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Frost & Sullivan: Rapid Urbanization in Brazil Prompts Larger Investments in Water and Wastewater Treatment Chemicals


News provided by

Frost & Sullivan

07 Feb, 2013, 15:11 GMT

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- High usage of chemicals in wastewater treatment stokes interest in organic chemicals

SAO PAULO, Feb. 7, 2013 /PRNewswire/ -- The consistent expansion of Brazil's urban population has spawned a parallel demand for potable water; the country is expected to require 570.0 cubic meters per second in 2015. There is also a strong focus on the quality of the potable water, which creates ample opportunities for the suppliers of water and wastewater treatment chemicals.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Strategic Analysis of the Brazilian Municipal Water and Wastewater Treatment Chemicals Market, finds that market earned revenues of $362.7 million in 2012 and estimates this to reach $488.9 million in 2018. The study covers scaling and corrosion inhibitors, coagulants and flocculants, disinfectants and biocides.

The federal government is investing in improving the quality of sanitation and infrastructure. Until 2014, year in which Brazil will host the FIFA World Cup, all works related to treatment stations and pipe line laying is expected to be completed under the ambit of the Program for Growth Acceleration (PAC).

"The Brazilian federal government, along with the PAC 2, recently infused $10 billion into projects for the construction and development of new water and wastewater treatment stations," said Frost & Sullivan Chemicals Research Analyst Mariana Guercia. "As this treated water is mainly meant for urbanized areas, the projects boost the sale of water and wastewater treatment chemicals in the municipal market."

Although there are substantial business opportunities, the market is pegged back to some extent by the lack of public investment or partnership with the private sector. The red tape involved in obtaining financing makes the projects unviable in the short term. Only 0.22 percent of the Brazilian gross domestic product (GDP) is dedicated to the sanitation sector.

If Brazil raised the percentage of GDP dedicated to sanitation to 0.63 percent, the country would be able to offer basic sanitation to the entire population within two decades. Privatization of water supply companies or public-private partnerships can facilitate the access to private credit for expansion projects.

Meanwhile, the constant use of chemicals in water and wastewater treatment has sparked health concerns among consumers. Water treatment plants are evincing interest in organic chemicals due to their lower environmental impact, especially with the lowering of the permissible quantity of harmful chemicals.

"To comply with regulations and standards, chemicals manufacturers need to review product performance in water and wastewater treatment," noted Frost & Sullivan Chemicals Research Analyst Gustavo Ferrari. "They also have to identify opportunities to develop new products, giving due consideration to environmental safety and sustainability."

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of the Brazilian Municipal Water and Wastewater Treatment Chemicals Market is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan's related research services include: Engineering Polymers Market in Colombia, Brazilian Municipal Water and Wastewater Treatment Chemicals Market, Protective Gloves Market in Mexico, Enhanced Oil Recovery Chemicals Market, and North American Construction Chemicals Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Strategic Analysis of the Brazilian Municipal Water and Wastewater Treatment Chemicals Market
NBFA-39

Contact:
Francesca Valente
Corporate Communications â€" Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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