk Nickel, Umicore, Hunter Chemical LLC, Jiayuan Cobalt Holdings Limited, Merck KGaA, and Jinchuan Group International Resources Co. Ltd.

COVID-19 Analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The cobalt sulphate market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on chemical manufacturing, pigment, ceramics, batteries, and other end-use sectors. For instance, according to a report published by the American Chemistry Council (ACC), the U.S. chemical output fell by 3.6% in 2020 after a 0.1% dip in 2019. Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors towards healthcare. In addition, several cobalt sulphate manufacturing companies have either shut down or shrank their operations due to the risk of infection among the workforce. This has temporarily hampered the production rate of the cobalt sulphate market. Moreover, the falling income of customers has led contraction in the demand for cosmetic products where cobalt sulphate is widely used as an intermediate in producing pigments. Furthermore, the industry has faced various problems related to transportation, the non-availability of a skilled workforce, and reduced export/ import orders amid the COVID-19 period. This has led the cobalt sulphate market to witness a downfall in demand.

Key Findings of Study

• The magnets application is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.1% from 2021 to 2030.
• LAMEA garnered the highest share of 48% in 2020, in terms of revenue, growing at a CAGR of 7.2%.