Water Treatment Chemicals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Water Treatment Chemicals Market is projected to expand from a valuation of USD 39.14 Billion in 2025 to USD 51.59 Billion by 2031, reflecting a CAGR of 4.71%. This sector includes a broad array of specialized compounds, such as flocculants, biocides, and coagulants, designed to eliminate contaminants and enhance water quality for municipal, industrial, and residential uses. The market is chiefly driven by the rising global need for potable water amid rapid urbanization, alongside strict environmental regulations that mandate thorough wastewater remediation prior to discharge. Additionally, the growing requirements of the manufacturing and power generation industries for significant volumes of treated process water further solidify the fundamental demand for these essential purification solutions.

However, the industry encounters notable obstacles regarding the volatility of raw material costs and uneven regional manufacturing competitiveness. These supply-side pressures are apparent in major production hubs; for instance, the European Chemical Industry Council reported that capacity utilization within the European chemical sector fluctuated around 75% in 2024, highlighting the negative impact of regulatory constraints and high energy prices. Such instability in the chemical supply chain threatens to hinder the consistent production and competitive pricing of the water treatment formulations necessary for continued market expansion.

Market Drivers

The enforcement of rigorous environmental standards and wastewater discharge protocols serves as the primary catalyst for the Global Water Treatment Chemicals Market. Regulatory agencies worldwide are imposing stricter limits on pollutants, compelling facilities to implement advanced chemical remediation strategies. A prime example is the heightened focus on per- and polyfluoroalkyl substances (PFAS) in drinking water, which demands significant infrastructure and treatment upgrades. According to an April 2024 press release titled 'EPA's PFAS Water Rule Ignores Science, Undercuts Other Water Priorities' by the American Chemistry Council, the American Water Works Association estimates that adhering to these new federal standards will cost water systems roughly $4 billion annually. This regulatory burden fuels the consumption of specialized ion-exchange resins, flocculants, and coagulants needed to remove persistent contaminants and meet stringent discharge rules.

Concurrently, increasing global water scarcity is accelerating the urgent adoption of water recycling and reuse technologies, thereby broadening the market for treatment formulations. As freshwater resources decline, municipalities and industries are increasingly turning to chemically intensive processes like desalination and reverse osmosis to reclaim wastewater for operational and potable use. The 'United Nations World Water Development Report 2024' by UNESCO, published in March 2024, notes that approximately half the global population faces severe water scarcity for at least part of the year, underscoring the critical need for efficient water management. This trend translates into financial growth for key industry players; for example, Veolia reported in its '2023 Annual Results' from February 2024 that its Water Technologies division achieved sales of €4.70 billion, a 12.1% increase driven by robust demand for engineering systems and chemical solutions.

Market Challenges

The volatility of raw material prices and the consequent disparity in regional manufacturing competitiveness pose a major barrier to the growth of the Global Water Treatment Chemicals Market. Producers of specialized formulations, such as biocides and coagulants, depend heavily on specific chemical feedstocks and energy-intensive processes. When energy costs surge or supply chains become unpredictable, production expenses rise, forcing manufacturers to either absorb the losses or pass the increased costs to end-users. This pricing pressure suppresses demand, particularly among industrial clients with strict operating budgets, and often leads to delays in procuring materials for large-scale water remediation projects.

The tangible effects of these cost constraints on output are visible in key chemical manufacturing centers. As reported by the Verband der Chemischen Industrie in 2024, total sales within the German chemical industry fell by 2.0 percent compared to the previous year, a decline largely attributed to stagnant producer prices and uncompetitive energy costs. This contraction in a primary production region limits the global availability of essential water treatment compounds, thereby stalling overall market expansion and complicating the execution of long-term supply agreements.

Market Trends

The transition toward biodegradable and bio-based chemical formulations marks a fundamental shift in product development, motivated by the need to lower the carbon footprint of water management. Manufacturers are actively reformulating flocculants and coagulants using renewable feedstocks, such as polysaccharides, to provide high-performance alternatives that align with strict corporate sustainability goals. This strategic pivot to green chemistry is generating tangible financial resilience for major producers as they capture value from the rising demand for environmentally responsible inputs. For instance, Kemira reported in its 'Annual Review 2024' from February 2025 that the company achieved a record operative EBITDA margin of 19.90 percent, a performance bolstered by its intensified focus on scaling renewable solutions and bio-based technologies for industrial applications.

Simultaneously, the integration of AI-driven smart dosing and real-time monitoring systems is transforming how facilities manage chemical consumption. By deploying predictive analytics and IoT-enabled sensors, operators can dynamically adjust chemical feed rates in response to fluctuating water quality parameters, ensuring optimal efficiency while minimizing waste. This digital transformation allows suppliers to evolve from simple commodity sales to value-added service models that guarantee specific operational outcomes and quantifiable savings. According to the '2024 Sustainability Report' by Solenis in April 2025, its ValueAdvantage partner program, which utilizes these advanced monitoring capabilities to verify performance improvements, delivered $257 million in verified value to customers during 2024.

Key Players Profiled in the Water Treatment Chemicals Market

• Ecolab Inc.
• SUEZ S.A.
• Kemira Oyj
• BASF SE
• The Dow Chemical Company
• Solvay
• Kurita Water Industries Ltd.
• Lanxess
• Veolia
• SNF Group

Report Scope

In this report, the Global Water Treatment Chemicals Market has been segmented into the following categories:

Water Treatment Chemicals Market, by Type:

• Coagulants & Flocculants
• Inorganic Coagulant
• Flocculants
• Corrosion Inhibitors
• Scale Inhibitors
• Biocides & Disinfectants
• Chelating Agents
• Anti-Foaming Agents
• Ph Adjusters & Stabilizers and Others

Water Treatment Chemicals Market, by End-User:

• Municipal
• Power
• Oil & Gas
• Mining
• Chemical
• Food & Beverage
• Pulp & Paper and Others

Water Treatment Chemicals Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Water Treatment Chemicals Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.