The global plastic additives market will be valued at $57.8 billion within the next six years, according to a new industry report released Thursday by Allied Market Research. The plastic additives market on an international level maintained volume at 12.6 million tons last year and that number is projected to rise to 17.1 million tons by 2020.
Global market growth could be facing several serious obstacles because of tough governmental regulations of various plastic additives – Chlorinated flame retardant, for instance – that are instituted by the governments in the United States, Canada and the European Union. In addition, companies are facing many lawsuits, including commercial usage of prohibited products and patent replication suits, which are hurting growth.
Nevertheless, demand for plastic additives, such as plasticizers, flame retardants, impact modifiers, antioxidants, anti-microbial and ultraviolet stabilizers, is on the rise and adoption rates are soaring, predominantly in the manufacturing of additives sector because of the specialty chemicals utilized in automobile and construction equipment.
“Decreasing mineral ore sources have increased the cost of metal equipment, which has triggered the application of plastics to replace the metal equipment,” the research organization stated in a news release. “The low cost of plastic equipment and properties that match metal equipment is also pushing the higher adoption of plastics in a number of applications.”
When it comes to volume and values, plasticizers are leading the additives market. This segment of the market was worth a little more than $21 billion in 2013 and will continue to lead the industry in the long-term.
“The multiple applications of plasticizers in manufacturing plastic products are promoting the market as compared to others segments,” the report noted.
At the present time, the Asia-Pacific region is experiencing the biggest revenues because of the low cost of available raw material (PDF) and the cheaper workforce. This is why manufacturers of plastic additives are transferring their focus to the developing and emerging markets in the near-term.
The report noted that the Asia-Pacific and developing regions shared nearly half (42.1 percent) of the revenues garnered last year. That number is expected to jump to 60 percent in the next six years because consumption of plastic products and the heightened awareness of eroding resources are increasing in these areas.
“Plastic additives market is expected to grow in developing economies such as India, China, and Japan,” the report authors explained. “The developing economies are more lucrative for the global players operating in this market due to availability of low cost labors and raw materials.”
Graphene NanoChem made headlines in the United Kingdom when its shares jumped 11 percent after announcing it would partner with two other companies. Also, it confirmed it had signed an agreement with Emery advanced materials to produce chemicals for plastic additives and other items.
