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Market saturation exists in a given industry when the available supply of goods equals or falls short of customer demand. A variety of factors, including more competition, lower market need and obsolescence, contribute to saturated conditions.arket saturation exists in a given industry when the available supply of goods equals or falls short of customer demand. A variety of factors, including more competition, lower market need and obsolescence, contribute to saturated conditions.
1 For example, base saturation refers to the fraction of exchangeable cations that are base cations. 2  Similarly, in environmental soil science, nitrogen saturation means that an ecosystem, such as a soil, cannot store any more nitrogen. 3  In organic chemistry, a saturated compound has no double or triple bonds. In physical chemistry, saturation is the point at which a solution of a substance can dissolve no more of that substance and additional amounts of it will appear as a separate phase (as a precipitate if solid or as effervescence or inclusion if gaseous).