Global water soluble polymers market expected to be driven by growth in water treatment applications

27-May-14

The global water soluble polymers market is expected to be driven by the growth in water treatment applications assisted by rising pressure from regulatory authorities for wastewater treatment of municipal and industrial wastes over harmful environmental effects of the contaminants released with water. Furthermore, rising demand from petroleum applications, due to rising shale oil drilling activities, is anticipated to fuel the market for water soluble polymers. However, volatile feedstock prices of synthetic water soluble polymers and competing uses of feedstock for natural water soluble polymers are expected to hinder market growth, as per Research and Markets. Polyacrylamide emerged as the largest consumed water soluble polymer accounting for more than 24.4% of the total water soluble polymers formulations consumed in 2012. It is also expected to be the fastest growing market owing to its versatility and high demand from water treatment and petroleum applications. Guar gum is another major product segment and is expected to grow at an estimated CAGR of 5.5%, from 2013 to 2019. Guar gum is primarily produced in Asia Pacific which accounts for about 90% of the global guar gum production. India and Pakistan are the leading producers of guar seeds and gum. Guar gum prices declined in 2013 due to over supplies and fall in the currency value of Indian Rupee (INR) against USD affecting the revenues. The supply demand gap is expected to balance out by late 2014 to early 2015 while the INR slide has stabilized at an average of INR 60 for US$1. High volume demand for gum is expected to help sustain an average revenue growth over the forecast period. Other water soluble polymers are expected to lose their market volume share to polyacrylamide over the forecast period.