Polyaluminium chloride (PAC)
is manufactured in both liquid and powder form. The product is used in deodorants and antiperspirants, as a flocculant in water purification, in treatment of drinking / potable water, wastewater treatment and paper sizing.
The global sales of PAC increased from 2.9 million (30% Al2O3 content) tons in 2014 to 3.6 million tons in 2018, at a CAGR of 5.58%. In 2018, the global PAC market is led by China. USA is the second-largest region-wise market. According to this study, over the next five years the Poly Aluminium Chloride (PAC) market will register a 5.37% CAGR in terms of revenue, the global market size will reach US$ 1486.27 million by 2025, from US$ 1030.56 million in 2018.
As an important water treatment product, poly alumnium chloride is widely used in industrial water treatment, municipal water treatment, paper making and others. Poly alumnium chloride can be classified into two types according the product form: PAC solid and PAC liquid. Paper making and industrial water treatment are the major applications of poly alumnium chloride, taking 36.6% and 30.7% of the world poly alumnium chloride consumption in 2018.
The PAC market is highly fragmented and according to our analysts there are nearly 1,000 PAC manufacturers worldwide. In most markets, local players occupy a major market share. Kemira, Feralco Group and Venator are the main players in the European market. Jianheng Industry, PT Lautan Luas Tbk and Taki Chemical are leaders in the Asia Pacific market. Kemira, USALCO and GEO are the main players in the US market. The competition in the market lies in the competition in the local market rather than the pressure from international players. Market competition is also very intense, and low profits and price wars have hurt this.
Asia Pacific alone is projected to account for a large percentage of new PAC demand anticipated through 2025; the country’s growing middle class, improving living standards, and fast-developing infrastructure is driving signi?cant industry growth. LPI points out that scale, brand and price are the three factors for success. In this industry, consumers are very sensitive to the price of the product; price is the primary consideration for many consumers rather than the brand. Most of the time, customers are more willing to pay for low-priced products. The right pricing strategy is very important. For companies, focusing only on product quality and not on product prices is not the right sales strategy. Consumers prefer to see the direct results /benefit of the product rather than the brand itself because it is good for them.
This is the main contradiction in this industry and companies need to adopt the right sales strategy. The construction of market channels is also very important, especially in areas where large brands have insufficient penetration, which is very important for emerging companies. In addition, for local markets, local companies or major distributors are very important for industry chain. Even though some big companies occupy the best market position, the market opportunity is still huge.
Vendors should recognize the importance of emerging markets and potential applications, particularly in developing country market, and are working towards penetrating this market by strengthening their sales and distribution networks. In the future, LPI predicts that more and more companies will join the industry due to its potential market size. But it is suggested that enterprises those have plans to enter this industry have careful analysis of this market and the advantages or disadvantages of themselves.