US specialty plastic additives demand to reach 5.5 billion pounds in 2006.

Demand for specialty plastic additives is forecast to advance 3.7 percent annually to 5.5 billion pounds in the year 2006. In value terms, consumption will increase 4.9 percent per year to $5.9 billion. Gains will result from increasing plastics production (albeit from a relatively weak 2001

Gains in demand for plastic additives will be most pronounced in property extenders, which include a much higher specialty additive component. These additives, including heat and light stabilizers, antioxidants, antimicrobials, flame retardants, antistatic agents and anti-fogging agents, are essential to the production of plastics which are intended to be used in hostile environments. The increasing use of plastics in electronics will spur growth in demand for antistatic and flame retardant additives, while gains in plastic building products will benefit antimicrobials and light stabilizers.

Property modifiers, on the other hand, include several large volume products (such as plasticizers) which are increasingly characterized by severe price competition between numerous producers vying for market sham. In addition, overall gains for property modifiers will continue to be negatively impacted by the declining use of conventional blowing (foaming) agents, which are being superceded by new processes which utilize water or atmospheric gases to create plastic foams.

Consumption of processing aids (primarily lubricants and mold release agents) will increase faster than growth in plastics production. This will result from the growing use of internal products, as opposed to external products, which are applied to the mold. The latter pose potential environmental problems, and often adversely affect the appearance of plastic parts.

Polyvinyl chloride (PVC) is the primary outlet for plastic additives, accounting for 60 percent of overall demand in 2001. PVC requires higher loadings of additives, particularly plasticizers (to make flexible PVC), impact modifiers (to improve strength), antimicrobials (PVC is susceptible to microbial attack) and heat stabilizers (due to the high heat used in PVC processing). Other polymers which consume significant amounts of additives include polyolefins (polyethylene and polypropylene), polyurethane and polystyrene.

Specialty Plastic Additives(published 10/2002, 226 pages) is available for $3,700 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

US PENALTY PLASTIC ADDITIVES DEMAND
(million pounds)

                                                        % Annual Growth
Item                                 1996   2001    2006   01/96  06/01

Specialty Plastic Additives Demand   3997   4614   5520      2.9    3.7
  Property Modifiers                 2965   3381   3985      2.7    3.3
  Property Extenders                  900   1081   1350      3.7    4.5
  Processing Aids                     132    152    185      2.9    4.0