Industrial Water Treatment Chemicals Market

Market Overview

Industrial Water Treatment Chemicals Market size is growing at a substantial CAGR of 6.1 during the forecast period.

Despite being 71% available on our planets, water is still a scarce resource. As per the United States Bureau of reclamation, about 97% of water is found in oceans, which is too salty to drink and hard for most of the industrial process. Out of the total 71%, only 3% is freely available as freshwater. With the fast-increasing population and increased industrial development globally, the water demand has far exceeded its supply. 

The rising growth of power generation, chemicals, food and beverage, and oil and gas sectors have led to an increase in wastewater. Industrial water treatment chemicals play an important role in treating wastewater before it enters our environment, further mitigating its impact. It also makes it possible to reuse the treated water for various non-drinking activities.

Market Dynamics

Growth of the Chemical Sector to Create Upswings for Market Growth

This highlights the immense potential of the chemical industry in the years to come.

The chemical industry plays a key role in the global economic landscape of any region globally. As per the European Chemical Industry Council, the global chemical sale in the year 2018 were around USD 3720 Billion in the year 2018 which was an increase of around 2.5 percent from the preceding year. China stood out as the largest producer of chemicals worldwide and contributed around a sizable 35. 9 percent of the chemical sale. Furthermore, the BRICS nations such as Brazil, India, China, South America, accounted for around 42.8 percent of the total chemical sales globally, while the European Union contributed around 20 percent.

The growth in the chemical industry supports the growth of various downstream and upstream industries. Furthermore, the growth of chemical industry also helps meet the 17 Sustainable Development Goals, one of which would be making available various inputs that support other industries and have a direct impact on standard of living of the consumers. For instance, water chemistry, treatment and delivery play a key role in making clean water made available for the public which is an important goal under SDG. All these factors highlight the immense role chemical industry can play.

The chemical industry emits thousands of liters of wastewater that are emitted into the environment, further causing a double environmental problem of pollution and water scarcity. The end wastewater can be treated with various coagulants, pH adjuster, corrosion inhibitors, and made reusable for multiple processes, further reducing the burden of obtaining fresh water every time during the manufacturing process. Furthermore, wastewater that contains a high level of pollutants can cause land pollution and have the ability to enter our food chain, which is why it is paramount to treat wastewater before letting it open into the environment.  

Growing Consciousness about Limited Water Resources to Create Upswings for Market Growth

Increasing population and fast-changing lifestyles have created a high demand for freshwater. Saving water should not become a public priority only when faced with calamities, such as drought. Aquifers all over the globe are drying, and increasing population globally is causing stresses on these water sources. Rising urbanization, climate change, and water pollution levels are further surging the water demand. As per the U.S. Agency for International Development (USAID), one-sixth of the world population lacks clean drinking water, and around two million kids die because of water-borne diseases. It is estimated that China tops the list of water wastage every year that accounts for 362 trillion gallons/year.

The United Nations Development Program estimates that by the year 2050, at least one in four people will suffer from water damage. As per the United Nations Development Programs, Sustainable Development Goal 6 focuses on clean water and sanitation and ensures that safe and affordable water is supplied to over 800 million populations that do not have access to clean water.  Millions of liters of wastewater are emitted by industries that can be treated with chemicals and made fit for use for various non-drinking purposes. This highlights the growth of industrial water treatment chemicals during the forecast period.

Regional Analysis

Rapidly Expanding Food and Beverage Sector in Asia-Pacific to Surge the Amount of Wastewater 

Asia-Pacific is not only the biggest but also one of the most diverse regions in terms of land area and population. The region’s economic outlook continues to be strong and dynamic. It comprises economies that are emerging as key manufacturing hubs, with the abundant availability of natural resources and inexpensive labour attracting investments. Policymakers in the regions are creating a favourable climate for investments and creating special economic zones for making exports attractive.

Asia-Pacific is turning out to be an attractive region for investments in the food and beverages sector after Europe, due to the presence of cheap labour and favourable government policies. As per the data provided by OEC, the global exports of beer have increased from USD 13.8 billion in 2016 to USD 14.4 Billion in 2017.

Economies such as India and China and leading the market growth of the food and beverages industry. As per the IBEF, an initiative of the Ministry of Commerce & Industry, Govt of India, India’s food market is the sixth largest globally and contributes around 8.80 to around  8.39  percent of the total Gross Value Added (GVA) in the manufacturing and agriculture industry respectively. Furthermore, as per the Department of Industrial Policies and Promotion (DIPP), the food processing industry in India received around USD 7.54 Billion of FDI from March 2017 to April 2020. This highlight the growth potential of food and beverages industry in this region.

The food and beverage sector employ the use of millions of litters of water annually for the manufacturing of food and beverage products. This also amounts to a large-scale wastewater as an end result, which is highly toxic if left untreated.

However, the downside risk predominate in the region, such a tightening of the financial conditions globally, a gradual shift towards protectionist policy , recent increase of geopolitical tensions which is likely to have an impact on the mart growth during the assessment period. Furthermore, , the recent coronavirus pandemic has created a disruption in the financial markets and the supply chain globally. This has led to raw material scarcity that is mainly procured from China, which is likely to increase the prices of the industrial water treatment chemicals and hamper market growth.