Protective substances that are used to inhibit the growth of bacteria are known as biocides and they include fungi. They come in different forms like halogen, organic acids and metallic compounds. They play an integral role in the water treatment, paint and oatings, food and beverage industry and wood preservation. It is estimated that the growth in water and waste water treatment applications will be driving the biocides market through 2022. It is expected that the market will be valued over USD $12 billion with estimated gains at more than 5.1 percent
Fungicides are the chemical compounds which are used for the purpose of destroying and inhibiting the growth of fungal spores. It helps in controlling and preventing diseases in addition to increasing the productivity of crops. It serves the purpose of improving the storage quality of harvested products and fruits.
Latin America as well as Asia Pacific have low per capita consumption due to the non availability of clean water for industrial as well as domestic applications. Due to this reason, there is a huge growth opportunity for all the industry participants which helps maintain hygienic environment with portable water availability for all the residents. Similarly, the coatings and paints industry has seen a rise in the applicability of biocides which can be attributed to antifungal, antimicrobial and antibacterial properties which are coupled with construction industry growth. These two factors have driven the demand for biocides industry.
Increasing environmental as well as regulatory concerns with regard to the use of halogenated compounds like chlorine are expected to hamper the growth and have an impact on the biocides market price trend. North America dominates the demand with a valuation which is more than $3.2 billion and the United States accounted for more than 75 percent of the revenues in North America. Substantial amount of funds have been allotted by the US government for infrastructural development which is expected to increase the demand for paints and coatings in the region and will promote biocides growth.
Asia Pacific is dominated by China biocides market share and has accounted for more than 28 percent of the revenue share. It is likely to grow at a higher rate up to 2022. Growth of every end use industry like healthcare, construction, food and beverages and pharmaceutical is expected to drive the demand for biocides and fungicides. There is a very small portion occupied in the revenue by Middle East and Africa. But it is likely to grow above the average growth rate up to 2022.
An ever expanding industry
The global biocides and fungicides market has grown by 3-4 percent in the last two years. Because of the market trends towards the water based formulations and a strict control on the raw materials, there is a need for effective preservation systems. Consumers are savvy about the positive benefits of preservation of material because it relates to sustainability and manufacturers are looking for a point of differentiation and advertising the varied properties to promote environmental responsibility. The biocides market is expected to reach USD 13.9 bullion by the end of 2025 from USD 9.1 billion in 2017.
An expansion in the health care and furniture industry is expected to have a strong impact on the biocides market size and it is set to grow with a CAGR of 5.5% by 2022. Mexico biocides market is anticipated to grow at over 6% CAGR by 2022, due to increased consumption in key end user market applications such as paints and coating, latex emulsions. Further, the personal care applications will drive business to the market at a CAGR of 5% by 2022. The use of biocides for pest controlling in India and Thailand will act as market drivers. The pest control industry in India is expected to see a double digit CAGR during the period between 2018 to 2022.
In Germany, the market is expected to grow over 4.5% CAGR by 2022 and the Japan market will witness a CAGR over 5.5% by 2022 due to a rise in the consumption of the products in personal care sector. Industrial water treatment standards are expected to have a strong impact on the demand. The global market share is significantly consolidated with four organizations catering to more than 58% of the total consumption. These include Dow and Thor Specialties, Troy, Ashland and Arch Chemicals. There are other chemical companies like AkzoNobel, BASF, Lanxess, Albemarle and Champion Technologies account for more than 32% of the total demand in the industry. The biggest challenge for the industry is the regulatory reforms that organizations need to adhere to. Due to environmental reforms, various organizations have had to alter their manufacturing processes in order to abide by the same. However, the regulations will help reduce the negative impact on the industry and ensure that they are environmentally responsible.