Biocides are used to prevent damages caused by microbes or other organisms. They protect industrial products and consumer goods as well as animals and human beings. In contrast to the closely related crop protection products that are utilized in the agricultural sector only, biocides may be used in a wide array of application areas. Among these are disinfectants, water treatment, wood preservation, paper, paints, plastics, and numerous other sectors. A large gamut of biocides includes skin and surface disinfectants, industrial preservatives, pesticides and antifouling products etc. Based on their usage, biocides are classified into four major groups which are further classified into over 20 different biocidal products. Generally, biocides are classified according to groups of arsenic derivatives, metal derivatives, halogen and aromatic derivatives, sulfur derivatives, thiazines and thiazolinones, nitrogen derivatives and some miscellaneous groups. Biocides, owing to their nature of usage come under the scrutiny of various environmental laws meant for the protection of biodiversity and other laws concerned with human health and environment as whose compliance are different in different countries as per the regulations implied by governing bodies like EPA in the U.S. and European Commission in Europe. Presently, chlorine and iodine based biocides are the most widely used across the industry. Other raw materials used in the manufacturing of biocides are ozone, acrolein, amines, chlorinated phenolics, copper salts, organo-sulfur compounds and quaternary ammonium salts.
The global market for biocides is largely driven by the increasing demand of water with the ever-increasing global population. Biocides are also widely consumed as additives in paint and coatings industry used in the protection of paint from getting spoiled whilst in storage. Additionally, they are also used in the industry to prevent fungi and algae from infesting on the applied paint. The damage to surfaces coated with paint and coating materials due to microbial attack has risen as a major concern for the rising industry. Paints and coatings industry is poised to see an immense growth on a global level, owing to a boost in application markets, growing at an expected CAGR of 5%.
Product segments covered in this report include halogen compounds, metallic compounds, organosulfurs, organic acids, phenolic and nitrogen. Certain other product segments such as Gluateraldehyde and sodium hydroxide have also been included in the study. Halogen compound biocides were the largest product segment in 2013 accounting for over 25% of global consumption. The increasing need for treated water supply is expected to be a key driver for the growth of halogen based biocide market. These biocides are used in disinfecting water bodies, cooling systems and surfaces. In addition, increase in industrial and paper and pulp waste water treatment is expected to augment the demand for halogen compound biocides. However, the growing environmental and regulatory concerns with regards to the use of bromine and chlorine are expected to hamper the growth of the market over the forecast period. Metallic compound biocides were the second largest product segment and accounted for over USD 1,479.0 million in 2013. Metal based biocides have application in treatment of industrial waste water and are used for disinfecting industrial wastewater. The growth in waste water treatment systems coupled with stringent regulation related to industrial waste water discharge is expected to drive the demand for metallic biocides over the next six years. Phenol based biocide is expected to be the fastest growing product segment with an estimated CAGR of 6.8% from 2014 to 2020. There is great demand for Triclosan a phenol based compound which is used as an antimicrobial supplement in liquid soaps. The market is expected to grow due to increasing demand in health care and home care products.
The application segments covered in the report include water treatment, food and beverage, personal care, wood preservation and paints and coatings. Other application segments such as fibers, pulp and paper, pest control and plastics have also been included in the scope. Water treatment was the largest application of biocide and accounted for over 25% of global revenue in 2013. Water treatment has been experiencing continuous growing demand due to increase in spas and pools. In addition, the growing industrialization has increased the demand for waste water treatment which is expected to augment the demand for biocides. The use of biocides as preservatives in the food and beverage industry is on the rise due to the increasing population and changing lifestyle. However, the segment is expected to witness tough competition from other faster developing applications such as paints and coatings and personal care industry. The food and beverage segment for biocide generated revenue in excess of USD 1400 million in 2013 and is expected to grow at an estimated CAGR of 4.2% from 2014 to 2020. Personal care industry was a large market for biocide in 2013 accounting for over 14% of global revenue. The growing health awareness and increased demand from emerging economies of Asia and Latin America is expected to spur the demand for biocides in the segment.
Biocides market revenue share, by application, 2013
North America was the largest biocide consumer, accounting for over 41% of the revenue in 2013. The region has witnessed growth in food processing, paper and pulp, plastics and personal care industry which are expected to improve the demand for biocides. However, the stringent environmental regulations with respect to toxicity and hazardous nature of biocides could adversely impact the growth of the market over the forecast period. Asia Pacific was the second largest market for biocides with revenue in excess of USD 2,200 million in 2013. The region is also expected to witness fastest growth at an estimated CAGR of 6.2% from 2014 to 2020. Dynamic growth in the industrial sector, particularly in paints and coatings, water treatment, paper and pulp, plastics and personal care industry is expected to drive the growth of biocides. In addition, increase in water treatment processes in countries like China, India and Japan would further augment the demand for biocides. Furthermore, increased health awareness related to bacterial growth and pathogens will increase demand for biocides in the market.
The global market is moderately concentrated with top three participants accounting for over 45% of total demand in 2013. Arch Chemicals was one of the leading market participants, with a market share of over 15% in 2013. The company has been focusing on the biocide market and plans to increase in presence in the emerging markets of Asia Pacific. Other major players in the market include ISP, Dow Microbial Control, Troy Corporation, Thor Specialties, Lanxess, BASF, Lubrizol and Clariant.