Pharmaceutical Industry Growth
The market for zinc oxide in Middle East and Africa is showing consistent growth owing to the rising demand for pharmaceutical products in major economies of the region such as Saudi Arabia, UAE, Egypt, South Africa, and Kenya. Zinc oxide finds wide application in various creams and skin formulations because of its soothing, anti-bacterial and skin barrier forming attributes. Improved healthcare spending along with increased availability of healthcare facilities is expected to drive up the demand for pharmaceutical grade zinc oxide in Middle East and Africa.
Middle Eastern countries such as Saudi Arabia and UAE have been actively focusing on the expansion of their domestic pharmaceutical industry as a part of their economic diversification strategy. Manufacturing centers in cities such as Riyadh, Jeddah and Dubai have started producing topical medicines and dermatology products that utilize zinc oxide as an ingredient. On the other hand, Africa is also witnessing slow but sure development of its pharmaceutical industry, with South Africa, Egypt and Nigeria leading the pack owing to their increasing urban population and higher health consciousness among consumers.
The climatic conditions prevailing in the region also help in enhancing the demand for zinc oxide in health care applications. The hot weather conditions and high exposure to UV rays in desert and tropical climates cause increased incidences of skin irritations, sunburns, and other related dermatological problems, thereby increasing the application of zinc oxide based products in sunscreens and other skin protection creams. Moreover, the growing incidence of lifestyle related skin problems and enhanced distribution channels via pharmacies and retail health care companies will help drive the demand for zinc oxide in pharmaceutical applications.
Expansion in Battery Technologies
The Middle East and African markets of zinc oxide are gradually benefiting from new investments in battery technologies owing to increased interest in renewable energy storage solutions, electric vehicles, and modernization of power grids. Zinc oxide can be used in batteries as one of the conductive additives, and in electrochemical applications because of its semi-conductive nature and stability. Despite the fact that the Middle East is not yet as advanced in battery production as Asia and Europe, strategic investments in energy storage capacity creation open up new possibilities for zinc-based materials.
The Middle East countries, such as the United Arab Emirates and Saudi Arabia, invest substantially in the development of renewable energy projects, which include construction of solar farms and implementation of energy storage solutions. Projects of this type, especially in areas like NEOM in Saudi Arabia and Masdar City in the United Arab Emirates, increase demand for innovative batteries. Zinc oxide is considered an alternative material for future batteries' applications.
The growth in the use of off-grid solar systems and decentralized power generation technology in Africa is fueling the demand for battery storage from rural to semi-urban areas. Countries such as Kenya, South Africa, and Morocco have adopted the use of solar coupled with storage technology in an effort to increase their electricity access. The increased use of energy storage technology is indirectly boosting the demand for raw materials used in the manufacture of batteries, including zinc oxide. Another factor boosting the demand for zinc oxide in batteries is the increasing use of electric vehicles.