India Aluminum Hydroxide Market Size, Share, Trends and Forecast by Grade, Form, Application, and Region, 2026-2034

India Aluminum Hydroxide Market Overview:

The India aluminum hydroxide market size reached USD 71.44 Million in 2025. The market is projected to reach USD 102.39 Million by 2034, exhibiting a growth rate (CAGR) of 4.08% during 2026-2034. The market is driven by government-led water treatment infrastructure expansion through large-scale national programs, increasingly stringent fire safety regulations in the construction sector driving demand for flame-retardant materials, and major capacity expansions in India's aluminum industry strengthening the supply chain for downstream aluminum hydroxide production. These combined factors are contributing to the robust growth trajectory of the India aluminum hydroxide market share.

India Aluminum Hydroxide Market Trends:

Government-Driven Water Treatment Infrastructure Expansion Through National Programs

The Indian government's ambitious water infrastructure initiatives are fundamentally reshaping the aluminum hydroxide market landscape. Through large-scale national programs aimed at providing safe drinking water to every household, the demand for water treatment chemicals has surged dramatically. Aluminum hydroxide serves as a critical coagulant and flocculant in municipal water purification systems, effectively removing suspended particles, organic matter, and heavy metals from contaminated water sources. The scale of infrastructure development is unprecedented, with billions of dollars being allocated to expand rural and urban water treatment facilities across the country. In February 2025, the Indian government announced a significant increase in funding for the Jal Jeevan Mission, allocating Rs 67,000 crore compared to the revised estimates of Rs 22,694 crore for 2024-25, with the mission extended until 2028 to achieve 100% coverage. Municipal corporations and state water boards are rapidly modernizing their treatment plants and establishing new facilities to meet the growing population's needs. The emphasis on sustainable and efficient water purification technologies has positioned aluminum hydroxide as an indispensable component in ensuring water quality standards. This government-backed infrastructure boom creates consistent, long-term demand for aluminum hydroxide suppliers serving the water treatment sector, making it a cornerstone of the India aluminum hydroxide market growth trajectory.

Stringent Fire Safety Regulations and Growing Demand for Flame-Retardant Materials

India's construction and manufacturing sectors are experiencing a paradigm shift driven by increasingly stringent fire safety regulations and heightened awareness about building safety standards. Aluminum hydroxide has emerged as a preferred flame retardant material due to its unique property of releasing water vapor when exposed to high temperatures, effectively suppressing flames without generating toxic byproducts. The compound finds extensive applications in plastics, cables, insulation materials, and composite products used throughout the construction value chain. Urbanization and the proliferation of high-rise residential and commercial buildings have amplified the importance of fire-resistant materials in preventing catastrophic incidents. In March 2025, the Bureau of Indian Standards introduced a revised draft of the National Building Code that establishes stricter fire safety measures, making addressable fire detection systems mandatory in all residential buildings above 15 meters and requiring IoT-enabled fire alarms. Regulatory bodies are mandating compliance with international safety standards, compelling manufacturers to incorporate halogen-free flame retardants like aluminum hydroxide into their product formulations. The automotive and electronics industries are also adopting aluminum hydroxide-based flame retardants to meet evolving safety certifications and consumer expectations. This regulatory-driven transformation is leading toward sustained India aluminum hydroxide market growth across multiple end-user industries, reinforcing its position as an essential material in India's industrial ecosystem.

Aluminum Industry Capacity Expansions Supporting Downstream Production

Major capacity expansions by India's leading aluminum producers are significantly strengthening the domestic supply chain for aluminum hydroxide, which is generated as an intermediate product during the alumina refining process. The country's aluminum industry is witnessing unprecedented investments in alumina refinery expansions and modernization projects aimed at achieving vertical integration and reducing dependence on imported raw materials. In February 2025, Hindalco Industries announced a massive expansion plan totaling Rs 40,000 crore, including an 850,000-tonne alumina refinery expansion in Odisha and smelter expansions totaling 540,000 tons per annum. Similarly, in August 2025, National Aluminium Company announced plans to invest Rs 30,000 crore by 2030 for brownfield expansion of its smelter plant and captive power plant. These strategic investments are creating substantial quantities of aluminum hydroxide as a byproduct that can be processed and supplied to downstream industries. The availability of locally produced aluminum hydroxide reduces import dependency, ensures consistent supply, and provides cost advantages to domestic manufacturers across water treatment, pharmaceuticals, and chemical sectors. Furthermore, the enhanced production capacity enables aluminum producers to explore value-added applications for aluminum hydroxide, including pharmaceutical-grade materials for antacids and specialty chemicals for advanced industrial applications. This synergistic relationship between primary aluminum production and aluminum hydroxide supply is catalyzing market development and positioning India as an emerging hub for aluminum hydroxide production in the Asia-Pacific region.

India Aluminum Hydroxide Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on grade, form, and application.

Grade Insights:

• Industrial Grade
• Pharmaceutical Grade

The report has provided a detailed breakup and analysis of the market based on the grade. This includes industrial grade and pharmaceutical grade.

Form Insights:

• Powder
• Gel

A detailed breakup and analysis of the market based on the form have also been provided in the report. This includes powder and gel.

Application Insights:

• Plastics
• Pharmaceuticals
• Coatings
• Adhesives, Sealants and Elastomers
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes plastics, pharmaceuticals, coatings, adhesives, sealants and elastomers, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Aluminum Hydroxide Market News:

• February 2025: Hindalco Industries disclosed its comprehensive expansion roadmap during its Q3 FY 2024-25 earnings call, announcing a total investment of Rs 40,000 crore in India. The expansion includes construction of an 850,000-tonne Aditya alumina refinery in Odisha with an investment of Rs 7,500-8,000 crore, which has already begun. The company also plans a 180,000-tonne aluminum smelter expansion at the Aditya facility and a 360,000-tonne expansion at the Mahan smelter in Madhya Pradesh, awaiting environmental clearances.
• August 2025: National Aluminium Company announced an ambitious expansion strategy with a total investment of Rs 30,000 crore by 2030, aimed at achieving Maharatna company status. The expansion plans include a brownfield expansion of the aluminum smelter to increase capacity by 500,000 tonnes per annum, development of the Pottangi bauxite mines, completion of the ongoing 5th Stream alumina refinery expansion of 1 million tonne capacity at Damanjodi, and establishment of a 1,080 MW captive power plant.
• April 2024: Vedanta Aluminium successfully commissioned a significant 1.5 million tonnes annual expansion at its top-notch alumina refinery located in Lanjigarh, Odisha. The alumina refinery's output capacity rose from 2 MTPA to 3.5 MTPA as a result of this development, which is a major step toward reaching 100% vertical integration. This extra capacity is a component of the company's continuous growth to raise the Lanjigarh refinery's total nameplate capacity to 5 MTPA.

India Aluminum Hydroxide Market Report Coverage:

Key Questions Answered in This Report:

• How has the India aluminum hydroxide market performed so far and how will it perform in the coming years?
• What is the breakup of the India aluminum hydroxide market on the basis of grade?
• What is the breakup of the India aluminum hydroxide market on the basis of form?
• What is the breakup of the India aluminum hydroxide market on the basis of application?
• What is the breakup of the India aluminum hydroxide market on the basis of region?
• What are the various stages in the value chain of the India aluminum hydroxide market?
• What are the key driving factors and challenges in the India aluminum hydroxide market?
• What is the structure of the India aluminum hydroxide market and who are the key players?
• What is the degree of competition in the India aluminum hydroxide market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India aluminum hydroxide market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India aluminum hydroxide market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India aluminum hydroxide industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.