China Drying Newsletter US-based growth consulting firm Frost & Sullivan published a research report recently that the total market value of the North American industrial water and wastewater treatment chemicals market in 2011 was US$2.03 billion and is expected to increase to US$2.79 billion in 2018. The average annual compound growth rate reached 4.6%. Due to the slow recovery of demand, weak growth, and the fragmented market and large number of participants, with the intensified competition and falling profits, it is foreseeable that there will be a merger and acquisition restructuring in the North American water treatment chemicals market.
The North American industrial water and wastewater treatment chemicals market is a mature and fragmented market with more than 150 participants. Water treatment chemical products include coagulants and flocculants, preservatives and scale inhibitors, insecticides and disinfectants, defoamers and antifoams, pH regulators, and water softeners.
In the North American water treatment chemicals market, the market for coagulants and flocculants is largest, followed by the market for preservatives and scale inhibitors. In the market share of coagulants and flocculants, Kemira accounted for 18%, SNF Group accounted for 12%, and BASF accounted for 10%. Companies with larger shares include Ecolab, PVS and Ashland Group. In the market for preservatives and scale inhibitors, Dow Chemicals accounted for 13%, Campbell Chemicals for 10%, and Uniphos for 7%.
Industrial water treatment can be divided into three categories: raw water treatment, process water treatment, and wastewater treatment. In 2011, the total value of the North American water treatment chemicals market was US$2.03 billion, of which the market for coagulants and flocculants was US$751 million, accounting for 37% of the total sales; the market for preservatives and scale inhibitors was US$700 million, accounting for 34.5%; insecticides and disinfectants market revenue of 286 million US dollars, accounting for 14.1%; pH regulators and water softener market revenue of 209 million US dollars, accounting for 10.3%; defoamer and antifoam agent market revenue of 833 million US dollars, Accounted for 4.1%.
In terms of sales volume, pH regulators and water softeners have the largest sales volume, followed by coagulants and flocculants, and their expected growth rates in the coming period are 2.3% and 2.4%, respectively. Growth in both insecticides and disinfectants is expected to coincide with petrochemical and power generation. The product defoamer, which accounts for the smallest market share, is expected to grow at a rate of 4.2%.
The growth of water treatment chemicals in North America is driven by several factors: First, strict environmental laws and regulations. Strict sewage discharge standards have increased the demand for efficient water treatment methods, thereby increasing the use of water treatment chemicals. The second is the lower cost of chemical water treatment. The low cost and high efficiency of water treatment chemicals make it one of the best ways to treat water. Because no additional equipment investment is needed, chemical water purification has gained low cost benefits and is therefore favored. The third is the vigorous promotion of recycling water. The current industrial enterprises have shifted more attention to sewage, trying to use it again. On the other hand, there are fewer and fewer clean water resources and higher prices. Enterprises have to recycle water resources to save costs. Recycling water will increase the demand for chemicals.
Despite this, the water treatment chemicals market is facing a lot of tests. First, the market is fragmented and the competition is fierce. Chemicals are a mature market, most of them are homogenous, and sometimes there are price wars between different manufacturers. Therefore, the company meets consumer expectations with price cuts, which leads to a decline in overall market profits and lower profitability. Second, concerns about environmental destruction. In recent years, end-users appear to be more inclined to choose alternative technologies than to use chemicals for water treatment because of concerns about the environmental hazards of using phosphoric acid and phosphate. Third, the rise of alternative technologies. Methods such as UV treatment and membrane filtration are gradually penetrating the North American water treatment market. These technologies may pose a threat to the water treatment chemicals market. Fourth, competition from low-cost imported products. Asian producers, especially Chinese manufacturers, have joined the North American market. Products with lower entry barriers such as coagulants, flocculants and scale inhibitors will be greatly affected.
It can be seen that the North American market for water treatment chemicals will grow slowly in the future, and mergers and acquisitions are highly likely.
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