With the current maturity in the major biocide markets, leading producers of biocide active ingredients are increasingly focusing on new formulations and specialty applications for profitable growth. They are also looking beyond the major consuming regions to developing areas in Africa, China,
Eastern Europe, Latin America, and the Pacific Rim, according to a new multivolume study recently launched by Biocide Information Services. The global consumption of biocides was $ 3,141 million at active manufacture level in 2002, 40 percent growth on 1992.
This performance reflects not only end industry growth, regulatory and technological changes but also the growing use of biocides as hygiene aids in a broad range of applications. Specialty biocides include algicides, incan bactericides, films fungicides and pest control within non agricultural segments. North America accounted for approximately 40 percent of this total.
Reports indicate growth in the North American biocides market has slowed down, but competition for market share among the leaders has only accelerated. Consolidation in the industry has really raised the stakes for companies like Avecia, Basf, Bayer, Ciba, Clariant, Dow, Lonza, Rohm and Haas and Troy, and they're looking to countries in developing regions.
Countries such as China, Eastern Europe, India and South America continue to offer growth opportunities as per capita income rises and human health issues are accorded more importance, according to recent reports.
In addition, basic biocide producers will rely more on specialty niches, i.e. hygiene sector, for growth as the three largest application segments, coatings, personal care and wood, mature.
With mature markets in the large consuming regions and generic products starting to affect the market environment, specialty niches will offer a profitable outlet for active ingredient manufacturers, reports said.
With increased attention to specialty market sectors and growing regional markets, biocide companies are expected to introduce new formulations to address shifts in demand. And these companies must also examine the specific needs of each regional market to adjust their strategies for growth accordingly.
