Emerging regulatory initiatives in the EU are driving towards more environmentally safe chemicals, used as such or in a wide range of products and applications. The aim of the regulations is also to foster and support the emergence of new or safer alternatives and to drive innovations thereof. Biocides are chemicals, which are used in a vast and steadily growing number of applications in order to preserve product safety and quality, however, the number of the Active Substances (AS) used in biocides is decreasing in the EU concurrent with the implementation of the Biocidal Product Directive (BPD). Accordingly, the present study attempts to elucidate views of representatives of the biocide industry in order to identify some of the present drivers and challenges of new AS development in the different biocide application areas, with emphasis on the economic feasibility of safer biocide development in the future. Notably, the costs of vertebrate testing are a major factor in development of new AS. Therefore, an evaluation of the costs of such tests and their total proportion of total AS development costs is also discussed. Industry expectations for the implementation of the BPD and impacts thereof are presented.