The global calcium hydroxide market, valued at USD 4.5 billion in 2024, is projected to reach USD 7.0 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.0%. The steady growth is being fueled by rising demand across agriculture, construction, pharmaceuticals, and environmental applications.

Calcium hydroxide, also known as slaked lime, is widely used in improving soil health, producing building materials, and treating industrial waste. Governments worldwide are promoting sustainable agriculture and clean environmental practices, further expanding the market outlook for this versatile compound.

In agriculture, calcium hydroxide plays a critical role in adjusting soil acidity and enhancing crop yields. The U.S. Department of Agriculture highlights the importance of lime-based products to boost soil fertility, especially in regions with naturally acidic soils such as the southeastern United States. With sustainable farming gaining momentum, the demand for calcium hydroxide in agriculture is expected to increase in the years ahead.

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The construction sector also represents a strong driver for market growth. Calcium hydroxide is a key component in plaster, cement, and mortar, making it an essential raw material for lime-based building products. Rapid urbanization and infrastructure development in emerging economies, particularly in China and India, are expected to fuel demand. In India, the Ministry of Housing and Urban Affairs has already proposed initiatives encouraging the use of eco-friendly and sustainable building materials, which further supports the adoption of calcium hydroxide in the construction industry.

Beyond agriculture and construction, calcium hydroxide also has applications in the pharmaceutical sector, where it is used in products such as calcium salts and cleaning agents.

Another major growth area for calcium hydroxide is environmental and waste treatment. The compound is widely used in neutralizing acidic wastewater, treating sewage sludge, and reducing harmful industrial effluents. With governments tightening environmental regulations, industries are increasingly turning to calcium hydroxide as a cost-effective and efficient treatment option. The U.S. Environmental Protection Agency has emphasized the importance of lime-based solutions for wastewater treatment, while in Europe, directives such as the Industrial Emissions Directive and the Water Framework Directive mandate treatment of acidic waters using lime products.

Calcium hydroxide is also commonly applied in managing acid mine drainage and supporting waste-to-energy processes. Organizations such as the International Renewable Energy Agency (IRENA) and the United Nations Environment Programme (UNEP) recognize its role in sustainable waste management. As global efforts intensify to reduce industrial pollution and encourage eco-friendly practices, the adoption of calcium hydroxide in environmental applications is expected to rise significantly.