The overall chemical industry production grew by about 2.0% in 2011 in spite of reduced demand of plastic in end used segment in the last two quarters. Also, the industry is forecasted to grow by 1.5% in 2012 and 2.0% in 2013. Such a growth is a positive sign for a mature industry. This growth is mainly due to growth in the emerging market economies and recovery of major end-use markets.
As the U.S. is one of the major markets for the chemical industry, fall in the U.S. natural gas prices as compared to global crude oil prices turns out to be a positive sign for the U.S. chemical industry. This decrease in price of natural gas has improved the cost competitiveness of the U.S. chemical industry, thus driving further the growth of the global chemical industry. End user application market (31%) leads in consumption of chemicals globally followed by service sectors (16.6%). Countries like Saudi Arabia, China, Iran, India, Russia, Korea, and Brazil are expected to be the future destinations for chemical manufacturers to invest during 2012-2020.
Plastic additive is a diversified industry with a diverse range of additives such as property modifiers, property extenders, property stabilizers and processing aids and is set to demonstrate a high growth rate over the next few years. The economic crisis has slowed down the growth rate of the plastic additive industry in the recent past, but it has still survived to continue growing and it is expected to develop at a CAGR of 3.8% from 2011 to 2016.
The plastic additives industry gets easily affected by regulations and environmental policies and hence plastic additives manufacturers are always under pressure to manufacture chemicals that are eco friendly and safer than the existing products. Bans and regulatory impositions have been introduced in recent years on the usage of a wide range of plastic additives such as phthalates as a plasticizer and a few halogenated flame retardants.
The European Union (EU) is one of the most active regulatory bodies imposing strict curbs on plasticizers, flame retardants and other additives due to their adverse effect on human health. These are controlled through legislation such as Restriction on Hazardous Substances (RoHS) in electrical and electronic equipment, the Waste Electrical and Electronic Equipment (WEEE) directive and the European chemical registration legislation - REACH.
In China “the Management Methods for Controlling Pollution from Electronic Information Products”, regulates the China chemicals market. China has its own version of RoHS (Restriction of Hazardous Substances), which restricts the use of certain chemicals in the market. Such stringent environmental regulations are set to get more stringent in the coming years, affecting both existing and new products for the company.
The global plastic additives industry is expected to grow incrementally due to rise in plastic consumption, growth in automotive, consumer appliances and construction industry, and compliance with environmental regulations. However, rising health hazards due to the use of plastic additives and increase in the potential market for biodegradable plastic additives will restrain the growth of this market.
The global plastic additive industry is a mature industry in terms of value and volume. It is also one of the most diverse industries in terms of products offered. Plastic additives are classified into four broad categories namely property modifiers, property extenders, property stabilizers and processing aids. Property modifiers include flame retardants, antioxidants, antimicrobials, biodegradable plasticizers, blowing agents, and impact modifiers. Among all property modifiers, plasticizers are the fastest growing segment followed by flame retardants. These additives when added to plastics, enhances their property in a certain favorable direction. Plastic additives are added to plastic in combination with processing aids, property extenders, and are rarely used alone. Property modifiers are forecast to be the largest segment both in terms of revenue and consumption in 2016.
Plasticizer is expected to be the largest product market globally, accounting for a 51.8% share of plastic additives demand by volume in 2016. This market is expected to grow with CAGR of 3.2% during 2011-2016.
North America and Europe are mature markets for plastic additives. With trade liberalization and the rapid growth in the emerging economies, China and India have become attractive market destinations for many investors. Growth opportunities in Asia Pacific are huge due to availability of skilled and cheap labor.
The global plastic additives market has been on the rise over the recent decades owing to the rising levels of disposable income among consumers in Asia Pacific. Rise in demand for plastic additives is supported by the growing operations of the construction industry in Asia Pacific and Latin America. Growing GDP and urbanization in these two regions, mainly in dynamic economies such as China, India, South Africa, and Brazil, is majorly responsible for the growing demand from the global plastic additives market.
The global market for plastic additives is classified according to various criteria, such as function, product type, and worldwide presence of the global market. Historical and projected future statistics of all market segments are then detailed to map out the growth trajectory of the global plastic additives market during the forecast period.
The report employs time-trusted analysis tools such as and market attractiveness analysis and Porter’s five forces analysis to examine various aspects of the market. The five forces analysis examines the rivalry in the plastic additives market between buyers and vendors, emerging and established market players, and substitute and established products. Primary and secondary information is collated to present reliable information about the global plastic additives market.
The value chain of the plastic additives industry is analyzed in detail, in order to offer a snapshot of the upstream supply and downstream demand dynamics of the market and demand patterns regarding each product type and from each application and regional segment.
Overview of the global plastic additives market
Due to the growing demand from a variety of regional segments, the global plastic additives market is expected to grow at a 3.8% CAGR by volume from 2011 to 2016.
The global plastic additives market is segmented on criteria such as product types, function, and geography. Market size of all segments is presented in the report. The main product types in the global plastic additives market are plasticizers, impact modifiers, flame retardants, antioxidants, UV stabilizers, and antimicrobials. The importance of the role of plasticizers in the plastic industry has resulted in the segment gaining a lion’s share of the market. Plasticizers accounted for about 50% of the global plastic additives market.
By function, the plastic additives market is segmented into property modifiers, property extenders, property stabilizers, and processing aids.
Of the geographical segments of the global plastic additives market, Asia Pacific emerged as the market leader, due to the strong growth prospects of the construction and automotive industries in Asia Pacific. The automotive industry in China, in particular, is expected to undergo rapid growth in the forecast period, resulting in higher demand for plastic additives. Other BRIC countries, in addition to South Korea, Saudi Arabia, and Iran are major geographical segments of the plastic additives market.
Companies mentioned in the report
The report profiles major companies in the global plastic additives market, which is led by companies such as Bayer, Chemtura Corporation, Exxon Mobil, and Kaneka. Analysis of market operations of these and other leading players and their financial breakdown are presented in the report, to provide comprehensive a competitive landscape analysis.
Major geographies analyzed under this research report are:
- North America
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments
Plastic additive is a diversified industry with various types of additives such as property modifiers, property extenders, property stabilizers and processing aids and is set to demonstrate a high growth rate over the next few years. Major end use markets served by the industry include commercial construction, automotive, consumer appliances industry and general manufacturing industries. The plastic additive industry being energy and capital intensive, oil and gas are considered as major raw material suppliers for the industry.
The global plastic additives industry continues to grow and discover new growth opportunities mainly due to increase in end use markets such as commercial construction, automotive, consumer appliances industry and general manufacturing industries. Initial high implementation cost remains the major concern; however the high ROI (return on investment) is expected to overcome this concern and drive the growth of the plastic additive market. The other factors driving the market include rise in plastic consumption, recovering economy, and compliance with environment.
Among all the geographical regions, Asia Pacific is leading globally both in terms of production and consumption of plastic additives due to increase in end use market such as automobile industry and construction industry. Moreover, the automobile industry in China and India is expected to grow at over 8% and 14% respectively. The demand from mature markets such as U.S. and Europe is also expected to increase due to recovery from a sluggish economy.
The opportunities in plastic additives industry are huge as many market players are continuously investing and focusing on new product development. BASF remains the biggest manufacturer of plastic additives; other manufacturers include Chemtura Corporation, Exxon Mobil Corporation Bayer AG, Chemtura, Kaneka and many more.