China's demand for water treatment chemicals grows first Many multinational companies come to China to seize market share
The global water treatment chemicals market has reached $18 billion, and it is projected to grow to $22 billion by 2010. According to the latest report from McIlvaine, published in the Chemical Market Report, China is expected to be the fastest-growing country in this sector over the next few years. Analysts predict that the average annual growth rate of China's water treatment chemicals market will reach 9%, with power plant water treatment chemicals leading the way.
China’s rapid increase in energy demand has accelerated the construction of new power plants, many of which rely on coal as a fuel source. Coal-fired power plants require significantly more water treatment chemicals compared to gas-fired ones—approximately four times as much. Currently, power plant water treatment chemicals account for about one-third of the overall market in China, and this segment is expected to double in value over the next decade. As a result, China is set to become the world’s largest market for water treatment chemicals specifically for power generation.
Due to the strong demand, several international water treatment chemical companies have increased their investments in China. In January of this year, Calgon Carbon opened an activated carbon production and packaging facility in Tianjin. Meanwhile, Kemira plans to invest $8.35 million in a new pulp chemical plant in Yixing, Jiangsu, expanding its polyaluminium chloride production capacity from 120,000 to 150,000 tons per year.
As China’s urban population continues to grow, the pressure on water supply infrastructure has become more pronounced. The reliability of public water systems has raised concerns about water security. A recent incident involving an explosion at Jilin Petrochemical Company’s aniline plant led to over 100 tons of benzene leaking into the Songhua River, causing severe pollution downstream. This resulted in a five-day water shutdown in Harbin and contamination extending into Russia. Both countries used activated carbon to purify the water during the crisis.
In addition, China’s secondary wastewater treatment capacity is expanding rapidly, creating significant opportunities in the separation and sedimentation equipment market. These technologies are primarily used for wastewater treatment. Furthermore, cross-flow filtration membrane technologies such as reverse osmosis, ultrafiltration, and microfiltration are expected to see widespread adoption across various industries in China.
The growing demand for water treatment chemicals has attracted major multinational corporations like GE, Nalco, and Rohm & Haas, who are now competing with local firms to capture a larger share of the booming Chinese market.
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