Frost & Sullivan: Rising Demand for Crude Palm Oil Drives Uptake of Water and Wastewater Treatment Solutions in Southeast Asia

Wed Mar 6, 2013 10:15pm EST

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Frost & Sullivan: Rising Demand for Crude Palm Oil Drives Uptake of Water and Wastewater
Treatment Solutions in Southeast Asia

- Stringent environmental regulations encourage adoption of W&WWT in palm oil refineries

KUALA LUMPUR, Malaysia, March 7, 2013 /PRNewswire/ -- The rising application of crude
palm oil (CPO) across diverse industries and the swelling global appetite for oils and
fats, processed foods, cosmetics, and bio-diesel is encouraging the setting up of palm
oil mills and refineries in Southeast Asia. This, in turn, is creating a lucrative
market for water and wastewater treatment (W&WWT) solutions in the region.

New analysis from Frost & Sullivan (
[]), Water and Wastewater Treatment
Solutions Market in Palm Oil Industry in Southeast Asia, finds that market earned
revenues of US$106.3 million in 2012 and estimates this to reach US$145.0 million by

Palm oil production in Malaysia and Indonesia alone account for over 80 percent of the
global CPO output. Owing to this high production of CPO, the W&WWT solutions market in
Southeast Asia will thrive, unlike its slowdown-affected counterparts in Europe and
North America.

The intense activity in refineries, along with the strict environmental regulations that
hold industry participants accountable for their effluent discharge, will drive the
adoption of sludge management solutions.

The palm oil industry critically needs to treat palm oil mill effluent (POME), a key
by-product of CPO production. Therefore, market participants will do well to provide
solutions that reduce biochemical oxygen demand (BOD) and chemical oxygen demand (COD)
from POME. They can achieve this by using membrane bioreactor as a secondary wastewater

"While most smaller mills still resort to the conventional open ponding method for
reducing BOD and COD, membrane technologies remain the more costly yet most effective
alternative POME treatment solutions for the palm oil industry," saidFrost & Sullivan
Environmental Senior Consultant David Lee.

The high investment costs associated with W&WWT solutions will continue to peg back the
market to some extent, as small-to-medium scale palm oil mills will choose to do the
bare minimum to comply with the local regulations.

Nevertheless, the palm oil industry, like other industries, is gradually replacing its
conventional W&WWT solutions with advanced membrane filtration system such as
micro-filtration (MR), ultra-filtration (UF) and reverse osmosis (RO). W&WWT companies
have to market their solutions' ability to shrink clients' carbon footprint, as it is a
substantial benefit.

"Given that the oil palm industry is a highly price-sensitive market, W&WWT solution
companies can gain an edge through competitive pricing," noted Lee. "Besides pricing, a
strong local presence and after-sales service will go a long way in ensuring success in
the market."

If you are interested in more information on this research, please send an email to
Donna Jeremiah, Corporate Communications, at,[], with your full name, company name, job
title, telephone number, company email address, company website, city, state and

Water and Wastewater Treatment Solutions Market in Palm Oil Industry in Southeast Asia
is part of the Environmental Growth Partnership Service program. Frost & Sullivan's
related research services cover W&WWT solutions in the Asia-Pacific power industry,
electrical and electronics industry, and automotive industry. All research services
included in subscriptions provide detailed market opportunities and industry trends
evaluated following extensive interviews with market participants.

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Water and Wastewater Treatment Solutions Market in Palm Oil Industry in Southeast Asia 


Donna Jeremiah 

Corporate Communications - Asia Pacific 

P: +61 (02) 8247 8927 

F: +61 (02) 9252 8066 


Carrie Low 

Corporate Communications - Asia Pacific 

P: +603 6204 5910 

F: +603 6201 7402 


Jessie Loh 

Corporate Communications - Asia Pacific 

P: +65 6890 0942 

F: +65 6890 0988 

E:[] []

Frost & Sullivan

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