Legislative compliance, solutions approach key to European industrial water treatment chemicals market growth

Jan. 8, 2007
Pursuit, by European industries, of environmental safety and natural resource preservation by recycling is leading to more chemicals use, but end-users are trying to minimize that with advanced technologies. Chemicals manufacturers also are trying to develop safer products for key applications and total water treatment solutions to sustain business. Frost & Sullivan finds the "European Industrial Water Treatment Chemicals Market" made $1.42 billion in 2006, and will earn $1.93 billion in 2012...

LONDON, Jan. 8, 2007 -- The aggressive pursuit, by most European industries, of environmental safety and natural resource preservation through increased recycling is leading to augmented chemicals use. But these end-users are exploring ways to minimize the use of chemicals by opting for advanced technologies. At the same time, chemicals manufacturers are attempting to develop environmentally safe products for various key applications and total solutions for water treatment to sustain their business.

Frost & Sullivan finds that the "European Industrial Water Treatment Chemicals Market" earned revenues of €1.1 billion [US$1.42 billion] in 2006 and is estimated to reach €1.5 billion [US$1.93 billion] in 2012.

"Expanding member states, environment safety and legislation play an important role in ensuring stable demand for water treatment chemicals used in industries," says Frost & Sullivan Research Analyst Mahesh Kumar S. "European industries will face greater responsibilities in ensuring that they comply with prescribed legislative standards, thus boosting the market's growth potential."

Heightened awareness about environmental safety, the preservation of fresh water sources and increasing reuse and recycling of water within industrial processes is resulting in additional treatment by industries. Also, the cost effectiveness of water treatment chemicals is negating the minimal threat posed by alternatives, thus proving to be a boon for chemical manufacturers.

However, growing competition and the commoditization of water treatment chemicals are reducing profit margins. Slow industrial growth within Europe is encouraging the entry of low-cost and medium-quality producers from other regions, further intensifying competition. In addition, industries are investigating ways to minimize the use of chemicals in most processes by opting for alternate technologies.

"Consolidated end user industries and greater competition among chemicals manufacturers has resulted in commoditization, pushing profit margins to unsustainable levels," explains Mr. Kumar. "The market tendency is shifting towards providing enhanced customer services to ensure differentiation and maintain profit margins."

Chemical manufacturers will need to build expertise in service provision to end users, produce environment-friendly products and widen their product portfolio to ensure long-term sustainability. A thorough understanding of legislation and the provision of suitable products to end users will enable market participants to enhance their market position.

"Opportunity in the European Industrial Water Treatment Chemicals Market - Strategic Review" is part of the Chemicals & Materials Subscription, which also includes research in the following markets: European Water Treatment Chemical Markets, European Industrial Sludge Treatment Markets, Strategic Review- European Biocidal Products Directive, The European Specialty Biocides Market and, Central and Eastern European Markets for Coagulants and Flocculants in Water Treatment. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan (www.frost.com), a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. It serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Frost & Sullivan Chemicals and Food Group (http://www.chemicals.frost.com) is the strategic market consultant delivering insight and understanding to support business growth internationally. The group continuously monitors a comprehensive spectrum of chemical and food markets for trends, market measurements and strategies, and delivers powerful data via research publications, bespoke market intelligence projects and customized consulting.


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