Biocides Market is Predicted to Observe a Tremendous Growth, With a CAGR of 3.9% From 2020 To 2027: Grand View Research Inc.

 

The global biocides market size is expected to reach USD 10.5 billion by 2027, as per a new report by Grand View Research Inc., expanding at a CAGR of 3.9% from 2020 to 2027. The market is expected to be majorly driven by the growing demand from the water treatment, wood preservation, and paints and coating applications across the globe.

A significant rise in the adoption of high-performance chemicals to enhance the durability and shelf life and prevent deterioration caused by microorganisms, such as bacteria, viruses, and fungi, has driven the consumption of biocides across the end-use industries. Biocides are classified as oxidizing or non-oxidizing, depending on their mechanism of action against microbial growth. Acids, bases, quaternary ammonium compounds, chlorine, aldehydes, and peroxygen compounds among others are the key feedstock chemicals used in their formulations. The growing prominence of bio-based feedstock, especially in highly regulated countries, such as the U.S. and the U.K., is expected to project lucrative growth opportunities to biocides based on epoxidized soybean oil or citrus extracts.

The market is expected to witness an increase in demand from North America and Europe, prominently driven by the water treatment and wood preservation industries. However, a temporary decline in sales from wood preservation application is observed due to the construction activities at halt amidst the pandemic. Regulatory bodies such as the Environmental Protection Agency (EPA) and the European Chemicals Agency (ECHA) Biocidal Product Regulation (BPR) regulate the marketing, selling, and application of biocides in these regions.

In the Asia Pacific, countries such as China and India, which are the prominent drivers of the market, witness strong demand for the product from cleaning products. This demand has risen steeply in 2020 after the unprecedented outbreak of COVID-19, not only in the Asia Pacific but also across all the regions. However, the ongoing transition in China with stricter environmental regulations and higher labor wages has created uncertainties in the small to medium-sized local market players and international players dependent on imports from China. In addition, as a consequence of strict regulations, the cost of registration of a biocidal product in the European Union is relatively high, which has restricted the expansion of the market regionally.

Constant R&D amongst the key global players has driven the introduction of innovative and novel formulations. Regulatory compliance at the national and international levels for sustainable production and distribution has increased the acquisition of certifications, such as the EPA, among the manufacturers involved in domestic as well as offshore businesses. Integration in terms of raw material manufacturing, formulating, and distribution is highly observed in the market. Key global players such as BASF SE, Solvay SA, and Lonza have integrated operations in terms of biocide manufacturing and formulating.

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Amid the COVID-19 pandemic, demand for the product declined from the pulp and paper, oil & gas, HVAC, boilers, plastics, paints and coatings, and personal care industries. On the contrary, its demand spiked from the cleaning products, such as disinfectants and sanitizers, in an attempt to curb the virus spread.

Biocides Market Report Highlights

• The halogen compounds product segment held the largest revenue share of 25.5% in 2020 owing to its cost-effectiveness and versatility of applications
• The water treatment application segment is expected to expand at the fastest CAGR of 5.5% in terms of revenue from 2020 to 2027 owing to the mounting demand for biocides from the industrial and drinking water treatment plants
• The cleaning products application segment is likely to witness significant growth in the forecast period because of the pandemic spread across the globe
• In 2020, Asia Pacific emerged as the largest regional market with a revenue share of 35.4%
• Business integration is likely to be a prominent growth strategy amongst the players.

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