Additives for polymers: 8 million tonnes, $16 billion, worldwide

Additives for polymers: 8 million tonnes, $16 billion, worldwide

June I997 Additives for Polymers companies acquire existing businesses form overseas joint ventures. MARKETING Additives for polymers: 8 million to...

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June I997

Additives for Polymers

companies acquire existing businesses form overseas joint ventures.

MARKETING Additives for polymers: 8 million tonnes, $16 billion, worldwide World consumption of chemical additives for polymers totals some 7.9 million tonnes, according to researchers Phillip Townsend Associates Inc (PTAI). The US research agency puts value of the business at about $15.9 billion. In a new report on the industry, PTAI’s manager for additives research Carolyn Reilly divides the industry into three segments, the largest of which is modifiers, accounting for 5.9 million tonnes (74% of total volume) and valued at $8.8 billion (56% of total value). Property extenders come in as secondlargest, at 20% of tonnage and 38% of value. Processing aids form the third group (at 6% of both volume and value) - but it is this segment which will show the most rapid growth in coming years. Overall, PTAI forecasts a business growth rate of 3-S%/year for the next 3-5 years.

and

Contact: Phillip Townsend Associates /27c, PO Box 90327 Houston TX 77290, IJSA; tel: +I-713 873 8733

Masterbatch profitability and trends in Western Europe More or less agreeing with the Townsend survey (above), UK researchers Applied Market Information (AMI) estimate that the plastics industry in Western Europe is consuming over 2 million tonnes of additives. In a survey of the masterbatch sector in Western Europe, AM1 estimates that approximately 45% of all performance additives used in the region are incorporated via masterbatch. Pigmented masterbatches are used to mod@ about 53% of the polymers processed.

Geographically PTAI sees exactly the same split in both volume and value of additives consumption: Volume and value of additives consumption, by world region

% Total

Volume tonnes million

Value US.$ billion

100

7.9

15.9

North America

23

1.8

3.7

Europe

26

2.1

4.1

Asia/Pacific

39

3.1

6.2

Other regions

121

0.9

1.91

Source: PTAI

Looking at the structure of the additives industry worldwide, PTAI counts over 350 suppliers’ of additives for polymers, but less than 100 have annual sales of additives of more than the equivalent of US$ 100 000. There is a large number of small suppliers of specialities, but the number will decrease as 8

Source: AMI This indicates the strength of the market and its historical growth - but, adds AMI, it also suggests that potential for growth in the 0 I997 Elsevier Science