Biocides Market in the US by Product, Function and Market, 12th Edition

Report Overview

Product Update: Triclosan Banned by FDA in Consumer Antimicrobial Soaps

In September 2016, the Food and Drug Administration (FDA) issued a ruling regarding the use of triclosan and triclocarban (along with 17 other active ingredients) in over-the-counter antibacterial hand and body washes. Starting in September 2017, triclosan and triclocarban will no longer be allowed in consumer-oriented hand and body washes, as the FDA found no evidence that they provided additional protection when compared to products without triclosan and triclocarban. While this represents the first national level regulation, companies like Walmart, Proctor and Gamble, and Johnson and Johnson had already taken steps to remove the chemical from its products in recent years. Additionally, the state of Minnesota will begin a ban of triclosan from consumer products in 2017.

Key Findings in the Biocides Study:

Growth in Construction Will Drive Major Biocides Markets

Two of the largest markets for biocides, wood preservation and paint and coatings, are heavily influenced by trends in the construction industry. Growth in construction activity, particularly in the residential building market, where decking requiring preserved wood is prominent, will contribute to healthy advances in biocide demand. In wood preservation, new definitions by the American Wood Protection Association (AWPA) on the use of ground-treated wood will additionally support higher levels of preservatives, while in paint and coatings, the transition to water-based formulations, which inherently require higher levels of biocides to prevent fouling, will continue to supplement biocidal additive needs.

Energy Market Volatility Will Dictate Future Gains

Demand for biocides in the energy market, which consumes biocides in applications like hydraulic fracturing and well drilling, decreased in 2015 due to falling oil prices and decreased domestic fossil fuel exploration. However, looking forward, it is expected the US oil industry will show improvement, driven by a combination of price growth and renewed exploration efforts. Although the oil and gas industry is not expected to boom quite like it did after the turn of the century, growth will again fuel demand for biocides by 2020 and beyond.

Regulations Continue to Refine Product Mix

Regulations in the biocides industry will continue to have a multifaceted influence on the composition of products in the marketplace. Regulations protect consumers from biocides that are found to be unsafe, resulting in their removal from the market, as was the case with triclosan in 2016. Additionally, actions taken by the EPA and FDA can limit a company’s ability to introduce new actives as a result of the cost and efforts required to achieve approval. Instead, new biocide products tend to be formulated with previously approved chemicals, constraining the overall number of active ingredients in the mix.

Consumer Preference for Additive-Free Options

Consumer-oriented markets, like cosmetic and toiletries and food and beverage preservatives, will continue to feel an influence from the growing need for products without chemical additives. Consumers are becoming wary of preservatives used in their products and whether or not they are necessary, suspecting them of potential health and environmental dangers. Companies have responded by offering a higher percentage of alternative options that are made with preservative-free formulations. Growth prospects for biocides in these markets will be limited as result of these influences going forward.

Study Coverage

This study presents historical demand data (2005, 2010 and 2015) and forecasts (2020 and 2025) by product (halogen compounds, metal-based compounds, phenolic compounds, nitrogen compounds, organosulfurs, organic acids, and glutaraldehyde), application (preservative and additive, water treatment, and processing), and market (industrial, consumer and commercial, and energy). The study also evaluates company market share, including Dow Chemical, Ecolab, LANXESS, Lonza Group, and Occidental Petroleum Group (OxyChem).