The demand for clean and safe water in emerging markets will create good investment opportunities for the water treatment chemicals market.
Water treatment chemicals include organic flocculants, flocculants ion exchange resins, and formulated products. Formulated products include biocides, preservatives, and scale inhibitors. The global water treatment chemicals market was valued at USD 9.33 billion in 2018 and is expected to grow at a CAGR of 3.8% from 2018 to 2023. In 2018, the largest global water treatment chemicals market was China, with a market value of USD 3.1 billion, accounting for 33% of the global market, and the second largest was North America, with a market value of USD 3 billion, and accounting for 32% of the global market share.
The global demand for water treatment chemicals has different growth rates from 2018 to 2023. The growth rate in the Middle East and Africa is essentially zero, while Western Europe is growing at an average annual rate of 1%, North America at 2.3%, and China at 7%. The rapid growth in market demand for water treatment chemicals in other emerging economies, such as China and India, is primarily stimulated by the need for clean water and water safety, as well as population growth. In addition, the rapid industrialization of these countries and the increase in power generation capacity also support the rapid growth of water treatment chemical demand.
According to IHSMarkit, the larger growth in water treatment chemicals will occur in emerging markets, particularly China. China's rapid industrialization and urbanization are spurring strong growth in demand for clean water.
Ecolab forecasts future market trends for water treatment chemicals. By 2030, the world will demand 40% more water than in 2015, and 40% less water will be available. Recently, Christophebeck, President and COO of Ecolab, said: "The increasing scarcity of freshwater globally remains one of our most pressing concerns. 2014-2030, water costs are expected to grow 78% in India, 133% in China, and 192% in the U.S.
According to IHSMarkit, water treatment chemicals (mainly coagulants and flocculants) are used more frequently in North America than in Europe and Japan. Engineering and other technical solutions are popular in Europe and Japan. Among water treatment chemicals, cheaper inorganic bulk chemicals, such as alum, ferric chloride or iron sulfate, and polymeric aluminum chloride, are usually more popular than organic polymers. In developed countries, the growth rate of consumption of water treatment chemicals is slowing down. As awareness of the quality of drinking water continues to grow and regulatory standards become stricter, drinking water needs to be protected as a valuable resource.
For water treatment chemical manufacturers, the tighter the supply of freshwater resources, the greater the market opportunity for water treatment chemicals. Water purification technologies are particularly important to meet the demand for wastewater treatment, and desalination as the demand for wastewater purification and desalination is gradually increasing due to the shortage of freshwater resources. In addition to the growing demand for potable water from a growing urban population, there are markets for water treatment chemicals in growing industries such as the chemical industry, food, electronics, and batteries. According to Blottko, overall sales of ion exchange resins in water treatment chemicals are expected to grow at a rate of 5% per year through 2022. Demand growth for water treatment membranes will be even higher, with the permeate membrane market growing at a strong 11% per year.
There is a growing demand for water reuse and reduction in water use in the heavy industry globally, especially in areas where water is scarce or of poor quality. Water treatment chemicals will continue to grow steadily, unaffected by economic fluctuations. Water scarcity is both a threat and an opportunity.
With the rapid development of China's economy, urbanization, and industrialization, China's water demand is rapidly increasing, and water pollution is becoming increasingly serious, exacerbating the conflict of water scarcity in China. Solving the problem of water shortage and water pollution has become an urgent and far-reaching task for Renzhong. In recent years, China's rapid industrialization and urbanization have stimulated strong growth in demand for clean water, and environmental protection has increased year by year. The demand for clean and safe water will create good investment opportunities for the water treatment chemicals market.
Vcycletech plays an important role in global water treatment chemicals research. Our water treatment chemicals include organic flocculants, flocculants ion exchange resins, and formulated products. Formulated products include biocides, corrosion inhibitors, and scale inhibitors.
Please contact us, and we will share our experience in the use of water treatment chemicals with you.
