Growth in biocide industry

Citation

(1998), "Growth in biocide industry", Pigment & Resin Technology, Vol. 27 No. 5. https://doi.org/10.1108/prt.1998.12927eaf.001

Growth in biocide industry

Growth in biocide industry

Keywords Biocides, USA

The market for biocides involves a number of chemicals and covers a variety of end-user applications. Although the US market is growing, participants are concerned about such issues as environmental and worker safety, customer service, and research and development.

According to strategic research conducted by Frost & Sullivan (www.frost.com), US Specialty Biocides, revenues for the total market were estimated to be $1.2 billion in 1997. The US specialty biocide market is divided into eight segments, which are often divided into subsegments: Halogen compounds, antimicrobial glutaraldehyde, quaternary ammonium, phenolic, organosulfur, organometallic, inorganic and inorganic salt and acid compounds. Revenues for each group in 1997 range from $58 million to $415 million.

Opportunities for growth in the biocides market can be found mainly in new applications for existing biocides, and in formulating new mixtures or combinations that are cost effective. The major drivers include the need for antimicrobial protection in water treatment, paints and coatings, plastics, and in household, institutional and hospital settings.

Specialty biocides are subjected to stringent environmental and safety regulations, and a particularly important issue for market participants is the uncertainty regarding future legislation, says Chemical Analyst Kaisa Still. Manufacturers must find an equilibrium between biocide efficiency and environmental safety. A major market trend is the effort companies put forth to provide products that are approved for global markets.

Functional competition in the market is increasing, due to the shift in research from new products to new combination products. Two important challenges market participants face are addressing the functional competition and understanding customer needs. Customers are now demanding more environmentally friendly and safer products, as well as antimicrobial protection for each end-user segment, such as industrial water treatment, medical and pharmaceutical, metalworking fluids, and food and beverages.

This fragmented market consists of about 50 participants, all of whom have created their own niche markets. Many companies are turning to Asia-Pacific and Latin America for growth opportunities, although the need for antimicrobial protection is still driving the US market.

Frost & Sullivan's study, US Specialty Biocides, is unique because it offers detailed discussions on trends based on end-user markets. Additional information on global markets has also been included because the USA is closely linked with foreign markets. Market shares, revenues forecasts, market and technological trends, competitive issues and strategies are all provided in this study.

This chemicals industry research has integrated the market engineering consulting philosophy into the entire research process. Critical phases of this research include: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help market participants navigate successfully through the specialty biocides market.

Frost & Sullivan is an international marketing consulting company that monitors the chemicals industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of research publications such as #2849-82 US Water and Wastewater Treatment Chemicals Markets, and to support industry participants with customized consulting needs.

Details from Frost & Sullivan. Tel: +44 (0)171 915 7824; +49 69 23 50 57; +33 1 81 54 50.