Biocides Market Growth & Trends
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.
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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Biocides Market Report
Biocides Market Report Highlights
- 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.
Biocides Market Segmentation
Grand View Research has segmented the global biocides market on the basis of product, application, and region:
Biocide Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016–2027)
- Halogen Compounds
- Metallic Compounds
- Organosulfur
- Organic Acids
- Quaternary Ammonium Compounds
- Phenolic
- Nitrogen
- Glutaraldehyde
Biocide Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016–2027)
- Water Treatment
- Food & Beverages
- Personal Care
- Wood Preservation
- Paints & Coatings
- Plastics
- HVAC
- Boilers
- Oil & Gas
- Fuels
- Pulp & Paper
- Cleaning Products
