Abstract
U.S. Flame-retardant Chemicals Markets
Environmental Concerns Slows Sales of Flame-retardant Systems
As increasing numbers of customers realize that environmentally hazardous
products such as pentabromodiphenyl ether and octabromodiphenyl ether are used
in flame-retardant systems, there has been a decrease in market demand. Findings
of several environmental safety organizations and the objections raised by
Greenpeace have contributed to an anxiety concerning all halogenated
flame-retardants that has greatly reduced demand for products in the halogen
class. Antimony trioxide, a popular synergist, has been identified as a class
III carcinogen. Consequently, manufacturers that incorporate these in their
products are opting for alternatives such as zinc borates and stannates.
Flame-retardant manufacturers have been expending numerous resources in an
attempt to educate and retain market share, since the solution lies in end-user
awareness and education.
This new research service from Frost & Sullivan examines the current
state of the U.S. flame-retardant chemicals market and contains unit shipment
and growth forecasts for each flame-retardant chemical type along with end user
application analysis of the various segments. This will enable the client to see
the potential in target market size with respect to each application segment.
In-depth strategies to aid market penetration and address individual challenges
are also included. In addition, major drivers and restraints that impact growth
are provided to facilitate effective marketing strategies.
High Cost of Flame-retardants Reduces Consumer Base
Polymer manufacturers already affected by the sluggish economy and the moving
of manufacturing bases to overseas markets, are reluctant to incorporate
flame-retardants in their products, since they significantly add to
manufacturing costs. "The decline in regional consumption combined with
increases in energy and manufacturing costs works against the demand for
flame-retardant products," says the analyst of this research service.
Original equipment manufacturers (OEMs) try to avoid incorporating such
prohibitively priced flame-retardants into their products as long as it is not
mandatory. Although regulations in the U.S. are relatively more lax when
compared to Europe, this situation is expected to change as various legislations
come into play, leading to greater product demand.
Legislations Result in a Greater Need for Product Applications
Since OEMs prefer to maintain uniformity in manufacturing processes,
regulations enforced in a particular geographic region have an impact on the
global front, ensuring that the mandates in Europe will trigger corresponding
developments in the U.S. The recent legislation passed in the state of
California will impact the demand for pentabromodiphenyl ether and
tetrabromodiphenyl ether products that are to be banned from 2004.
"The regulations reassure consumers and despite the decline in demand
for particular flame-retardants, it will instigate a demand for newer products,
thus diminishing the impact of this challenge," predicts the analyst.
Maintaining a broader product and technology portfolio can circumvent such
curtailment and result in greater market share over time.
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