Potassium Hydroxide (KOH): From Industrial Workhorse to High-Purity Strategic Material

Potassium hydroxide (chemical formula: KOH) is a strong inorganic alkali. Under ambient conditions, a 0.1 mol/L potassium hydroxide solution exhibits strong alkalinity, with a pH typically above 13. KOH appears as a white, uniform granular, powdery, or flake solid and is highly soluble in water, forming strongly alkaline solutions.

I. Applications and Industrial Landscape of Potassium Hydroxide

(1) Industrial-Grade Potassium Hydroxide: A Pillar of Basic Chemical Industry

(Approx. 60% of global consumption)

Industrial-grade potassium hydroxide is the most widely used category worldwide. Owing to its strong alkalinity and high chemical reactivity, it serves as a core raw material across multiple industrial sectors, with demand patterns directly influencing global trade flows.

1. Detergents and Personal Care Products

KOH plays a key role in saponification reactions and is a core ingredient in liquid soaps, dishwashing liquids, shampoos, and body washes. It also functions as a pH regulator to ensure product stability. Demand from this segment supports steady procurement in Asian and European consumer markets. Between January and November 2025, approximately 30% of China’s USD 10.76 million potassium hydroxide exports to Europe were used in this application.In addition, its strong degreasing and cleaning properties make KOH a key component in industrial cleaners such as oven cleaners, drain openers, and concrete and road cleaning agents, widely used in building maintenance and industrial equipment cleaning.

2. Pulp & Paper and Textile Industries

In the pulp and paper industry, potassium hydroxide is used in wood pulp cooking processes, effectively breaking down lignin and improving pulp purity and fiber toughness, making it suitable for high-end paper production. In the textile industry, it is used for desizing and mercerization of cotton fabrics, enhancing fabric luster and dye adhesion. It is also an important raw material in the production of synthetic textiles such as polyester and rayon. Eastern China (notably Shandong and Jiangsu), as major pulp, paper, and textile industrial clusters, accounts for 21.28% of China’s KOH exports, with approximately 25% flowing to Southeast Asian textile and paper manufacturers.

3. Petrochemicals, Rubber, and Plastics

In petroleum refining, potassium hydroxide is used in lubricating oil purification and chemical treatment processes to neutralize acidic impurities and improve fuel quality. It is also used in the production of potassium-based drilling fluids for oil and gas exploration. In the rubber and plastics industry, KOH serves as a raw material for vulcanization accelerators, significantly enhancing the toughness, wear resistance, and aging resistance of rubber products, widely applied in tires and sealing components. Strong demand from petrochemical industries in the Middle East and North America drove China’s industrial-grade KOH exports to these regions to USD 5.46 million and USD 2.83 million respectively in 2025.

4. Potassium Salts and Chemical Intermediates

As a core raw material for potassium salt production, potassium hydroxide is used to manufacture potassium permanganate (oxidizing agent), potassium carbonate (glass and ceramics), potassium citrate, and monopotassium phosphate. These derivatives are widely applied across chemical, pharmaceutical, and food industries.

(2) Electronic-Grade Potassium Hydroxide: A Core Material for Advanced Manufacturing

(Approx. 20% of global consumption; fastest growth)

Electronic-grade potassium hydroxide is a high value-added product with purity requirements exceeding 99.99% (ppt-level purity required in certain applications). It is a critical wet electronic chemical used in semiconductors, display panels, and photovoltaic manufacturing. Technical barriers in this segment directly determine a supplier’s global competitiveness.

(3) Food-Grade Potassium Hydroxide: A Regulated Additive for Consumer Markets

(Approx. 10% of global consumption)

Food-grade potassium hydroxide is widely used in food processing under strict control of purity and impurity levels. Safety and functional performance are core market entry requirements.

1. Acidity Regulation and Preservation

KOH is used to regulate pH in cocoa products, chocolate, and soft drinks, inhibiting microbial growth and extending shelf life. It is also applied as a chemical peeling and washing agent for fruits and vegetables, improving processing efficiency and product appearance.

2. Texture Modification and Specialty Foods

As a thickener and stabilizer, potassium hydroxide is used in ice cream and dairy products to improve smoothness and mouthfeel. In baking, it is applied as a glazing agent before baking pretzels to create a characteristic crispy crust, and is also used in the production of biscuits and potato chips to enhance crispness. In addition, it is used in olive softening processes to improve the texture of cured olives.

(4) Other Specialized Application Areas

(Approx. 10% of global consumption)

1. Agriculture and HorticulturePotassium hydroxide is used in the production of high-efficiency potassium fertilizers such as potassium nitrate. It helps adjust acidic soil pH, improve soil structure, and supply essential potassium nutrients, promoting stronger stems and fruit enlargement.

2. Pharmaceuticals and Battery Industry

In pharmaceuticals, potassium hydroxide serves as an intermediate in the production of antibiotics, spironolactone, and testosterone propionate, with major supply sources concentrated in pharmaceutical chemical clusters in Shandong and Jiangsu, China.In the battery sector, it is used in the electrolyte of alkaline batteries such as nickel-metal hydride and zinc–manganese batteries, supporting the growth of energy storage and consumer electronics.

3. Leather Processing and Metallurgy

In leather processing, KOH is used for degreasing and pre-tanning treatments to remove oils and impurities, improving softness and durability. In metallurgy, it is used as a heating and auxiliary agent in metal smelting processes.

II. Potassium Hydroxide Market Overview

China is the world’s largest producer of potassium hydroxide, accounting for approximately 45% of global production capacity. Despite its large capacity, strong domestic demand from new energy and chemical industries means that production is primarily allocated to domestic use, limiting export volumes. Moreover, exports are dominated by industrial-grade products, while the share of high-end electronic-grade KOH remains low, making it difficult to meet high-purity demand in markets such as Brazil and Europe.

By contrast, Korean producers (such as Hanwha Chemical), benefiting from long-term trade relationships, well-established local distribution networks, and strong compliance and certification capabilities, hold a 58.21% market share in Brazil, while China ranks second at 34.59%.

Core Demand Regions

Asia (40.79%), South America (20.61%), and Europe (19.83%) are the three main destinations for China’s potassium hydroxide exports.

• Asia: Demand is primarily for industrial-grade and electronic-grade KOH. Industrial demand is supported by textile and food industries in Southeast Asia, while electronic-grade demand is driven by South Korea and Taiwan.

• South America (with Brazil as the core market): Focuses on agricultural and industrial applications. In 2025, demand grew by 12.72% year-on-year, making it the fastest-growing region.

• Europe: Demand is concentrated on high-end electronic-grade and food-grade products, with extremely stringent requirements for purity and environmental compliance.

Trade Barriers and Market Expansion Challenges

1. Compliance and Certification Barriers

Markets such as Brazil and Europe impose strict requirements on potassium hydroxide purity, packaging, and environmental certifications (e.g., Brazil’s IBAMA approval and MSDS standards). Due to incomplete certifications or documentation issues, some Chinese exporters face cargo detention or fines, restricting expansion into high-end markets.

2. Logistics and Cost Pressure

Long shipping distances from China to South America and Europe, combined with volatile shipping schedules and complex customs clearance procedures at certain ports, significantly increase logistics costs and delivery risks. This weakens the price competitiveness of industrial-grade products and is one of the key reasons why Chinese suppliers trail behind Korean competitors in the Brazilian market.

Conclusion

Potassium hydroxide (KOH) is far more than a basic inorganic chemical. From large-scale industrial processing to high-purity electronic manufacturing, from food processing to agriculture and energy storage, its application landscape demonstrates how a single chemical can support multiple industries with very different levels of technical complexity.

Understanding where KOH is used - and how demand varies by grade, region, and regulatory environment is becoming increasingly important for manufacturers, distributors, and downstream users alike. As global supply chains evolve and high-purity requirements continue to rise, KOH is gradually shifting from a bulk commodity toward a more strategically positioned chemical material.