Biocides Market Size, Share & Trends Analysis Report By Product (Halogen Compounds, Quaternary Ammonium Compounds), By Application (Paints & Coatings, Water Treatment), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global biocides market size was valued at USD 7.7 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027. The growth can be attributed to continuous investments in R&D, development of synergic chemistries for product diversification, innovation, enhanced performance, and application expansion. Developed countries/regions such as the U.S. and the European Union with more stringent regulations and environmental standards are expected to provide lucrative opportunities for environment-friendly or bio-based products. The demand from each of the application continues to fluctuate depending on the seasonality changes. Higher adoption of oxidizing biocides by end-users, such as the pulp and paper industry, for their effectiveness and relatively low costs has resulted in an increased inclination of manufacturers towards oxidizing biocides. On-site generation-based technologies for oxidizing biocides, such as chlorine dioxide on-site generation, have also been gaining growth opportunities in water treatment and pharmaceutical applications.

In the paints and coatings industry, which is one of the prominent end-use industries, the use of biocides adds value by protecting the painted surface from microbial contamination due to reopening and closing multiple times while using it for large projects/complexes. The increasing usage of water-based paints and coatings has further led to a rise in demand for biocides in these products. Biocides added in the formulator also prevent any fungal or microbial development over the painted surface once the paint is dried off.

The focus of the key manufacturers on niche customers and increasing penetration have driven third-party distribution channels. Investment by the distributors in new technologies and digital solutions has increased in an attempt to strengthen their competitiveness. Since most of the end-users of the product are industries, including pulp and paper, food and beverage, wood preservation, personal care, paints and coatings, plastics, oil & gas, boilers, and fuels, direct B2B distribution of the product dominates the industry. Compliance with industry standards and customized requirements of the customers can help the manufacturer gain an edge over their competitors.

Product Insights

Halogen compounds accounted for the largest revenue share of 25.5% in 2019. Halogens used as a base in biocide formulations include fluorine, chlorine, and iodine. Iodophor is another iodine-based compound that enhances the stability and effectiveness of iodine as a biocide. Chlorine is one of the most prominently used halogens for its strong oxidizing properties and antimicrobial activities in wastewater treatment plants and municipal drinking water plants among other applications. Chlorine-based formulations, such as calcium hypochlorite and sodium hypochlorite, are widely used in the food & beverage industry. The effectiveness of halogens to curb microbial growth and their diversity in terms of application areas are expected to be the major drivers for this segment.

Metallic compounds and organosulfur also emerged as prominent product segments, following halogen compounds. Heavy metals such as copper and silver are prominently used. Copper is considered to be more efficient due to higher toxicity to bacteria and other microorganisms. Copper sulfate-based biocide formulation is widely used for preventing algal growth in water treatment plants. Organosulfur compounds are chlorine-free and non-oxidizing formulations, thus making them ideal for non-corrosive applications. Other prominent applications of this product include heavy engineering industries, automobiles, and air-conditioning.

Application Insights

The paints and coatings application segment accounted for the largest revenue share of 27.2% in 2019 and is anticipated to maintain its lead over the forecast period. Paints and coatings are highly susceptible to waterborne and airborne microbial contaminants because of their exposure to bulk handling and storage systems. Usage of biocides in paints and coatings offers various benefits, including dry-film preservation, microbial growth prevention, and in-can preservation. It also helps prevent fungal development after the film is formed and the paint dries. Therefore, the product application in paints and coatings to avoid their deterioration has become a must for the manufacturers.

Water treatment is one of the most prominent applications, where biocides are used for preventing antifouling and bacterial or algal contamination in water systems, such as cooling water systems, pools and spas, pulp and paper mills, municipal drinking water systems, and industrial water treatment systems. The vulnerability of wastewater in bacterial growth and contamination is significantly high because of its high organic content that supports bacterial/algal buildup. Therefore, the application in these plants has become a key fundamental for obtaining clean and pure water.

The cleaning products application segment is expected to witness significant growth in the years to come owing to the mass production of products, like sanitizers, surface disinfectants, and sterilants, to combat the coronavirus and cover their exponentially hiked demand. For instance, Clorox, one of the leading U.S.-based disinfectant manufacturers, produced 40 million more items during the first quarter of 2020, when compared with its production in the first quarter of 2019. Moreover, Dow Inc. shifted production in five of its manufacturing plants to produce 200 tons of sanitizers weekly. This projects lucrative opportunities for the product in cleaning applications. Bio-based or natural biocides are likely to witness an increased demand in the coming years.

Regional Insights

The Asia Pacific accounted for the largest revenue share of 35.4% in 2019 and is anticipated to maintain its lead over the forecast period. Water treatment is expected to be a prominent consumer of the product, followed by cleaning products. Consumption in cleaning products is highly benefitted from the heightened disinfectant production, especially during the COVID-19 pandemic. China is one of the largest freshwater fish producers, which projects lucrative growth opportunities for the product in cleaning products. Recent transition in the country with environmental considerations superseding the country’s quest for GDP is expected to influence the industry growth in the near future.

In North America, constantly evolving regulations and increasing research & development activities among the manufacturers, formulators, and end-users are expected to influence the regional market growth. The regional market is mostly driven by the U.S. market for paints and coatings and wood preservation. The COVID-19 pandemic, which has significantly affected the construction activities as well as transportation and resulted in economic downturns, is expected to negatively impact the consumption from the paints and coatings, wood preservation, oil & gas, and HVAC industries. However, a certain rise in consumption can be witnessed from the cleaning application owing to the accelerated manufacturing of disinfectants, sanitizers, and other cleaning products.

Key Companies & Market Share Insights

Both forward and backward integration is observed among manufacturers, formulators, distributors, or end-users in the supply chain. Integration in terms of manufacturing and formulating or formulating and distributing or manufacturing, formulating, and distributing is observed to be more prevalent. Players such as BASF SE and Dow Inc. represent significant supply chain integration with participation in manufacturing raw materials. They are involved in formulating biocides, along with global distribution with the help of their wide network of sales offices across geographies.

Players such as Neogen and Vink Chemicals are backward integrated. They supply raw materials and are engaged in custom formulations. Neogen supplies benzalkonium chloride, iodine and iodophors, glutaraldehyde, phenolic derivatives, and chlorhexidine digluconate solutions in the dual capacity as a biocide manufacturer and supplier. Vink Chemicals has been engaged in the development as well as the formulation of biocides and providing services related to the product’s technical and regulatory issues. Forward integration in manufacturing and distribution is observed among a few players, such as Albemarle Corporation, Thor Group Limited, and SUEZ Water Technologies & Solutions. Some prominent players in the global biocides market include:

• Troy Corporation

• Chemtreat, Inc.

• Neogen Corporation

• Finoric LLC

• Shanghai Zhongxin Yuxiang Chemicals Co. Ltd.

• Iro Group Inc.

• Hubei Jinghong Chemicals Co. Ltd.

• Wuxi Honor Shine Chemical Co. Ltd.

• Albemarle Corporation

• Lubrizol

• BASF SE

• Solvay SA

• Lanxess AG

• Lonza

Biocides Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this report, Grand View Research has segmented the global biocides market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Halogen Compounds

  • Metallic Compounds

  • Organosulfur

  • Organic acids

  • Quaternary Ammonium Compounds

  • Phenolic

  • Nitrogen

  • Glutaraldehyde

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Water Treatment

  • Food and Beverage

  • Personal care

  • Wood Preservation

  • Paints and coatings

  • Plastics

  • HVAC

  • Boilers

  • Oil and Gas

  • Fuels

  • Pulp and Paper

  • Cleaning Products

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa