Specialty additives to grow at 3.7% pace. (Market Focus).

Demand for specialty polymeric additives in the U.S. is forecast to grow 3.7% annually to 5.5 billion pounds in the year 2006, according to a new study by The Freedonia Group.

In value terms, consumption will increase 4.9% per year to $5.9 billion. Gains will result from increasing production (albeit from a weak 2001 base), marginally higher overall loading factors and continued penetration of high performance market niches.

Gains in demand for additives will be most pronounced in property extenders, which include a much higher specialty additive component, according to the study. These additives, including heat and light stabilizers, antioxidants, antimicrobials, flame retardants, antistatic agents and anti-fogging agents, are essential to the production of parts which are intended to be used in hostile environments.

Freedonia says that property modifiers are characterized by severe price competition. Overall gains for property modifiers will continue to be negatively impacted by the declining use of conventional blowing agents which are being superseded by new environmentally friendly processes.

Consumption of processing aids, primarily lubricants and mold release agents, will increase faster than growth in polymer production.