Iodine Market Trends

Growth Drivers:

• Healthcare Demand: Iodine has marked applications in medical imaging technologies, including X-ray contrast media and radiography. The increasing prevalence of chronic diseases, such as cancer and cardiovascular conditions, will spur the demand due to the need for diagnostic imaging. For example, in June 2022, GE Healthcare reached an agreement with Sociedad Química y Minera de Chile to create a secure supply of iodine necessary for contrast media so that supplies may be consistently available to healthcare providers. The growing adoption of telehealth and diagnosis from remote areas fosters the demand for iodine-based imaging solutions.
• Agricultural Applications: The use of iodine in agriculture has gained prominence, especially with biofortification. Research and studies have identified various beneficial effects of iodine on plant growth and nutritional enhancement. In 2022, a study showed that iodine-enriched fertilizers have advantages in generating better yields from iodine-deficient regions. Hence, this trend may accelerate iodine demand in the agricultural sector during the decade. Programs implemented by different organizations, including the Global Alliance for Improved Nutrition, point to iodine as an important factor in improving food security.
• Demand from chemical industries: Iodine is used as a catalyst in the manufacture of synthetic rubber and all kinds of polymers. Demand for iodine in the chemical field has been growing adequately due to the processing and production of polymers. One of the major developments in April 2024 was from Iofina, announcing a hike in iodine production capacity by 15% to ensure industrial demand keeps growing. The expansion is in line with the growing demand for value-added materials in the automotive and electronics industries.

Challenges:  

• Environmental regulations: The main factor hindering market growth is strict environmental regulations over the extraction and handling of iodine, especially radioactive iodine. In 2023, the EPA in the United States laid down new regulations to impose much tighter controls on the emissions of iodine. These substantially raised operational costs for manufacturers. Complying with very strict environmental regulations requires considerable investments, which limits the adoption of new technologies and processes.
• Price volatility: Another factor that has impacted the growth of the iodine market is its price volatility. In 2023, prices for iodine went up by 30%, reaching USD 61 per kilogram, supported by the shortage in its supply from major producing countries such as Chile. Such unpredictability carries with it risks of long-term contracts and hampers manufacturing companies dependent on a predictable price.