Additive usage predicted to increase.

U.S. additive usage, according to a recent study, was measured at 1.2 billion pounds in 2003, a value of $1.7 billion. This marks a 2% annual rate increase since 1998. Growth through 2008 is forecast at a similar 2% yearly rate, according to a multi-client study entitled "Additives, 2003-2008" that was recently completed by Kusumgar, Nerlfi & Growney, West Caldwell, NJ.

The industries covered in the study--coatings, paper coatings, adhesives, sealants, and inks--reportedly produced 26 billion dry pounds of product in 2003 and were worth $32 billion. According to the report, additive consumption in each of the coatings, adhesives, and sealants industries has grown at a 2-3% annual rate since 1998. Coating usage has been led by the growth of architectural coatings. Original equipment manufacturers (OEM) and special purpose coating segments showed little change in additive volume. Additive usage in adhesives and sealants increased largely because of the strong housing market, yet additive volume in paper coatings and inks changed little since 1998.

Rheology modifiers and plasticizers were found to be the largest volume additives, each representing nearly 20% of the additive poundage tallied in the study. However, rheology modifiers are reportedly higher value products, which represent nearly one-quarter of the dollars, while plasticizers were less than 10% of the total. Other additive types with sales of about $150 MM in 2003 include biocides, specialty hollow and solid sphere products, dispersants, and light stabilizers. Wetting agents and defoamers each had sales of some $100 MM in 2003.

As stated in the report, additives are employed in water-based, solvent-based, or 100% solid technologies. Water-based technologies consumed two-thirds of the additive volume, and a 2% annual rate of increase is projected. Solvent-based formulations, which accounted for 18% of the additive volume, does not forecast a change through 2008. The 100% solids category is comprised of plastisols, powder coatings, hot melts, film adhesives, radiation-curing, and other liquids. Plastisols were reported as the largest consumer of additives among the 100% solids technologies. The study does not forecast a growth in additives for plastisols. Radiation-curing and powder coatings were said to utilize small quantities of additives but are fast growing outlets.

The 800-page study, "Additives, 2003-2008," is available through subscription by contacting Kusumgar, Nerlfi & Growney at 973.439.0030 or [e-mail].