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European demand for additives set to grow
i
Industry
News
European demand for additives set to grow The pace of technological change in many parts of the plastics additives market is relatively slow, according to a new report by international marketing consultants Frost & Sullivan, although new products are continually being developed in response to environmental and health concerns about some traditional plastics additives. The new study says that revenues in the European plastics additives market were $2.2 billion in 1998 and are set to rise to $2.58 billion by the end of 2005. The study looks at key trends affecting the markets for a group of five of the most important plastics additives: plasticizers, flame retardants, UV stabilizers, heat stabilizers and antioxidants. The prediction is that more environmentally-acceptable additives, such as melamine flame retardants and calcium heat stabilizers, are expected to show the highest growth rates. The report emphasizes that the plastic additives market continues to be driven by the growing demand for plastics, a direct result of the ongoing replacement by plastics of traditional materials such as wood, metal and glass in many applications. Rising demand for additive blends, new product development and product improvements are further factors catalysing growth in the total plastic additives market. Frost & Sullivan adds that increasingly stringent fire safety standards and regulations, buoyancy of the building and construction sector and rising demand for engineering plastics, will further drive sales of plastic additives, and particularly flame retardants. Plastic additives, as a whole,
1995
59.6
~4.5
12.2
9.2
4.5
t 996
52.6
. 7.7
13.9
10.8
5.0
40.1
25.1
17.4
11.3
6.1
1999
40.2
25.7
17.2
I 1.0
5.9
2000
39.9
26. I
17. I
I 1.0
5.9
2001
39.4
26.6
17.0
I I. I
5.9
2002
38.9
27~0
16.9
11.2
6,0
2003
~18.5
27.5
16.8
I 1.2
6.0
2004
37.9
28.0
16.7
I 1.3
6. I
2005
37.5
28.5
16.6
I 1.3
6. I
1998
......
i
the switch from brominated and antimony trioxide to nonhalogenated flame retardants. The fastest growing flame retardants are expected to be zinc stannates, magnesium hydroxide and melamine. Meanwhile, the heat stabilizer plastic additives market will be characterized by a continuing decline in the share of leadbased stabilizers in favour of mixed metal soaps (mainly calcium zinc) and organotin. Demand for antioxidant plastic additives is determined primarily by growth in demand for plastics, says Frost & Sullivan. The most important plastic markets for antioxidants are polyolefins (polypropylene, LDPE, LLDPE and HDPE). Antioxidants are also used in PVC and polystyrene. The fastest growing plastics are
will grow in line with the demand for plastics. However, the study observes significant variation in growth rates between different additive types and between the different product groups within each plastic additive market, primarily driven by the growth of the end-user market, cost-performance ratios and, increasingly, environmental concerns. The market for plasticizer plastic additives accounted for 40.1% of total sales in 1998. Due to falling prices, market revenues have declined dramatically since 1995. Phosphate and adipates are forecast to be the highest growth plasticizers. Ranking in second position is the market for flame retardant plastic additives. The most notable trend in this market is
Plastics Additives & C o m p o u n d i n g October 1999
4
polypropylene and LLDPE, which have achieved doubledigit growth rates in recent years. Light stabilizer unit growth rates tend to follow growth rates in the main end-user polymer markets such as polyolefins and PVC, which in turn depend on the general level of economic activity. According to the report, Germany was the largest plastic additives market in 1998, followed by Italy, France and the UK. The main trend is the declining market share of Northern European countries such as Germany, France, Scandinavia and Benelux, and growth in the market shares of Italy and Spain. Report 3766 on the European market for plastics additives is available j%m Frost dr Sullivan at a price of US$3,950.
Industry
News
European demand for additives set to grow The pace of technological change in many parts of the plastics additives market is relatively slow, according to a new report by international marketing consultants Frost & Sullivan, although new products are continually being developed in response to environmental and health concerns about some traditional plastics additives. The new study says that revenues in the European plastics additives market were $2.2 billion in 1998 and are set to rise to $2.58 billion by the end of 2005. The study looks at key trends affecting the markets for a group of five of the most important plastics additives: plasticizers, flame retardants, UV stabilizers, heat stabilizers and antioxidants. The prediction is that more environmentally-acceptable additives, such as melamine flame retardants and calcium heat stabilizers, are expected to show the highest growth rates. The report emphasizes that the plastic additives market continues to be driven by the growing demand for plastics, a direct result of the ongoing replacement by plastics of traditional materials such as wood, metal and glass in many applications. Rising demand for additive blends, new product development and product improvements are further factors catalysing growth in the total plastic additives market. Frost & Sullivan adds that increasingly stringent fire safety standards and regulations, buoyancy of the building and construction sector and rising demand for engineering plastics, will further drive sales of plastic additives, and particularly flame retardants. Plastic additives, as a whole,
1995
59.6
~4.5
12.2
9.2
4.5
t 996
52.6
. 7.7
13.9
10.8
5.0
40.1
25.1
17.4
11.3
6.1
1999
40.2
25.7
17.2
I 1.0
5.9
2000
39.9
26. I
17. I
I 1.0
5.9
2001
39.4
26.6
17.0
I I. I
5.9
2002
38.9
27~0
16.9
11.2
6,0
2003
~18.5
27.5
16.8
I 1.2
6.0
2004
37.9
28.0
16.7
I 1.3
6. I
2005
37.5
28.5
16.6
I 1.3
6. I
1998
......
i
the switch from brominated and antimony trioxide to nonhalogenated flame retardants. The fastest growing flame retardants are expected to be zinc stannates, magnesium hydroxide and melamine. Meanwhile, the heat stabilizer plastic additives market will be characterized by a continuing decline in the share of leadbased stabilizers in favour of mixed metal soaps (mainly calcium zinc) and organotin. Demand for antioxidant plastic additives is determined primarily by growth in demand for plastics, says Frost & Sullivan. The most important plastic markets for antioxidants are polyolefins (polypropylene, LDPE, LLDPE and HDPE). Antioxidants are also used in PVC and polystyrene. The fastest growing plastics are
will grow in line with the demand for plastics. However, the study observes significant variation in growth rates between different additive types and between the different product groups within each plastic additive market, primarily driven by the growth of the end-user market, cost-performance ratios and, increasingly, environmental concerns. The market for plasticizer plastic additives accounted for 40.1% of total sales in 1998. Due to falling prices, market revenues have declined dramatically since 1995. Phosphate and adipates are forecast to be the highest growth plasticizers. Ranking in second position is the market for flame retardant plastic additives. The most notable trend in this market is
Plastics Additives & C o m p o u n d i n g October 1999
4
polypropylene and LLDPE, which have achieved doubledigit growth rates in recent years. Light stabilizer unit growth rates tend to follow growth rates in the main end-user polymer markets such as polyolefins and PVC, which in turn depend on the general level of economic activity. According to the report, Germany was the largest plastic additives market in 1998, followed by Italy, France and the UK. The main trend is the declining market share of Northern European countries such as Germany, France, Scandinavia and Benelux, and growth in the market shares of Italy and Spain. Report 3766 on the European market for plastics additives is available j%m Frost dr Sullivan at a price of US$3,950.