Here's My Secret for Success in Biocides Market

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.

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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.

Further key findings from the report suggest:

• The halogen compounds product segment held the largest revenue share of 25.5% in 2019 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 2019, 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.

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.

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.

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In the paints and coatings industry, which is one of the prominent end-use industries, the use of biocides adds value by protecting the painted surface from microbial contamination due to reopening and closing multiple times while using it for large projects/complexes. The increasing usage of water-based paints and coatings has further led to a rise in demand for biocides in these products. Biocides added in the formulator also prevent any fungal or microbial development over the painted surface once the paint is dried off.

The focus of the key manufacturers on niche customers and increasing penetration have driven third-party distribution channels. Investment by the distributors in new technologies and digital solutions has increased in an attempt to strengthen their competitiveness. Since most of the end-users of the product are industries, including pulp and paper, food and beverage, wood preservation, personal care, paints and coatings, plastics, oil & gas, boilers, and fuels, direct B2B distribution of the product dominates the industry. Compliance with industry standards and customized requirements of the customers can help the manufacturer gain an edge over their competitors.

Halogen compounds accounted for the largest revenue share of 25.5% in 2019. Halogens used as a base in biocide formulations include fluorine, chlorine, and iodine. Iodophor is another iodine-based compound that enhances the stability and effectiveness of iodine as a biocide. Chlorine is one of the most prominently used halogens for its strong oxidizing properties and antimicrobial activities in wastewater treatment plants and municipal drinking water plants among other applications. Chlorine-based formulations, such as calcium hypochlorite and sodium hypochlorite, are widely used in the food & beverage industry. The effectiveness of halogens to curb microbial growth and their diversity in terms of application areas are expected to be the major drivers for this segment.

Metallic compounds and organosulfur also emerged as prominent product segments, following halogen compounds. Heavy metals such as copper and silver are prominently used. Copper is considered to be more efficient due to higher toxicity to bacteria and other microorganisms. Copper sulfate-based biocide formulation is widely used for preventing algal growth in water treatment plants. Organosulfur compounds are chlorine-free and non-oxidizing formulations, thus making them ideal for non-corrosive applications. Other prominent applications of this product include heavy engineering industries, automobiles, and air-conditioning.

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The paints and coatings application segment accounted for the largest revenue share of 27.2% in 2019 and is anticipated to maintain its lead over the forecast period. Paints and coatings are highly susceptible to waterborne and airborne microbial contaminants because of their exposure to bulk handling and storage systems. Usage of biocides in paints and coatings offers various benefits, including dry-film preservation, microbial growth prevention, and in-can preservation. It also helps prevent fungal development after the film is formed and the paint dries. Therefore, the product application in paints and coatings to avoid their deterioration has become a must for the manufacturers.

Water treatment is one of the most prominent applications, where biocides are used for preventing antifouling and bacterial or algal contamination in water systems, such as cooling water systems, pools and spas, pulp and paper mills, municipal drinking water systems, and industrial water treatment systems. The vulnerability of wastewater in bacterial growth and contamination is significantly high because of its high organic content that supports bacterial/algal buildup. Therefore, the application in these plants has become a key fundamental for obtaining clean and pure water.