Biocides in Antiseptics and Soaps

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REPORT

BIOCIDES IN ANTISEPTICS &


SOAPS
2017

Prepared by: Biocide Information Limited


Email: info@biocide-information.com
More about us on www.biocide-information.com
GLOBAL SUMMARY – BIOCIDES IN ANTISEPTICS & SOAPS

Market Size 2017: Active Ingredient


$ 636 million

BIOCIDE SALES BY REGION:


Table 1: Biocide Sales by Region for Antiseptics & Soaps
REGION SALES ($M)
AMERICAS 228
ASIA PACIFIC 206
EUROPE 202

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT:


Table 2: Biocide Sales by Type
BIOCIDES SALES ($M)
CHLORHEXIDINE 131.0
ALCOHOL 182.0
IODOPHERS 50.0
ORGANIC ACIDS 76.0
QUATS 36.0
TRICLOSAN 59.0

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:


Table 3: Biocide Sales by Manufacturer
COMPANY SALES ($M)
Ecolab 37.0
Grain Processing Corp 39.0
Lonza 32.0
MOLYNCKE 35.0

Outlook for the future:


• The market for Biocides in Antiseptics & Antibacterial Soaps will remain static in the
next few years. The consumer market for Biocides in antibacterial soaps will decline
while the healthcare market will continue to grow due to increasing awareness of
hygiene needs. Natural Antimicrobials are widely promoted but have failed to make
a large impact. New formulations to boost biocide efficacy along with moisturising
the skin are being developed. E.g. Purell Advanced. Triclosan will decline and be
replaced by alcohol and Quat biocides.
TABLE OF CONTENTS

1 INTRODUCTION & METHODOLGY .................................................................................5


1.1 OBJECTIVES............................................................................................................................................................5

1.2 METHODOLOGY....................................................................................................................................................5

1.3 ACCURACY OF THE INFORMATION ...............................................................................................................5

1.4 DEFINITIONS...........................................................................................................................................................5

2 END USER ANALYSIS .....................................................................................................7


2.1 TARGET MARKET .................................................................................................................................................7

2.2 GLOBAL ANALYSIS...............................................................................................................................................9


2.2.1 Global Antiseptics & Soaps by Suppliers.............................................................................................................10
2.2.2 Global Antiseptics & Soaps by Geography ..........................................................................................................11

2.3 AMERICA ...............................................................................................................................................................12


2.3.1 Antiseptic & Soaps Products by Company in America ........................................................................................12

2.4 ASIA PACIFIC........................................................................................................................................................14


2.4.1 Antiseptic & Soaps by Company in Asia Pacific .................................................................................................14

2.5 EUROPE ..................................................................................................................................................................15


2.5.1 Antiseptic & Soaps by Company in Europe .........................................................................................................15

3 BIOCIDE COMPARISON ................................................................................................17


3.1 BIOCIDE COMPARISON – APPLICATION RATE .........................................................................................18

3.2 PRICING AT FORMULATED PRODUCT LEVEL ..........................................................................................19

4 GLOBAL BIOCIDE CONSUMPTION..............................................................................20

5 BIOCIDE CONSUMPTION AT END-USER LEVEL ........................................................25

6 BIOCIDE MANUFACTURERS ........................................................................................27

6.1 GLOBAL MARKET SHARE BY MANUFACTURER ......................................................................................27

7 DISTRIBUTION ...............................................................................................................33
7.1 DISTRIBUTION FOR BIOCIDE ACTIVES .......................................................................................................33

7.2 DISTRIBUTION OF READY TO USE ANTISEPTICS & ANTIBACTERIAL SOAPS ................................34

8 VALUE CHAIN ANALYSIS FOR ANTISEPTICS ............................................................35

9 REGULATORY ANALYSIS ............................................................................................37


10 TRENDS ......................................................................................................................38

11 FUTURE ......................................................................................................................40

11.1 BIOCIDE GROWTH..............................................................................................................................................41


BIOCIDES IN ANTISEPTICS & SOAPS – 2017

1 INTRODUCTION & METHODOLGY


1.1 OBJECTIVES
The key objectives of this study were:
1) To provide marketing data on biocides, major Antiseptic and Soap products 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 Antiseptic & Soap, biocide manufacturers, formulators, 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 Akzo Nobel, BASF, Clariant, DowDupont, Evonik, Lanxess, Lonza,
Molyncke, Peroxychem, PilotMason, RN Pharmaceuticals, Solvay and Stepan.
Antiseptic and Soap Formulators are defined as companies whose majority of sales comes
from purchasing biocides which they blend into their own products. For example Air Liquide
(own 100 % Schulke & Mayr), Bode, Chlorox, Diversey, SCJohnsonDeb, Ecolab, Henkel
(Dial), Johnson & Johnson, Mölnlycke Health Care, P & G, Reckitt Benckiser and Unilever
etc.
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Distributors act as agents for both biocide active manufacturers and Antiseptic and Soap
Formulators. 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 shown in the following table:.

Table 4: Currency Conversion Rates


$ 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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2 END USER ANALYSIS

2.1 TARGET MARKET


Biocides used in Antiseptics & Soaps are divided into two distinct categories: Antiseptics and
Soaps.

Antiseptics

The purpose of Antiseptics is to kill or inhibit the growth of microorganisms on the skin. They
are applied to the hands and surgical area before operations in order to reduce the microbial
population to low levels and to maintain it at low levels throughout the operation. The
microorganisms most likely to cause infection to open skin are listed below:

• Gram-negative bacteria - Escherichia coli


- Prosteus
- Pseudomonas

• Gram-positive bacteria - Enterococcus


- Pneumonococcus
- Staphylococcus
- Streptococcus

In addition to using Biocides in Antiseptics and Soaps, Biocides are also used in surgical
scrubs and help to reduce epidermal microbial populations to undetectable levels and
maintain low levels throughout the operation. The surgical field and hands are scrubbed to
minimise the risk of infection through surgical wounds.

Soaps

Soaps are divided into Bar and Liquid. Bar soap includes toilet soaps (bar only), so-called
“soapless” soaps and syndets (synthetic detergent bars). Also included are
therapeutic/emollient soaps formulated for very dry or sensitive skin and those suitable for
skin conditions, such as eczema.

Liquid soaps includes scented and fragrance-free liquid soaps. Liquid soaps tend to be used
for cleaning hands, and should not be confused with body washes/shower gels. Included are
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antibacterial liquid soaps and hand sanitisers/gels. Also included are industrial soaps used for
cleaning grease or heavy dirt from hands, and those used in hospitals, health care or food
care services. Also included are therapeutic/emollient soaps formulated for very dry or
sensitive skin and those suitable for skin conditions, such as eczema.

Antimicrobial soaps account for 20 % of the total soap production. Both Antiseptics and
antimicrobial soaps must be able to destroy microorganisms on the surface of the skin without
damaging or irritating the skin. Antiseptic and soap products have been divided into six end-
use categories as described in the following table:.

Table 5: Categories of Antiseptics and Soaps


CATEGORY DESCRIPTION
Skin antiseptics Topical preparations that prevent clinical
infection
Personnel surgical scrubs Preparations that significantly reduce the
number of microorganisms on intact skin
Patient preoperative skin preparations Products similar to surgical scrubs but are
used on patients prior to surgery to reduce
the number of microorganisms on the field of
operation
Skin wound cleansers Preparations that physically remove foreign
material from Damaged areas of the skin
without impeding healing
Skin wound protectants Products that protect small cleansed wounds
without delaying healing or favouring the
growth of pathogenic microorganisms
Soaps / hand sanitisers Include products that reduce the number of
transient Microorganisms on intact skin to an
initial baseline level, after adequate washing,
rinsing, and drying

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2.2 GLOBAL ANALYSIS


The Global demand for formulated Antiseptics and Soaps industry is estimated at $ 26.8billion
in 2016. The market has grown rapidly in recent years and was boosted by epidemics such as
the Swine flu, growing global healthcare spending, an aging population and increased
hospital acquired infections. Recently some insurance companies are considering not paying
compensation to personnel who acquire infections such as MRSA while in hospitals. This
development will lead to strong growth in the use of Antiseptics and Soaps. The global
Antiseptics & Soaps products market can be broken down by enduse as shown in the
following table:.

Table 6: Global Demand for Antiseptics and Soaps products by Type

End-Use $ Million

Skin Antiseptics $ 4,000

Wound Antiseptics 800

Liquid Soaps $ 7,000

Bar Soaps $ 15,000

TOTAL $ 26,800 Mn

Antiseptics including skin and Wound can be segmented by end-use category into Home and
Away from Home. The Away from Home is the largest category with sales of 90%. The home
segment accounts for 10 % which typically use 2-ounce plastic bottles. The main Biocide
used within Antiseptics are ethyl-alcohol antiseptics followed by chlorhexidine and Iodine
based sanitizers. The Antiseptics market has been growing 3 % per year with the occasional
spike when there is an epidemic e.g in 2009, the swine-flu outbreak prompted a sales spike of
$301 million.

Theoretically there is much room for growth especially in the home sector. One of the leading
suppliers is Gojo Industries, maker of Purell who say just 20% of U.S. households currently
purchase hand sanitizer once or more per year.

The USA is the leading geographical region for antiseptics and the home market is dominated
by 3M, Best Sanitizers Inc, Chattem, Dial Corporation, Fusion Brands, GOJO Industries,
Medline Industries, Nice-Pak, Skinvisible, and Vi-Jon Laboratories.
Soaps can also be segmented by end-use consumption such as 30 % consumption in the
home, 20 % for Horeca (Hotels, Restaurants, Café), 30 % for Health Care and 20 % for
Industry and others. For the liquid soaps, an estimated 20 % are antimicrobial type whereas
this figure is less than 1 % in bar soaps.
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2.2.1 Global Antiseptics & Soaps by Suppliers


There are tens of companies manufacturing Antiseptic and Soaps products across the globe.
One major development is the consolidation at each level of the distribution chain and the
smaller players are becoming more and more marginalized. An example is SCJohnson who
acquired Deb who acquired Stoko from Evonik and Ecolab who recently acquired Anios.

At a smaller level, hand care solutions provider Dreumex from the Netherlands who acquired
Gent-L-Kleen from Pennsylvania, USA. Dreumex has branches in the Netherlands, Belgium,
Germany and France and It supplies products in over 30 countries. For the future, there is
expected to be 20 large suppliers well positioned to grow.

The leading suppliers in the Antiseptics and antibacterial soaps industry are 3M, Air Liquide (
Schulke & Mayr), Bode, Cantel, Chlorox, Colgate, SCJohnson (Deb, Anois, Stoko), Diversey,
Ecolab, Georgia Pacific, Getinge, Gojo, Henkel (Dial), Johnson & Johnson, Kimberley Clark,
Lever, Medline, Mölnlycke Health Care, P & G, Purdue Pharmaceuticals, Reckitt Benckiser
and SCA.

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2.2.2 Global Antiseptics & Soaps by Geography


The global consumption of Antiseptics & Liquid Soaps is $ 26.8 billion. The leading regions for
Antiseptics and Soaps products are the world's developed nations as illustrated in the
following table:.

Table 7: Global Demand for Antiseptics and Soaps by geography

Antiseptics Liquid Bar Soaps


REGION
% Soaps in % in %

North 31 14
34
America

South 4 28
7
America

Western 34 9
28
Europe

Eastern 5 6
4
Europe

Asia Pacific 20 18 33

Middle East 7 10
7
& Africa

TOTAL $ 4,800 Mn $ 7,000 Mn $ 15,000

The Americas is the leading geographical region for Antiseptics whereas Europe is the
leading consumer of Liquid soaps and Asia Pacific is the leading region for Bar Soaps.

The main growth for Antiseptic & Soaps will be in developing regions, particularly in
Asia/Pacific, Eastern Europe and Latin America.

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2.3 AMERICA

2.3.1 Antiseptic & Soaps Products by Company in America


The leading formulators of Antiseptics and Soaps to the Americas market are Clorox, Colgate,
SCJohnson (Deb, Stoko), Ecolab, EnvirOx, First Scientific, Georgia Pacific, Gojo, Henkel
(Dial), Johnson & Johnson, Medline, Mölnlycke Health Care, Purdue Pharmaceuticals and
Reckitt Benckiser. The main suppliers of Antiseptics & Soaps to the American market
together with biocides used are listed in the following table.

Table 8: Leading suppliers of Antiseptics & Soaps in Americas


Company Products / Active Ingredients
Chattem Hand Sanitizer Moisturizer 0.2 % benzethonium chloride
Clorox Clorox Hand Sanitizer Spray contains 71 % ethyl alcohol
Colgate Irish Spring Soap (triclocarban)
Soft Soap Antibacterial (Benzalkonium chloride, CMI/MIT & Citric
Acid)
Soft Soap lavender (DMDM Hydantoin & Citric Acid)
Decon Laboaratories Antiseptics based on quats & Triclosan
Antiseptics based on alcohol, benzalkonium chloride and
Ecolab
chlorhexidine digluconate.
Eurochem Antiseptics based on PVP Iodine
First Scientific Inc MicrobNZ (0.2 % benzethonium chloride)
Flo-Kem Antiseptics based on alcohol & quats
Antiseptics based on alcohol & quats. GEORGIA PACIFIC
Georgia Pacific (www.gppro.com) enMotion Antibacterial Foam Soap,
Poly(hexamethylenebiguanide.
Purell Antiseptics based on Alcohol, Provon Medicated Foam
Gojo Industries
Handwash (triclosan), Provon Soap with 0.3 % Chloroxylenol
Hardy Diagnostics Aloesafe Hand Sanitiser (based on alcohol)
Dial Complete (benzethonium chloride) is no. 1 antibac
Henkel (Dial) handwash in US Doctor surgeries. Epi-Clenz Hand Sanitizer
(ethyl alcohol)
Dial Antibac Liquid Soap (0.1% benzethonium Chloride) with
Henkel Consumer
citric acid & sodium benzoate. Dial Spring Waterbody Wash
Products
(DMDM Hydantoin & Citric Acid),
Innovative Medical
Axenohl (ionic silver)
Services
Produce Novaderm R Handwash (1 % triclosan), NovaScrub R
Johnson & Johnson (1 % triclosan and 5 % providone-iodine) and
SafetySmart Hand Sanitizer (0.3 % triclosan)
Kleenex Foam Sanitizer (benzalkonium chloride, Diazolidinyl
Kimberly Clark Urea, M/P Paraben) Kleenex Antibacterial Foam Skin Cleanser
(Triclosan & CMIT/MIT)
Hibiclens contains 4 % CHG, Hibistat towelettes contains 70 %
Mölnlycke Health Care
isopropyl alcohol and 0.5% chlorhexidine
Medline ChloroPrep (2 % chlorhexidine, 70 % isopropyl)
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Nuance Solutions Antiseptics based on alcohol


Procter & Gamble Safeguard antibacterial soap (chloroxylenol & Phenoxyethanol)
Procter & Gamble Ivory Liquid Handsoap (DMDM Hydantoin & Citric Acid)
Purdue Betadine contains 7.5 % PVP- Iodine
Reckitt Benckiser Dettol Hand Sanitizer contains 60 % ethanol
Reckitt Benckiser Lysol Hand Sanitizer 0.13 % benzethonium chloride
SmithKline-Beecham Hexachlorophene
Skinvisible
Chlorhexidine Antimicrobial Hand Sanitizer
Pharmaceuticals
Stokosskincare 62 % ethanol
Swipe Swipol surface antiseptic based on alcohol & quats
Viridien Viraguard Antiseptics based on Alcohol
Teat Dip with1.75 % Nonylphenoxy polyethoxy ethanol-iodine
XXX Disinfectant
complex (NPPEIC)

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2.4 ASIA PACIFIC

2.4.1 Antiseptic & Soaps by Company in Asia Pacific


The main suppliers of Antiseptics and Soaps to the Asian market together with biocides used
are listed in the following table:.

Table 9: Leading suppliers of Antiseptics & Soaps in Asia Pacific and Biocides used
COMPANY PRODUCTS
Air Liquide Alcohol, Quats in Antibacterial Soaps
Antibacterial Liquid Soap (Triclocarban), made in
Colgate
Thailand
Cussons Pearl
Cmit/mit
Creamy Soap
Boroplus Antiseptics based on Alcohol, Chlorhexidine,
Himani (Enami)
Glutaraldehyde, PVP Iodine, Quats, Triclosan
Kawamoto
Antiseptics based on Alcohol
Corporation
LG Antibacterial soap with tcc
Maruishi Antiseptics based on Alcohol, Glutaraldehyde
Pharmaceutical (Sterihyde), Quats (Welpas) PVP Iodine, Triclosan
Mölnlycke Health Hibiclens Hospital Antiseptics 4 % based on
Care Chlorhexidine
Supply the Betadine® family of antiseptics which
contains povidone-iodine. The Betadine® family of
Purdue Pharms
products includes: Betadine® Mouth Wash/Gargle,
Betadine® Solution, Betadine® Surgical Scrub
Dettol Antiseptics based on Phenolics, Triclosan. Also
Reckitt Benckiser
Alcohol, Chlorhexidine and Phenolics Antibacterial Soaps
Sara Lee Sanex Liquid Soap Triclosan
Radox Super Soap (clean gel) CMI, Triclosan
Saraya Antiseptics based on Chlorhexidine, PVP Iodine
Stokosskincare Ethanol

Each geographical region in Asia Pacific have their own dominant suppliers. Kawamoto Corp
is a leading supplier in Japan where it is a leading player in antiseptic swabs, sterile sanitary
products and medical care products.

In India, Himani has merged with its parent group company to form Emami Group of
Companies. The company has a 50% share of the Indian antiseptic segment.

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2.5 EUROPE

2.5.1 Antiseptic & Soaps by Company in Europe


The leading formulators of Antiseptics and Soaps in Europe are Air Liquide (Schulke & Mayr),
Antiseptica, B.Braun, Bode, Borer, Colgate, Dr Schumacher, SCJohnson (Deb, Anois, Stoko),
Ecolab, Fresenius, Henkel, Johnson & Johnson, Laboratorium Dr Deppe, Mölnlycke Health
Care, Mundipharma, Napp, Reckitt Benckiser, Sanofi, SCA (Tork), Tristel and Whiteley. The
main suppliers of Antiseptics and Soaps to the European market together with biocides used
are listed in the following table:.
Table 10: Leading suppliers of Antiseptics and Soaps in Europe and Biocides used
COMPANY PRODUCTS
Anios Hospital products based on Alcohol, Triclosan
Asta Medicare Hospital Antiseptics based on PVP Iodine
Bode Hospital Antiseptics based on Alcohol, Chlorhexidine
Pure Antibacterial soap (tea tree oil & lactic acid), Imperial
Cussons Leather Cleansing Handwash (lactic acid, sodium
benzoate)
Dreumex
Soaps based on Alcohol, Iodophers
(Netherlands)
Farmak, Czech Hospital Antiseptics based on PVP Iodine
Henkel Antiseptics and Soaps using Alcohol
Johnson & Johnson Antiseptics based on Alcohol, PVP Iodine
Lotus Professional Antibacterial Soap (Triclosan, CMIT, Benzyl Alcohol)
Mölnlycke Health
Hibitaine Hospital Antiseptics based on4 % Chlorhexidine
Care
Mundipharma Betaisodona Antiseptic based on 10 % PVP Iodine
Napp Betadine Surgical Scrub based on 7.5 % PVP Iodine
Orion, Finland Hospital Antiseptics based on Chlorhexidine
Novadan, Denmark Teat Dips PVP Iodine
Paragerm, France Hospital Antiseptics based on PVP Iodine, Chlorhexidine
Peters, France Hospital Antiseptics based on PVP Iodine, Chlorhexidine
Pherrovet Teat Dips PVP Iodine
Proquimia Teat Dips Chlorhexidine
Reckitt Benckiser Antiseptics / Antibacterial soaps based on Alcohol,
(inc Regent Medical) Chlorhexidine, Phenolics, Triclosan
Antiseptics based on Chlorhexidine, Phenolics
Sanofi
Lysetol (9% formaldehyde, 2 % 0.5 % 2-ethylhexanal)
Sara Lee Sanex Liquid Soap (Triclosan)
Tork Extra Hygiene Hand Wash (Benzoic acid, Citric acid,
Dehydroacetic acid, Lactic acid, Phenoxyethanol), Tork
SCA
Premium Liquid Soap (0.55 benzoic acid, dehydroacetic
acid, phenoxyethanol)
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Schulke & Mayr Antiseptics based on Alcohol, Phenolics, Chlorhexidine


Diversey Soft Care Antibac foam (triclosan, sodium
benzoate, citric acid), Soft care soft (Citric acid,
Sealed Air
phenoxyethanol) Diversey non antibac soap (citric acid,
dmdm hydantoin)
Seten Antiseptics based on Chlorhexidine, PVP Iodine
Superfos Biosector Antiseptics based on Alcohol, PVP Iodine
Unilever Lifebuoy deodorant soap (triclosan)
Zambeletti Hospital Antiseptics based on PVP Iodine

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3 BIOCIDE COMPARISON
Biocides are often formulated into Antiseptics and Soaps at application levels ranging from
1% a.i. to 70% a.i. with such other ingredients as Carrier bases (Petroleum), Detergents,
Emollients, Foam Stablizers and Thickeners.

Biocides formulated in Antiseptics and Soaps are listed in the following table with supplier,
trade names, active ingredient and price.

Table 11: Comparison of major Biocides used in Antiseptics and Soaps


% A. I. in Formulated
Chemistry Trade name Supplier
formulation Price $/Kg
COMPARISON OF BIOCIDES USED IN ANTISEPTICS & SOAPS
Mölnlycke Health
1,1 Hexamethylene-bis (5- Care,
Chloroxedine
p-chlorophenyl biguanide) RN 20% 6
Gluconate
gluconate Pharmaceuticals,
Schutz, Xttrium
BASF
* Polyvinylpyrrolidone- PVP Iodine Ashland
1% 4
iodine WAG 1001 West Agro

5-Chloro-2,4-
dichlorophenoxy)phenol Irgasan DP-300 BASF 2% 40
(triclosan)
Didecyldimethylammonium
Bardac 22 Lonza 50 % 3
chloride
Bode (Hartman)
Isopropanol Alcohol Henkel 70% 1
Schulke & Mayr
Triclocarban Preventol TCC Lanxess 99 % 20

*PVP Iodine and chlorhexidine are used in the formulation of teat dips.
The above prices are for non-cGMP Biocides. For cGMP Biocides, the price would be doubled
although many disinfectant are not currently using cGMP Biocides.

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3.1 BIOCIDE COMPARISON – APPLICATION RATE


Antiseptics and antibacterial soaps are designed to reduce the number of micro-organisms to
such a degree that infection or contamination can no longer occur. In the USA, the CDC
guidelines specify that antiseptics and antibacterial soaps be fast acting such as Bactericidal
and Virucidal in 30 seconds, followed by Tuberculocidal and fungicidal in 1 minute and
Sporicidal in 6 minutes.
The dosage rates for the main biocides used within Antiseptics and Antibacterial soaps are
outlined in the table below. It is quite common for biocides to be blended together. This
combines the advantages of both classes of active ingredient and may also lead to synergistic
benefits. The following table compares the application rates of the most commonly used
Biocides in Antiseptics and Antibacterial Soaps.

Table 12: Comparison of Dosage Rate for Biocides used in Antiseptics and Antibacterial Soaps
Biocide % Active
Alcohol e.g. isopropyl alcohol 70
Chlorhexidine 4
Polyvinylpyrrolidone-iodine 1
Quat e.g. didecyl dimethyl ammonium chloride 0.5
Triclosan 0.3 % to 0.5 %

The application rate and effectiveness of biocides varies according to the other additives in
the formulation along with pH and temperature. For example, Dial Corporation produce Dial
Complete Antibacterial Hand Wash which is the most popular antibacterial handwash in
Doctors surgeries in the USA. Dial Corporation has patents on this formulation which contains
Triclosan and allows Dial Complete to outperform other soap products. The company claims
this formulation has the “highest level of germ killing action,” and its “patented activated
Triclosan formula” allows it to be “25x more effective than other antibacterial soaps.”

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3.2 PRICING AT FORMULATED PRODUCT LEVEL


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

The following table compares prices observed in the field for the Antiseptics and Soaps
market for each of the main geographical regions.

Table 13: Comparison of Prices by Geographical Regions in $/kg (99% AI unless otherwise stated)
Chemistry Americas Asia Europe
Chlorhexidine 7 (20 %) 5 (20 %) 6 (20 %)
Quaternary Ammonium 2 (50%),
3 (50 %), 4 (50%) 3 (50%) – 4 (50%)
Compounds 4 in Japan
Ethanol 1 (99%) in Japan,
1.2 (70 %) 1 (70 %)
0.70 (China)
Iodine 20 (20 %) 18 (20 %)
OBCP Phenolic 13 (80%) 12
OPP Phenolic 8
PCMX 5 (china), 6 (India) 8
9
in Japan
PHMB 6 (20%) in India,
8 (20%) in US
50 in Japan
Triclosan 26 (China), 20
40 40* pharmagrade
(India), 47 in Japan

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4 GLOBAL BIOCIDE CONSUMPTION


The global consumption of Biocides used in Antiseptic & Soaps is estimated at $ 636 million
at manufacture level. The leading Biocides consumed in the global Antiseptics & Soaps
market is Alcohol followed by Chlorhexidine as shown in the following table:.

Table 14: Biocide Sales by Type within Antiseptics and Soaps at Manufacture level
AMERICAS ASIA PACIFIC EUROPE GLOBAL
BIOCIDE
($M) ($M) ($M) ($M)
Alcohol 65 49 68 182
Amines 2 3 2 7
Bronopol 2 2 2 6
Chlorhexidine
63 32 36 131
Digluconate
CMI 1 4 5
Formaldehyde
3 5 2 10
Releasers
Iodophers 20 18 12 50
MIT 1 1 2
Organic Acids 16 18 42 76
Parabens 5 1 5 11
Phenolics 4 5 2 11
PHMB 3 6 2 11
Polyaminopropyl
2 1 3
biguanide
Quats 10 11 15 36
Silver 1 1 2
Triclocarban 4 4 2 10
Triclosan 18 34 7 59
Other * 10 11 3 24
TOTAL 228 206 202 636
* includes hydrogen peroxide, natural biocides (tea tree oil, thyme etc)
Alcohols are growing in usage within Antiseptic and Soaps with sales of $ 182 million.
Alcohols are primarily used for disinfecting hands, instruments and surfaces. They are
growing in usage as they offer the advantage of being effective without leaving residues. The
presence of water is essential for their antimicrobial effectiveness with concentrations of 60%-
70% ethanol in water exhibiting the strongest killing action. Other alcohols used include propyl
alcohol (n-propanol), isopropyl alcohol (Isoproponal), benzyl alcohol (Phenyl methanol). Ethyl
alcohol followed by isopropanol are the most popular for “disinfecting” whereas
phenoxyethanol followed by benzyl alcohol are the most popular for “preserving” formulations.

Alcohols have wide activity, are non-irritating, have a much higher knock down rate and are
faster acting than the other biocides. The main weakness to alcohols is their lack of residual

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effect. Ethanol (60% soln) and isopropanol (70% soln) are the most popular alcohols used.
The most popular ready to use formulations are sold in 60% / 70 % solutions to the end user
with a price of $ 3 per litre. Alcohols are formulated with emollients and fats to prevent drying
and cracking of the skin. The leading manufacturers of Alcohol is BASF in Europe, Galaxy in
India, GPC in USA and Japan Alcohol Association in Asia Pacific.

Amines have sales of $ 7 million and include N,N,-bis (3-aminopropyl) dodecylamine which is
sold under the tradename of LonzaBac RTM, has good microbial activity especially against
mycobacteria. They have good compatibility with surfactants and low corrosivity. However
they have a strong foaming tendency and a decreasing activity in the presence of proteins
and / or hard water. This amine is the most popular used. For example it is used by Ecolab
within their Klercide-CR hard surface disinfectant at between 10 % and 30 %.

Another amine is N,N-bis (3-aminopropyl) octylamine which was an intermediate in the


synthesis of surfactants, has good antibacterial activity, in particular against mycobacteria and
has low foaming loss in the presence of proteins.

1,1-Hexamethylene-bis 5-p-chlorophenyl biguanide gluconate (Chlorhexidine) is widely


used in Antiseptics and Soaps with sales of $ 131 million. It is popular as it has excellent
persistence, good activity against all microorganisms, low toxicity and irritancy. The main
disadvantages are poor biodegradability and incompatibility with anionic surfactants.

The leading suppliers of Chlorhexidine are Evonik, RN Pharmaceuticals, Medichem,


Mölnlycke Health Care, Schutz and Xttrium. Mölnlycke Health Care, RN Pharmaceuticals and
Xttrium are also leading suppliers of formulated Antiseptics and Soaps to the medical
industry. Both Mölnlycke Health Care and RN Pharmaceuticals are unlike the other
manufacturers in that they supply directly to hospitals whereas Medichem and Evonik supply
directly to formulators.

Chlorhexidine is supplied as a 20% solution to formulators with an average price of $6 per kg


(20% active ingredient). Typically the formulators supply a 2% solution of Chlorhexidine
Gluconate which sells for an average price of $3/litre to the hospital.
Organic Acids are growing in usage within Antibacterial Soaps with sales of $ 76 Million.
Organic acids are effective against microbes as low pH suppresses microbial growth and
spore germination is delayed. Some of the popular organic acids used are Acetic Acid, Alkyl
Hydroxybenzoates, Benzoic Acid, Dehydroacetic Acid, Formic Acid, Propionic Acid, Salicylic
Acid, Sorbic Acid. Some organic acids do not make any sanitising claims and so do not have
to be registered as a biocide. This makes them attractive to Antibacterial Soap suppliers. For
Topical antiseptics, salicylic acid is the most popular biocide.

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PVP Iodine (polyvinylpyrrolidone-iodine) is widely used in Antiseptics with sales of $ 50


million. They are particularly popular in the underdeveloped regions of the World. PVP Iodine
(polyvinylpyrrolidone-iodine) is popular as it has excellent persistence, low toxicity and
irritancy. Also known as Iodophor, there is microbiocidal efficacy against gram positive and
gram negative bacteria, fungi, viruses and yeast. Iodophors are combinations of iodine with a
solubilizing agent such as poly-vinylpyrrolidone and its effectiveness is due to the available
iodine which they contain. Iodophors provide a fast rate of kill, are non irritant and non toxic
with a low cost. They are used extensively as hospital Antiseptics and on Animal skin e.g teat
dips.

PVP Iodine has disadvantages such as corrosivity, staining, inactivated in alkaline


environments (pH > 7 and biocidal activity is impaired) and have an unpleasant odour.
Iodophors are used at low temperatures due to the fact that Iodine sublimes at 40 degrees
centigrade. Also PVP Iodine can form complexes with such starch preparations as those used
for lubricating surgical gloves resulting in undesirable effects on the body.

The largest manufacturers of PVP Iodine are Ashland, BASF, Ioditech, Quimica Y Minera de
Chile S.A and West Agro. They sell to Antiseptic formulators as a 12% to 20 % active
ingredient for $ 20 per kg. Formulators supply it as a 1% solution (typical teat dip) to end
users and this gives 1% available Iodine by weight. PVP Iodine is also produced in Chile,
Israel and Eastern Europe (Russia).

Phenolics are popular biocides used in Antiseptics and Soaps with sales of $ 11 million.
They are particularly popular in the underdeveloped regions of the World due to their virucidal
and sporicidal activity (including TB), tolerance to organic compounds and water, high
residual activity on surfaces and biodegradability. Phenolic based Antiseptics are used mainly
in health care facilities, including hospitals, nursing homes and dental facilities. The main
phenolics used are p-chloro-m-xylenol (PCMX) which is very popular as an Antiseptic in
South America and Asia. According to the "Efficacy Data: MICs" sheet Chloroxylenol is an
antimicrobial antiseptic effective against both gram-positive and gram-negative bacteria,
fungal and yeast microorganisms. It can also be used in soaps intended for frequent hand
washing and wound care, making it appropriate for aftercare treatment in hospitals.
Chloroxylenol has tested safe for use as long term wound care and is more effective on a
broader range of microorganisms than the other antiseptics. Provon Antiseptic soap is the
main brand name containing Chloroxylenol with a concentration of 0.3%. Other phenolics
include hexachlorophene, ortho-phenylphenol (OPP) and ortho-benzo-para-chlorophenol
(OBPC). Hexachlorophene was popular in the past but now restricted to over the counter
applications.

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Quaternary Ammonium Compounds Quaternary ammonium compounds (or quats)


consists of a broad range of compounds and are used in Antiseptics and Soaps with sales of
$ 36 million. For example, Benzalkonium chloride is used alone or incombination with other
actives or alcohols.

The main manufacturers of quats supply a large number of quats to formulators, differing by
type and alkyl group length chain. Alkyl dimethyl ammonium chloride (ADBAC) is the most
widely used for Antiseptic purposes. Other popular quats are dialkyl dimethyl ammonium and
alkyl dimethyl benzyl/ethyl benzyl ammonium chlorides. Quats owe their surface activity and
antibacterial characteristics to the presence of certain aliphatic, long-chain amino groups that,
by themselves or rather in the form of a soluble ammonium salt, display surface active and
antibacterial properties. Lonza is the leading manufacturer of Quats, followed by Mason,
Akzo, Stepan and Huntsman. The use of these products is limited as they are an irritant to the
skin and function on a limited number of microorganisms.

Polyhexamethylene biguanide hydrochloride (PHMB) is a popular Biguanide used in the


Wound Antiseptics industry with sales of $ 11 million. The leading manufacturer is Lonza
followed by Pareva. PHMB has broad spectrum of activity, fast speed of kill and are
compatible with non ionic and cationic surfactants. PHMB is also popular as a surface
Antiseptics in contact lenses solutions. In addition, the product has been successfully
introduced in combination with polyethylene glycol as an iodine free Antiseptic for such topical
applications as wound care. Polyethylene glycol reduces the surface tension of the skin to
ensure optimum wetting of the skin or wound surface. The effectiveness of this solution has
been proved in wound disinfection and the product will be used in applications where other
skin Antiseptics such as alcohols and PVP-iodine cannot be tolerated due to allergy or other
factors. Their main disadvantage is cost in comparison to quats, poor biodegradability and
incompatible with anionic surfactants.

2,4,4’-Trichloro-2-hydroxyl-diphenylether (Triclosan) is used as a bacteriostat in soaps,


hand scrubs, surgical bandages, washing liquids and cleaners with sales of $ 59 million.
Triclosan is widely used in less developed areas of the World. The product is effective against
both gram-positive and gram-negative organisms at low concentrations. Triclosan is suitable
for such applications as it is odour free, kind to the skin and very effective against gram
positive bacteria. The product is relatively insoluble and is normally incorporated into
Antiseptics products by predissolving it in a surfactant concentrate. The leading manufacturer
of triclosan is BASF followed by Generic producers. Triclosan is supplied as 96% active
substance in powder form and in formulations with varying active substance concentration.
Triclosan (100% ai) is used at 0.2% of the final product.

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Triclocarban is used as a bacteriostat in deodorant soap bars with sales of $10 million.
Deodorant soaps are designed to minimize odours by reducing and inhibiting the growth of
odour causing microorganism. Micronized triclocarban can be added directly to the soap
batch whereas regular grade has to be predissolved in an appropriate solvent. The use of
triclocarban varies from between 0.5% and 1% by weight, depending on formulation. Clariant
and Lanxess are the leading manufacturers of triclocarbans followed by generic producers.

Other Biocides used in Antiseptic & Soaps

Other biocides used in Antiseptic and Soaps include octenidine, hydrogen peroxide, natural
biocides, salicylic acid and symclosene. Demand for symclosene, also know as
trichloroisocyanuric acid is used as an antiseptic in developing countries of the World. In
China, it was the main biocide used with the outbreak of SARS in China where it was used in
the sterilisation of medical care and catering equipment, daily-use antiseptics.
Octenidine is best known as an inhibitor of dental plaque but now been developed as an
innovative broad spectrum antiseptic by schülke. It is gentle on the skin and is suitable for
use on the most vulnerable patient groups. octenidine has a broad antimicrobial effect,
including multi-resistant strains and shows very good skin, mucous membrane and tissue
tolerability. It has no systemic side effects, does not lead to resistance forming and has a 24
hour residual effect. octenidine is the active ingredient in Octenisan® antimicrobial hair and
body wash, octenilin® Wound Irrigation Solution and octenilin® Wound Gel.

Hydrogen Peroxide is effective as an antiseptic as it decomposes to water and oxygen


which is responsible for the antimicrobial action. It is typically used in formulations of 3%-6%
A.I. for disinfectants and sanitizers. The pH for optimum efficiency is in the acidic range as in
alkaline media hydrogen peroxide decomposes too quickly.

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5 BIOCIDE CONSUMPTION AT END-USER LEVEL

The value of Biocides used in Antiseptics and Antibacterial soaps at the end user level is
estimated at $ 1,074 million, 69 % higher than sales at biocide manufacture level as shown in
the following table:

Table 15: Consumption of Biocides at Manufacture and End User level


SALES OF BIOCIDES AT MANUFACTURE LEVEL AND END USER LEVEL
Sales at Distribution Average % Sales at end-
manufacture route to end- Mark-Up user level ($m)
level ($m) user in %
A. I. Manufacturer * 636 40 60 407
Formulators 30 70 324
Distributor 30 80 343
Total 636 100 1,074
* Active Manufacturer mark-up includes (Registration 30 %, Formulation 20 %, Distribution 10
%). For Formulators, the mark-up would be the same with an extra 10 % for administration
and storage. For Distributors, it would include the mark-ups as identified above and an
additional 10 % for regional distributors.

Some Biocide manufacturers provide the complete end-product (EXAMPLE Ready to use
Antiseptic) and this results in significantly higher mark-ups to cover the extra costs involved.
The mark-up’s for Ready to Use Antiseptics and Antibacterial Soaps, varies widely and tends
to be lower within the away from home sector and higher in the home sector. The average
mark-up is 740 %. For basic biocides such as alcohols, the mark-up in the antiseptic sector
can be 300% whereas for modern newer biocides based on natural ingredients such as tea
tree oil, the mark-up can be closer to 2000 %.
SALES OF BIOCIDES AT MANUFACTURE LEVEL AND END USER LEVEL FOR
FORMULATED ANTISEPTICS & SOAPS
Sales at Distribution Average % Sales at end-
manufacture route to end- Mark-Up user level ($m)
level ($m) user in %
A. I. Manufacturer 1,074 20 300 * 859.2
& Formulator
Antiseptic & Soap 40 800 ** 3,866.4
Formulators
Distributor & 40 900 *** 4,296.0
Service Company
Total 1,074 100 9,021.6
* Active Manufacturer mark-up is an average which includes mark-up for formulated biocides,
registered biocides and all additives used in the final formulation. This applies to Biocide

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manufacturers who sell a formulated antiseptic / soaps to the enduser. Example Mölnlycke
Hibiclens
** Antiseptic and Soap formulators mark-up includes mark-up for formulated biocides,
registered biocides, all additives used in the final formulation and the distribution margin for
the Antiseptic and Soap Formulator. Example Reckitt Benckiser Dettol Brand
*** Distributor mark-up include mark-up for Active Manufacturer, Antiseptic formulator,
distributor and service company mark-up.

The mark-up tends to be higher in retail markets especially where the antiseptic / antibacterial
soaps are positioned as a premium product. Reckitt Benckiser Dettol antiseptics /
antibacterial soap range is an example of a premium product in retail markets which
command a mark-up closer to 1200 %.

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6 BIOCIDE MANUFACTURERS

6.1 GLOBAL MARKET SHARE BY MANUFACTURER


Mölnlycke Health Care is the leading manufacturer of biocides used in Antiseptic and Soaps
with sales of $ 68 million. The sales of biocides at active ingredient manufacture (a.i.) level for
the leading manufacturers are illustrated in the following table:.
Table 16: Biocide Sales by Manufacturer in $ Million - Global and Regional
AMERICAS ASIA PACIFIC EUROPE GLOBAL
MANUFACTURER
SALES ($M) SALES ($M) SALES ($M) SALES ($M)
Akzo Nobel 0 2 6 8
BASF 9 7 6 22
Bode 0 0 9 9
Dishman 1 1
DowDupont 7 6 4 17
Ecolab 9 9 19 37
Emerald Kalama 4 2
Evonik 2 4 7 13
Galaxy 4 5
Grain Processing 39
20 7 12
Corp
Huntsman 2 2
Japan Alcohol 23
0 23 0
Association
Kao 0 3 0 3
Kunshan Huaxin 0 1 0 1
Lanxess 6 5 8 19
Lonza 15 4 13 32
Pilot Mason 8 0 0 8
Melzer 1 1
Mölnlycke Health 16 2 16 34
Organo Syntheses 4 4
RN Pharmaceuticals 10 8 7 25
Sanko 0 2 0 2
Sanyo 0 3 0 3
Schulke & Mayr 6 0 10 16
Solvay 0 0 2 2
Stepan 10 1 3 14
Thomas Swan 2 2 1 5
Thor 1 2 3
Toagosei 0 1 0 1
Vivimed 2 4 1 7
West Agro 9 2 0 11
Xttrium 18 18.0
Other 59 94 64 217.0
TOTAL 228 206.0 202 636
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Akzo Nobel has headquarters in the Netherlands and has sales of $ 8 million to the
Antiseptics & Soap products industry. Akzo Nobel is the third largest manufacturer of
quaternary ammonium compounds (quats) to the Antiseptics & Soaps industry. Akzo Nobel’s
main product is ABDM quats which are sold under the tradename of Arquad.

BASF manufactures a broad range of biocides for the Antiseptics & Soap products industry
under the Irgacare, Myacide and Protectol tradename with estimated sales of $ 22 million.
The biocides supplied by BASF are listed in the following table.

Table 17: Biocides supplied by BASF


Active Ingredient Trade Name
n-propanol Protectol NP
Amines
Glutaraldehyde Protectol GDA
Glyoxal Protectol GL40
NVP (N-vinylpyrrolidone) Kollidon
Triclosan Irgacare
BASF is the number 1 supplier of triclosan which is the preferred antimicrobial agent in
antimicrobial liquid soaps. The company is also the number 2 manufacturer in Iodophors to
the Antiseptic and Soap industry. In 2014, BASF introduced N-propanol which support the
rapid inactivation of bacteria and viruses on skin. It is commonly combined with ethanol and
isopropanol for optimization of antimicrobial soaps. The company sells its biocides via its
speciality chemical division directly to large users and via distributors for smaller formulators.

Bode (Hartman) is a leading German manufacturer of alcohol formulations used within the
Antiseptics industry. Bode has sales to the Antiseptics industry of $ 9 million at manufacture
level. The company is focused on the European markets with expansion plans for Asia. In
October 2008, Beiersdorf sold its 100% interest in BODE Chemie to PAUL HARTMANN AG.
Bode has a turnover of € 84 million and is one of Europe’s leading specialists for disinfection,
hygiene, and skin protection. One of the leading products is Sterillium® – an alcohol-based
hand disinfectant. HARTMANN AG offers system solutions in the areas of wound,
incontinence and management to professionals in medicine and care.

DowDupont has sales of $ 17 million to the Antiseptics & Soaps industry. The company
manufactures phenolic biocides. DowDupont is the dominant supplier of OPP phenolics to the
Antiseptics & Soap industry. The company also supplies MIT and CMIT/MIT as a preservative
within Soaps.
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Ecolab is a manufacturer of alcohols with sales of $ 37 million to the Antiseptics and Soaps
industry. Ecolab is the leading formulator of soaps in the away from home market throughout
the globe. One of their leading formulations is called Anti-Bac Spray Soap which is based on
triclosan, citric acid, benzyl alcohol and cmit/mit.

Evonik is a manufacturer of chlorhexidine, hydrogen peroxide, peracetic acid with sales of $


13 million to the Antiseptic & Soap industry. Sales are mainly to specialist formulators who
resell Antiseptics. Chlorhexidine (CHD) is its leading product where it is used in the medical
industry, CHD formulations are used for surgical scrubs, to treat wounds, surfaces and
textiles. And in the field of veterinary medicine, CHD is employed as a disinfectant for teat
dips and wound dressings. Evonik’s chlorhexidine offering is sold under the tradename of
SOVIDINE.

Grain Processing Corporation are the leading manufacturer of EthylAlcohol used in the
global Antiseptics industry with sales of $ 39 million. The company produces from GMP
facilities.

Japan Alcohol Association represents a group of alcohol manufacturers in Japan. They are
one of the leading manufacturers of Alcohol to the global Antiseptics industry with sales of $
23 million. They are also the dominant supplier in Japan.
Kao is a Japan based manufacturer of Quaternary Ammonium Compounds with sales of $ 3
million. Quats are used in Antiseptics and antibacterial soaps. Kao sales are focussed on Asia
Pacific.

Lanxess Biocides is a manufacturer of biocides with sales of $ 19 million. The company is


the leading supplier of phenolics in the globe. Lanxess is the dominant supplier of benzyl
chlorophenol (OBCP) to the Antiseptics industry. Lanxess’ main biocides supplied to the
Antiseptics and soaps industry are summarised in the following table:.

Table 18: Biocides supplied by Lanxess


Biocide Active Ingredient Trade Name Major Applications
Quats ABDM Preventol R50, R80 Disinfectant
Phenolics o-phenylphenol, Preventol O Active ingredient for
disinfectant
Phenolics benzyl chlorophenol Preventol BP
Phenolics PTAP Preventol PTAP
Triclocarban Deodorant Soaps

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Lonza has sales of $ 32 million to the Antiseptics & Soaps industry. Lonza is the leading
supplier of quaternary ammonium compounds and PHMB. The company’s quats are supplied
under the Bardac tradename and are summarised in the following table:.

Table 19: Biocides supplied by Lonza


Biocide Active Ingredient Trade Name
QUATS DIDMAC Bardac-22
DODMAC Bardac-LF
ABDM Barquat MB
Biguanides PHMB Barqauat PQ
The company also purchases in actives for resale e.g. Amphoterics and Biguanides.

Medichem is a leading manufacturer of chlorhexidine with more than 400 employees. In


2016, Medichem merged with Combino Pharm, which is devoted to the development and
manufacture (licensing) of Finished Dosage Forms. The company has production sites in
Spain, Malta and China.

Mölnlycke Health Care has estimated sales of $ 34 million at active manufacture level and
formulated sales of $ 80 million to the global Antiseptic and Soap products industry with its
hibi product range. The company sells Antiseptics directly to Hospital and medical
establishments along with a range of other medical products.
PilotMason is a manufacturer of quaternary ammonium compounds (quats) with sales of $ 8
million to the Antiseptics & Soaps industry. The company’s quats are supplied under the
Maquat tradename and company sales are mainly in America.

RN Pharmaceuticals has estimated sales of $ 25 million to the global Antiseptic and Soaps
industry with Chlorhexidine which it manufactures in-house. The company is based in India
and sells Antiseptics directly to Hospital and medical establishments along with a range of
other medical products there. The company has global approvals for the use of chlorhexidine
as an antiseptic. In addition, the company supplies antiseptic and disinfectant formulations
based on Povidone Iodine, Chlorhexidine Gluconate, Cetrimide, Glutaraldehyde,
Orthopthaladehyde, Hydrogen peroxide, Mecetronium, Benzyl benzoate, Chloroxylenol, M-
Cresol and Sodium Hypochlorite.

Sanko is a manufacturer of quaternary ammonium compounds with sales of $2 million to the


Antiseptics & Soap industry. The company manufactures quats in Japan and sales are mainly
confined to this region.

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Sanyo is a manufacturer of quaternary ammonium compounds with sales of $3 million to the


Antiseptics & Soap industry. Sanyo quat sales are confined to Japan.

Schulke & Mayr (subsidiary of Air Liquide) is a leading manufacturer of alcohol


formulations used in Antiseptics & Soaps. The company invented the first disinfectant called
Lysol for industrial and consumer applications. Schulke & Mayr has sales to the Antiseptics
industry of $ 16 million at manufacture level. The company was historically focused on the
Germanic markets but in recent years, it has expanded to other regions such as Americas
and Asia. Schulke & Mayr is owned by Air Liquide.

Stepan is headquartered in Chicago, USA and a leading supplier of quats. The company had
sales of quat biocides at $ 14 million. Stepan is the second largest supplier of quaternary
ammonium compounds after Lonza. Stepan has been actively acquiring small quat
manufacturers outside of its North American base.

Thomas Swan of Consett, UK, claims to be a world leader in PCMX (Chloroxylenol BP),
which is utilised as an antiseptic base and other medical uses. The company had sales of $ 5
million to the Antiseptics and Soap market. PCMX is a white crystalline solid and can easily
be formulated into soaps, detergents, antiseptics, disinfectants and many other products. The
company is the largest producer in Europe, with a plant capacity of 2000 tonnes from a
dedicated production plant.
Vivimed is an Indian producer of triclosan with sales of $ 7 million. The company sells under
the brandname of Viv-20 which is used in mouthwash and toothpaste formulations as an aid
to overall oral hygiene. Viv-20 also finds uses in cosmetics products as a preservative,
general personal hygiene and disinfectants.

West Agro is the leading manufacturers of Iodophers to the global Antiseptics industry with
sales of $ 11 million.

Xttrium Laboratories has total sales of $ 18 million and is the largest U.S. supplier of FDA-
approved 2 and 4% chlorhexidine gluconate (CHG) formulations, the most effective known
antimicrobial for surgical scrubbing and health care personnel hand washing. Xttrium is also
the leading U.S. manufacturer of 20% USP Chlorhexidine Gluconate, an antimicrobial agent.
The company has over four decades of experience in producing FDA-approved and EPA-
registered products. Xttrium is also an established contracted manufacturer of CHG solutions
and the owner of multiple NDA’s for topical antimicrobial surgical scrub solutions as well as
the owner of an ANDA for 0.12% CHG oral rinse solution.

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The other sector consists of many formulators of antiseptics and antibacterial soaps who have
backward integrated. An example is Sealed Air (Diversey) who is a small manufacturer of
alcohol Biocides but the second largest supplier of Soaps in the away from home market after
Ecolab. One of their leading brands is called Soft Care which is a handwashing cream
containing ethanolamine, cocamidopropyl betaine and triclosan.

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7 DISTRIBUTION
7.1 DISTRIBUTION FOR BIOCIDE ACTIVES

Biocide active ingredient manufacturers supply Biocides directly to Antiseptics & Antibacterial
Soap producers and this accounts for 40 % of Sales. They also supply biocides to formulators
who resell to Antiseptics and Antibacterial Soap produces. This accounts for 30 % of sales.
Biocide active ingredient manufacturers supply Biocides directly to distributors who resell to
formulators and Antiseptics / Antibacterial soap producers as illustrated in the diagram below:

DISTRIBUTION OF BIOCIDES

Active Ingredient
Manufacturer
30 % (1)

Formulator Distributor

(3) (2)

Antiseptic and Antibacterial Soap Producer

Route 1 - 40 % of total sales


Route 2 - 40 % of total sales
Route 3 - 20 % of total sales

Figure 1: Distribution Channels for Biocides

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7.2 DISTRIBUTION OF READY TO USE ANTISEPTICS & ANTIBACTERIAL SOAPS

Biocide active ingredient manufacturers also produce Antiseptics & Antibacterial Soaps with
an estimated 10% of all Biocide manufacturers producing the end-product and selling direct to
end-users. In addition, an estimated 10 % of antiseptics and antibacterial soaps are produced
by Biocide manufacturers and sold via distributors who resell to end-users as illustrated in the
diagram below:

DISTRIBUTION OF ANTISEPTICS & ANTIBACTERIAL SOAPS

Active Ingredient
Supplier
80 % (1)

Antiseptics & Soaps Distributor


Formulator

(3) (2)

END- USER Home and Away from Home e.g Hospital, Hotel

Ro ute 1 - 10 % of total sales


Route 2 - 50 % of total sales
Ro ute 3 - 40 % of total sales

The most popular distribution route for Antiseptic and Soaps is via distributors to end users
with an estimated 50% of sales going via this route.

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8 VALUE CHAIN ANALYSIS FOR ANTISEPTICS


Valued added is defined as a percentage of the income achieved along the supply chain. In
the following figure, the typical mark-up is illustrated for a typical alcohol antiseptic and
antibacterial soap product supplied to a hospital.

VALUE ADDED FOR BIOCIDES ALONG THE SUPPLY CHAIN

Active Manufacturer
Mark-Up 80 %

Own Formulations Formulator / Service Company


Mark-Up 200% - 900 % Mark-Up 500 - 1500 %

Distributor / Service Co.


Mark-Up 10 %

End-User e.g. Retailer, Hospital, Hotel


etc

Figure 2: Value Chain Analysis – Antiseptics and Antibacterial Soaps

As can be seen above, value added is maximised at the Antiseptics soap formulator level for
Biocides within the Antiseptics and Antibacterial Soaps industry.

Biocide manufacturers expect to receive value added of 80% when they supply registered
biocides to Antiseptic & Soap formulators. Some biocide manufacturers also sell Biocide
active ingredients formulated as Antiseptics, Hand Sanitizers directly to the end-user. An
example of a company who manufactures biocide active ingredients and supplies a ready to
use Antiseptic is Mölnlycke. Such companies can expect to receive a Mark-Up of 900 % when
they provide their own ready to use Antiseptics.

Antiseptic and Soap formulators may generate their own registrations and formulation data or
rely on the active ingredient manufacturers to provide this information. The suppliers and

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BIOCIDES IN ANTISEPTICS & SOAPS – 2017

formulators work cooperatively to develop the necessary data for active ingredient, product
registrations and hygiene standard regulations.

If the Antiseptic and Soap formulator has to generate their own information for registration,
they expect to receive Mark-Up of up to 1000% when they supply ready to use Antiseptic and
Soap formulations to the enduser e.g. Hospital & Medical centres. The Mark-Up reflects the
costs of the marketing, packaging, technical and regulatory support which they provide.

Distributors and service companies, receive an average Mark-Up of 10% when they supply
formulations to endusers such as hospitals and medical centres. We use the example of
alcohol based Antiseptics who’s pricing along the supply chain is shown in the following
table:.

Table 20: Pricing of alcohol based Antiseptics from producer to end user

SUPPLIER PRICING

Pure Alcohol as sold by


$ 600 per tonne ($ 0.6/kg)
Chemical manufacturer

Registered Alcohol for


Antiseptics as sold by $ 1000 per tonne ($ 1/kg)
manufacturer

Registered ready to use


alcohol formulation as sold by $ 3000 per tonne ($ 3.00/kg)
formulator

Registered ready to use


alcohol formulation as sold by
$ 3300 per tonne ($ 3.30 / kg)
distributor to end-user such
as a hospital

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9 REGULATORY ANALYSIS
In the United States, the FDA regulates the use of pesticides under the authority of the
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). In addition, regional states in
the US may have additional requirements. Once the Biocide is approved, it is listed on the
national inventory of chemical substances which is called TSCA.

In Europe, the regulations governing the use of Biocides are via the Biocides Products
Regulation (BPR). ECHA will be responsible for coordinating the approval processes for
substances and the authorisation of products at EU level. A new 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

Biocides used in Antiseptics are examined in Product Type 1 of the BPR which will include all
Biocidal products for human hygiene purposes. Human hygiene Biocidal products are mainly
used in relation to care, examination and treatment of patients in the public health service
sector, in private medical and dental clinics, nursing homes, in the food processing industry
and other food handling areas. A limited number of products are used in private homes and
workplaces with the purpose of avoiding contamination and preventing infections in relation to
cuts, abrasions and the like. Thus the product type include skin disinfectants (antiseptics),
covering both liquid disinfectants and antibacterial soaps.

In addition, most Biocides used in this application will be covered by other directives such as
the directive on Pharmaceuticals. For the future, CEN, the European standards body will be
setting standards for Antiseptics in non medical areas e.g. food industry.

In most other countries, all Biocides must be listed on the relevant national “inventory” of
chemical substances before it can be supplied. In addition, the usage of Biocides in precise
applications such as skin-contact applications, will always be subject to additional legislation
which often requires a specific product registration.

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10 TRENDS

1) All biocides used within the Antiseptics & Soap industry, have had their patents expired
and as a result, generic competitors have entered the market. Generic products will
continue to grow in popularity as hospitals and other health care institutions are facing
declining budgets and will use generic products to cut costs.

2) Most of the current biocides used within the Antiseptics and Soaps have limitations.
There is an opportunity for a new active which provides broad spectrum efficacy
against microorganisms. Furthermore products must have a benign toxicological
profile, non-irritating and rated “risk free” from cancer and other chronic effects.
Biocides to benefit are hydrogen peroxide and Octendine. There has been media
interest in natural products such as Tea Tree Oil, Thyme as a biocide in antibacterial
soaps but its usage is still small.

3) There is a movement away from Iodo polyvinyl pyrrolidone iodine due to the staining of
tissue. The alcohols are the main actives to benefit. In North Americas and Western
Europe, there will be a movement away from Triclocarban, Triclosan, Phenolics, PVP
iodine and Chlorhexidine in Antiseptics and Antibacterial Soaps. The main Biocides to
benefit are the quats and alcohol based formulations with enthanol, isopropanol and n-
propanol. The regulatory authorities are encouraging the reduction in the use of
antimicrobials within Soaps for consumer markets.
4) There will continue to be increased usage of Antiseptics due to increased risk of
hospital acquired infection. Also there is a growing trend in cosmetic and minor surgery
which will support growth for Antiseptics

5) Asia Pacific will exhibit the highest growth for biocide consumption. Traditional biocides
such as alcohol, PVP iodine and Chlorhexidine will continue to exhibit strong growth.
There will be increased spending on healthcare as countries continue to grow their
healthcare budgets.

6) There is a trend towards combining quaternaries and other biocides to maximise


synergistic effects. Quats and Alcohols or Amines or phenolics are often mixed and
this blend combines the advantages of both classes of active ingredient e.g. good
antimicrobial ability.
7) There is a current trend towards rationalisation and globalisation via the large
multinationals. This trend is set to continue. Examples include SCJohnson who
acquired (Deb, Anois and Stoko). Reckitt Benckiser with the acquisition of both
household and away from home formulators such as Regent Medical.
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8) There is a movement towards measuring and improving hand hygiene through


monitoring systems. This trend will have a positive effect on Biocide consumption as it
is generally recognized that hand hygiene is critical in the movement against HAI’s.

9) The essential features of a biocide used in Antiseptics and Antibacterial soaps are:

1. Gentle to skin
2. Broad spectrum of activity

3. Fast kill

4. Cost effective
5. Compatible with other ingredients e.g. surfactants

6. Low toxicity

7. Biodegradable
8. Relevant Approvals

9. Low Ecotoxicity

10. High dirt resistance


11. Easy to formulate

12. Halogen free

13. Be effective for a reasonable length of time


14. Have a license to sell

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11 FUTURE
The consumption of Biocides in Antiseptics and Antibacterial soaps is forecasted to remain
static as outlined in the following table:.

Table 21: Projected Sales of Biocides in Antiseptics and Soap market


YEARS SALES ($M)
2018 636
2019 636
2020 636
2021 636
2022 636

Biocides used in Antiseptics & Antibacterial soap will remain static with consumer markets for
Biocides (antibacterial soaps) decreasing while industrial & institutional markets will continue
to grow. The following factors will affect future consumption of Biocides used in Antiseptics
and Soaps:

MARKET

The Antiseptics market will continue to grow at 3% per year due to an aging population,
increasing surgery and increased healthcare spending in the under developed world and the
switch to higher value biocides.

The Antibacterial Soap industry will decrease by 3 % per year. There is increased awareness
of hygiene which favours increased usage of antibacterial soaps, antiseptic gels, lotions and
sprays within large footfall areas. This will have a positive effect on the market.

BIOCIDES

The use of non chlorine products will continue to grow which will benefit all speciality biocides
especially alcohol type biocides and natural biocides such as tea tree oil. In the Soap sector,
there is also a movement away from phenolics and triclosan due to the negative publicity for
the latter.

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11.1 BIOCIDE GROWTH


The growth rate for biocides will depend on the following factors:
(1) Country Market Growth

(2) Future growth for Antiseptics and Soaps

(2) Efficacy
(3) Price

(4) Economic Circumstances

(5) Regulatory Status


(6) External Approvals

Efficacy, environmental, health (toxicity) and regulatory considerations are the principal
factors driving technological development and changes in the industry. Consequently,
Biocides that present the greatest challenges in terms of environmental, health and workplace
safety, such as chlorine, phenolics (pcmc, triclosan) will register below average growth. This
trend is best illustrated in the Antiseptics sector where there is a movement from
Chlorhexidine (contain chlorine) to alternative products such as Alcohol and Quats.

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