The global biocides market size was estimated at USD 7.99 billion in 2014. Rising demand from industrial applications, particularly in paints & coatings, water treatment and personal care coupled with the dynamic expansion of these end-use industries is expected to drive biocides market in the near future.
Global Biocides market revenue, by product, 2013
Increasing adoption of water treatment processes in countries including China, India and Japan are expected to drive demand. Furthermore, growing health awareness is expected to spur demand for clean water and is expected to drive the industry over the next six years.
Rising need for potable water in domestic and industrial applications due to increasing population is expected to fuel demand in water treatment application. Also, expanding paints & coatings industry as a result of rapid industrialization coupled with infrastructural development in emerging economies is expected to drive revenue growth.
Food & beverage applications include disinfecting pipes, openings, equipment and surfaces which come in close contact with manufacturing. Food & beverage industry growth is expected to have a positive impact on demand over the next six years.
Excessive use of these products can be harmful to human beings and their surroundings. Biocide is classified as pesticides in Europe and North America. Hence, it is regulated under Directive 98/8/EC of the European Union also known as the “Biocidal Products Directive.” Under this directive, it is categorized under 22 different product types based on diverse applications.
Halogen biocides market segment dominated global demand, accounting for over 25% of overall revenue in 2014 and this trend is expected to continue over the forecast period. Low cost and easy raw material availability of halogens such as chlorine, bromine and iodine are expected to be one of the primary factors driving the segment growth.
Metallic compounds generated revenue exceeding USD 1.5 billion in 2014. These are used as disinfectants in cooling towers and water treatment plants. Increasing need for clean water is expected to fuel metallic compounds demand over the forecast period. Furthermore, stringent regulations regarding use of halogens are expected to amplify the importance of metallic compounds as a substitute in the near future.
Organosulfurs biocides accounted for over 11% of the overall share in 2014. These products possess antifungal and antibacterial properties due to which they are majorly used in healthcare applications to inhibit microorganism growth on plastic or metal surfaces. Growing demand for plastics in light of its increasing use in construction and automotive industries is expected to fuel product demand in the near future
Water treatment applications accounted for over 23.0% of global revenue in 2014. Increasing demand for scaling, microbial activity, corrosion and disposal in water treatment is expected to have a positive impact on demand.
Food & beverage application was valued at USD 1.48 billion in 2014. Rising need to control microbial growth in food and drinks along with increasing use of preservatives in ready-to-eat food is expected to be a favorable factor for industry development.
Global biocides industry demand in personal care applications is expected to witness substantial gains at a CAGR of 5.4% over the forecast period. Increasing use in cosmetic products such as liquid soap, shower gel, moisturizing cream and shampoo on account of inhibiting the growth of fungus and bacteria and to improve shelf life is anticipated to propel demand.
Demand in oil & gas industry is expected to witness significant gains over the forecast period, owing to its property to control bacteria growth to curb the formation of harmful by-products during their activity. Niche applications including HVAC systems, steam boilers and fuels are high potential areas. Growing energy needs coupled with rising consumer awareness toward harmful effects of germ-filled air on the human respiratory system is expected to drive demand.
North America biocides market accounted for over 40.0% of global revenue share in 2014. Building and infrastructural development in the region have resulted in an increased demand for paints & coatings in residential and commercial applications which in turn is expected to drive demand over the forecast period.
Asia Pacific market will witness significant gain over the forecast period and is expected to grow at a CAGR exceeding 6.0% from 2015 to 2022. India and China biocides market is expected to witness a healthy growth over the next seven years. Increasing healthcare expenditure owing to technological advancement and low-cost medical facilities is expected to fuel demand for phenolics in the region.
Global biocides market share is moderately concentrated with top three participants accounting for over 45% of total demand in 2014. Arch Chemicals was one of the leading players, with over 15% share in 2014.
Other major players include ISP, Dow Microbial Control, Troy Corporation, Thor Specialties, Lanxess, BASF, Lubrizol, and Clariant. Companies require a significant amount of investment at the start-up stage due to stringent government regulations regarding testing and labeling of these products before and after placing it on the market. This is expected to discourage entry of new players over the forecast period.
In May 2011, Lanxess AG announced the acquisition of Syngenta, to expand production. It also acquired Verichem, an American specialty chemicals company. In May 2014, Dow Chemical Company announced plans for awarding procurement construction and engineering contract for its reverse osmosis manufacturing facility in Saudi Arabia to Flour Corporation.
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