Research Overview
Accession of CEE States into the European Union Creates New Growth Opportunities in the Water Treatment Chemicals Market
The demand for water treatment chemicals is increasing with the accession of the eight Central and Eastern Europe (CEE-8) states into the European Union (EU) in May 2004. The CEE-8 members are looking to improve water quality and wastewater infrastructure and align their national legislations with the EU directives on drinking water and urban wastewater. Slovakia is expected to show the best growth rates as EU regulations drive development in the municipal water treatment market. Romania and Bulgaria – although not currently member states – also have immense potential as they strive to comply with EU regulations on environmental issues.
This Frost & Sullivan research analyses the market for water treatment chemicals within the CEE-8 countries, which are Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Lithuania, Latvia and Estonia. The focus of this study is coagulants and flocculants, for which detailed market forecasts, pricing analysis and competitive structure assessment has been provided for each of these geographical regions. This research service also contains strategic recommendations for maximising revenue generation in the region.
Implementation of EU Regulations Drives Demand for Municipal and Industrial Water Treatment
Urban Wastewater Management and the European Water Framework Directives are key forces propelling growth of water treatment chemicals in the CEE market. On the industrial front, new EU regulations governing the quality of industrial effluent wastewater are compelling companies to treat their wastewater instead of off-loading it into local streams. Municipalities are also devising new wastewater treatment plants – often in public-private partnerships or through Build/Own/Transfer (BOT) contracts – in order to meet the deadlines for implementation of the EU guidelines.
"Financial aid is crucial to maintaining the pace of development in this region," observes the analyst of this research. "In fact, municipalities are striving to meet the EU directives for drinking water and urban wastewater with the help of external funding, loans and private investments." Aid from the European Bank for Reconstruction and Redevelopment (EBRD), the World Bank and numerous other EU funding programmes provides the much-needed financial backing for building water treatment plants and implementing the more stringent EU regulations regarding water quality.
Securing Local Manufacturing Capabilities Essential for Long-term Success
A local supply of raw materials is crucial to staying cost-competitive in this market. Given the price-sensitivity of customers in this market, having a local manufacturing plant in the CEE states enables suppliers to remain competitive and expand their market share. "Furthermore, close customer contact is crucial in a market where the majority of business is conducted verbally," says the analyst. "Apart from bringing in knowledge and expertise for dealing with cultural differences, a local workforce is essential for understanding consumer preferences in different regional markets."
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