Increases forecast for thermoplastic elastomers.

Global demand for thermoplastic elastomers (TPEs) is expected to increase 6.4% per year through 2007, according to a study by The Freedonia Group, Inc., Cleveland, OH. The U.S. should experience even stronger value gains at 7.8% due to the increase in applications that require TPEs. Global TPE sales will remain concentrated in the developed markets of the U.S., Japan, and Western Europe. According to the study, TPEs will continue to find most of their use as replacements for natural and synthetic rubber, as well as for rigid thermoplastics and metals. They are also gaining many new applications in which they are overmolded onto rigid plastic or metal components to enhance "soft-touch" features on a wide range of products, chiefly consumer goods.

The study also shows that developing countries, particularly in Asia, are expanding their positions in TPEs. They are initially focusing on low-cost styrenic block copolymers, but are also diversifying into compounded thermoplastic polyolefins and thermoplastic polyurethanes. In particular, China has emerged over the last 10 years as a major market for TPEs.

Motor vehicles will remain the largest market for TPEs at the global level with demand approaching 630,000 metric tons in 2007. Sustained gains forecast for TPEs in the automotive market are attributable to the development of new products for exterior and interior applications at the expense of ethylene-propylene diene monomer and polyvinyl chloride. Consumer and sporting goods are reported to remain the fastest growing market for TPEs through 2007.

These and other trends are presented in the new study, World Thermoplastic Elastomers, by The Freedonia Group, Inc. The 313-page study is available for $5,100 from the group. Contact Corinne Gangloff at [e-mail], 440.646.0484, fax: [phone].