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U.S. Biocides Demand to Reach $2.6 Billion in 2010
Thursday August 17, 10:24 am ET

CLEVELAND, OH--(MARKET WIRE)--Aug 17, 2006 -- U.S. demand for biocides is projected to increase 4.3 percent annually to $2.6 billion in 2010. Following several years in which there were significant changes in product mix in major markets, the industry is expected to experience a period of relative stability. Gains will be driven by sustained production levels in a number of key outlets, including pulp and paper manufacturing (following a period of declines), and plastics production. Growth will also be boosted by heightened awareness of the dangers associated with bacterial growth and foodborne pathogens. Additionally, higher value specialty products will continue to replace chlorine and other commodities in water treatment. These and other trends are presented in "Biocides," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Halogen compounds will remain the largest product segment of the biocides market, accounting for more than one-third of demand in 2010, due mainly to their dominant position in both recreational and industrial water treatment. However, phenolic compounds will offer the strongest growth opportunities, due mainly to robust growth in demand for triclosan, a leading antimicrobial additive used in liquid soaps and other personal care products, as well as in a variety of cleaning products boasting antimicrobial properties.

The largest single outlet for specialty biocides is recreational water treatment, a market dominated by halogen compounds. Pools and spas are a relatively mature market for specialty biocides, as consumers were quick to gravitate to the safe and easy-to-use powders, tablets and pellets containing chlorinated isocyanurates, brominated hydantoins and other active ingredients such as polyhexamethylene biguanide (PHMB). In the industrial segment, the paints and coatings market will offer strong growth opportunities, buoyed by growth in production of water-based architectural paints and the continuing shift toward greater use of water-based formulations in industrial coatings.

Source: Freedonia Group, Inc.

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