North America Biocides Market

North America Biocides Market Analysis

The North America Biocides Market is expected to register a CAGR of 4.53% during the forecast period.

The COVID-19 pandemic has affected several industries negatively. The lockdown in the North American countries caused disruptions in production, industrial activities, and freight transportation restrictions, disturbing the supply chain. However, the conditions started recovering in 2021, restoring the market's growth trajectory.

• Over the short term, rising demand from the wood protection segment and increasing pharmaceutical consumption are major factors driving the market's growth.
• However, stringent regulatory policies are likely to restrain the growth of the studied market.
• Nevertheless, the development of novel biocidal paints and coatings will likely create lucrative growth opportunities for the global market.
• The United States represents the largest market over the forecast period due to the increasing consumption across sectors like construction, water treatment, and pharmaceuticals.

North America Biocides Market Trends

Wood Preservation Industry to Dominate the Market

• Biocides used for wood preservation usually contain an insecticide or a fungicide and, in many cases, both. These biocide preservers protect the timber from insect attacks, such as woodworm, and the fungicide protects against fungal decay.
• The wood preservation industry has taken large leaps in producing and developing chemicals protecting wood from microorganisms and weathering degradation without environmental impact.
• Currently, the most significant consumption for biocides can be experienced across the wood preservation application to be further utilized in construction and other building materials.
• The North American region is the major consumer of biocides in the world. Among various applications, biocides are primarily consumed in producing wood for furniture, ceiling roofs, and other building materials, in the region.
• According to the Food and Agriculture Organization of the United Nations (FAO), the United States was the leading consumer of industrial roundwood (18%), sawnwood (22%), and wood-based panels (13%) in 2022. Moreover, the United States was also the largest producer of industrial roundwood (19%), and wood pellets (17%) and the second largest producer of sawnwood (17%), and wood-based panels (9%) in 2022.
• According to the U.S. Energy Information Administration, the industrial sector accounted for about 61% of the total consumption of wood in 2022 in the United States.
• In North America, the United States has a major share in the construction industry. Besides the United States, Canada and Mexico contribute significantly to the construction sector investments.
• According to Statistics Canada, the value of building permits for residential buildings in Canada for the first five months of 2023 was USD 32.36 million. In terms of number of dwellings created, the figures stood at 103,895 units.
• In 2022, the number of dwelling units constructed stood at 277,593 units. Looking at the trends in residential construction in the country, the construction output has been fairly consistent over the past 2 years.
• Overall, the construction sector growth in North America shall increase the demand for wood preservation products, like biocides, in the construction industry.

United States to Dominate the Regional Market

• The United States is among the major consumers of biocides in the North American region due to growing demand across various end-user industries like pharmaceutical, construction, and water treatment.
• In the United States, the pharmaceutical industry holds a vivid presence, accounting for about 45% share of the global pharmaceutical market. The major factors fueling the pharmaceutical sector growth in the country are the increasing research and development expenditure, the growing burden of chronic diseases, and the strong presence of market players.
• According to the European Federation of Pharmaceutical Industries and Associations, the global pharmaceutical market was estimated at USD 1.28 trillion in 2022. The North American market inclusive of the United States and Canada, remained the world's largest market with a 52.3% share.
• The United States is amongst the largest exporters of medicinal and pharmaceutical products. According to Eurostat, the United States exports to the European Union (EU) accounted for 35% of the total EU imports.
• Since 2003, the United States Department of Agriculture (USDA) has funded around USD 10 billion for the construction and maintenance of 7,500 rural water and wastewater systems and is planning to further increase its investment in the coming years.
• In September 2022, the United States Environmental Protection Agency awarded more than USD 1.3 billion for water infrastructure improvements to 18 states using federal Infrastructure Investment and Jobs Act funds. The money was issued through State Revolving Funds (SRFs) for drinking water and clean water projects with a focus on benefiting underserved communities.
• These funds were the first installment of USD 44 billion the agency will distribute to states, territories, and tribes for water infrastructure projects over five years. Earlier in 2022, EPA announced that it would allocate USD 7.4 billion to states, tribes, and territories, with nearly half of this funding available as grants or principal forgiveness loans that remove barriers to investing in essential water infrastructure in underserved communities across rural America and in urban centers. This growing investment in water treatment in the country is likely to boost the demand for biocides.
• The construction industry has also been rising steadily which will support the demand for wood products and consequently, wood preservation products like biocides as well.
• The annual value of residential construction in the United States was valued at USD 908 billion in 2022, an increase of 13 % compared to USD 803 billion in 2021. As for the total construction value, the figures stood at USD 1.79 trillion in 2022 compared to USD 1.63 trillion.
• Courtesy of the developments and rising trend of output values across the major industries, the United States shall lead the way in biocide consumption in North America.

North America Biocides Industry Overview

The North America Biocides Market is partially fragmented in nature. The major players in the market (not in any particular order) include LANXESS, BASF SE, The Lubrizol Corporation, Solvay, and Ecolab, among others.

North America Biocides Market Leaders

North America Biocides Market News

July 2022: LANXESS completed the acquisition of the microbial control business unit of the U.S. group, International Flavors & Fragrances Inc. (IFF), by paying a preliminary purchase price of approximately USD 1.3 billion for the acquisition. LANXESS added two production sites to its network in St. Charles, Louisiana, and Institute, West Virginia, both in the United States, courtesy of the acquisition.