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Australian Water Treatment Chemicals Market to Double by 2014 - New analysis from Frost & Sullivan, Strategic Analysis of the Australian Water Treatment Chemicals Market, finds that revenues in this market totalled AU$468.1 million in 2006 and is expected to increase by a CAGR of 8.1 per cent to reach AU$872.1 million
Australian Water Treatment Chemicals Market to Double by 2014

 

PRZOOM - /newswire/ - Sydney, Australia, 2007/12/18 - New analysis from Frost & Sullivan, Strategic Analysis of the Australian Water Treatment Chemicals Market, finds that revenues in this market totalled AU$468.1 million in 2006 and is expected to increase by a CAGR of 8.1 per cent to reach AU$872.1 million.

   
 
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Due to unprecedented droughts in past years, the Australian government has been seeking alternative water sources including used water and sea water. Water reuse and desalination have been proven to be feasible solutions for tackling the issue and both methods have boost demand for water treatment chemicals.

New analysis from Frost & Sullivan (chemicals.frost.com), Strategic Analysis of the Australian Water Treatment Chemicals Market, finds that revenues in this market totalled AU$468.1 million in 2006 and is expected to increase by a CAGR of 8.1 per cent to reach AU$872.1 million in 2014.

Water reuse across the municipal and industrial sectors has been the main contributor to the growth of the Australian water treatment chemicals market. While there is still some resistance to the use of recycled water as a potential drinking water source, water reuse for other purposes especially in the industrial sector has increasingly become common practice.

The construction of desalination plants in Western Australia, Victoria and New South Wales has provided another new consumption sector for water treatment chemicals. It has been estimated that total spending on the water and wastewater treatment sector is AU$6.3 billion and this is projected to grow at an annual rate of 5 per cent until 2009.

"The total Australian water treatment chemicals revenue grew at a CAGR of 11 per cent from 2004 to 2006, with the coagulants and flocculants sector and the pH adjustors and other commodity chemicals sector growing faster than this average," explains says Frost & Sullivan industry analyst Sarah Wang. "Although alternative technologies such as membrane technology and UV filtration have been much talked about, chemicals continue to provide unmatched performance in critical roles."

As a consequence of intense competition in the water treatment service industry, providers have been forced to reduce the price of chemicals in order to make their bundled offer more attractive. This price pressure has been invariably passed onto chemicals.

"Customers tend to favour a service provider who is able to provide a customised combination of chemicals and services," notes Ms. Wang. "This combination is formulated to suit the unique needs of each customer, hence providing high value addition to the customer in the face of intense price competition in the chemicals market."

Hence, suppliers of water treatment chemicals need to build lasting relationships and partnerships with customers. By understanding customers' needs and tailoring the provision of bundled packages of services and chemicals as per their requirements, suppliers can differentiate themselves, increase market share, and improve margins.

Suppliers can also ensure growth by establishing regional presence in Australia. With intense price competition in the chemicals market and the resourcing challenges that arise from supplying Australia's dispersed customer base, suppliers are finding opportunities through the provision of bundles services and chemicals.

Strategic Analysis of the Australian Water Treatment Chemicals Market is part of the Chemicals and Materials Growth Partnership Service program, which also includes research in the following markets: European industrial water treatment chemicals and U.S. water treatment chemicals. All research services 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.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of this report, then send an email to Sharmin Jassal, Corporate Communications, at sharmin.jassal[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Australian Water Treatment Chemicals Market to Double by 2014

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