Biocides Market Research Report: By Type (Halogenated, Metallic, Organosulfur, Organic Acid, Nitrogenous, Phenolic), Application (Water Treatment, Preservation, Human Hygiene, Household, Industrial, and Institutional (HI&I) Cleaning), Regional Insight (U.S., Canada, Germany, France, U.K., Italy, China, India, Japan, South Korea, Brazil, South Africa) – Global Industry Analysis and Growth Forecast to 2024

Market Outlook

Global biocides market is expected to advance at a CAGR of 4.4% through 2024. The market is being driven by the burgeoning requirement for treated water and surging usage of biocidal products for preserving wood, petrochemicals, personal care and homecare products, and paints and coatings.

Biocidal products are active compositions or substances used for destroying, deterring, rendering harmless, or exerting a controlling effect on harmful organisms, by biological or chemical means. Depending on their characteristics, these products can act as preservatives, pesticides, or disinfectants. However, their excessive usage can negatively impact the environment and humans; therefore, it is regulated under the Directive 98/8/EC of the European Union (EU), which is also known as the Biocidal Products Directive. Under this directive, these products are classified into 22 types on the basis of their application.

The halogenated biocides category held an over 35.0% share in the market in 2018, under the type segment. This was due to the high requirement for halogenated biocides as disinfectants for water treatment. Thus, the mushrooming requirement for treated water is predicted to boost the expansion of this category in the biocides market in the coming years.

The water treatment category, within the application segment, held the largest share (nearly 45.0%) in 2018. This is ascribed to the soaring requirement for treated water and potable water for industrial and residential applications, respectively. This category is also predicted to exhibit rapid expansion over the next few years.

Geographically, the biocides industry is predicted to exhibit the highest growth rate in the Asia-Pacific (APAC) region between 2019 and 2024. This will be due to the surging demand for treated water in India, China, and various Southeast Asian countries for industrial and residential applications. Thus, the expanding manufacturing capacity of these nations is propelling the industry growth in this region.

Market Dynamics

Across the globe, several regulations and laws are being enacted for controlling the use of biocidal products. Apart from the Biocidal Products Regulation (BPR) implemented by the EU, the U.S. Food and Drug Administration (FDA) has also enacted several regulations and guidelines for monitoring the usage of biocidal products and their various active substances. This is one of the major trends currently being observed in the biocides market.

These regulations have resulted in a surge in the level of supervision and, in some cases, a ban on few biocidal products, due to their mutagenic or carcinogenic nature. For example, the FDA imposed a ban on the use of 28 active ingredients in various over-the-counter antiseptic rubs in April 2019. Similarly, Vietnam, South Korea, and India have enacted regulations regarding the use of biocidal products.

One of the major factors fueling the expansion of the market for biocides is the surging requirement for these products for preserving various types of consumer products, including personal care, homecare, and healthcare products, and for water treatment for both industrial and residential purposes. Apart from being used for treating water, biocidal products are also used for disinfecting the equipment used in the production, storage, and transportation of water.

This is because these materials can impair the growth of harmful organisms, such as bacteria, protozoa, and bacteria, on account of their ability to act as disinfectants or anti-fouling agents. These products are mainly used at waterworks for maintaining the microbiological quality of water both before and during its distribution. This is achieved by killing pathogenic microorganisms and ensuring that the total count of microorganisms remains at an acceptable level.

The other major biocides market growth drivers are the increasing disposable income of people and rapid macroeconomic progress of several countries. As biocidal products are used as sterilants, preservatives, and disinfectants in consumer products for eliminating or preventing microbial growth, the ballooning demand for consumer products is pushing up their worldwide sales. The surging global population is fueling the demand for various consumer products, which is, in turn, supporting the market expansion.

The enactment of strict regulatory frameworks regarding the use of biocidal products is hampering the growth of the market for biocides. For example, since 2013, many European biocide producers have had to make sure that their biocidal active substances undergo tests for meeting the quality standards implemented. In order to ensure compliance with the regulations, biocide producers are required to allocate a huge number of resources and large sums to the product development process and regulatory approvals.

The emergence of novel production technologies and extensive research and development (R&D) being carried out for developing next-generation biocidal products are predicted to create lucrative growth opportunities for the players operating in the biocides market. Research activities that have been recently conducted have been primarily directed toward the industry- and laboratory-scale production of green or environment-friendly biocides by incorporating green chemistry into the product design.

Competitive Landscape

Some of the major players operating in the global biocides market are BASF SE, DowDuPont Inc., Lanxess AG, Clariant AG, AkzoNobel N.V., Solvay S.A., Kemira Oyj, Thor Group Limited, Troy Corporation, and The Lubrizol Corporation.