Frost & Sullivan: Rapid Growth Anticipated for Water Soluble Polymer Markets

N/Aket for water soluble polymers is expanding globally at a rapid pace. Especially strong growth is occurring in the Asia Pacific and rest of the world markets, with strong potential in the water and waste water industries in developing countries throughout Asia Pacific and Latin America. Other major end-user markets for water soluble polymers include foods and beverages, adhesives, and paints and coatings.

A recent study by Frost & Sullivan divides water soluble polymers into several world market categories including starch, hydrocolloids, cellulose ether, polyacrylamide, polyvinyl alcohol, and other synthetic water soluble polymers. The world starch market alone was worth about $5.4 billion in 1997, and is projected to reach $7.6 billion by 2003.

Frost & Sullivan's research indicates that revenues for water soluble polymers in the world market reached about $13.2 billion in 1996, and are anticipated to grow to $20 billion by the year 2003. The world growth rate will be five to six percent throughout the forecast period 1993 to 2003.

Manufacturers must now meet growing needs in Asia Pacific markets, instead of the saturated European markets. This market globalization is forcing companies to reduce manufacturing costs while maintaining productivity.

"Low profit margins in several markets are forcing formulators to develop new products and new applications," said John Rider, chemical analyst for Frost & Sullivan.

To keep up with changing market trends, manufacturers will need to develop environmentally friendly products such as reduced-fat and processed foods products, and find ways to meet the demand for new products in the paints and coatings industries due to environmental regulations.

Frost & Sullivan point to consolidation and acquisitions as increasingly popular methods for companies struggling to remain on top as competition increases throughout the world. The need for manufacturers to position themselves in the global market is the biggest challenge competitors face. Companies must also continue to develop new water soluble polymers with several different functions.

Companies participating in this market include: Archer Daniels Midland Company, ADM Corn Processing, A.E. Staley Manufacturing Co., Air Products & Chemicals, Inc., Akzo Nobel, Allied Colloids, AVEBE BA, Bayer AG, BetzDearborn, Cargill Incorporated, Cerestar, Cerestar USA, Chang Chun Petrochemicals Co., Ltd., Citrus Colloids Ltd., Courtaulds, CPC International, CPS Chemical Company, Inc., Cytec Industries, Inc., Danisco Ingredients AS, DGF Stoess, Inc., Daicel Chemical Industries, Dia-ichi Kogyo Seiyaku (DKS), Dow Chemical Company, DuPont Company, Eastman Gelatine Corp., Emsland Starch Company, FMC Corporation, Grain Processing Corporation, Herbstreith & Fox, Hercules Incorporated, Hoechst AG, Hormel Foods Corp., Indian Gum Industries, Jungbunzlauer, Knox & Knox Gelatine, Inc., Kraft Foods, Inc., Kuraray Co. Ltd., Lamberti Spa CMC, Leiner Davis Gelatin International, Leiner Davis Gelatin (USA), MAK Chemical Corporation, Metsa Serla Chemicals Div., Minnesota Corn Processors, Mitsubishi Chemical Corp., Mitsui Toatsu Chemicals, Inc., Nalco Chemical Co., National Starch & Chemical Company, Nihon Shokuhin Kako Co. Ltd., Nippon Synthetic Chemical, Nutrasweet Kelco, PB Gelatin UK Ltd., Penn Carbose Inc., PENWEST Ltd., Poly Pro International Inc., Quimica Amtex S.A. de C.V., Rhone-Poulenc, Roquette, Samsung Chemical Industries Co. Ltd., Sanyo Chemical Industries, Shemberg Marketing Corp., Shin-Etsu Chemical Co., Ltd., SNF Floerger, Systems Bio-Industries, Stockhausen, Tate & Lyle PLC, Union Carbide Corporation, Wolff Walsrode AG (Bayer Co.), Related Companies, AEP Colloids, Inc., <%=company%>, Colloides Naturels International, Penford Products Co.

Frost & Sullivan is an international marketing consulting company that monitors the water soluble polymers industry for market trends, market measurements and strategies. This ongoing research is used to update a series of research publications such as #4743-39, U.S. Food Additives Market, and #3399-39, The European Market for Water Soluble Polymers, and to support industry participants with customized consulting needs.