Abstract
US demand to rise 3.8% annually through 2013
US demand for flame retardants will rise 3.8 percent per year to 1.0 billion
pounds in 2013, reflecting more stringent fire codes and flammability
requirements, especially in building materials and consumer products.
Additionally, an improved economic outlook in key applications, such as wire
and cable insulation and jacketing, and motor vehicles, will fuel demand.
Nonetheless, overall gains will be limited by cost sensitivity in
price-competitive markets such as motor vehicles and textiles, as well as
environmental and health concerns over several flame retardant chemicals. In
value terms, flame retardant demand will advance nearly 4.0 percent per year
to $1.1 billion in 2013. This represents a deceleration from the 2003- 2008
period, which was characterized by rapid price increases for flame retardants
as a result of high raw material and energy costs.
Phosphorus-based flame retardants to grow at fastest pace
Phosphorus-based flame retardants will grow at the fastest pace, driven by
increasing trends toward non-halogenated products. However, brominated
compounds will continue to lead the market in total value, as the regulatory
climate in the US is unlikely to undergo dramatic changes in the near future.
Rapid gains are also expected for smaller-volume flame retardants, such as
magnesium hydroxide, which is finding increased use in polypropylene and
engineering resins. Alumina trihydrate (ATH) will remain the largest volume
flame retardant through 2013, comprising 46 percent of demand and growing
slightly faster than the overall market.
Wire and cable, motor vehicle markets to post strongest gains
Construction products were the largest market for flame retardants in 2008,
accounting for 32 percent of total demand by volume. Strongest gains are
projected for flame retardants in wire and cable applications. Above average
growth is also expected for motor vehicles, driven by rebounding production
levels. Smaller-volume outlets such as aircraft and aerospace products will be
fueled by strict flammability regulations. Textile markets will expand at the
slowest pace due to intense competition from offshore producers with lower
labor costs and governmental subsidies.
Plastic materials hold best growth opportunities
Plastic resins (both thermoplastics and thermosets) accounted for over
threequarters of demand in 2008. The most rapid gains are expected for
polyolefins and other thermoplastics such as engineering resins, which are
increasingly used in flame retardant construction and electronics
applications. Slower growth is expected for PVC, polystyrene and epoxy resins,
although gains will improve considerably from the 2003-2008 period. Slightly
below average growth is expected for flame retardants in nonplastic materials
due to weakness in areas such as cellulose insulation.
Study coverage
This new Freedonia industry study, Flame Retardants, presents historical
demand data (1998, 2003, 2008) plus forecasts for 2013 and 2018 for alumina
trihydrate, phosphorus compounds, and brominated and chlorinated compounds, as
well as other smaller-volume products such as magnesium hydroxide and melamine
derivatives. The market environment section discusses pricing trends,
environmental and regulatory considerations and international activity. The
industry structure section evaluates market share, analyzes merger and
acquisition activity, as well as research developments, and profiles US
industry competitors.
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