Specialty plastic additive demand to grow 3% per annum through 2009.

Demand for specialty plastic additives is projected to increase just under three percent annually through 2009. Gains will be driven primarily by increasingly plastics demands and a positive outlook in key markets such as construction, packaging and electronics. The rebound of polyvinyl chloride (PVC) after slow growth in the previous five years is especially important, as this resin is by far the largest consumer of plastic additives.

Plasticizers to remain dominant additive type.

Plasticizers will remain the largest group of additives by volume and value, although concerns over health affects will be reflected by property modifiers such as impact modifiers and colorants will post significant advances as a result of improved non-residential building activity and expanded markets.

Overall growth of property modifiers will be restrained, however, by a continuing phase-out of fluoro-carbon blowing agents, which are being replaced in many applications by alternative technologies.

Property extended, which are comprised of protective products, accounted for about one-quarter of plastic additives volume in 2004. Flame retardants will see solid growth after a decline from 199-2004, benefitting from a re-surgent electrical and electronics market. Property extenders include some of the fastest growing products, including light stabilizers and antistatic agents. These higher-value additives will benefit from increased use of plastic in more demanding environments.

Polypropylene fastest growing resin used.

PVC is the top consumer of plastic additives, accounting for over 60 percent of demand by volume in 2004. The plastic will continue to dominate a number of additives products including plasticizers, impact modifiers, heat stabilizers and antimicrobials. Polypropylene, however, will post the fastest growth, as continuing market penetration into areas such as packaging and automotive applications will require more modification of the resin with antistatic agents and antioxidants.

The rapid expansion of the wood-plastic composite (WPC) market will fuel healthy growth from a number of plastic additives, including lubricants and colorants. Additives for polyethylene, the primary resin used in WPCs, will also benefit from increasing demand.