Biocides Market Report for Adhesives

REPORT
BIOCIDES IN ADHESIVES
2017
Prepared by: Biocide Information Limited

Email: info@biocide-information.com
More about us on www.biocide-information.com
Biocides in Adhesives – 2017
GLOBAL SUMMARY – BIOCIDES IN ADHESIVES
Market Size 2017: Active Ingredient

$ 74 million
BIOCIDE SALES BY REGION:

Table 1: Biocide Sales by Region for Adhesives & Sealants
REGION SALES ($M)
AMERICAS 32
ASIA PACIFIC 28
EUROPE 14
BIOCIDE SALES BY LEADING ACTIVE INGREDIENT:

Table 2: Biocide Sales by Type
BIOCIDES SALES ($M)
BIT 6.4
CMIT/MIT 6.0
BIT/MIT 11.0
OIT 5.0
DCOIT 9.9
BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:

Table 3: Biocide Sales by Manufacturer
COMPANY SALES ($M)
DOW 13.2
THOR 10.6
TROY 10.4
LONZA 7.1
Outlook for the future:

• The market for Biocides in Adhesives and Sealants is expected to grow by 2%.
Biocides in Adhesives – 2017
TABLE OF CONTENTS
1 INTRODUCTION & METHODOLGY .................................................................................4

1.1 OBJECTIVES............................................................................................................................................................4
1.2 METHODOLOGY....................................................................................................................................................4
1.3 ACCURACY OF THE INFORMATION ...............................................................................................................4
1.4 DEFINITIONS...........................................................................................................................................................4
2 END USER ANALYSIS .....................................................................................................6

2.1 TARGET MARKET .................................................................................................................................................6
2.2 GLOBAL ANALYSIS...............................................................................................................................................7

2.2.1 Global Sealants Market...........................................................................................................................................8
3 BIOCIDE COMPARISON ................................................................................................11

3.1 APPLICATION RATES.........................................................................................................................................11
3.2 PRICING..................................................................................................................................................................12
4 BIOCIDE CONSUMPTION ..............................................................................................14
4.1 GLOBAL AND REGIONAL ANALYSIS.............................................................................................................14
4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL ........................................................................................16
5 BIOCIDE MANUFACTURERS ........................................................................................17

5.1 GLOBAL AND REGIONAL ANALYSIS.............................................................................................................17
6 DISTRIBUTION ...............................................................................................................19
6.1 OVERVIEW OF DISTRIBUTION CHANNELS ................................................................................................19
7 VALUE CHAIN ANALYSIS .............................................................................................21
8 REGULATORY ANALYSIS ............................................................................................23
9 TRENDS ..........................................................................................................................24
10 FUTURE ......................................................................................................................26
BIOCIDES IN ADHESIVES & SEALANTS – 2017
1 INTRODUCTION & METHODOLGY

1.1 OBJECTIVES
The key objectives of this study were:
(1) To provide marketing data on biocides, major Adhesive 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.
1.2 METHODOLOGY
The report is based on over 30 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.
1.3 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 continues to interview until there is similarity in responses. Also all conclusions and data
per industry were confirmed with the key manufacturers of biocides.
1.4 DEFINITIONS
Biocide manufacturers are defined as companies who manufacture biocide active ingredients
in-house. For example BASF, Dalian Biochem, Dow, Lanxess, Lonza, Thor and Troy.
Biocide Blenders / Formulators are defined as companies whose majority of sales comes
from purchasing biocides which they blend into their own products. For example AgIon, IPEL,
Lamirsa, Microban, Sanitized, Schulke & Mayr, Thomson Associates etc.
CHAPTER 1 4 www.biocide-information.com
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 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
rates used are as in Table 4
Table 4: Currency Conversion Rates

$ Currency
1 0.94 EUR
1 6.94 CNY
1 116.95 JPY
1 0.81 GBP
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.
2 END USER ANALYSIS
2.1 TARGET MARKET

Adhesives & Sealants are comprised of four components;
(1) Binder
(2) Pigments and Extenders
(3) Solvents
(4) Additives
Additives contribute to less than 5% of the total system. Additives include thickeners,
emulsifiers, colloids, plasticisers and biocides. The binder and the additives represent a
sufficient nutrient source for microorganisms especially bacteria to grow. Water-based
adhesives and sealants are most susceptible to contamination from bacteria and require
biocides to act as in-can preservatives.
Problems from fungi occur in a wide range of applications where organic matter and high
humidity support their growth. Although many fungi use the sealant dry film as an attachment
point and grow causing mould, others can destroy the film. The use of fungicides protect the
film from fungi contamination.
In conclusion, adhesives, caulks and sealants require biocide protection at two levels:
(1) In-can preservation of adhesives

(2) Prevention of fungi growth on dry films
Bacterial contamination can render an adhesive and sealant unusable through loss of
viscosity, change in pH, staining, and the generation of gas. Fungi and yeast can degrade an
applied adhesive film to cause a premature bond failure.
2.2 GLOBAL ANALYSIS

The global adhesives, caulks and sealants industry is $ 45 billion and 12 Million tonnes. The
largest part of the global adhesives and sealants industry is North America followed by
Western Europe as shown in the following table:.
Table 5: Consumption of Adhesives & Sealants by Geographical Region in percentage terms

CONSUMPTION OF ADHESIVES IN % BY GEOGRAPHICAL REGION
North America 25%
Western Europe 20%
Japan 8%
Southeast Asia 6%
Eastern Europe 5%
China 21%
Latin America 10%
Africa 2%
Middle East 2%
Australia / New Zealand 1%
TOTAL 100%
Waterborne systems dominate the market, accounting for 46% by value. Hot melts and
solvent based systems represent the joint second largest sectors as shown in the following
tables:.
Table 6: Consumption of Adhesives by Type

Technology Value in %
Waterborne 46
Hot Melts 20
Solvent Based 16
Reactive Systems 14
Others 14
TOTAL 100
The adhesives industry is segmented by end-use as shown in the following table:.

Table 7: Global Volume Consumption by End Use in percentage terms
GLOBAL VOLUME CONSUMPTION OF ADHESIVES BY END USE (%)
Application % Share
Packaging & Converting 50
Construction 20
Assembly 15
Others 15
TOTAL 100
Packaging (paper and board) applications are the leading application for adhesives &
sealants. Packaging is followed by Construction and Assembly. Packaging also has the best
growth prospects with a near 3.0% annual increase, followed by transport with 2.6%.
2.2.1 Global Sealants Market

According to Kusumgar, Nerlfi & Growney, the world consumed 3.73 billion pounds of sealant
in 2012, worth $8.8 billion, and volume is forecast to grow 5% annually through 2017.
The Asia-Pacific region consumed 40% of the global sealant volume in 2012 and 32% of the
value. China is the biggest outlet for sealants in Asia-Pacific, with 60% of the poundage and
48% of the value. China’s soaring construction and automotive industries have contributed to
the rapid rise in sealant consumption. Demand is now moderating, but a still robust 10%
annual rate of growth is forecast through 2017. Japan is the second largest sealant consumer
in the region with 22% of the pounds and nearly 30% of the dollars. South Korea, like Japan,
is a mature sealant outlet, consuming 7% of the region’s pounds and 9% of the dollars. India
is the fastest-growing consumer of sealants in Asia-Pacific but represents only 5% of the
sealant pounds and dollars.
Europe is the largest global outlet for sealants with a 40% share by value in 2012 and is
second in poundage with a 35% share. Sealant growth in Europe is placed at a mature 2%
annual rate. European Union (EU) member countries were 88% of the regional volume. Non-
EU countries, such as Russia and Turkey, are forecast to increase at double the regional
growth rate.
North America consumed 21% of the global sealant pounds in 2012 and 24% of the dollars.
Like Europe, the North American market for sealants is mature. Brazil is the largest user of
sealants in South America, which consumed 3% of the world’s sealant volume and dollars.
The following table shows global sealant consumption by region in 2012.
Region Million Pounds
Europe 1,300
China 900
North America 770
South America 120
Other Asia Pacific 600
ROW 40
TOTAL 3,730
Construction is the largest outlet for sealants, taking 62% of the global sealant volume in 2012
and 61% of the dollars. Automotive applications consumed 24% of the sealant volume and
23% of the dollars and are forecast to expand at a 4% annual rate. The following table shows
the global consumption of sealants by end use.
End-use Million
Construction 2,300
Automotive 900
Insulating Glass 300
Industrial 230
TOTAL 3,730
Silicones are the leading sealant in volume with 31% of the pounds in 2012, and are tied with
polyurethanes in dollars with just over one-third of the total. The following table shows sealant
consumption by type in 2012.
Region Million IBs
Silicone 1,150
PU Non Foam 530
PU Foam 500
Plastisol 475
Emulsion 310
Butyl 275
Polysulfide 180
Silyl Modified 160
Other 150
TOTAL 3,730
The top 10 global suppliers of sealants captured 47% of the sales, and each had sales of over
$250 MM. The largest suppliers participate globally, while most of the smaller companies
compete regionally. Suppliers range from those who offer only one sealant type, such as a
silicone or air infiltration foam, to those that offer a wide variety of product types. Acquisitions
continue to concentrate the supplier base.
Table 8: Leading Suppliers of Adhesives and Sealants in America

LEADING SUPPLIERS OF ADHESIVE & SEALANTS IN AMERICA
1) 3M
2) H.B. Fuller
3) Henkel (Loctite, National Starch)
4) Bostik (Total)
5) Dow
6) RPM
7) Forbo
8) Momentive
9) PPG
10) Sika
3M is the leading supplier of adhesives and sealants with sales of around $478 million,
representing almost 15% of the total market. This estimate does not include adhesives that
are consumed internally for such products as scotch tape and post-it-notes. H.B. Fuller and
Henkel (Loctite, National Starch) rank second and third respectively.
3 BIOCIDE COMPARISON
3.1 APPLICATION RATES

The level of biocide incorporated into an adhesive formulation depends on the level of
protection required, type of system, and quality of the raw materials. Normally bactericides
are added at 0.1% by formulation weight. Fungicide protection requires the addition of 0.5%
biocide by formulation weight. The following table lists some of the more prominent biocides
used in adhesive and sealants applications with tradename, active ingredient, supplier, and
pricing.
Table 9: Comparison of major Biocides used in Adhesives & Sealants

% AI in Formulated Price
Chemistry Trade name Supplier
formulation $/kg
Benzyl-alcohol Preventol D2 Lanxess $4
99%
Mono hemiformal
Diiodmethyl-p- Amical 48 Dow $40
95%
tolysulfone
1,2 Proxel GXL Lonza
$4
benzisothiazolin-3- 20%
one (BIT)
1,2 dibromo-2,4- Tektamer 38 AD Lanxess $6
25%
dicyanobutane
Orthophenylphenol, Preventol O Lanxess $6
99%
sodium salt (OPP)
2-(4-thiazolyl) Metasol TK 100 Lanxess $50
98.5 %
benzimidazole
CMIT/MIT Kathon LX Dow, Thor $2
1.5 %
Acticide
IPBC Polyphase AFI, Lonza, Troy $ 25
40 %
IPBC Omadine
DCOIT Kathon 910 Dow $ 10
8%
OIT Skane M8 Dow $16
40%
Silver Zeonic Sinanen $100
1%
AgIon
CMIT/MIT (5-chloro-2-methyl-4-isothiazolin-3-one and 2-methyl-4-isothiazolin-3-one) is the
most effective biocide used in adhesives. It is typically added at 0.1% to the adhesive
formulation to give 15ppm of protection in the adhesive whereas higher levels of
formaldehyde releasers must be added to give the same level of protection e.g. Preventol D2
is added at 0.1% to give 960ppm of protection in the adhesive.
3.2 PRICING
The following table compares biocide prices observed in the field for the Adhesives &
Sealants industry for each of the main geographical Regions:
Table 10: Comparison of Prices in $/kg (99% AI unless otherwise stated)

Americas Asia Pacific Europe
Biocide
($/kg) ($/kg) ($/kg)
3 (20%),
BIT 4 (20%) 4 (10%), 5 (20%)
10 (33%) in Japan
5 per kg in China and
Bronopol (BNPD) 10 6
8 per kg in Japan
5-chloro-2-methyl-4- 5 (14%)
isothiazolin-3-one & 2- 10 (14%) 9 (14%) in Japan 1.6 (1.5%)
methyl-4-isothiazolin 1 (1.5%) in China
DBDCB
(1,2-dibromo-2,4- 9 (25%) 10
dicyanobutane)
DCOIT 17 (30%) 16 (30%)
2,2 Dibromo-3-nitrilo
propionamide 20 5 9.5 (20%)
(DBNPA)
IPBC 25 (40%) 10 (20%), 48 (98%) 12 (20%)
Acticide MBS
(2.5 % MIT & 2.5 % 3 2–3 3
BIT)
OBPA 5 (2%) 5 (3%)
OIT 30 13 (45%), 40 20 (45%)
OPP 10
Oxazolidines 11
Thiabendazole 80 80 (Japan)
Tolysulfone 30 (98%)
3 (78%)
Triazines 3 (95%) 1.5 (78%) in China,
6 (78%) in Japan
Zinc Pyrithione 12 30 (97%) 12 (48%)
The prices of Biocides are governed by;
(1) Quantities purchased
(2) Regulatory approval
(3) Formulation of Biocides
(4) Technical and Laboratory Support
(5) Geographical Region
(6) Licensing
(7) Promotional Support
Traditionally regulatory and quantities purchased were the most important criteria in
determining prices. However pricing is becoming influenced by Licensing and Promotional
Support which have become more important with the introduction of Biologically Active
Surfaces.
4 BIOCIDE CONSUMPTION
4.1 GLOBAL AND REGIONAL ANALYSIS

The global market for specialty Biocides in Adhesives and Sealants is $ 74 million. America
is the leading region for Biocide consumption with the leading Biocide consumed being
BIT/MIT followed by DCOIT with sales of $ 9.9 million as shown in the following table:
Table 11: Biocide Sales by Type within Adhesives and Sealants at Manufacture level
AMERICAS ASIA PACIFIC EUROPE GLOBAL
BIOCIDE
($M) ($M) ($M) ($M)
BIT 3 3 0.4 6.4
BIT/MIT 6 3 2 11
Bronopol 1
Carbendazim 0.5 1 0.4 1.9
CMIT/MIT 3 2 1 6
DBNPA 1 1 2
DCOIT 4 3 2.9 9.9
Dicyano butane 1 1 0.35 2.4
Formaldehyde
1.3 3 1 5.3
Releasers
IPBC 1.7 0.6 2.3
OBPA 0.5 2 2.5
OIT 2 2 1 5.0
Phenolics 1 1 1 3
Silver 0.5 1.8 1 3.3
Thiabendazole 1 1 2
Tolysulfone 2 0.5 0.3 2.8
Zinc Pyrithione 0.5 0.5 1
Other 3.0 2.2 2.05 7.3
TOTAL 32 28 14 74
Benzisothiazolinone (BIT) and 2-methyl-4-isothiazolinone (MIT) was developed and patented

by Thor (tradename is Acticide MBS) with total sales of $ 11 million. BIT / MIT has the
synergistic benefits from both compounds with the added benefit of no chlorine. The product
is used solely as a preservative where it can be used alone or in combination with other
biocides such as FR’s.
BIT/MIT is followed by DCOIT at $ 9.9 million and 5-Chloro-2-methyl-4-isothiazolinone and 2-
methyl-4-isothiazolinone (CMIT/MIT) with sales of $ 6 million within the global Adhesives
industry. The chloromethyl and methyl isothiazolones (CIT and MIT) biocides are used in a
ratio of 3:1. 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 formaldehyde or metal ions (7) Skin sensitiser (8) Volatile.
CMIT/MIT is followed by BIT with sales of $ 6.4 and is mainly used in high pH adhesives and
sealants. BIT is followed by OIT which has sales of $ 5 million. It is a fungicide which are used
to provide film protection to Sealants.
The Formaldehyde Releasers have sales of $ 5.3 million. They are widely used in
waterbased adhesives and sealants where they protect the product during storage. They are
typically applied at an application rate of 0.1% to 0.2%. Formaldehyde Releasers are
relatively easy to manufacture and so there is a large number of suppliers.
4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL
The global market for speciality biocides in Adhesives & Sealants at the end user level is
estimated at $ 122 million or more than 60% than the value of the sales at the active level as
shown in the following table:.
Table 12: Global – Consumption of Biocides within Adhesives and Sealants at Manufacture and End User level
Sales at Distribution Sales at end-
manufacture route to end- % Mark-Up user level
level ($M) user in % ($M)
Active Manufacturer 74 40 % 60 % 47
Biocide Formulator * 20 % 70 % 25
Distributor * 40 % 65 % 50
Total 74 100% 122
* Includes Mark-up for Formulator and Distributor
Biocide manufacturers have the highest percentage of sales at end-user level with 40% of
formulated biocide sales to the Adhesives & Sealants industry being supplied via
manufacturers such as Dow, Lanxess, Lonza, Thor and Troy. The biocide manufacturers
achieve an average 60% Mark-Up when they supply direct to Adhesives & Sealant
manufacturers.
The mark-up ranges from 40% to 90% except for a new patented biocide where it will be a lot
higher. The lower mark-up reflects technical 100% biocide active ingredient which is supplied
directly to large Adhesives & Sealant manufacturers.
5 BIOCIDE MANUFACTURERS
5.1 GLOBAL AND REGIONAL ANALYSIS

Dow who manufacturers from CMIT/MIT, formaldehyde releaser, phenolic preservatives,
DCOIT, OIT and Tolysulfone fungicides, are the leading suppliers of Biocides to the
Adhesives & Sealants industry with sales of $ 13.2 million as shown in the following table:
Table 13: Biocide Sales by Manufacturer in $ Million - Global and Regional

AMERICAS ASIA PACIFIC EUROPE GLOBAL
MANUFACTURER
SALES ($M) SALES ($M) SALES ($M) SALES ($M)
BASF 1.0 0.4 1.4
Buckman 0.5 0.4 0.9
Chemicrea 2 2.0
Dalian Biochem 2 2
Dow 9.0 2 2.2 13.2
Lanxess 3.4 2 1.5 6.9
Lonza 4.0 2 1.1 7.1
Microban 1 1.0
PAX 1.0 1.0 0.5
Ruihao Chemical 1.0 1.0 1.0
Thor 4.0 4.0 2.6 10.6
Troy 6.0 2.0 2.4 10.4
Other 3.1 9.0 3.2 15.3
TOTAL 32.0 28 14 74
Dow is followed by Thor with sales of $ 10.6 million. Thor is the leading producer of BIT/MIT
and CMIT/MIT via its Acticide brand for in-can preservatives and is also the leading producer
of OIT for fungicidal effect. In addition, Thor manufactures formaldehyde releasers e.g. o-
formals and chloracetamide.
Thor is followed by Troy with sales of $ 10.4 million. Troy manufactures formaldehyde
releasers and IPBC. The company has global coverage which was enhanced via their
acquisitions of Ashland, Bode and Progiven. Troy is followed by Lonza with sales of $ 7.1
million and is the leading manufacturer of BIT which is used in high pH adhesives and
sealants. Lonza also supplies sodium & zinc pyrithione. Lonza is followed by Lanxess who
supply Phenolics, Tektamer 38, which was previously supplied by Calgon (Nalco) and
Thiabendazole which it purchased from Syngenta.
BASF has sales of $ 1.4 million and produces Bronopol, Cybutryne, Silver, Triclosan and
Triazines. The company sells direct and also via formulators.
The leading Asian manufacturers of biocides for adhesives and sealants are Chemicrea and
Dalian BioChem. All the companies manufacture CMIT/MIT with Chemicrea being market
leader in Japan, Dalian BioChem in China, Pax Group in India.
In Asia Pacific especially China and India, there is a large number of small generic biocide
manufacturers. Their output is small with inconsistent quality. They tend to compete on price
and supply biocides to small local producers of adhesives and sealants.
6 DISTRIBUTION
6.1 OVERVIEW OF DISTRIBUTION CHANNELS

Suppliers of biocides to the adhesives industry can be classified into:
(1) Active Ingredient Manufacturer
(2) Formulators
(3) Distributors
Biocide Active Ingredient manufacturers play an important role in the distribution of biocides
to the Adhesives & Sealants industry with an estimated 40% of the biocides going via this
route as can be seen in Figure 1.
Figure 1: Distribution of Biocides
Active Ingredient Manufacturers include companies with production capabilities for a variety of
biocide types. The leading manufacturers are BASF, Buckman, Dow, Lanxess, Thor and
Troy.
The typical scenario for manufacturers of biocides used in the Adhesives industry, would
involve the production or purchasing of raw material. Many active biocides emerge from the
manufacturing process as lumpy, wet pastes or viscous liquids. The product is then converted
inhouse to products with good characteristics of storage, ease of use and performance.
Special attention is being devoted to the ease and safety of application. Liquid formulations,
either solutions or dispersions with low viscosity, are the easiest to handle and can be added
automatically by pumps.
Formulators are an important link between active ingredient manufacturers and end users.
Most formulators concentrate on specific market segments. They tend to have particular
strengths regionally except AgIon, Microban who are global players. Because of the high
costs, Formulators only register their most popular biocide formulations and for the smaller
selling biocides, registration is made by the producers of active ingredients.
Distributors have 40% of biocides sales at the Adhesive and Sealant manufacturer. They
dominate the distribution of biocides in the remote geographical regions and in Asia Pacific.
Distributors are important as they offer a comprehensive range of additives as well as
providing a broad range of biocides.
7 VALUE CHAIN ANALYSIS
The following chart illustrates the value added for Biocides used within the Adhesives and
Sealants industry.
VALUE ADDED ANALYSIS – BIOCIDES
Active Manufacturer
Technical Material Value added 40 %
W ith regulatory approval
Own Formulations Formulator

Value Added 20 % Value Added 30%
Distributor
Value Added 10 %
ADHESIVE & SEALANT M ANUFACTURER
Value Added is selling price less cost price as a %
Figure 2: Value Added Analysis – Biocides in Adhesives and Sealants
Biocide manufacturers expect to receive value added mark-ups of 40% when they supply
technical material with regulatory approval. The technical material can be sold direct to
Adhesive & Sealant manufacturers or to formulators.
Biocide manufacturers expect to receive an extra 20% mark-up when they supply ready to
use biocides to Adhesive & Sealant manufacturers. In the last few years, biocide
manufacturers have started to offer their own formulations so as to maximise earnings along
the supply chain.
Biocide Formulators expect to receive average mark-ups of 30% when they supply ready to
use biocides to Adhesive & Sealant manufacturers. We define formulators as companies
whose majority of sales comes from purchasing antimicrobials, which they formulate into their
own products. They tend to compete by providing superior customer service and formulating
blends of actives, which provide a broader spectrum of control. Also included under
formulators are companies who provide license agreements, which allow the rights to use
brand name quality seals such as AgIon, Microban, Sanitized and Ultrafresh.
Within formulators, the mark-ups differ significantly depending on end-use. For preservation
of Adhesives & Sealants, the mark-up tends to be around 30% to 50% whereas for hygienic
Adhesives & Sealants, the mark-up is in excess of 40%.
Biocide Distributors receive a mark-up of 10% when they supply biocides to Adhesive &
Sealant manufacturers.
8 REGULATORY ANALYSIS
Regulations have a major impact on the biocides used in the Adhesives & Sealants industry.
In most developed countries, all the chemical components of the Adhesive & Sealant must be
listed on the relevant national “inventory” of chemical substances before it can be supplied. In
addition, the usage of Biocides in hygienic applications is subject to additional legislation.
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 Biocides and the authorisation 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. Once the Biocide
is approved at EU level, it must be registered nationally.
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.
9 TRENDS
Adhesive and Sealant manufacturers aim to protect and preserve their products against
microbial spoilage for up to 12 months. In order to choose the right preservative, the following
factors are considered:
(1) Broad spectrum antimicrobial activity
(2) Stable over a wide pH range

(3) Stable at elevated temperatures (to 50 degrees C)
(4) Stable to various chemical agents
(5) Aqueous based solutions or dispersions

(6) Compatible with a wide range of polymer types
(7) Low environmental impact
(8) Low toxicity e.g. skin irritancy

(9) Ease of handling and safety to factory workers
(10) Relevant regulatory approvals e.g. FDA, BGA, EPA, BPD, MITI
(11) Cost Effectiveness
Though not always governed directly by legislation, the choice of preservatives for a system is
equally guided by a desire for systems showing low impact on the environment. A low toxicity
or tendency to cause irritation or sensitisation to both workers handling the preservatives
during adhesive manufacture and during end use processing of the adhesive is also
important.
1. There is a growing market to use Biocides to improve hygiene with most sealant
manufacturers 3M, Henkel using Biocides to produce hygienic sealants. Where
the antibacterial protection is built in to last the life of the product and protects
by inhibiting the growth of bacteria, mould and mildew making it ideal for tiling in
showers, bathrooms, toilet areas and kitchens.
2. Another growing market is the use of Biocides in packaging adhesives. Henkel,
a worldwide leader in consumer and industrial businesses, and CMS
Technology, a solutions provider for the food, packaging, and materials
industries, have announced their intention to pursue a strategic North America
alliance to develop food-safe additives for packaging, the companies announced
recently. Henkel's leadership position in packaging adhesives will be enhanced

by CMS microbial-resistant technology for paper and plastic packaging. "Henkel
is focused on delivering the assurance of quality to consumers. This
commitment extends beyond adhesives to the whole package. Our relationship
with CMS is one of several steps we are taking to provide a holistic packaging
solution for our customers," said Dietrich Crail, Henkel's Vice President of Paper
Converting, Graphic Arts and Construction. "CMS utilizes environmentally safe
technology which curbs harmful bacteria and lowers packaging costs, so we are
excited to be working with them," added Kris Getty, Henkel's Director of Global
Business Development for Multi-Functional Adhesives. "Innovative, sustainable
solutions are at the core of what we do." The Henkel-CMS Technology alliance
will develop packaging solutions designed to ensure to the maximum extent
possible that food is kept safe from harmful bacteria. The application will impact
first-use and recycled material.
3. Solvent based adhesives will continue to loose market share to hot melts and
100% solid systems, whereas water-based products will grow slower, mainly
due to the evaporation problems. The switch to sophisticated hot melt
technology has been achieved by the large adhesive manufacturers.
4. Silicon sealants, due to their performance, are forecast to be the fastest growing
sealant over the next ten years. They will further increase their share of the
building and construction industry.
5. The overall growth of the label stock production is stronger than tape production
and this scenario will continue. The largest end user is in packaging especially
soaps wrappers.
10 FUTURE
Sales of biocides to the Adhesives and Sealants industry are $ 74 million in 2017. Sales of
biocides are likely to increase by 2% per year up to 2022 as shown in the following table:.
Table 14: Projected Sales of Biocides in Global Adhesives and Sealants

YEAR SALES ($M)
2018 76
2019 78
2020 80
2021 82
2022 84
The major developments expected to drive the biocides market include;
(1) An increase in global construction and consequently an increased demand for Adhesives
and Sealants which will increase the need for in-can preservatives and dry film fungicides.
(2) The continuing shift toward water based adhesive and sealant formulations will help boost
biocides demand because water based Adhesives & Sealants are usually more susceptible to
microbial attack.
(3) The increase in regulatory legislation will lead to biocides such as formaldehyde releasers,
OBPA etc being replaced with more expensive alternatives.

Biocides Market Report for Adhesives

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REPORT

Prepared by: Biocide Information Limited

GLOBAL SUMMARY – BIOCIDES IN ADHESIVES

Market Size 2017: Active Ingredient

BIOCIDE SALES BY REGION:

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT:

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:

Outlook for the future:

1 INTRODUCTION & METHODOLGY .................................................................................4

1.3 ACCURACY OF THE INFORMATION ...............................................................................................................4

2 END USER ANALYSIS .....................................................................................................6

2.2 GLOBAL ANALYSIS...............................................................................................................................................7

3 BIOCIDE COMPARISON ................................................................................................11

4 BIOCIDE CONSUMPTION ..............................................................................................14

4.1 GLOBAL AND REGIONAL ANALYSIS.............................................................................................................14

4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL ........................................................................................16

5 BIOCIDE MANUFACTURERS ........................................................................................17

6.1 OVERVIEW OF DISTRIBUTION CHANNELS ................................................................................................19

7 VALUE CHAIN ANALYSIS .............................................................................................21

8 REGULATORY ANALYSIS ............................................................................................23

1 INTRODUCTION & METHODOLGY

The key objectives of this study were:

(3) To define the distribution channels in the industry.

1.3 ACCURACY OF THE INFORMATION

Table 4: Currency Conversion Rates

2 END USER ANALYSIS

2.1 TARGET MARKET

(2) Pigments and Extenders

(1) In-can preservation of adhesives

2.2 GLOBAL ANALYSIS

Table 5: Consumption of Adhesives & Sealants by Geographical Region in percentage terms

Table 6: Consumption of Adhesives by Type

The adhesives industry is segmented by end-use as shown in the following table:.

2.2.1 Global Sealants Market

Region Million Pounds

North America 770

South America 120

Other Asia Pacific 600

Insulating Glass 300

Region Million IBs

PU Non Foam 530

Silyl Modified 160

Table 8: Leading Suppliers of Adhesives and Sealants in America

3.1 APPLICATION RATES

Table 9: Comparison of major Biocides used in Adhesives & Sealants

Table 10: Comparison of Prices in $/kg (99% AI unless otherwise stated)

OIT 30 13 (45%), 40 20 (45%)

The prices of Biocides are governed by;

(1) Quantities purchased

(2) Regulatory approval

(3) Formulation of Biocides

(4) Technical and Laboratory Support

(5) Geographical Region

(7) Promotional Support

4.1 GLOBAL AND REGIONAL ANALYSIS

Benzisothiazolinone (BIT) and 2-methyl-4-isothiazolinone (MIT) was developed and patented

4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL

* Includes Mark-up for Formulator and Distributor

5.1 GLOBAL AND REGIONAL ANALYSIS

Table 13: Biocide Sales by Manufacturer in $ Million - Global and Regional

6.1 OVERVIEW OF DISTRIBUTION CHANNELS

Figure 1: Distribution of Biocides

7 VALUE CHAIN ANALYSIS