Australia And New Zealand Water Treatment Chemicals Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Australia And New Zealand Water Treatment Chemicals Market Trends and Insights

Rising Groundwater and Surface-Water Pollution

Persistent nutrient loading and emerging contaminants are elevating chemical demand across both nations. In 2024, total phosphorus and chlorophyll-a in the Darling-Baaka River exceeded ANZECC thresholds by factors of 2-3, while Great Barrier Reef catchments saw worsening turbidity despite long-running best-management programs^{[1]Queensland Government, “Water Quality Audit 2024,” qld.gov.au}. PFAS has become a parallel crisis. New South Wales has identified more than 1,100 sites with detectable PFOS and PFOA. The 2025 Australian Drinking Water Guidelines have reduced the combined PFOS+PFHxS limit to 8 ng/L, requiring utilities to pair granular activated carbon and ion-exchange with upstream coagulation to prevent membrane fouling^{[2]National Health and Medical Research Council, “Australian Drinking Water Guidelines 2025,” nhmrc.gov.au}. Canterbury and Waikato aquifers are carrying rising nitrate and E. coli loads, prompting councils to mandate advanced oxidation and biological nutrient removal, both of which increase chemical dosage per megaliter treated. Each new contaminant class heightens formulation complexity and locks utilities into multi-year supply contracts with specialty chemical providers. 

Growing Water-Intensive Industrial and Power Demand

Mining and energy capital spending is lifting baseline volumes in the water treatment chemicals market. Australian mining investment reached AUD 53 billion in 2024, with lithium, nickel, and copper projects generating hypersaline effluents that require phosphonate and polyacrylate scale inhibitors to prevent the precipitation of calcium sulfate and silica. Victoria’s hydrogen roadmap projects 118 GL of ultrapure feedwater by 2050, achievable only through ion-exchange polishing and precise pH control. New Zealand geothermal plants in the Taupo Volcanic Zone combat silica scaling with antiscalant and electro-coagulation hybrids, extending maintenance intervals and chemical sales opportunities. As industrial water demand splits between high-volume, low-purity, and low-volume, ultra-high-purity needs, suppliers with diversified portfolios secure a competitive advantage.

Stricter Wastewater-Discharge Licensing Under ANZECC 2023

The 2023 ANZECC update replaces one-size limits with risk-based thresholds for nutrients, metals, and toxicants, adding 1.8 percentage points to the market’s CAGR. New South Wales and Victoria began phased enforcement in 2024, compelling dischargers to install tertiary stages that typically combine biological nutrient removal with ferric or polyaluminum chloride precipitation to meet a total phosphorus limit of < 0.5 mg/L. Auckland’s Watercare is committed to retrofitting all major plants with enhanced coagulation by 2028, which alone will double its annual coagulant consumption. Compressed compliance windows favor vendors with local warehouses and process-optimization staff. 

Phosphate-Free Detergent Shift Boosting Coagulant Demand

Retail shifts toward phosphate-free detergents reduce influent phosphorus by up to 47%, yet receiving-water caps have not been relaxed, leaving utilities to close the gap through chemical precipitation. Polyaluminum chloride now dominates because it yields 30% less sludge than alum and remains effective across a pH range of 5.5-8.5, minimizing the need for acid or caustic adjustments. Fonterra disclosed an 18% rise in phosphorus-removal costs in 2024 after shifting plant cleaning agents to phosphate-free blends while maintaining discharge compliance targets. The detergent transition has effectively locked a fresh tranche of long-run demand into the coagulant segment of the water treatment chemicals market. 

Hazard Profile and Transport Restrictions for Hydrazine-Based Oxygen Scavengers

Hydrazine hydrate’s Category 1B carcinogenic label triggers costly placarding, segregation, and driver certification under the Australian Dangerous Goods Code, adding up to 25% to delivered costs for remote power stations. Utilities are switching to carbohydrazide, erythorbate, and DEHA, as exemplified by AGL Energy’s 2024 shift at Loy Yang A, which also resulted in lower insurance premiums. Retirements of coal units by 2030 will further shrink the high-pressure boiler base, which has historically consumed hydrazine, thereby constraining this portion of the water treatment chemicals market. 

Rising Membrane-Based and UV Alternatives to Chemical Disinfection

Sydney Water’s 2024 UV expansion treated an additional 150 ML/day without the need for extra chlorine, while Melbourne Water’s Eastern Treatment Plant disinfects 470 ML/day using UV, eliminating trihalomethanes. Although UV modules cost AUD 2-5 million per 10 MLD, they reduce operating costs and bypass dechlorination steps, resulting in a roughly 60% decrease in chemical biocide demand in seawater desalination configurations. Suppliers are mitigating the impact by pivoting toward membrane cleaners and biofilm-control agents that command higher margins than commodity disinfectants. 

Segment Analysis

By Product Type: Coagulants Lead Phosphorus-Removal Retrofits

In 2024, coagulants and flocculants captured a 22.66% share of the water treatment chemicals market in Australia and New Zealand, emerging as the leading segment. This category is anticipated to grow at a 6.08% CAGR, surpassing the overall market growth rate. The municipal sector is a key driver, with facilities upgrading their processes to use polyaluminum chloride and ferric chloride, achieving effluent phosphorus levels below 0.5 mg/L. Meanwhile, the mining industry is contributing additional demand by employing high-molecular-weight polyacrylamide flocculants for tailings-water clarification, facilitating the efficient settling of fines in iron-ore, lithium, and copper processing circuits.

Secondary chemical classes grow at differentiated rates. Biocides and disinfectants face headwinds from the adoption of membranes, yet remain entrenched for controlling distribution residuals and cooling-tower biofilm. Scale inhibitors expand alongside desalination growth, with Perth’s new Alkimos plant consuming phosphonate doses to prevent calcium sulfate scaling in 55% recovery RO trains. Corrosion inhibitors occupy niche but high-margin roles in geothermal condensate loops and food-grade systems. AS/NZS 4020 certification maintains a high compliance barrier that entrenches incumbent suppliers. 

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Municipal Dominance Anchored in Regulatory Compliance

In 2024, municipal utilities represented 40.86% of the water treatment chemicals market value. This sub-segment is projected to grow at a CAGR of 5.90% through 2030, driven by key factors such as PFAS removal, advancements in tertiary nutrient polishing, and increased desalination capacity. The rising chemical intensity per treated megaliter, attributed to the addition of more unit processes compared to 2015, reflects evolving operational demands. Despite stable per-capita demand resulting from drought management, Sydney Water reported a 12% increase in chemical expenditure for FY 2024, highlighting the growing reliance on chemical solutions in water treatment.

Mining and mineral processing ranks second, underpinned by Western Australia’s lithium boom and Queensland’s copper push. Rio Tinto’s Gudai-Darri mine now recycles 80% of process water using tailored flocculant programs. Power generation demand is shifting as coal units phase out and mothball their boilers, while new gas and geothermal plants exhibit lower chemical intensity per megawatt-hour (MWh). The food and beverage industry, particularly New Zealand’s dairy sector, utilizes substantial quantities of caustic, acidic, and nutrient-rich blends. Fonterra’s 2024 disclosures indicate a 9% increase in chemical costs, attributed to the addition of new processing lines. 

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Australia commanded 83.30% of the 2024 regional revenue in the water treatment chemicals market, driven by a population of 26 million, a water-stressed climate, and high resource-extraction intensity. Western Australia, Queensland, and the Northern Territory contribute the fastest growth as lithium and copper miners adopt closed-loop water systems to secure licenses under tightened groundwater caps. Major urban utilities in Sydney, Melbourne, Brisbane, and Perth collectively drive significant, recurring demand for coagulants, antiscalants, and disinfectants, especially as desalination helps offset rainfall variability in Perth and Adelaide.  

New Zealand’s water treatment chemicals market is projected to post a faster 5.51% CAGR from a smaller base, driven by the need for dairy sector wastewater control and the expansion of geothermal power. Dairy wastewater loads in Canterbury, Waikato, and Taranaki equal the effluent volume of a city with a population of 35 million and now face stricter nitrogen consent requirements, stimulating sales of polymer flocculants and pH adjusters. Geothermal stations in the Taupo Volcanic Zone utilize antiscalant and electrocoagulation hybrids to mitigate silica deposition, thereby extending the life of chemicals as capacity increases. Auckland’s population surge past 2 million by 2030 is forcing Watercare to scale drinking- and wastewater treatment footprints, adding double-digit growth for coagulants and disinfectants. 

Regulatory divergence shapes supplier strategies. Australia’s state-based EPAs impose varied PFAS and salinity limits, which complicates national tenders, whereas New Zealand’s unitary framework still leaves regional councils discretion in setting nutrient caps. Both systems are converging on ecological-risk approaches, rewarding vendors that pair dosing equipment with modeling capabilities to meet site-specific endpoints, rather than relying on legacy blanket standards.