BIOCIDES MARKET ANALYSIS

One of the major challenges faced by the biocides market is the shift towards bio-based biocides. Traditionally, most biocides used in various applications like wood preservatives, water treatment, and personal care products, and others were petroleum-based. However, in the recent years, various regulatory agencies have imposed stringent environmental laws restricting the use of petroleum-based chemicals. At the same time, consumers are showing preferences for more eco-friendly and sustainable products. This has compelled biocide manufacturers to invest in development of bio-based and natural biocides obtained from various plant and mineral sources. For instance, according to European Chemicals Agency's (ECHA) latest report published in 2021, the registration of new chemical-based biocides will be restricted and stringent from 2022-2023 in Europe. The European Chemicals Agency is an agency of the European Union working for the safe use of chemicals (ECHA) is strongly recommending manufacturers to develop bio-alternatives instead. However, developing high performance bio-based alternatives to existing petroleum-based biocides is a complex process and requires extensive research and testing.

Market Opportunity - Development of bio-based and eco-friendly products

The growing demand for sustainable and bio-based products presents a major opportunity for players in the biocides market. With increasing regulatory push and change in consumer preferences, there is a huge scope for developing innovative and greener biocides solutions. Manufacturers who are able to successfully launch commercially viable bio-based products will get an edge over competitors. This shift also allows companies to tap into new application segments and expand their existing market share. Several biocide manufacturers such as Akzo Nobel N.V. have started dedicating separate R&D facilities and teams to focus on nature-identical and plant-extracted biocides. For example, plant-based essential oils are being studied and developed as natural fungicides and pesticides. Some studies have shown products like cinnamon oil can be effective for controlling certain fungi or insects without harming other organisms. Moving to such natural alternatives addresses consumer worries about chemicals while freeing manufacturers from dependence on petrochemical feedstock. Overall, the transition towards bio-solutions provides a substantial growth opportunity for biocide formulators to sustain long-term growth in the dynamic market landscape.