Specialty plastic additive demand to grow 3% per annum through 2009
Demand for specialty plastic additives is projected to increase just under three percent annually through 2009. Gains will be driven primarily by increasingly plastics demand and a positive outlook in key markets such as construction, packaging and electronics. The rebound of polyvinyl chloride (PVC) after slow growth in the previous five years is especially important, as this resin is by far the largest consumer of plastic additives.
Plasticizers to remain dominant additive type
Plasticizers will remain the largest group of additives by volume and value, although concerns over health effects will be reflected by changes in the product mix. Other property modifiers such as impact modifiers and colorants will post significant advances as a result of improved nonresidential building activity and expanded markets. Overall growth of property modifiers will be restrained, however, by a continuing phase-out of fluorocarbon blowing agents, which are being replaced in many applications by alternative technologies.
Property extenders, which are comprised of protective products, accounted for about one-quarter of plastic additives volume in 2004. Flame retardants will see solid growth after a decline from 1999-2004, benefitting from a resurgent electrical and electronics market. Property extenders include some of the fastest growing products, including light stabilizers and antistatic agents. These higher-value additives will benefit from increased use of plastics
in more demanding environments.
Polypropylene fastest growing resin used
PVC is the top consumer of plastic additives, accounting for over 60 percent of demand by volume in 2004. The plastic will continue to dominate a number of additive products including plasticizers, impact modifiers, heat stabilizers and antimicrobials. Polypropylene, however, will post the fastest growth, as continuing market penetration into areas such as packaging and automotive applications will require more modification of the resin with antistatic agents and antioxidants.
The rapid expansion of the woodplastic composite (WPC) market will fuel healthy growth for a number of plastic additives, including lubricants and colorants. Additives for polyethylene, the primary resin used in WPCs, will also benefit from increasing demand.
Study coverage
The new Freedonia industry study, Specialty Plastic Additives, which provides historical US demand data (1994, 1999, 2004) as well as forecasts to 2009 and 2014 by type and resin. This study also assesses the industry structure and profiles 40 US industry competitors.
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