Polyacrylamide Market Size, Share & Trends Analysis Report By Product (Anionic, Cationic, Non-ionic), By Application (Water Treatment, Oil & Gas, Paper Making), By Region, And Segment Forecasts, 2020 - 2025

Industry Insights

The global polyacrylamide market size was valued at USD 4.76 billion in 2019 and is projected to expand at a CAGR of 6.2% from 2020 to 2025. Surging demand for the product across various application industries, including wastewater treatment, oil recovery, paper making, and food and beverage, is expected to propel the industry growth.

Abundant raw material availability, low labor, and land cost, coupled with high consumption in Asia Pacific, are likely to compel manufacturers to set up their production plants in this region. However, the presence of numerous Chinese manufacturers, which offer their product at relatively lower prices, is expected to be a key threat for the new manufacturers. As a result, cost competitiveness is likely to be the key criterion for influencing the buyer’s decision over the projected period.

The industry is dominated by multinationals including SNF Group, CNPC, BASF, and Kemira, which accounted for over 50% of the overall market. These multinationals have a direct and indirect distribution system for the product supply in the domestic as well as international market. In addition, the companies are expected to increase their production volumes in order to tap the rising demand across the globe.

The polyacrylamide market in the U.S. is expected to witness significant growth owing to the expansion of the water treatment, paper making, and mining industries. The regulations and amendments on wastewater treatment by the U.S. Environmental Protection Agency (EPA) and Safe Drinking Water Act (SDWA) are expected to propel the demand for water treatment chemicals, positively impacting the industry growth.

The polyacrylamide prices are directly dependent on the cost of raw materials, including acrylic acid and acrylonitrile, which are derived from crude oil. Increasing crude oil prices are likely to raise raw material pricing in the industry, resulting in upward trends in the polyacrylamide price trends over the next few years.

Major manufacturers such as SNF and BASF have brand values and strategic partners, which enable easy marketing of their products. The manufacturers are likely to improve product quality and invest more in R&D to reduce the overall polyacrylamide cost and tap the consumer base.

Polyacrylamide Market Trends

Renewability of a water source is established on the basis of water cycle, i.e. ground water, ponds, rivers, and lakes that can be refilled by natural water cycle are considered to be renewable. Whereas, groundwater bodies are considered to be non-renewable due to the negligible replenishment rate. Furthermore, increasing temperatures along with reduced rainfall has led to drying of river beds and lakes causing water scarcity.

Fresh water is an essential resource for human survival, used across multiple household amenities, agricultural & industrial activities, and others. Depleting water resources along with increasing global population are a huge threat for life on Earth. Furthermore, the per capita water availability has declined significantly in the past decade.

Growing mining activities is another key driver for polyacrylamide for augmenting the global polyacrylamide market. Polyacrylamide is used as a flocculating agent to treat waste water generated during mining activities. The expansion in the mining sector is expected to propel the demand for polyacrylamide.  Polyacrylamide is widely used in mining processing and in the treatment of minerals to separate mineral and mineral ore. It is also used as flocculants in the treatment of waste water from mineral processing that is formed by the mining channels during the mining process.

The growing demand for acrylamide in manufacturing polyacrylamide polymers, used in waste water treatment to enhance oil recovery and textile industry is the major factor driving the market growth. However, health and environmental hazards of acrylamide is expected to be a key factor affecting the market negatively.

Acrylamide polymers accommodating less than 0.2% monomer can be used in paper and paperboard, food-packaging adhesives, and gelatin capsules. Acrylamide-based polymers have been under surveillance because of the highly toxic nature of acrylamide monomer in high concentrations. Acrylamide monomer is a peripheral neurotoxin that can cause death at high concentrations. As per the Ecotoxicology and Environmental Safety U.S. research report, polyacrylamide in the presence of sunlight and glyphosate degrades to acrylamide monomers.

Product Insights

Anionic and cationic polyacrylamide polymers emerged as the dominant product segments in the market and accounted for over 75% of the overall demand in 2018. These anionic polyacrylamide polymers are used in applications including wastewater treatment, pulp and paper, aquaculture, coal mining, food and beverage, and oil and gas industries.

Demand for anionic polyacrylamide polymers is high in industrial wastewater and municipal sewage treatment as a flocculating agent. Increasing impure water discharge from industries and rising scarcity of potable water are expected to drive the demand for polyacrylamide in water treatment applications over the next few years. In addition, surging demand for the product in other applications including coal washing, mineral processing, metallurgy, iron and steel, and electronic industry is fueling the growth.

Revenue for cationic polymers in 2018 was valued at USD 1.5 billion owing to its high demand as retention and drainage aids in papermaking, and as flocculants in wastewater treatment. These polymers act as stabilizers for emulsion polymerization in cosmetics. The aforementioned factors are expected to open new avenues for market expansion over the coming years.

Application Insights

Revenue for polyacrylamide in water treatment application was valued at USD 1.7 billion in 2018 and is expected to register a CAGR of over 6.0% from 2019 to 2025. Rising applications of polyacrylamide in municipal sewage, industrial wastewater, and drinking water, and wastewater treatment plants are expected to propel the demand for the product. Furthermore, increasing attention on the water treatment industry by the regulatory bodies across various countries is likely to have a positive impact on market growth.

Demand for the product from the oil and gas industry for the enhancement of oil recovery is expected to surge over the forecast period as the product improves the oil recovery efficiency. In addition, it is used in drilling muds and fracturing fluid additives. The use of polyacrylamide can adjust the drilling fluidity, carry shale debris, lubricate the drill bit, and control fluid loss. The aforementioned factors are expected to drive the demand for polyacrylamide in oil and gas applications.

The product works as a retention agent and improves paper quality in the papermaking industry. As a result, its demand in the papermaking application is expected to exhibit a CAGR of 6.0% from 2019 to 2025. Furthermore, it acts as the dispersing agent and helps in reducing the fiber flocculation to improve the paper formation process. Large scale manufacturing of paper for various applications, including educational material and packaging, coupled with increasing adoption of the product in the pulp and paper manufacturing process, is expected to drive the industry.

It is considered as an important variable in the mining process, as it effectively separates the solid mineral from the water or solution and improves the drilling efficiency. In addition, the product has demand in the coal manufacturing industry for the coal washing process. Increasing mining activities, coal washing, metal plating, and dying are expected to drive the market over the forecast period.

Regional Insights

In North America, demand for the product is dominated by the water treatment application, which accounts for over 50% of the overall demand. Stringent regulatory actions against waste-water disposal, coupled with rising concerns regarding the environment in the region, are expected to drive water treatment activities in the region, which in turn, are likely to have a positive impact on the industry growth. Furthermore, the development of polyacrylamide polymers for producing polyacrylamide gel and powder is expected to create new avenues for the bio-science and pharmaceutical industry in the region.

The U.S. polyacrylamide market is expected to witness surge owing to the increasing applications in water treatment, paper making and mining industries. The U.S. is considerably the largest market in North America for treatment of impure water, mining and paper manufacturing. The growing requirements of polyacrylamide from these industries is expected to contribute to the growth considerably from the manufacturers and is in turn expected to boost the market. The upcoming regulations and amendments on the waste water treatment according to the Safe Drinking Water Act (SDWA) and by the U.S. Environmental Protection Agency (USEPA), are the key factors for the market growth in the forecast period.

Furthermore, the revenue for polyacrylamide in Germany was valued at over USD 265 million in 2018 and is expected to expand at a CAGR of 4.0% from 2019 to 2025. The country is the largest EU water technology exporter in Europe. Moreover, high investments in water recycling and purification technology in the region are expected to drive the demand for the product in water treatment activities over the forecast period.

Anionic polyacrylamide and nonionic polyacrylamide polymers are used for coal washing. The increasing coal washing activities and rising demand of coal production in the U.K. is expected to increase the demand of polyacrylamide polymers. The development of a wide range of mobile and modular coal washing plants for the preparation and separation of distinct coal grades and the recovery of fine coal particles and their treatment is the key factor for the growth of polyacrylamide market in the U.K.

The emerging countries in the Asia Pacific region which include India, China, Taiwan, Indonesia, is expected to drive the market. Furthermore, urban wastewater treatment directive, by World Health Organization (WHO) globally, especially in Asia Pacific resulted in significant improvements in wastewater treatment capacity and methods.

China accounted for a major share in the market and is expected to expand at a CAGR of 7.9% from 2019 to 2025. The robust base of pharmaceutical and chemical manufacturing industries in the region has resulted in huge volumes of wastewater, which is expected to propel the demand for polyacrylamide as a water treatment chemical over the forecast period. In addition, the region is one of the top pulp and paper manufacturing markets in the world and the presence of several major pulp and paper industries including Shandong Pulp And Paper Co., Ltd., and Universal Pulp & Paper is benefiting the industry expansion over the forecast period.

The demand for polyacrylamide from oil & gas industries in China, India, and other regions of Asia Pacific is expected to drive the market demand in the region. China was one of the largest markets for polyacrylamide owing to the extensive mining activities and coal washing. India is expected to be one the fastest growing market for polyacrylamide for the waste water treatment activities owing to growing water treatment and oil & gas activities in the region.

Key Companies & Market Share Insights

Manufacturers are expected to invest more in capacity expansion in order to meet the rising consumer demand and strengthen the company position in the industry. For example, in 2015, SNF Holding expanded its production capacity by building a new plant in Louisiana in order to expand the product business in the domestic as well as international market.

Key players in the industry include SNF, BASF, CNPC, Ashland, Kemira, Anhui Jucheng Fine Chemical Co, Ltd. (CJCC), Black Rose Industries Ltd., Shandong Polymer Bio-chemicals Co., Ltd., Xitao Polymer Co., Ltd., Dongying Kechuang Biochemical Industrial Co., Ltd., and Anhui Tianrun.

Polyacrylamide Market Report Scope

Global Polyacrylamide Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global polyacrylamide market report on the basis of product, application, and region.

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Anionic

  • Cationic

  • Nonionic

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Water treatment

  • Oil & Gas

  • Paper Making

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa