Swimming Pool Treatment Chemicals Market Analysis

Swimming Pool Treatment Chemicals Market (Global, 2024)

Introduction

The Swimming Pool Treatment Market is expected to grow as the rising consciousness of water quality and safety. There are more and more households and commercial pools. The demand for effective and efficient pool treatment chemicals is also increasing. The market consists of a wide variety of products, including disinfectants, algaecides, pH adjusters, and clarifiers. Each of them plays a critical role in maintaining water quality. However, as the environment changes, the regulatory environment changes, and the manufacturers are required to formulate and provide more sustainable and eco-friendly products. The competition is intense, and both large and small companies are trying to meet the different needs of pool owners. The development of technology and the trend of automation in the pool industry will also have a significant influence on the purchase decision of the market.

PESTLE Analysis

Political

In 2024, the swimming pool chemicals market will be affected by various political factors, such as the regulations established by the government to ensure public health and safety. For example, the EPA has set guidelines for the manufacture of pool chemicals that require them to meet safety standards. The EPA has set these standards for about 1,200 companies in the pool chemicals industry. In Europe, the REACH regulation requires the registration of chemicals used in swimming pool treatment, which affects about 500 manufacturers in Europe and shapes the market.

Economic

In 2024 the economic situation for pool-treatment chemicals is characterized by the variability of raw material costs, which have risen by 15% over the past year because of supply disruptions. The manufacturers’ costs have gone up as well, and it is estimated that the average price per gallon of chlorine-based pool-treatment chemicals has gone up by 50 cents. In addition, the average household income in the United States has risen to an estimated $45,000, which affects the demand for pool-maintenance and treatment products, and therefore the demand for pool-treatment chemicals.

Social

Social trends in 2024 point to a greater concern for health and well-being. Over three-quarters of all American households own a swimming pool, and 68% of these pools are equipped with filters and purifiers that ensure clean, safe water for recreation. The pool-treatment industry has had to respond to an increased demand for nontoxic, eco-friendly products, because 55% of consumers have expressed a preference for sustainable products. Social media have facilitated the sharing of information about pool-maintenance strategies and practices, which has influenced consumer choices and pushed the industry toward safer, more effective products.

Technological

A remark by the director of the pool : It is true that these systems, by the use of the information network, are able to check the quality of the water in real time, thereby reducing the need for manual intervention. And the expenditure on research into new disinfection systems, such as the use of ultra-violet rays and ozone, has been increased by twenty per cent. This reflects a shift towards more efficient and more environmentally friendly methods.

Legal

By 2024, the swimming pool chemicals market will be influenced by stricter regulations on chemical safety and the environment. The new safety data sheets for chemicals must be submitted by the manufacturers to the Occupational Safety and Health Administration (OSHA). Over 1,000 companies are affected. The risks of lawsuits relating to chemical exposure have also led to companies investing around $ 10 million in compliance and safety training in order to reduce their liability.

Environmental

By 2024, the use of chemicals in swimming pools will be increasingly influenced by the environment, with the aim of reducing chemical runoff and promoting sustainable practices. By 2024, some 40 percent of pool owners will opt for biodegradable and environmentally friendly pool chemicals. According to the EPA, improper disposal of pool chemicals is the source of 5 percent of the water pollution in urban areas. Consequently, regulators will be compelled to issue stricter regulations on the disposal of chemicals, and chemical manufacturers will be pushed to develop more sustainable alternatives.

Porter's Five Forces

Threat of New Entrants

The swimming-pool chemicals market has moderate barriers to entry, including regulatory requirements and the need for special knowledge of chemistry and pool maintenance. However, although established companies dominate the market, new entrants can still find opportunities by offering products with innovations or by targeting niche markets. The initial capital investment needed for production and distribution may discourage some potential entrants.

Bargaining Power of Suppliers

The bargaining power of suppliers in the market for swimming pool chemicals is relatively low. There are numerous suppliers of raw materials used in the manufacture of pool chemicals, which leads to a competitive environment. Moreover, many companies can change suppliers without significant costs, which also reduces the power of suppliers. The manufacturers can thus negotiate better prices and terms with the suppliers.

Bargaining Power of Buyers

High: The buyers in the pool treatment chemicals market have high bargaining power, because of the wide range of products and brands. Prices are easy to compare and suppliers are easily replaced, so companies have to be price and quality competitive. The rise of e-commerce has also increased buyer bargaining power.

Threat of Substitutes

The threat of substitutes in the swimming pool treatment chemicals market is moderate. The chemicals used to treat pools are the most widely used in the industry, but there are other products, such as salt water systems and natural pool water treatments, that could be substituted. However, the effectiveness and cost of these alternatives vary, which could limit their appeal to some consumers. But as consumers become more aware of eco-friendly options, the threat of substitutes will grow.

Competitive Rivalry

Competition is intense in the market for swimming pool chemicals, with many competitors vying for market share. Brands that are already established compete on product quality, innovation and price, while new entrants often try to differentiate themselves with special offers. The market is characterized by frequent price reductions and advertising campaigns, which further intensify competition and may lead to price wars, which in turn reduce overall profitability.

SWOT Analysis

Strengths

• Established demand for swimming pool maintenance and treatment chemicals.
• Diverse product offerings catering to various pool types and sizes.
• Strong brand loyalty among consumers for trusted chemical brands.
• Technological advancements leading to more effective and eco-friendly products.

Weaknesses

• High competition leading to price wars and reduced profit margins.
• Dependency on seasonal demand, affecting year-round sales.
• Potential regulatory challenges regarding chemical safety and environmental impact.
• Limited consumer awareness about the benefits of advanced treatment solutions.

Opportunities

• Growing trend towards residential swimming pools post-pandemic.
• Increasing awareness of water quality and safety among pool owners.
• Expansion into emerging markets with rising disposable incomes.
• Development of innovative, sustainable, and biodegradable chemical solutions.

Threats

• Economic downturns affecting consumer spending on luxury items like pools.
• Emergence of alternative pool treatment methods, such as saltwater systems.
• Regulatory changes that could impose stricter guidelines on chemical usage.
• Potential supply chain disruptions impacting product availability.

Summary

In 2024 the swimming pool chemicals market is characterized by high demand and strong brand loyalty. However, it is challenged by the high level of competition and the regulatory pressure. Opportunities lie in the growth of the residential pool market and the development of eco-friendly products. Threats are economic fluctuations and the emergence of alternative treatment methods. The market can benefit from innovation and growth, but must also be wary of the risks.