Global Polymer Emulsions

REPORT
BIOCIDES IN POLYMER
EMULSIONS 2017
Prepared by: Biocide Information Limited
Email: info@biocide-information.com
More about us on www.biocide-information.com
BIOCIDES IN POLYMER EMULSIONS - 2017
TABLE OF CONTENTS
1. BIOCIDES IN POLYMER EMULSIONS – GLOBAL SUMMARY ........................................3
2. INTRODUCTION & METHODOLOGY ....................................................................................4

2.1. Objectives .................................................................................................................................4
2.2. Methodology.............................................................................................................................4
2.3. Accuracy of the information .....................................................................................................4
2.4. Definitions ................................................................................................................................4
3. END USER ANALYSIS .................................................................................................................6
3.1. TARGET MARKET.................................................................................................................6
3.2. END USER ANALYSIS ..........................................................................................................7
3.2.1 Production Estimates according to Producers...................................................................7
3.2.2 Production of Polymer Emulsions by Type ......................................................................9
3.2.3 Demand for Polymer Emulsions by Application.............................................................10
3.2.4 Future for Polymer Emulsions ........................................................................................11
3.3. BIOCIDES PRICING.............................................................................................................12
3.3.1 Pricing at Active Manufacture Level ..............................................................................12
3.4. BIOCIDE COMPARISON .....................................................................................................13
3.4.1 Biocide Application Rate................................................................................................14
3.4.2 Cost of Using Biocides ...................................................................................................15
3.4.3 Global Polymer Emulsion by Biocide Consumption ......................................................16
4. BIOCIDE CONSUMPTION........................................................................................................17
4.1. GLOBAL AND REGIONAL ANALYSIS.............................................................................17
4.2. BIOCIDE CONSUMPTION AT FORMULATED PRODUCTS LEVEL.............................21
4.3. VALUE ADDED ANALYSIS ...............................................................................................22
4.4. DISTRIBUTION OF BIOCIDES IN POLYMER EMULSIONS ..........................................23
5. BIOCIDE CONSUMPTION........................................................................................................25
5.1. BIOCIDE MANUFACTURERS ............................................................................................25
6. BIOCIDE TRENDS......................................................................................................................29
7. BIOCIDE REGULATIONS.........................................................................................................31
8. FUTURE FOR BIOCIDES..........................................................................................................32

8.1. BIOCIDE GROWTH .............................................................................................................33
CHAPTER 14 www.biocide-information.com
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1. BIOCIDES IN POLYMER EMULSIONS – GLOBAL

SUMMARY
Market size 2017: Active Ingredient

$ 81 million
BIOCIDE SALES BY REGION:
Table 1: Biocide Sales by Region for Polymer Emulsions
REGION SALES ($M)
AMERICAS 26.0
ASIA PACIFIC 31.0
EUROPE 24.0
BIOCIDE SALES BY ACTIVE INGREDIENT:

Table 2: Biocide Sales by Type
BIOCIDE SALES
BIT 21.0
BIT/MIT 17.0
CMIT/MIT 12.0
Formaldehyde Releasers 12.1
BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:

Table 3: Biocide Sales by Leading Manufacturer’s
BIOCIDES SALES ($M)
DOW 12.0
Lonza 15.0
Thor 15.0
Biocides to increase:
Bronopol, BIT, DBNPA will experience increased usage especially in Europe,

as Latex products preserved with MIT will have to be Labelled with hazard
statement H 317 and exclamation mark pictogram which will apply by the start
of 2019. Currently MIT is widely used in preservation and the feeling is that
product producers will move to alternative biocides to avoid the H 317
labelling on their products.
Outlook for the future:
• The market for Biocides in Polymer Emulsions is expected to show a

3% increase due to the strong growth driven by increasing awareness
about health hazards of VOC containing products e.g. paints and rising
demand for environmentally friendly paints.
3
2. INTRODUCTION & METHODOLOGY
2.1. Objectives
The key objectives of this study were:
1. To provide marketing data on biocides, major polymer emulsion

applications using biocides, suppliers and customers.
2. To identify and analyse the trends taking place within the biocides
industry.
3. To define the distribution channels in the industry.
2.2. Methodology
The report is based on over 10 interviews conducted throughout the globe. In

each industry analysis, BI contacted end-users, biocide manufacturers,
suppliers, distributors and trade associations by telephone and conducted
unstructured interviews typical of the type used in industrial market research.
In addition to interviews, the report also summarises suppliers' product
literature, data from trade associations, BI databases and our monthly
information report.
2.3. Accuracy of the information
BI believes our estimates to be within 20 % of the actual value. The accuracy

of the information is dependent on many factors such as the number of
interviews conducted per application, industry concentration and industry
usage patterns. In order to increase our accuracy, BI increases the number of
end-user interviews where an industry is fragmented and continued to
interview until there is similarity in responses. Also all conclusions and data
per industry were confirmed with the key manufacturers of biocides.
2.4. Definitions
Biocide manufacturers are defined as companies who manufacture biocide

active ingredients in-house. For example BASF, Dow, Lanxess, Lonza, Prom,
Thor and Troy.
4
Biocide Blenders / Service Companies are defined as companies whose

majority of sales comes from purchasing biocides which they blend into their
own products. For example Ipel, Lamirsa, Schulke & Mayr etc.
Distributors act as agents for both active manufacturers and biocide blenders.
They are the most popular choice of supplier for small end-users. Distributors
sell a range of industrial additives and so will be making deliveries to end
users and therefore biocides tend to be combined with other products which
allow the distributor to be competitive.
Prices are in U.S. dollars and are at active manufacturer level unless stated.
The exchange used is as follows:
Table 4: Exchange Rates Used

$ Currency
1 0.94 EUR
1 6.94 CNY
1 116.95 JPY
1 0.81 GBP
Source: www.xe.com
Volumes are reported in tonnes based on a 100 % active biocide basis. In the
case of formulated products, the data is reported with a typical percentage of
the formulated product.
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3. END USER ANALYSIS

3.1. TARGET MARKET
Polymer Emulsions are aqueous fluids, which present a medium for the
multiplication of micro-organisms (bacteria, fungi, yeast). As the emulsions
are used for the production of high quality products, including those coming in
contact with food, they have to be in clean condition when used, that means
in-tank protection to prevent microbes from proliferating is necessary.
Polymer Emulsions are used in the manufacture of a wide variety of products.

Approximately 75 % are used in four main applications: Paint and Coatings,
Adhesives, Paper and Carpet Backing. Five major Polymer Emulsions
dominate the market: SBR, Acrylics, PVA, Vinyl Acrylics and Vinyl Acetate.
The manufacture of most Polymer Emulsions is via Emulsion Polymerization.

The most commonly used Emulsifiers are fatty acids or resin acid soaps
which are often used with other synethetic surfactants. Emulsifiers also
provide an excellent source of nutrients for microorganisms. Many Polymer
Emulsions are susceptible to spoilage caused by bacterial and fungal growth,
which can affect color, odor, viscosity, pH and other emulsion properties.
Biocides are used by Polymer Emulsion manufacturers to kill all

microorganisms introduced to the emulsion after production. Polymer
Emulsions are most vulnerable to airborne bacteria and fungi during transfer
of product from reactor to storage facilities. Proper cleaning and maintenance
of storage vessels help reduce the incidence of contamination.
When selecting an appropriate biocide for protection of the Polymer

Emulsion, one has to note the type of polymer emulsion, its pH and final
enduse. The temperature of the Polymer Emulsion at the time of
incorporation of the biocide must also be taken into consideration; the heat
resistance of the biocide may be a requisite.
Nearly all Polymer Emulsions are treated with biocides before or during
storage. The ambient pH of the emulsion is the major determinant in biocide
selection. Emulsions with pH ranges of 4 to 9 are most prone to microbial
growth and require biocide treatment, while higher Polymer Emulsions are
more resistant to contamination.
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3.2. END USER ANALYSIS
Freedonia says the global demand for emulsion polymers is forecast to rise
4.7 percent per year to 13 million metric tons (dry basis) in 2018. They say
advances will be fuelled by increased production of water-based paint,
coatings, and adhesives, which are displacing solvent borne formulations in
virtually all parts of the world. In developing regions such as China and India,
emulsion polymer demand will arise from strong economic growth and
increased penetration of waterborne technology in the coatings and
adhesives industries.
Acrylics will remain the largest and fastest growing emulsion polymer product
type through 2018, accounting for nearly 40 percent of the world market.
Demand for acrylics will benefit from rapid growth in the paint and coatings
market, where acrylic polymers are valued for their durability and wide range
of applications. Vinyl acetate emulsions will also see healthy increases in
demand, with the most favorable opportunities expected for vinyl acetate-
ethylene (VAE) copolymers in adhesives and coatings applications. The
slowest growth among major types will be for styrene butadiene latex,
restrained by sluggish advances in the paper coatings market.
Freedonia says the Asia/Pacific region has overtaken North America and
Western Europe to become the leading market for emulsion polymers with 43
%. The Asia Pacific region is followed by Western Europe at 23% and North
America at 22 %. Other world regions account for 12 % and will see healthy
gains in demand through 2016, the best opportunities are in Africa and the
Middle East.
3.2.1 Production Estimates according to Producers
According to interviews with leading producers, the global Polymer Emulsion

market is valued at US$ 43BN and 18 million tonnes. Asia Pacific is the
leading consumer of Polymer Emulsions and accounted for 38% of global
demand in 2015. The major growth in Polymer Emulsion demand will come
from developing regions, especially Asia as China and India have begun to
shift from solvent-based paints to water-based paints. The global market is
broken down in % as follows:
Table 4: Consumption of Polymer Emulsions by Region
7
Region % of Tonnes
America 35 %
Europe 27 %
Asia 38 %
TOTAL 18 Million Tonnes
Demand for Polymer Emulsions is highest in Asia pacific. The demand for
emulsion polymer in Asia-Pacific is driven by countries such as China, Japan,
South Korea, India, Taiwan, Malaysia, Thailand, Indonesia, and Philippines.
Asia-Pacific has witnessed significant EP manufacturing capacity expansions
in the last five years.
8
3.2.2 Production of Polymer Emulsions by Type
Styrene Butadeine Polymer Emulsions are the leading type of Polymer

Emulsions produced with an estimated 30 % of the market. Styrene
Butadeine are high pH Polymer Emulsions and therefore require specialist
biocides such as BIT which work best at high pH’s.
Styrene Butadeine Polymer Emulsions are followed by Pure Acrylic Polymer

Emulsions which account for 20 % of all Polymer Emulsions produced. Pure
Acrylic Polymer Emulsions have a pH in the range of 7-9 and tend to use
blends of biocides. The production of Polymer Emulsion by type is as follows
in %:
Table 8: Consumption of Polymer Emulsions by Type

Type of Polymer In % Typical pH
Emulsion
Styrene Butadeine 30 % 9
Pure Acrylic 20 % 7-9
PVAc 15 % <9
Vinyl Acrylic 10 % <9
Styrene Acrylic 6% 6-8
VAE 6% <7
Other 13 %
Total 100 %
9
3.2.3 Demand for Polymer Emulsions by Application
Paint is the leading enduse for Polymer Emulsions. In the paints and coatings
sector, there is additional emphasis coming from the good environmental
profile that Polymer Emulsions have where VOCs are concerned. The
demand for Polymer Emulsion by application is as follows (figures are in
thousand tonnes):
Table 9: Consumption of Polymer Emulsions by Application

Application %
Paint 43 %
Paper 19 %
Adhesives 19 %
Carpet 10 %
Others 9%
TOTAL 100 %
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3.2.4 Future for Polymer Emulsions
Growth in the global Polymer Emulsion market is expected to reflect the

growth in the end-use applications, giving a 2% increase in the developed
regions of America and Europe and a projected 5% increase year-on-year in
the developing nationals. This leads to an overall increase of 3 %. The
brightest prospects for growth reside in the styrene-butadiene and acrylic
emulsions when considered by type. Styrene-butadiene Polymer Emulsion
will see strong gains due to its widespread use in paper coatings and carpet
backing adhesives, while acrylic emulsions will benefit from their domination
of latex paint markets and broad use in general purpose adhesives. Strongest
gains are forecast for paper and paperboard coatings due to rising demand
for coatings used in higher end papers designed for advertising, direct mail
fliers, catalogues and periodicals. In addition, demand for paper coatings is
benefiting from enhanced graphics capabilities for food, beverage and other
types of packaging. In paints and coatings, latex architectural paints will
remain the leading market, though the best gains are arising in industrial
sectors, including OEM and refinish automotive coatings, traffic paints and
maintenance coatings. On a geographical basis, the most growth will be in
China and India.
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3.3. BIOCIDES PRICING
3.3.1 Pricing at Active Manufacture Level
The price of Biocides are governed by (1) Quantities purchased (2)

Regulatory approval (3) Formulation of Biocides (4) Technical and Laboratory
Support (5) Geographical Region.
The following table compares prices observed in the field for the Polymer
Emulsions industry by each of the main geographical Regions:
Table 10: Comparison of Prices by Geographical Regions in $/kg (99 % ai

unless otherwise stated)
Biocide Americas Asia Europe
BIT 4 (20%) per kg 3.7 (20 %) per 4 (20 %) per kg
kg, 5 (20 %), 7
(33%) in Japan
Bronopol (BNPD) 8 per kg 5 per kg in 6 per kg
China and 10
per kg in Japan
5-chloro-2- 10 (14 %) per 5 (14 %) per kg, 1.6 per kg
methyl-4- kg 9 (14 % Japan) (1.5%) and 8 (14
isothiazolin-3-one 2 (1.5%) %) per kg
& 2-methyl-4-
isothiazolin
DBDCB 9 (25%) per kg 10 per kg
(1,2-dibromo-2,4-
dicyanobutane)
2,2 Dibromo-3- 6 5 9.5 (20 %)
nitrilo
propionamide
(DBNPA)
Acticide MBS 3 3 3
(2.5 % MIT & 2.5
% BIT).
Triazines 1.5 (78 %) per
kg in China, 3
(78 %) per kg,
6 (78 % Japan)
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3.4. BIOCIDE COMPARISON
The following table compares the most commonly used formulated biocides in
Polymer Emulsions:
Table 11: Comparison of Biocides used in Polymer Emulsions
COMPARISON OF BIOCIDES USED FOR LATEX PRESERVATION
Chemistry TRADE NAME SUPPLIER % AI in Formulated
formulatio Price $/kg
n
1,2-Benzoisothiazolin- Proxel GXL Lonza 20 % 4
3-one
5-chloro-2-methyl-4- Kathon LX DOW 1.5 % 2
isothiazolin-3-1-2-
methylisthiazolin-3-1
Benzoisothiazolinone Acticide MBS Thor 5% 3
and methylisthiazolin
Benzyl alcohol Preventol D2 Lanxess 96 % 2
hemiformal
Bromo-1- Tektamer AD Lanxess 25 % 6
(bromomethyl)- 1,3-
propanedicarbonitrile
Glutaraldehyde Protectol GDA BASF 50 % 3.5
2,2 Dibromo-3-nitrilo Biobrom DOW 20 % 4
propionamide (DBNPA) (DOW)
Isothiazolinone products are generally less sensitive to product formulations

and provide a wider spectrum of activity than formaldehyde-release products.
The most popular isothiazolinone products are Proxel GXL and Kathon LX.
PROXEL GXL is sold as a 20 % solution of 1,2-benzisothiazolin-3-one (BIT)
in aqueous propylene glycol. KATHON LX is a mixture of two isothiazolones
and is supplied as a 1.5% aqueous solution.
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3.4.1 Biocide Application Rate
Biocides are generally added as early in the production cycle as is practical.

They should be dispersed as well as possible. Good production practice
includes diluting the biocides with an equal volume of water prior to addition
to the Polymer Emulsion. Biocide application levels vary with production
conditions, desired shelf life, raw material contaminations, susceptibility of
raw materials to microbial contamination and the biocides strength. For
example, the leading bactericides will function at levels ranging from 15 ppm
(CMIT/MIT type) to 1,000 ppm (Formaldehyde type) as shown in the following
table:
Table 12: Comparison of Application Rates for Popular Preservatives

COMPARISON OF APPLICATION RATES IN PPM FOR THE LEADING
PRESERVATIVES
Preservatives Use levels in ppm
BIT 200
CMIT / MIT 15
Formaldehyde releasers 1,000
14
3.4.2 Cost of Using Biocides
The average selling price of one tonne of latex is $ 3,000 and the following is
a typical cost breakdown for latex production per tonne:
Table 13: Costs to produce one tonne of Latex
TYPICAL COSTINGS FOR A LATEX MANUFACTURER
MANUFACTURING COSTS %
Raw Materials 42.5
Containers 8.0
Direct labour 5.4
Production costs 8.0
Laboratory costs 3.3
Warehousing 3.5
Total 70.7
MARKETING COSTS
Sales expenses 4.8
Distribution costs 3.6
Promotional costs 4.2
Administration 8.3
Other expenses 1.8
Total 22.7
Net profit (before tax) 6.6
TOTAL 100
Biocides are included in raw material costs which amount to 42.5 % of the
selling price for latex or $ 1,275 per tonne of latex. As shown in the following
table, the addition of a biocide has an insignificant effect on the raw material
costs of the latex:
Table 14: Biocides as a percentage of latex raw materials costs
BIOCIDES AS A PERCENTAGE OF LATEX RAW MATERIALS COSTS
Preservative Biocide sales Dosage rate % Cost per tonne Biocides as a
price $ / kg of latex ($) % of latex
selling price
Formaldehyde 2 0.10-0.2 2-3 0.1
(100 % ai)
CMIT/MIT (1.5 2 0.10-0.2 2-3 0.1
% ai)
BIT (20 % ai) 4 0.10-0.2 4-6 0.2-0.5
BIT & MIT 3 0.10-0.2 3-4.5 0.2-0.5
The costs of preserving latex at the above dosage rates range from $ 2 per
tonne up to a maximum of $ 6 per tonne of latex treated. The higher costs are
for BIT and MIT type biocides, which are the only biocides that are suitable for
high pH Latices such as styrene butadiene.
15
3.4.3 Global Polymer Emulsion by Biocide Consumption

The total Polymer Emulsion market is 18 million tonnes in 2016. If we
assume, 67 % is treated with an incan preservative and 10 % with a film
fungicide, this will give 73,920 tonnes of Biocides (44,220 T of incan
preservatives and 29,700 T of film preservatives) as illustrated in the following
table which analyses Biocide usage within the global paints industry:.
Table 1: Estimation of Biocide usage in Polymer Emulsions

Region Production In-can Preservatives *
Global 18,000,000 27,000 Tonnes of Incan
T Preservatives
Total $ 81 M using an average
Biocides price of $ 3,000 per T
in $ M
*Average dosage for preservatives is 0.15% with average price of incan at $ 3,000/T.
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4. BIOCIDE CONSUMPTION
4.1. GLOBAL AND REGIONAL ANALYSIS
The leading biocide consumed in the global Polymer Emulsion market is

Benzisothiazolinone (BIT) with sales of $ 21 million. BIT is followed by
BIT/MIT and CMIT/MIT. The following table summarises Biocide sales in $
million:
Table 15: Global Biocide Sales in Polymer Emulsion by Type
BIOCIDE USAGE ($M)
BIT 21.0
BIT/ MIT 17.0
Bronopol 4.0
CMIT/MIT 12.0
DBDCB 1.5
Bromines e.g. DBNPA 2.5
Formaldehyde Releasers (Incl Triazines) 12.1
Glutaraldehyde 1.0
Silver 1.0
Other 1.9
Total 81 M
Benzisothiazolinone (BIT) is the leading biocide consumed within the global

Polymer Emulsions industry with sales of $ 21 million. BIT is used solely as a
preservative where it can be used alone or in combination. BIT is relatively
expensive to use and its success is due to the following factors: (1) Activity in
high pH systems such as Styrene Butadiene Polymer Emulsions (2)
Temperature stability (3) Relatively low toxicity (4) Contains no formaldehyde
(5) Low AOX contribution (6) Relatively high skin sensitisation limit (500 ppm)
(7) Amine stability (8) Halogen free (9) Good Regulatory Approvals (ie indirect
food contact).
The major disadvantages to BIT are: (1) Deactivated by strong oxidising and
reducing agents (2) Skin sensitiser (3) Not cost effective in acidic systems (4)
Slow acting. The leading manufacturer of BIT is Lonza with 70 % of the
market. Other producers include Dow, Prom and Chinese generic suppliers.
Benzisothiazolinone (BIT) and 2-methyl-4-isothiazolinone (MIT) has sales
of $ 17 million within Polymer Emulsions especially. The Biocide was
developed and patented by Thor (tradename is Acticide MBS). BIT / MIT has
the synergistic benefits from both compounds with the added benefit of no
chlorine. The product can be used alone or in combination with FR’s. In the
future, products preserved with MIT will have to be Labelled with hazard
statement H 317 and exclamation mark pictogram which will apply by the start
of 2019. Currently the views of latex producers is that they will have to move
to alternative biocides to avoid the H 317 labelling on their products.
17
5-Chloro-2-methyl-4-isothiazolinone and 2-methyl-4-isothiazolinone

(CMIT/MIT) is used in Polymer Emulsions with sales of $ 12 million. The
chloromethyl and methyl isothiazolones (CIT and MIT) biocides are used in a
ratio of 3:1. Recently new labelling regulations in Europe state that any
formulation containing over 15ppm CIT/MIT will require label Xi and Risk
phrase R43 ("May cause sensitisation by skin contact"). As a result,
consumption of CMIT/MIT has reduced and biocides to gain include BIT, FR’s
and MIT.
CMIT/MIT can be used alone or in combination where it offers the following

benefits: (1) Broad spectrum antibacterial activity (2) Low cost effect in low pH
systems (3) Broad Regulatory approvals (4) Low VOC / solvent free (5) Pale
colour (6) Speed of kill.
The major disadvantages to CMIT/MIT are: (1) Chlorinated (2) Unstable at

high pH (3) Inactivated by amines (4) Poor temperature stability (5)
Deactivated by reducing agents (6) Requirement for stabilisers such as
formaldehyde or metal ions (7) Skin sensitiser (8) Volatile. The leading
manufacturer of CMIT/MIT is DOW. Generic producers include Chemicrea,
Dalian Biochem and Thor
2-Bromo-2-nitropropane-1,3-diol commonly known as Bronopol is a

formaldehyde condensate but is considered separately since it is known to kill
microbes by a mechanism not related to its formaldehyde release properties.
Bronopol consumption within the Polymer Emulsions industry is estimated at
$ 4 million. The leading manufacturer of Bronopol is BASF followed by DOW
and many Chinese producers. In Polymer Emulsions, it is normally used in
combination with other preservatives such as BIT and CMIT/MIT. This makes
Bronopol an important component of the leading biocide formulations where it
is provided as part of a blended formulation of which the most popular
formulation is a combination of bronopol (5 %) and cmit/mit (1.5 %) which is
applied at 0.1 % to deliver 15 ppm cmit/mit and 50 ppm bronopol.
Dibromodicyanobutane (DBDCB) had sales of $ 1.5 million to the polymer

emulsions industry. DBDCB is manufactured by Lanxess and Verichem in the
US and sold under the tradename of Tektamer and VeriGuard. It is also
manufactured by Xuxingchem in China. DBDCB is typically effective when
applied at concentrations of .04% to 0.2%. DBDCB should be added using
18
moderate agitation immediately following the cool-down of the emulsions and

prior to pumping to the storage vessels.
2,2-Dibromo-3-nitrilopropionamide (DBNPA) had sales of $ 2.5 million to

the polymer emulsions industry. DBNPA is one of the most rapid acting
biocides and is highly effective against algae, bacteria and fungi and functions
best in the pH range from 7 to 8.5. In pH ranges greater than 8.5, it rapidly
decomposes to non toxic components. Dow is the leading manufacturer of
DBNPA followed by Chemicrea and Dead Sea Bromine who sell DBNPA
under the tradename of Biobrom which is produced by Dead Sea Chemicals
in Israel. Dow manufacture DBNPA in the United States.
Formaldehyde releasers (FR’s) are an important group of biocides

consumed with sales of $ 12.1 million within the Polymer Emulsions industry.
The type of FR’s used are o-formals, oxalidines, n-formals and triazines. Of
the formals, the o-formal type account for 70 % of consumption (include o-
acetates and o-formals) while the n-formals (addition of formaldehyde and
amines or amides) accounted for 30 %. The n-formals are growing and
substituting for o-formals due to less odour, increased stability but are more
expensive.
FR’s have achieved their high penetration as preservatives due to (1) Their
broad spectrum of activity (2) Low cost (3) Rapid speed of action. Despite
being cheap and effective, FR’s have a number of disadvantages such as: (1)
Unstable at low pH’s (2) Unstable at high temperature and volatile (3) Strong
odour – inhalation hazard (4) skin and eye irritant (5) Carcinogen (6) Poor
long term activity (7) High concentration of ai required (8) Contributor to
VOC’s. FR’s are manufactured by a large number of companies.
Silver consumption within the Polymer Emulsions industry is estimated at $

1.0 million and growing. The Silver is normally incorporated into a polymer
structure, which is used as raw material for final products, which wish to
confer a hygienic benefit. Silver is popular biocide for such applications as it is
(1) safe for human contact (2) has high heat resistance (3) maintains long
term efficacy and (4) prevents growth of a broad range of microorganisms.
Silver is normally supplied as a 1 % - 3 % a.i. formulation and added at 1 % to
3 % to give 0.1 % in the final product.
19
End-products treated with silver, are marketed using an antimicrobial label

and are positioned as value added products that are priced at least 10 %
higher than conventional products. Antimicrobial label claims are being used
to address the widespread consumer concerns regarding microbial growth. In
the treated products, the function of the biocide is to control microorganisms
on the surface of the product, rather than to protect the product from
degradation, staining or spoiling. Ishizuka, Kanebo, Sinanen Zeomic and
Toagosei are the leading manufacturers of silver.
Other includes a broad range of biocides such as include

Diiodomethyltolylsulfone (DIMTS), thiabendazole and zinc pyrithione.
20
4.2. BIOCIDE CONSUMPTION AT FORMULATED PRODUCTS LEVEL
The global market for speciality biocides in Polymer Emulsions at the end
user level was estimated at $ 126 million or 54% more than the value of the
sales at the active level.
Table 19: Consumption of Biocides within Polymer Emulsions at Manufacture

and End User level
SALES OF BIOCIDES AT MANUFACTURE AND END USER LEVEL IN
POLYMER EMULSIONS IN $ M
Sales at Distribution % Mark-Up Sales at end-
manufacture route to end- user level ($M)
level ($M) user in %
Active Manufacturer 81 60 % 50 % 74
Biocide Formulator * 30 % 60 % 38
Distributor * 10 % 65 % 14
Total 81 100% 126
* Includes Mark-up for Formulator and Distributor
Biocide manufacturers have the highest percentage of sales at end-user level

with 60 % of formulated biocide sales to the Polymer Emulsions industry
being supplied via manufacturers such as Dow, Lonza and Thor. The Biocide
manufacturers achieve an average 50% Mark-Up when they supply direct to
Polymer Emulsion manufacturers.
21
4.3. VALUE ADDED ANALYSIS
The following value chain illustrates the value added for Biocides used within
Polymer Emulsions:
VALUE ADDED ANALYSIS
Active Manufacturer
Technical Material Value added 30 %
With regulatory approval
Own Formulations Formulator

Value Added 20 % Value Added 30 %
Distributor
Value Added 10 %
POLYM ER EMULSION MANUFACTURER
Value Added is selling price less cost price as a %
Each stage of the distribution chain adds value to Biocide used in Polymer
Emulsions. As can be seen in the above chart, the combined value added
can be up to 70 % which is shared between Biocide manufacturers, Biocide
formulators and distributors.
Biocide manufacturers expect to receive value added mark-ups of 30 % when

they supply technical material with regulatory approval. The technical material
can be sold direct to Polymer Emulsion manufacturers or to formulators.
Biocide manufacturers expect to receive an extra 20% mark-up when they
supply ready to use Biocides to Polymer Emulsion manufacturers.
Biocide Formulators expect to receive mark-ups of 30% when they supply

ready to use Biocides to Polymer Emulsion manufacturers. Biocide
Distributors receive a mark-up of 10 %-20 % when they supply Biocides to
Polymer Emulsion manufacturers.
22
4.4. DISTRIBUTION OF BIOCIDES IN POLYMER EMULSIONS
The following chart illustrates the distribution of Biocides in Polymer

Emulsions:
Table 15: Distribution of Biocides in Polymer Emulsions
Active Manufacturer
Formulator Direct
30 % 60 %
Distributor
10 % Direct
Latex Producer
The distribution route in % reflects the sales of Biocides to the final producer
of Polymer Emulsions.
Biocide manufacturers are the most important route in the distribution chain
with an estimated 60 % of all formulated Biocides to endusers going via this
route. Dow, Lanxess, Lonza, Thor and Troy are leading biocide
manufacturers who has been most proactive in moving up the value chain
and supplying direct.
Formulators are the second most important route in the distribution chain with
an estimated 30 % of all Biocide sales to Polymer Emulsion manufacturers
going via this route.
23
Distributors account for 10 % of all Biocide sales to Polymer Emulsion

manufacturers. Distributors include the leading suppliers of chemicals such as
Brenntag and Univar.
24
5. BIOCIDE CONSUMPTION
5.1. BIOCIDE MANUFACTURERS
Lonza & Thor are the leading manufacturers of Biocides used in Polymer
Emulsions with sales of $ 12 million. The sale of Biocides at active ingredient
manufacture (a.i.) level for the leading manufacturers are illustrated in the
table below:
Table 16: Biocide Sales by Manufacturer in $ Million
BIOCIDE MANUFACTURERS SALES ($M)
BASF 1.0
Chemicrea 1.0
Clariant 1.5
Dalian Biochem 3.0
Dow 12.0
Lanxess 5.0
Lonza 15.0
Ruihao 1.0
Sinanen 0.5
Thor 15.0
Troy 8.0
Other 18.0
TOTAL 81.0
Chemicrea is based in Japan and a leading supplier of Biocides to the Asian

Polymer Emulsions industry with sales of $ 1 million. Chemicrea has
production facilities in Japan and China. The target markets are: Paper mill
slimicide, Paper & pulp preservatives, Water treatment agents, Latex and
emulsion preservatives and Cosmetics preservatives. The main formulations
supplied are:
Table 17: Biocides Provided by Chemicrea

Tradename Active Ingredients
ZONEN-C
5-Chloro-2-methyl-4-isothiazolin-3-one /
2-methyl-4-isothiazolin-3-one(Mixing ratio
3:1, Content approx.14%)
ZONEN-FP
5-Chloro-2-methyl-4-isothiazolin-3-one /
2-methly-4-isothiazolin-3-one
(Mixing ratio 10:1, Content approx.12%)

ZONEN-MT 2-Methyl-4-isothiazolin-3-one (Content
approx. 50%)
25
ZONEN-O/100 2-Octyl-4-isothiazolin-3-one (Content

100%)
DBNPA 2,2-Dibromo-3-nitrilopropionamide
BBAE 1,2-Bis(bromoacetoxy)ethane
B-1,4 or BBAB Bis(1,4-bromoacetoxy)-2-butene
BRONOPOL 2-Bromo-2-nitropropane-1,3-diol
DBNE 2,2-Dibromo-2-nitroethanol
Chemicrea’s main biocide product to the Polymer Emulsions industry is

BNPD and CMIT/MIT. Smaller biocides are DBNE (2,2-Dibromo-2-
nitroethanol), DBNPA and BBAB (Bis(1,4-bromoacetoxy)-2-butene) which
are very cost effective biocides and their low application rate gives it an
advantage over other biocides.
Clariant had sales of $ 1.5 million to the global Polymer Emulsion industry.
The company manufactures BIT, formaldehyde releasers and silver for the
preservation of Polymer Emulsions.
Dalian BioChem is headquartered in China and a leading manufacturer of

CMIT/MIT, DCOIT, IPBC, OIT and Zinc Pyrithione. Dalian has estimated
sales of $ 3 million with CMIT/MIT for the Polymer Emulsion industry.
Dow is a large US multinational with a global biocides business. Dow supplies

the Polymer Emulsions industry with BIT, CMIT/MIT, DBNPA (2,2-dibromo-3-
nitrilopropionamide) and Glutaraldehyde. Dow has sales to the Polymer
Emulsions industry of $ 12 million. The company will see sales of formulated
products grow significantly with the introduction of new product lines such as
BIT.
Lanxess had sales of $ 5 million to the global Polymer Emulsions industry.

Lanxess biocide business is located at Leverkusen, Germany. Lanxess’s
product line centres around its Preventol trade name which covers many
actives for preservation:
TABLE 18: ACTIVES SUPPLIED BY LANXESS TO POLYMER EMULSION
INDUSTRY
Preservatives
Preventol D2 (Benzyl alcohol mono(poly)hemiformal)
Preventol D4 (N-(2Hydroxypropyl aminomethanol))
Preventol D6 (Ethanediol + formaldehyde + CMIT/MIT)
26
Preventol D7 (CMIT + MIT)

Tektamer 38 Dibromodicyanobutane
Lanxess acquired Verichem in 2011 and this resulted in them getting the
biocide DBDCB (1,2-dibromo-2,4-dicyanobutane in water), which is sold
under the tradename of VeriGuard®. DBDCB AD is a preservative which
effectively inhibits the growth of microorganisms in aqueous systems,
including paints, emulsions, adhesives, joint cements, pigment dispersions,
metal-working fluids, waxes, polishes and inks, and fiber processing fluids
and coatings (including heating and air conditioning systems). Chemically,
VeriGuard® DBDCB AD is a 25.0% dispersion of 1,2-dibromo-2,4-
dicyanobutane in water.
Lonza is the leading manufacturer of Biocides to the Polymer Emulsions

industry with sales of $ 15 million. Lonza manufactures BIT, IPBC, n-butyl BIT
and Zinc Pyrithione of which BIT is used in Polymer Emulsions. Lonza
supplies direct and also via formulators.
PROM Chem has sales of $ 1 million to the Polymer Emulsions industry. The
company manufactures BIT under the trade name of PROMEX™. Recently
the company has introduced formulations based on BIT and also offers Prom
Chem's technical backup and service - including the new PROM™ ID Micro
microbiological test kit. The company has European Biocidal Products
Directive (BPD) and EPA registration.
TABLE 19: ACTIVES SUPPLIED BY PROM

TRADENAME ACTIVE INGREDIENT APPLICATION
PROMEX™ BIT 1,2-Benzisothiazolin-3-one Preservative for
Industrial Products
PROMEX™ BNP 2-Bromo-2-nitropropane-1,3-diol Preservative for
(Bronopol) Consumer Products
PROMEX™ CMT14 5-Chloro-2-methyl-4-isothiazolin- Preservative for

3-one (CMIT) + Industrial Products
2-Methyl-4-isothiazolin-3-one
(MIT)
PROMEX™ CTL 2,4,5,6,- Dry Film Fungicide
Tetrachloroisophthalonitrile
(Chlorothalonil)
27
PROMEX™ FS90 Ethylenedioxy-1,2-dimethanol Low Cost

Preservative
PROMEX™ IBPC 3-Iodo-2-propynyl butyl carbamate Dry Film Fungicide
PROMEX™ MIT 2-Methyl-4-isothiazolin-3-one Preservative for

Consumer and
Industrial Products
PROMEX™ OIT 2-n-Octyl-4-isothiazolin-3-one Dry Film Fungicide
PROMEX™ PHMB Poly(imino imido carbonylimino Hard Surface
hexamethylene biguanide) Sanitizer
PROMEX™ TZ 1,3,5,-Tri-(2-hydroxyethyl)-1,3,5- Low Cost
hexahydrotriazine (Triazine) Preservative
Thor has sales of Biocides to the Polymer Emulsions industry of $ 15 million.

Thor manufactures BIT, CMIT/MIT, BIT/MIT and o-formals, which are widely
used as Preservatives in Polymer Emulsions. Thor supplies biocides under
the Acticide tradename and the company has sales & technical support in
Asia, America and Europe.
Troy has Biocide sales of $ 8 million. The company increased sales via the
acquisition of Ashland Industrial Biocides. Troy is a leading manufacturer of
formaldehyde releasers. Troy supplies direct to end-users with a range of
formulations based on BIT, CMIT/MIT and formaldehyde releasers.
Other includes smaller producers of Biocides especially in Asia.
28
6. BIOCIDE TRENDS
1. The prevailing attitude among users of Biocides is the desire for more cost
effective Biocides. In addition, they require an active ingredient with the
following features:
• Broad spectrum antimicrobial activity

• Good toxicity profile
• Biodegradable
• Colourless, odourless and low volatility
• Unaffected by solar radiation
• Chemically stable in the latex
• Stable over a broad temperature and pH range
• Compatible with other latex ingredients
• Very low levels of impurities
1. The decline in Styrene Butadiene Latex (SBL) usage has stopped and
small growth is predicted as a result of its substitution for natural binders
in recycled paper. Also the renewed growth of SBL is likely to be spurred
by the increased demand for carpets where it is the principal latex used.
2. There is a drive for low VOC formulations especially from the carpet and
paint industries and this is beginning to influence the selection criteria for
biocides. There will be an increase in the use of solvent free biocides.
3. There is also pressure on chlorinated organic compounds from

environmentally sensitive countries like Germany/Japan and Scandinavia
which will lead to further reduction in the use of Cl-Isothiazolinone based
products.
4. Within the last few years, the main active ingredients to the latex market
have had their patents expire. This has led to an increase in generic
product manufacturers, which in turn is leading to increased competition
e.g. price competition, customer service competition.
5. There is a movement to water based systems in end markets e.g. paint,

adhesives which will mean above average growth for the latex industry.
29
6. Biocide manufacturers are extending product lines by turning to existing

active ingredients instead of developing new molecules. The most recent
introduction to the latex market has been combinations of BIT and MIT,
also isothiazolinones and glutaraldehyde.
7. All manufacturers of Latices require BGA/FDA registrations before they

will evaluate new biocides. Government regulations affect the choice of
biocide when the latex application is in adhesives or paper coatings for
food packaging. Components of adhesives and paper coatings are
regulated by the Food and Drug Administration as indirect food additives
and their usage is prescribed in 21 CFR 175.105 (adhesives), 21 CFR
176.170 (paper and paperboard - non-dry foods) and 21 CFR 176.180
(paper and paperboard - dry foods). All of the major biocides used in latex
preservation are approved by the FDA.
30
7. BIOCIDE REGULATIONS
Regulations have a major impact on the Biocides used in the Polymer

Emulsions industry. In most developed countries, all the chemical
components of paint must be listed on the relevant national “inventory” of
chemical substances before it can be supplied.
In the USA, Biocides are listed on the national inventory of chemical

substances which is called TSCA. Alongside the listing on TSCA, there are
regulations governing the use of Biocides on both the federal (EPA) and state
level. Industry bodies also try to influence the adoption of regulations.
In Europe, The Biocidal Products Regulation (BPR) is responsible for

Biocides regulation and the European Chemicals Agency (ECHA) is
responsible for coordinating the approval processes for substances and the
authorisation of products at EU level. A Biocidal Products Committee,
consisting of representatives from each of the EU Member States will give its
opinion on Biocidal products, supported by technical and scientific support
from ECHA. A Biocidal product cannot be supplied on the EU market after 1st
September 2015 unless the Biocide is included in the Article 95 list of the
approved Biocides. See the list on http://echa.europa.eu/information-on-
chemicals/active-substance-suppliers
For the rest of world, countries have their own regulations governing the use
of Biocides or rely on the Biocides to have EPA or BPR approval.
31
8. FUTURE FOR BIOCIDES
The consumption of biocides in Polymer Emulsions is forecasted to increase

to $ 96 million in 2023 as outlined in the following chart:
PROJECTED SALES OF BIOCIDES IN POLYMER EMULSIONS ($M)
Table 20: Projected sales of Biocides in Polymer Emulsions to 2023
YEAR SALES ($M)
2018 85
2019 88
2020 90
2021 92
2022 94
2023 96
The major developments expected to influence the biocides market include

(1) An improvement in the global economy will positively benefit biocide
consumption (2) in 2016, there will be an increase in global construction and
consequently an increased demand for Polymer Emulsions, which will
generate the need for greater quantities of preservatives. (3) The continuing
shift toward water based formulations which will boost Polymer Emulsion
demand with a corresponding increase in Biocides (4) The increase in
regulatory legislation will lead to biocides such as CMIT/MIT, Formaldehyde
Releasers being replaced with more effective and expensive alternatives. (5)
There is a growing requirement for hygienic surfaces as a result of media
coverage on the effects of mold and mildew infestation in the home and
office. The customers of Polymer Emulsion manufacturers have responded
with the introduction of products, which are providing antimicrobial protection
to high traffic areas such as kitchens and bathrooms. Consumers are
becoming more educated and concerned about the health issues related to
exposure to molds and mildew in their homes and offices. This awareness
has become more acute because newer buildings are well insulated and have
less air circulation, resulting in the potential for increased growth of mildew,
especially in bathrooms and kitchens. This trend will result in increased
growth of Polymer Emulsions treated with Biocidal Active Ingredients.
32
8.1. BIOCIDE GROWTH
The growth rate for Biocides will depend on the following factors: (1) Market
Growth (2) Efficacy (3) Price (4) Economic Circumstances (5) Regulatory
Status (6) Adoption by major Suppliers (7) External Approvals.
As China is a major growth area, it will see growth for all biocides whereas the
America and Europe will experience a static market. The following are the
growth rates predicted for the main biocides used in Polymer Emulsions.
Table 14: GLOBAL FORECAST FOR BIOCIDES USED IN POLYMER

EMULSIONS
BIOCIDES GROWTH RATE BY VOLUME

OVER NEXT 5 YEARS
BIT 3%
BIT/MIT 5%
BNPD 3%
CMIT 1%
DBDCB 0%
DBNPA 2%
Formaldehyde -1 %
Releasers
Silver 3%
Thiabendazole 1%
Zinc Pyrithione 1%
BIT/MIT which was developed by Thor, has the highest forecasted growth
rate. The biocides which support lower VOC formulations will be the major
beneficiaries. Formaldehyde releasers will continue to grow only because of
their widespread usage in Asia and are a cheaper alternative in recessionary
times.
33

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REPORT

2. INTRODUCTION & METHODOLOGY ....................................................................................4

8. FUTURE FOR BIOCIDES..........................................................................................................32

1. BIOCIDES IN POLYMER EMULSIONS – GLOBAL

Market size 2017: Active Ingredient

BIOCIDE SALES BY ACTIVE INGREDIENT:

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:

Bronopol, BIT, DBNPA will experience increased usage especially in Europe,

Outlook for the future:

• The market for Biocides in Polymer Emulsions is expected to show a

2. INTRODUCTION & METHODOLOGY

The key objectives of this study were:

1. To provide marketing data on biocides, major polymer emulsion

3. To define the distribution channels in the industry.

The report is based on over 10 interviews conducted throughout the globe. In

2.3. Accuracy of the information

BI believes our estimates to be within 20 % of the actual value. The accuracy

Biocide manufacturers are defined as companies who manufacture biocide

Biocide Blenders / Service Companies are defined as companies whose

Table 4: Exchange Rates Used

3. END USER ANALYSIS

Polymer Emulsions are used in the manufacture of a wide variety of products.

The manufacture of most Polymer Emulsions is via Emulsion Polymerization.

Biocides are used by Polymer Emulsion manufacturers to kill all

When selecting an appropriate biocide for protection of the Polymer

3.2. END USER ANALYSIS

3.2.1 Production Estimates according to Producers

According to interviews with leading producers, the global Polymer Emulsion

Table 4: Consumption of Polymer Emulsions by Region

3.2.2 Production of Polymer Emulsions by Type

Styrene Butadeine Polymer Emulsions are the leading type of Polymer

Styrene Butadeine Polymer Emulsions are followed by Pure Acrylic Polymer

Table 8: Consumption of Polymer Emulsions by Type

3.2.3 Demand for Polymer Emulsions by Application

Table 9: Consumption of Polymer Emulsions by Application

3.2.4 Future for Polymer Emulsions

Growth in the global Polymer Emulsion market is expected to reflect the

3.3. BIOCIDES PRICING

3.3.1 Pricing at Active Manufacture Level

The price of Biocides are governed by (1) Quantities purchased (2)

Table 10: Comparison of Prices by Geographical Regions in $/kg (99 % ai

3.4. BIOCIDE COMPARISON

Isothiazolinone products are generally less sensitive to product formulations

3.4.1 Biocide Application Rate

Biocides are generally added as early in the production cycle as is practical.

Table 12: Comparison of Application Rates for Popular Preservatives

3.4.2 Cost of Using Biocides

3.4.3 Global Polymer Emulsion by Biocide Consumption

Table 1: Estimation of Biocide usage in Polymer Emulsions

The leading biocide consumed in the global Polymer Emulsion market is

Benzisothiazolinone (BIT) is the leading biocide consumed within the global

5-Chloro-2-methyl-4-isothiazolinone and 2-methyl-4-isothiazolinone

CMIT/MIT can be used alone or in combination where it offers the following

The major disadvantages to CMIT/MIT are: (1) Chlorinated (2) Unstable at

2-Bromo-2-nitropropane-1,3-diol commonly known as Bronopol is a

Dibromodicyanobutane (DBDCB) had sales of $ 1.5 million to the polymer

moderate agitation immediately following the cool-down of the emulsions and

2,2-Dibromo-3-nitrilopropionamide (DBNPA) had sales of $ 2.5 million to

Formaldehyde releasers (FR’s) are an important group of biocides

Silver consumption within the Polymer Emulsions industry is estimated at $

End-products treated with silver, are marketed using an antimicrobial label

Other includes a broad range of biocides such as include

4.2. BIOCIDE CONSUMPTION AT FORMULATED PRODUCTS LEVEL

Table 19: Consumption of Biocides within Polymer Emulsions at Manufacture