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Specialty Biocides market: transformed in Europe, energized in the US, and cleaning up in India and China
Considerably reshaped by pending regulations, and despite persistent eurozone economic uncertainty, the specialty biocides market in Europe is expected to grow by 2.1% over the next five years, according to Kline's recently published Specialty Biocides: Regional Market Analysis. While several segments in the US speciality biocides market are likely to see over 6% volume CAGR, China and India - albeit growing from smaller bases - hold even greater promise.
The European speciality biocides market in applications covered by Kline's report generated an estimated EUR 569 million in revenues through 2012, with market volumes of approximately 112,000 tonnes. Halogenated biocides were the leading category, accounting for 37% of the total volume. However in terms of value, the leading biocides category in Europe is nitrogen-based, which on a volume basis - given their large use in wood preservation and Household, Industrial, and Institutional Cleaning Products (HI&I) applications - are the second leading category, accounting for 22% of total market volume.
The I&I market, which represents the major part of HI&I disinfectants and sanitisers segment, is considered as a consistent and non-cyclical market. Effectively, disinfectants and sanitisers can be considered as basic or staple merchandise with price being the pivotal factor; therefore demand is continuous and growth tends to accord with GDP levels. Ercros, Lonza and Dow Chemical were the 2012 biocides market leaders in Europe in terms of sold volumes, accounting for 27% of the total market volume.
With the imminent implementation of the final draft of the European Union Biocidal Products Regulation, the European biocides market will incur significant changes including product restrictions and approval simplification. The regulation will introduce a number of new requirements intended to minimise risks posed by products containing biocidal active substances, and will allow pan-EU product authorisation thereby streamlining certification.
Within the US, the oil and gas industry is expected to grow substantially over the next five years significantly driven by the expected shale gas boom. The biocides market stands to profit from oil and gas industry growth given the increased awareness concerning disinfection within this industry, with notably sulphur reducing bacteria being of particular interest. This is anticipated to translate into an overall CAGR of 6% by volume for biocide applications within this industry. Overall, the US remains the largest market for specialty biocides, with a total market value of over USD 2 billion.
The Indian market for speciality biocides remains comparatively modest, but is expected to grow at double-digit rates by 2017, led by growth in industrial preservation applications and hygiene applications. The Chinese demand for speciality biocides is similarly expected to grow significantly, boosted by hygiene applications (notably those linked to healthcare sub-applications), and water treatment - the latter due to water shortages encouraging the re-use of water.
Unlike India, the biocides supplier base in China is extremely fragmented, with the top 15 suppliers accounting for only 35% of the total market volume.
Kline's recently published Specialty Biocides: Regional Market Analysis comes in a new and enhanced format combining two key deliverables: an interactive online database and concise qualitative reports per application segment. The report covers data on over 100 specialty biocides in key regional markets.
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organisations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years.
4th July 2013