Biocides Market Overview
With sales standing at 1,062.3 kilotons in 2018, the global biocides market is projected to reach 1,376.6 kilotons by 2024, demonstrating a CAGR of 4.4% during the forecast period. The growth in the market can be mainly attributed to the rising demand for treated water coupled with the increasing use of biocidal products for the preservation of wood, paints and coatings, petrochemical products, and personal care and home care products.
Biocidal products are active substances or compositions intended to destroy, deter, render harmless, or exert a controlling effect on any harmful organism by chemical or biological means. Based on their properties, biocidal products can act as disinfectants, preservatives, or pesticides in various end-use applications. However, excessive use of biocidal products can be harmful to humans and to the environment at large. The usage of biocidal products is, therefore, regulated under the directive 98/8/EC of the European Union (EU), also known as the Biocidal Products Directive, wherein these products are categorized into 22 types based on their application.
Based on type, the biocides market is classified into halogenated, metallic, organosulfur, organic acid, nitrogenous, phenolic, and other biocidal products, which include alcohols, inorganic acids, ozone, and aldehydes. Among these, halogenated biocides contributed more than 35% share to the market in 2018. This can be mainly ascribed to their high demand as disinfectants for water treatment. The growing demand for treated water across the globe is further expected to propel the demand for halogenated biocidal products in the near future.
On the basis of application, the biocides market is categorized into water treatment; preservation; human hygiene; household, industrial, and institutional (HI&I) cleaning; and others, wherein “others” include agriculture and aquaculture. Of these, the demand for biocidal products was the highest for water treatment, accounting for nearly 45% share in 2018. This can be mainly attributed to the growing demand for potable water and treated water for residential and industrial applications, respectively. Hence, the utilization of biocidal products for water treatment is expected to increase during the forecast period.
Based on the region, the biocides market is classified into North America, Europe, Asia-Pacific (APAC), and rest of the World (RoW). Of all these, APAC is expected to witness the fastest growth in the global market during the forecast period. APAC market is mainly driven by the heavy demand for treated water in China, India, and Southeast Asian countries for residential and industrial applications. The industrial capacity of these countries is also increasing at a considerable rate, which, in return, is expected to propel the demand for biocidal products in the region.
Biocides Market Dynamics
The promulgation of laws and regulations for biocidal products is observed as a key trend in the biocides market. In the past few years, the U.S. Food and Drug Administration (FDA) and the EU Biocidal Product Regulation (BPR) have issued guidelines and regulations to monitor the use of biocidal products and their active substances. This had led to increased supervision and even ban on certain biocidal products, owing to their carcinogenic or mutagenic nature. For instance, in April 2019, the FDA banned 28 active ingredients from use in over-the-counter antiseptic rubs. In coherence, countries such as India, Vietnam, and South Korea have also proposed and implemented regulations on the use of biocidal products.
The growth in the biocides market is being driven by the increasing demand for biocidal products for water treatment (for residential and industrial purposes) and for preservation in consumer products, including healthcare, personal care, and home care products.
Water disinfection generates a high demand for biocidal products, which are also employed to disinfect equipment associated with the production, transportation, and storage of water. These compounds have the ability to act as anti-fouling agents and disinfectants for impairing the growth of harmful organisms (viruses, bacteria, and protozoans). Biocidal products are primarily used at waterworks to maintain the microbiological quality of the water before and during its distribution, by sustaining the total count of microorganisms at an acceptable level and eliminating pathogenic micro-organisms. These factors, thus, drive the demand for biocidal products for water treatment, further contributing to the growth of the biocides market, globally.
In addition, macroeconomic growth and rise in disposable income across several regions of the world are resulting in increased demand for consumer products. Since biocidal products serve as disinfectants, sterilants, and preservatives in consumer products to prevent or eliminate microbial growth, they are witnessing high adoption on account of the increased demand for consumer products. Moreover, the rise in global population is expected to result in increased demand for consumer products, thereby enhancing the prospects for the growth of the biocides market.
The growth of the biocides market is moderately affected by the stringent regulatory framework for biocidal products and the resultant additional costs with respect to their manufacturing and registration. For instance, since 2013, European biocide manufacturers have to ensure that their biocidal active substances undergo rigorous tests to meet the quality standards. In order to ensure such strict compliance, companies need to allocate a significant amount of capital and resources toward product development and regulatory approvals. These factors often discourage manufacturers from developing biocidal products, further impacting the market growth.
Research and development (R&D) of next-generation biocidal products and introduction of novel manufacturing technologies are expected to provide lucrative opportunities to the biocides market players. Recent research in this regard has primarily been directed toward the laboratory- and industry-scale production of eco-friendly or green biocides by integrating green chemistry into product design. These green products have less adverse environmental impact and are expected to witness a high demand in the near future, thus offering market players an opportunity to introduce improved products and expand their market share.
Biocides Market 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.