The global sludge treatment chemicals market is expected to reach USD 11.5 Bn by 2032, from USD 7.6 Bn in 2025, exhibiting a compound annual growth rate (CAGR) of 6.1% during the forecast period (2025-2032).
Sludge is a by-product that is produced during the treatment of wastewater, and it can be classified into organic matter, pathogens, chemicals, and microorganisms. These products are claimed to contain harmful agents, such as heavy metals, that can hurt the environment and human health.
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Based on Treatment, the Primary treatment is expected to lead the market during the forecast period with a market share of 59.0%. The growth of this segment can be attributed to its commonality, as it is not only an essential step but also the initial step in the treatment of water and wastewater treatment. In the first stage, large solids are removed and separated from sludge. The primary treatment is widely used in municipal as well as industrial plants. It is cheaper and easier to manage. For instance, according to an article by Smart Water Magazine dated June 18, 2024, sludge can be reused as a sustainable resource by recovering the energy, and clean water might help in reducing the environmental harm.
In terms of Product Type, Inorganic Coagulants lead the market. They are the most commonly used chemicals in the treatment of sludge. Inorganic coagulants help reduce the sludge by turning it into solid clumps, thus separating it from the water. Some of the very common inorganic coagulants, like ferric chloride and aluminium sulfate, are not only cheaper but also easy to use in plants. This is further accelerating the sludge treatment chemicals market growth.
Based on the Application, the Municipal wastewater treatment plant is expected to dominate the market in 2025. There is a rise in urban settlements, which has led to more people migrating, and in turn, it leads to more sewage and waste. Municipalities use the chemicals to make it safe and easier to handle sludge. For instance, according to a report by EHN from June 2024, the sewage sludge used in farming caused PFAS pollution in rivers across the U.S. These do not break down easily and are harmful to health, and also cause soil and water contamination. This is further propelling the sludge treatment chemicals market demand.
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North America is expected to be the largest market for sludge treatment chemicals during the forecast period, accounting for over 35.50% of the market share in 2025. The growth of the sludge treatment chemicals market in North America is attributed to the increasing demand for sludge treatment chemicals in countries such as the U.S. and Canada. For instance, Alfa Laval has secured a contract to deliver decanters for a wastewater treatment facility in a major Canadian city. These decanters will process municipal wastewater sludge, preparing it for subsequent treatment stages.
The U.S. is the one of the prominent markets for sludge treatment chemicals in North America. The growth of the industry in the U.S. is driven by the strict environmental regulations, wastewater infrastructure, and heavy investments by the government. For instance, in July 2024, Edmonds started using advanced plasma technology to destroy PFAS. It offers a way to treat the hazardous substances directly in the wastewater plants. This is further contributing to the sludge treatments market share.
Asia Pacific is expected to account for over 25.0% of the market share in 2025. The growth of the sludge treatment chemicals market in Asia Pacific is attributed to the increasing demand for sludge treatment chemicals in countries such as India and China.
China is the largest market for sludge treatment chemicals market in the Asia Pacific region. The market is growing due to a rapid industrialization, an increase in urban waste, and investments that are backed by government institutions. Various initiatives are being taken in the country for wastewater treatment.
India is the second-largest market for sludge treatment chemical is the Asia Pacific region. It is supported by several national policies and programs like the Namami Ganga Mission. Other factors driving the growth include rapid urbanization, water pollution, and increased focus on sludge treatment in cities. For instance, in May 2025, at Thiruvananthapuram in Kerala, the municipal corporation announced an investment of Rs. 36 crores for an Omiprocessor-based sludge treatment plant. It is significant because it marks a sustainable upgrade. This is further propelling the sludge treatment chemicals market demand.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 7.6 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.1% | 2032 Value Projection: | USD 11.5 Bn |
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| Companies covered: |
BASF SE, Chembond Chemicals Limited, GE Water and Process Technologies, Kurita Water Industries Ltd., Ion Exchange, Kemira Oyj, AkzoNobel N.V., Solenis, Thermax Ltd., and Veolia Water Technologies |
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Increasing focus on environmental sustainability is having a significant influence on the global sludge treatment chemicals market. With growing awareness about protecting the environment and reducing pollution, industries and municipalities are looking for safer and eco-friendly options for sludge treatment and disposal.
More stringent regulations around the world are pushing the sludge treatment chemicals market towards adopting greener technologies and solutions. For instance, the European Union's Sewage Sludge Directive and Water Framework Directive have laid down strict conditions for the treatment and disposal of sewage sludge to minimize harmful effects on the environment. The U.S. Environmental Protection Agency has rules in place under the Clean Water Act to ensure proper treatment and disposal of sludge generated from waste and wastewater treatment processes. These regulations are boosting the demand for advanced chemicals that can treat sludge efficiently while producing less greenhouse gas emissions and toxic by-products.
The sustainability factor is a major consideration for industries and municipalities while selecting sludge treatment chemicals and methods. Biodegradable and recyclable polymers are increasingly preferred over conventional chemicals due to their lower environmental impact. For example, many wastewater treatment facilities in North America and Europe have switched to enzyme-based formulations for sludge conditioning and dewatering processes, as this causes minimal harm to the atmosphere and aquatic life. In 2021, according to a study by the European Commission, the use of enzyme products as sludge treatment chemicals has grown by over 15% from 2019 levels across the European Union's countries.
The adoption of integrated sludge management solutions is having a significant impact on the global sludge treatment chemicals market. With growing concerns around sustainable waste management and stricter environmental regulations, industries and municipalities are increasingly looking for advanced treatment options that help reduce sludge volume and allow for its safe disposal or reuse.
Integrated solutions involve applying customized chemical cocktails during the various stages of sludge processing, such as thickening, dewatering, and stabilization. This leads to better separation of solids from liquids and enhances the digestibility of sludge. For example, ferric salts aid in flocculation by binding suspended solids together into larger aggregates that settle faster. Coagulants and polymers then strengthen the bonds between these aggregates, improving filterability and producing a drier cake with higher total solids. Meanwhile, lime works to raise pH and reduce pathogens, transforming biohazardous waste into a material that can be safely handled.
The adoption of such integrated processes means higher consumption of specialized chemicals optimized for each treatment step.
Rising concerns about sustainability and increasing environmental regulations around the world are driving the growth of the global sludge treatment chemicals market. With growing urbanization and industrialization, the amount of sludge produced from wastewater treatment plants is rising rapidly every year. According to data from 2025 the World Bank, the volume of sludge generated from municipal wastewater treatment plants increased by over 15% between 2017 and 2020 across most countries. This sludge needs to be treated and disposed of safely before being used or released into the environment. Stringent laws around the disposal of untreated sludge are forcing industries and municipalities to invest heavily in effective sludge treatment processes.
Chemical-based sludge treatment techniques are gaining more popularity as compared to physical or biological methods, as these provide faster and more reliable treatment to reduce sludge volume and make it safer for disposal or reuse. Commonly used sludge treatment chemicals include coagulants, flocculants, disinfectants, and others, which help to destabilize and break down sludge particles for easier dewatering and handling.
The Increasing generation of industrial wastewater across the globe is one of the prime factors propelling the growth of the global sludge treatment chemicals market. With rapid industrialization and urbanization, especially in developing economies like India and China, a large amount of wastewater is being produced every day by various industries such as pharmaceuticals, chemicals, food processing, paper and pulp, and others. According to data from 2021 from the World Bank, worldwide industrial wastewater volumes grew by an estimated 15% from 2015 to 2020.
This wastewater contains high levels of suspended solids and chemicals, which need proper treatment before discharge. Sludge treatment chemicals play a key role in processing this wastewater efficiently. These regulate pH, remove phosphorus and heavy metals, reduce odors, and facilitate smooth dewatering of sludge. With stricter environmental regulations regarding industrial effluent discharge coming into effect, industries are compelled to invest more in advanced wastewater treatment infrastructure and sludge treatment chemistries.
The use of biosolids produced from sewage sludge in agriculture and land applications has significant potential to positively impact the sludge treatment chemicals market demand. Biosolids refer to the nutrient-rich organic materials resulting from the treatment of sewage sludge that can be beneficially used as fertilizer. Many municipalities and facilities that treat sewage sludge are looking towards more sustainable options rather than disposal in landfills. Land application of biosolids recycles essential nutrients back into the soil and helps conserve raw materials like chemical fertilizers. According to data from the U.S. Environmental Protection Agency released in 2020, over 50% of biosolids produced in the U.S. in 2020 were beneficially used in agricultural land and various soil applications. This demonstrates the viability and acceptance of this practice. As more facilities and communities adopt biosolids recycling programs, it could drive increased demand for chemicals and treatments used during the sludge treatment process to produce safe, high-quality biosolids optimized for land use.
Rising global demand for food also presents opportunities for the greater adoption of biosolids. The United Nations Food and Agriculture Organization estimated that the global food demand will rise by over 25% by 2030 and by over 50% by 2050. Sustainably meeting these needs will require maximizing agricultural land and improving soil health. Biosolids offer a natural, renewable solution to replenish nutrients in soils and boost crop yields over time without heavy reliance on chemical fertilizers. If more farmers and governments recognize these benefits, it could further encourage wastewater and sludge treatment facilities to invest in technologies and processes that produce biosolids suitable for land applications. This widespread utilization of biosolids would spur growth in the market for sludge treatment chemicals, such as coagulants, flocculants, and disinfectants, to facilitate safe recycling of biosolids on agricultural fields and other non-cultivated lands.
Investing in sewage infrastructure in developing countries presents a major opportunity for the global sludge treatment chemicals market. As urbanization increases rapidly in these nations, the volume of sewage and sludge produced is rising exponentially. However, most developing markets still lack adequate facilities and technologies to treat the massive amounts of sludge in an environmentally sustainable way.
This gap in sewage infrastructure encapsulates a huge potential for sludge treatment chemicals. As governments embark on ambitious national plans to build and upgrade sewage treatment plants, the demand for chemicals designed specifically for sludge dewatering, thickening, stabilization, and other procedures will see a parallel surge. Various agents, such as flocculants, coagulants, and precipitants that are used in sludge processing lines, will be in high demand. Chemical providers can tap into long-term tenders and contracts from municipal bodies looking to ensure sludge generated from their treatment facilities meets disposal standards.
The need for sludge management will become even more crucial with progressive urbanization. By 2030, 60% of the population in developing countries will be living in urban areas, up from 30% in 2000, according to the UN-Habitat data. This urban shift in population will overwhelm existing drainage and sewage infrastructure, necessitating massive investment in wastewater treatment capacity. Countries like India have already outlined plans to invest billions of dollars in sewage treatment under their urban development missions, which run through the late 2020s. Successfully leveraging such opportunities for chemical supply could help companies establish long-standing local production and distribution networks to serve the continually growing sludge treatment market revenue.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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