Waste management rules to boost chemicals market
expansion as regulatory authorities crack down industry's on waste
and water management, says a new report.
The chemicals market for treating waste water will rise from $1.31bn in 2005 to $1.94bn in 2012, predicts a new report from Frost & Sullivan.
The report says industry will become more demanding of the chemicals market as the European Union moves to tighten rules on water and waste - part of its drive towards sustainable production processes.
The food industry is set to be right at the centre of new rules as one of the biggest industries in Europe. Food manufacturing output is worth £65.7bn in the UK alone.
Frost & Sullivan says manufacturers and suppliers of water treatment chemicals need to rise to the challenge of tougher waste regulations on producers.
Mahesh Kumar, a research analyst for the group, said: "Legislation, consolidation and opportunities in Eastern Europe have started to influence the dynamics of the water treatment chemicals market in Europe as the competition is shifting towards value-based products and technology, enhanced services as well as providing total solutions."
The biggest challenge facing producers of water treatment chemicals is the prospect of rising costs, the report says.
It added many companies were already trying to cut costs, while also looking at how they can provide added value services to increase income.
Chemicals are still generally categorised as commodities, putting pressure on producers' margins. Kumar said this was something the industry should watch.
"With the consolidation of the industries within Europe, more speciality chemicals are bound to become commodity products."
The push for better water and waste management in Europe, however, offers chemical manufacturers the chance to establish long-standing relationships with customers. This should help to boost revenues, according to the report.
