Kline: ‘Unknown’ Southeast Asian Biocides Market Growing the Fastest

While biocides market growth in the mature markets of Europe and the United States is estimated at 2% and slightly less than 1%, respectively, the 5% growth forecast in biocides consumption in Southeast Asia during 2014-2019 makes this region one of the fastest growing and most attractive regions globally, finds recently published Specialty Biocides: Southeast Asia Market Analysis and Opportunities report by global consulting and research firm Kline & Company.

In recent years, the region has enjoyed remarkable economic progress driving the demand in construction, packaging, transportation, and consumer products industries, among others. These in turn are driving growth of key end-use industries in industrial preservation applications, such as paints and coatings, adhesives and sealants, and synthetic latex polymers. Consequently, the industrial preservation applications are leading market demand, accounting for the largest consumption of specialty biocides in Southeast Asia, both in volume and value terms.

Water-based adhesives and paints are enjoying fast growth due to the low volatile organic compound (VOC) emission trend, which is gaining momentum in Southeast Asia. The greater public awareness about environmental sustainability issues changes their consumption culture towards more environmentally-friendly products. As a result, market shifts away from solvent-based formulations, and sales of water-based adhesives or paints are growing as they have a low environmental impact with lower VOC emission.

The rapid rate of urbanization in Southeast Asia, as well as growing awareness about the importance of effective sanitizers, in combination with growing disposable income contributes to growth in consumption in hygiene applications. Hygiene applications are the second biggest end-use industry with a total volume consumption of 26%, estimated to increase by 4.6 % during the forecast period. The water treatment industry will also witness a healthy growth rate due to the economic growth in the region, increasing the number of new power plants and heavy industries.

Due to the importance of quats in Southeast Asia, nitrogen-based biocides are the leading category on a volume basis in the region. While isothiazolinones lead the market by value, other important chemicals include DBNPA, glutaraldehyde, or peracetic acid.

In a market widely dominated by multinationals, Dow Chemical continues to be the leading supplier in the region. However, the Southeast Asian supplier market remains fairly fragmented with leading suppliers varying from one application to another. For instance, Troy and Clariant are the leading suppliers of biocides in the metalworking fluids industry in Southeast Asia, while Lonza and Celcure Chemicals dominate the biocides market for wood preservation.

A variety of factors, such as economic growth, increased awareness of health and environment, or multinational supplier base along with imports from China and Japan, among others, will drive the biocides market in Southeast Asia. “As Western markets growth potential diminishes due to market maturity or regulatory hurdles, the Southeast Asian region represents an attractive opportunity for biocides suppliers, notably in industrial and water applications,” comments Nikola Matic, Industry Manager, Chemicals & Materials practice.

Specialty Biocides: Southeast Asia Market Analysis and Opportunities summarizes the findings and conclusions of the first comprehensive survey of the complex and fragmented market for specialty biocides in Southeast Asia. The survey analyzes in detail the use of seven classes of specialty biocides and more than 40 specialty biocide products in 16 major end-use applications, and the various influences that affect consumption.