The water and wastewater treatment chemicals market is estimated to be valued at USD 38,903.1 Mn in 2024, growing at a CAGR of 4.6% over the forecast period (2024-2031). Furthermore, growing concerns regarding depleting freshwater resources and need for sustainable water management are expected to drive the market growth during the forecast period.
The growth of the global water and wastewater treatment chemicals market is driven by two major factors - growing demand for clean water and stringent environmental regulations regarding pollution control. Clean water is essential for various end-use industries such as municipalities, power, oil & gas, mining, chemicals, food & beverages, etc. With rapid industrialization and urbanization, the demand for potable water is increasing steadily. Furthermore, various governments across the globe are introducing stringent norms and regulations to control industrial wastewater discharge and minimize pollution in rivers and oceans. Water and wastewater treatment chemicals play a vital role in achieving the prescribed quality norms for effluent discharge. For instance, flocculants help in removing suspended solids from water and disinfectants like chlorine kill bacteria and other microorganisms. The increasing demand for clean water coupled with the strict implementation of environmental regulations is expected to propel the market growth.
Growing Concerns Regarding Clean Water Availability is Driving the Demand for Water Treatment Chemicals
The need for clean and safe drinking water is increasing dramatically across the world due to growing population and rapid urbanization. According to the World Health Organization (WHO), around 4 billion people experience severe water scarcity for at least one month annually. This growing concern regarding clean water availability is driving the demand for various water treatment chemicals that help purify water for drinking and industrial applications. Water treatment chemicals help remove unwanted contaminants, impurities, and ensure that the water is safe for human consumption as well as various industrial uses. Growing investments by governments and private entities in developing robust water infrastructure which utilizes advanced water treatment technologies is propelling the water treatment chemicals market.
Stringent Regulations Regarding Wastewater Discharge is Fueling the Usage of Wastewater Treatment Chemicals
With the increasing levels of industrial wastewater discharge and its negative impact on the environment, governments across the globe have established stringent regulations regarding wastewater quality before discharging it into water bodies. This is fueling the demand for various wastewater treatment chemicals that remove pollutants from wastewater and meet the prescribed discharge quality standards. Wastewater treatment chemicals, such as coagulants, flocculants, corrosion inhibitors, etc., play a vital role in the wastewater treatment process to remove contaminants like metals, solids, toxins, etc. and make wastewater safer for disposal/reuse. The growing emphasis on zero liquid discharge systems and wastewater recycling is further augmenting the wastewater treatment chemicals market growth.
Volatile Raw Material Prices Pose a Challenge
Water treatment chemicals are derived from various raw materials whose prices witness high volatility. The prices of these raw materials like acids, bases, salts, and polymers are dependent on crude oil prices and supply demand forces. Fluctuations in raw material prices can disrupt the price margins of water treatment chemical formulators. Furthermore, China dominates the global production of several raw materials. Therefore, political and trade issues involving China can impact the raw material supply and prices. The unpredictability caused by volatile raw material costs poses significant planning and pricing challenges for water treatment chemical manufacturers.
Tariff and Non-tariff Barriers Inhibit International Trade
Though the water treatment chemicals market has gained global character, trade barriers continue to inhibit its potential. Significant tariff and non-tariff barriers like import duties, stringent certification norms, and inconsistent product standards affect the cross-border trade of water treatment chemicals. For instance, the ongoing U.S.-China trade war has led to increased import tariffs impacting the trade flows. Similarly, the lack of mutual recognition of product compliance standards between regions complicates international business. Such barriers fragmentation the global marketplace and prevent realization of true market access opportunities. Overcoming trade inhibitions is critical for the market to achieve its full trade potential.
Growing Focus on Water Reuse Creates Opportunities
With the rising pressures of water scarcity, emphasis on sustainable water management practices like water recycling and reuse is growing worldwide. Various industries and municipalities are increasingly adopting water reuse practices, boosting the water treatment chemicals market growth. Moreover, the demand for dual reticulation systems is surging, generating opportunities for advanced water treatment systems and technologies incorporating customized chemicals. The increasing adoption of water reuse presents lucrative opportunities for formulation of specialized chemicals for treating reuse water.
Water Scarcity is Driving the Adoption of Desalination
Seawater and brackish water desalination is emerging as a viable solution to address the growing scarcities faced across coastal regions and islands. Desalination removes salt and purifies water obtained from saline sources to make it suitable for various applications. Countries like China, India, Saudi Arabia, the U.A.E, etc. are greatly expanding their desalination capacities which utilizes advanced water treatment technologies. This growing desalination market drives opportunities for formulation of specialized chemicals required for pre-treatment, scaling & corrosion control as well as post-treatment processes. The desalination market growth serves as a strong lever for water treatment chemical suppliers.
Key Developments
- In 2023, Samyang introduced two new industrial water treatment equipment to their product lineup. These innovative solutions aimed to enhance water purification processes and address the growing need for sustainable and efficient water treatment technologies.
- In 2023, Kemira, a leading global chemicals company, made a significant investment in water treatment chemicals production in the United Kingdom (U.K.). This strategic move demonstrated Kemira's commitment to expanding its presence in the water treatment industry and meeting the growing demand for innovative chemical solutions.
- In June 2021, Kemira Oyj announced to increase the production capacity of water treatment chemicals, i.e., sodium hypochlorite production unit in Yanzhou, China. Sodium hypochlorite is an effective disinfectant that is used in the water treatment processes in the pulp and paper industry and process industry as well as in municipal water treatment.
- In November 2021, Kemira, a chemicals and process technology company, had expanded its production capacity in the U.K. The company stated that it would produce more than 100,000 tonnes of ferric-based water treatment chemicals each year at its U.K. facilities.
Key Players
Kemira Oyj, ION EXCHANGE (I) Ltd, Thermax Ltd, BASF-SE, GE Water & Process Technologies, Dorf Ketal, Chembond India Ltd, SNF Group, Vasu Chemicals, E. I. du Pont de Nemours and Company, Shandong Taihe Water Treatment Technologies Co., Ltd., Shandong XinTai Water Treatment Technology Co., Ltd, SUEZ, Ecolab, Solenis, Nouryon, and Cortec Corporation