Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
Biocides are chemical substances that are used to kill or inhibit the growth of bacteria and fungi. Biocides are also used to control sulfate-reducing bacteria and slime forming bacteria in the oil and gas industry. Biocides substances are also used in the manufacturing of agrochemicals that are used on the field for high-quality and pest-free crops.
The global biocides market is estimated to be valued at US$10,654 million in 2021 and is expected to exhibit a CAGR of 4.1 % over the forecast period (2021-2028).
In June 2020, Univar Solutions Inc. and Vink Chemicals have agreement to distribute biocides in Brazil. Vink Chemicals is a specialty biocide and biocidal products maker and global chemical and ingredients distributor and provider of value-added services. With this agreement Univar can supply products under brand-name Vinkocide, Grotanol, Parmetol, Grotan, Stabicor and Grotamar in Brazil.
In November 2020, AlzChem Group AG has announced expansion of nitrile production capacities by 50% to support growth of medications and biocides. AlzChem has invested around USD 14 Billion and expansion is proposed to complete by second quarter of 2021.
In January 2021, Specialty chemical company Lanxess has signed agreement with Paris based biocide company Intace SAS. Lanxess will strengthen its biocide technology platform for packaging and labels in the consumer goods industry with this acquisition.
North America (Region) held dominant position in the global biocides market in 2020, accounting for 41.7% share in terms of volume, followed by Asia-Pacific and Europe, respectively.
Figure 1. Global Biocides Market Value (US$ Mn), by Region, 2020
The growing demand for fresh and drinkable water is propelling the market growth of biocides. The increasing world population coupled with the limited availability of freshwater sources is creating a need for water. Moreover, growing prevalence of waterborne disease due to the increasing contamination of water because of industrial discharge is projected to foster the market growth of the biocides. Biocides are used in the wastewater treatment to kill the bacteria present in the water and make it drinkable.
Increasing demand for biocides from the oil &gas industry is propelling market growth. Growing investment in the oil &gas industry coupled with the increasing offshore and onshore exploration activities is again projected to propel the market growth. Additionally, growing demand for crude oil due to the increasing consumption of petroleum products is boosting crude oil production. Hence, growing offshore and onshore exploration activities is augmenting the market growth of biocide.
The growing demand for biocides in plastic production is projected to offer profitable market opportunities. According to the report from Plastics Europe, the European plastic industry had a turnover of 355 billion euros in 2017. The European plastic industry had a trade balance of more than 17 billion euros and contributed to 32.5 billion euros to public finances and welfare in 2017. Thus increasing production of plastic is projected to foster market growth.
The growing use of biocides in the food &beverage industry due to rising hygiene concerns and food safety is expected to provide bright market opportunities in the near future. Growing food safety standards and the need to maintain hygiene in the food &beverage industry is propelling the demand for biocides. Also, the expansion of the food &beverage industry due to the increasing purchasing power of the consumer and strong growth in the agriculture industry is again expected to bolster the market growth of biocides.
Biocides Market Report Coverage
||Market Size in 2021:
||US$ 10,654 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 14,087 Mn
- Region: North America, Europe, Asia-Pacific and Rest of the World
- By Product Type: Halogen compounds Metallic compounds Organosulfurs Organic acids Phenolic Nitrogen Other (including glutaraldehyde, etc.)
- By Application: Water treatment Food and beverage Personal care Wood preservation Paints and coatings Other (including fabrics etc.)
AkzoNobel N.V., Albemarle Corporation, Arch Chemicals Inc., Ashland Inc., BASF SE, Champion Technologies, Clariant AG, Lanxess, Lubrizol, The Dow Chemical Company, THOR Group Limited, and Troy Corporation
- Increasing population
- Growing demand for fresh & drinkable water
|Restraints & Challenges:
- Volatile price of raw materials
Increasing strategic mergers and acquisitions for expanding production capacity of the biocides will favor the market growth in the near future. For instance, in August 2019, Vink Chemicals acquired ISP Biochema Schwaben in Memmingen (Bavaria). This acquisition is expected to broaden the production capacity next to the already existing production site in northern Germany. Vink Chemicals generates around 95 % of its sales from the production and sale of biocides products.
Increasing investment in biocides production by key manufacturers is one of the emerging trends in the industry. For instance, in September 2020, Airedale Chemical, the industrial chemical specialist based in the UK, has invested more than $46,000 into its facilities following an agreement with a chemical supplier to the water treatment industry. In this partnership Airedale Chemical is going to manufacture a new disinfectant product for Chemiteq and distribute it directly to its customers.
Figure 2. Global Biocides Market Share, By Product Type, 2020
Key Takeaways of the Graph:
- The Water Treatment (Segment) held dominant position in the market and accounted for 24.4% share in the global biocides market in 2020. The segment is expected to reach US$ 3,399 million in 2028.
- Growing population and strong industrial growth in developing countries are major factor driving demand for use of biocides in water treatment application (Add Driver for this Segment)
The volatile price of raw materials used in the manufacturing of biocides is projected to restrict market growth. Iodine and chlorine are mostly used as raw materials and in recent times these chemical commodities have witnessed an acute upward trend in terms of prices, this increases the overall price of the biocides.
Lengthy and expensive registration process for the manufacturing of biocides is creating challenges for the manufacturers. This factor is expected to inhibit the market growth of biocides over the forecast period.
- AkzoNobel N.V.
- Albemarle Corporation
- Arch Chemicals Inc.
- Ashland Inc.
- BASF SE
- Champion Technologies
- Clariant AG
- The Dow Chemical Company
- THOR Group Limited
- Troy Corporation