Analysis: Asia to challenge Europe in biocides market

30 March 2003 20:15  [Source: ICIS news]

HOUSTON (CNI)--Global demand for biocides should increase at an annual pace of 5.6% through 2006 despite increasing regulatory pressures with the Asian market challenging Europe as the number two market, according to the Freedonia Group.

The Cleveland, Ohio-based consultancy expects a world market worth $5.9bn (Euro5.6bn) by 2007 with 44% of that concentrated in North America.

Led by China, however, the Asia-Pacific region will post the fastest annual rate of growth with 6.8% and surpass Western Europe's 22% market share by end of this decade, according to Freedonia's recent report entitled "World Biocides."

Freedonia expects the paper and coatings markets to post the strongest growth among applications as pulp and paper registers higher growth in production after a slowdown the last few years. In addition, Freedonia said recycled fibres will increase their share of the paper market requiring more use of biocides.

Regarding the regulatory outlook, the analysts said they do not expect more than half of the currently active ingredients to survive the implementation of the Biocidal Products Directive adopted by the European Union (EU) in 2000. Freedonia described the movement as "a decade-long reshaping of the biocides market.

By: Gary Taylor
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