Plastics additives are added to a polymer during reaction in the final stage or in the process of polymer/plastic production. These additives help in improving the characteristics of polymers such as strength, shine, durability and heat sensitivity. The global plastic additives market was valued for US$41.4 bln in 2013 and is expected to generate revenue of US$57.8 bln by 2020 at a CAGR of 4.9% during 2013-2020, as per Global Industry Analyst. The global plastic additives market in terms of volume was estimated at 12,61900 tons in 2013 and is expected to reach 17,071,00 tons by 2020, growing at a CAGR of 4.4% during 2013-2020. The impacting drivers of this market such as increase in environmental awareness and intervention by government to promote non-toxic plastic additives is promoting growth. However, increase in health concerns due to consumption of Phthalate based plasticizers is forcing the government to harness the regulations for controlling commercialization of such additives. In the United States, the application of phthalates in the manufacturing of toys and other children’s product is banned under the guidance of Consumer Products Safety Improvement Act (CPSIA).
A report published by Transparency Market Research forecasts that plastic additives market, valued at US$11.16 bln in 2012, is expected to reach US$15.9 bln by 2019, growing at a CAGR of 5.2% from 2013 to 2019. Lack of adequate power infrastructure and increasing demand for reliable electricity delivery are the major driving forces of this market. Plastic additives 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 market 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 growth of end use markets such as automotive and construction industry- The automobile industry in China and India is expected to grow at over 8% and 14% respectively. Demand from mature markets such as USA and Europe is also expected to increase due to recovery from a sluggish economy. The opportunities in plastic additives market 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. The overall chemical industry production grew by about 2% in 2011 in spite of reduced demand of plastic in end used segment in the last two quarters. Also, the industry is forecast to grow by 1.5% in 2012 and 2% 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 US is one of the major markets for the chemical industry, fall in natural gas prices in USA as compared to global crude oil prices turns out to be a positive sign for the US chemical industry. The decrease in price of natural gas has improved the cost competitiveness of the US 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.
Pending legal suits are hindering the growth of plastic additive market. Companies are facing problems with lawsuits such as patent imitation suit, commercial application of banned product, etc. Allied Market Research forecasts the global plastic additives market in terms of volume, estimated at 12.6 mln tons in 2013, is expected to reach 17.1 mln tons by 2020 growing at a CAGR of 4.4% during 2013-2020. Decreasing mineral ore sources have increased the cost of metal equipment, which has triggered the application of plastics to replace the metal equipment. 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. Thus the demand for additive which enhances the properties of plastics is also on rise. The companies involved in manufacturing of additives are majorly concentrating on specialty chemicals that are used in construction and automobile equipment. The global plastic additives market growth is dampened by strict government regulations as some plastics additives such as Chlorinated flame retardant are banned in countries, namely Canada, U.S. and the European Union. The pending legal suits are also hindering the growth of plastic additive market. Companies are facing problems with lawsuits such as patent imitation suit, commercial application of banned product, etc. The plastic additives manufactures have high focus on developing economies due to economical advantages. Asia-Pacific is the largest revenue generating region among other geographies due to the availability of low cost raw material and economical work force. However, the availability of economical work force in under developed economies such as Africa is also attracting the global players. The Asia-Pacific and Rest of the World shared 42.1% revenue in 2013 which is expected to soar to 60% by 2020. Increase in consumption of plastic products and raising awareness for the preservation of depleting resources is facilitating the growth of plastic additive market in these regions.
Plastic additive market by type is segmented into Plasticizers, Flame Retardants, Impact Modifiers, Antioxidants, Anti-microbial and UV Stabilizers. The plastic additive market by types is ruled by plasticizers in terms of volume as well as values. The plasticizers market was valued at US$21.4 bln in 2013 and expected to lead in terms of revenue generation throughout the analysis period. The multiple applications of plasticizers in manufacturing plastic products are promoting the market as compared to others segments. The flame retardants plastic additives market has highest growth potential which is forecast to grow at a CAGR of 5.4% during 2013-2020. Furthermore, antimicrobial market which is expected to grow at a moderate growth is promoted due to increase in demand for disposable products in healthcare industry. Plastic additives market is expected to grow in developing economies such as India, China, and Japan. The developing economies are more lucrative for the global players operating in this market due to availability of low cost labors and raw materials. The companies involved in the manufacturing of chemicals are trying to capture the natural resources to create monopolistic environment in supply chain of plastic additive and other chemicals market. Key companies included in the company profiles are BASF, Chemtura Corporation, Exxon Mobil Corporation, Bayer Ag, Clariant Ltd. and Kaneka Corporation.