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Flame Retardants

US demand to grow 5% annually through 2016
Demand for flame retardants in the US is expected to grow 4.6 percent per year to 938 million pounds in 2016, a significant rebound as the industry benefits from an improving economy and a turnaround in key markets like building construction and motor vehicles. Construction related applications will provide the biggest impetus to growth and continue to account for the greatest share of sales. Other factors increasing demand include stringent fire codes and flammability requirements. Environmental issues will present mixed results, with concern over the potentially deleterious health effects of halogenated flame retardants slowing growth for those compounds, especially in consumer goods, but also offering opportunities for safer alternatives.

Recession of 2007-2009 affected most flame retardant markets
The mortgage crisis and ensuing economic downturn resulted in a decline in flame retardant demand beginning in 2007 as a glut in the housing market led to a sharp downturn in residential construction. By 2009 the recession began to impact the construction of offices and commercial spaces. These trends reduced the need for flame retardants used mostly in construction, with boron (used in insulation) and chlorinated compounds (used in PVC) seeing the steepest declines. Markets closely associated with construction, such as wire and cable, upholstery, carpets and rugs, and other home furnishings, experienced similar losses. Outside the construction industry, flame retardant demand in motor vehicles and electronics also felt the severity of the recession.

Construction markets to see sharpest advances thru 2016
With the housing market bottoming out and showing signs of recovery, demand for flame retardants will also begin to improve. Flame retardants utilized in construction applications will see the sharpest improvements given that insulation, roofing, flooring, building boards, and other structural materials that all require treatment. Boron and phosphorusbased flame retardants will expand at the fastest rates. Brominated compounds will benefit from use in polystyrene and polyurethane insulation.

Outside of the construction market, a number of other uses for flame retardants will experience improved market prospects, including construction associated industries like carpeting, curtains, and other home furnishings. Wire and cable applications for both communications and power transmission will expand, along with new construction. Use in motor vehicle applications will post strong improvement along with the rebound in US motor vehicle output. The increasing use of plastics in vehicles provides additional opportunities. In contrast, the outlook for the US electronics industry is less benign and electronics applications will be the slowest growing outlets for flame retardant demand.

Non-halogenated types to benefit from safety concerns
Alumina trihydrate is by far the most important type of flame retardant used in the US market in volume terms, with 46 percent of total volume sales. However, the higher-value brominated flame retardants account for the greatest share of market value. Halogenated types will register subpar advances due to health and safety concerns, although this same issue will provide opportunities for a number of non-halogenated alternatives.


PRESS RELEASE

US Demand for Flame Retardants to Reach 1.1 Billion Pounds in 2016

US demand for flame retardants will expand 6.0 percent per year to 1.1 billion pounds in 2016. Robust gains in building construction -- particularly for new housing -- as well as in other closely associated markets, such as wire and cable, and home furnishings, will drive advances. Stringent fire codes and flammability requirements, especially in building materials and consumer products, will also support flame retardant sales. The shift in product mix toward lower cost non-halogenated flame retardants will be offset by their higher loading levels, with overall sales of flame retardants rising 7.8 percent per annum to $1.2 billion in 2016. With new residential building construction driving rapid increases in cellulosic insulation demand, boron compounds will register the fastest growth going forward. Alumina trihydrate will achieve strong gains as well and remain the most significant flame retardant by volume. These and other trends are presented in Flame Retardants, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The construction market accounted for 38 percent of total flame retardant demand by volume in 2011. Double-digit annual growth in both residential and nonresidential building spending through 2016 will lead to robust gains for flame retardants in insulation materials such as cellulose, foamed polyurethane, and polystyrene, as well as PVC and other materials used in flooring, panels, piping, and other construction products. Other flame retardant markets are also heavily impacted by building construction, including textiles (e.g., for products such as carpets, curtains, and rugs), insulated wire and cable (e.g., both in building wiring, and connectivity wiring such as fiber optics), and furniture and mattresses.

The ongoing rebound in the US motor vehicle industry will also have a positive impact on flame retardant demand. Rising vehicle production levels, the increased use of lighter weight plastic and composite materials that offer improved fuel efficiency, and elevated temperatures in under-the-hood applications due to smaller, hotter running engines will all contribute to increasing motor vehicle flame retardant demand. Efforts by Boeing and Airbus to improve airplane fuel efficiency through the increased use of composites and other plastics, along with the industry’s strict flame retardance standards, will drive gains in the aerospace market.

  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table FLAME RETARDANT DEMAND (million pounds)
  • MARKET ENVIRONMENT
    • General
    • Macroeconomic Environment
      • Table MACROECONOMIC INDICATORS
    • Demographic Trends
      • Table POPULATION & HOUSEHOLDS (million people)
    • Consumer Income & Spending Trends
      • Table PERSONAL CONSUMPTION EXPENDITURES (billion 2005 dollars)
    • Construction Trends
      • Table CONSTRUCTION EXPENDITURES (billion 2005 dollars)
    • Manufacturing Trends
      • Table MANUFACTURERS' SHIPMENTS
    • Plastic Resin Outlook
      • Table PLASTIC RESIN SUPPLY & DEMAND (million pounds)
    • Historical Market Trends
      • Table FLAME RETARDANT MARKET, 2001-2011
    • Pricing Trends
      • Table FLAME RETARDANT PRICING (dollars per pound)
    • Environmental & Regulatory Issues
      • Environmental & Health Issues
      • Legal & Regulatory Issues
    • International Activity
    • Foreign Trade
  • PRODUCTS
    • General
      • Demand by Type
        • Table FLAME RETARDANT DEMAND BY TYPE (million pounds)
        • Table HALOGENATED FLAME RETARDANT DEMAND (million pounds)
        • Table NON-HALOGENATED FLAME RETARDANT DEMAND (million pounds)
      • Demand by Product
        • Table FLAME RETARDANT DEMAND BY PRODUCT (million pounds)
    • Alumina Trihydrate
      • Table ALUMINA TRIHYDRATE FLAME RETARDANT DEMAND
      • Markets & Materials
        • Table ALUMINA TRIHYDRATE FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
    • Boron Compounds
      • Table BORON FLAME RETARDANT DEMAND
      • Markets & Materials
        • Table BORON FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
    • Phosphorus Compounds
      • Table PHOSPHORUS FLAME RETARDANT DEMAND
      • Markets & Materials
        • Table PHOSPHORUS FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
    • Brominated Compounds
      • Table BROMINATED FLAME RETARDANT DEMAND (million pounds)
      • Markets & Materials
        • Table BROMINATED FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
    • Antimony Trioxide
      • Table ANTIMONY TRIOXIDE FLAME RETARDANT DEMAND (million pounds)
      • Markets & Materials
        • Table ANTIMONY TRIOXIDE FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
    • Chlorinated Compounds
      • Table CHLORINATED FLAME RETARDANT DEMAND
      • Markets & Materials
        • Table CHLORINATED FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
    • Other Flame Retardants
      • Table OTHER FLAME RETARDANT DEMAND
      • Markets & Materials
        • Table OTHER FLAME RETARDANT DEMAND BY MARKET & MATERIAL (million pounds)
      • Suppliers
  • MATERIALS
    • General
      • Table FLAME RETARDANT DEMAND BY MATERIAL (million pounds)
    • Thermoplastics
      • Table THERMOPLASTIC RESIN DEMAND FOR FLAME RETARDANTS (million pounds)
      • Polyvinyl Chloride
        • Table POLYVINYL CHLORIDE DEMAND FOR FLAME RETARDANTS (million pounds)
      • Polyolefins
        • Table POLYOLEFINS DEMAND FOR FLAME RETARDANTS (million pounds)
      • Polystyrene
        • Table POLYSTYRENE DEMAND FOR FLAME RETARDANTS (million pounds)
      • Acrylonitrile-Butadiene-Styrene
        • Table ABS DEMAND FOR FLAME RETARDANTS (million pounds)
      • Nylon
        • Table NYLON DEMAND FOR FLAME RETARDANTS (million pounds)
      • Other Thermoplastics
        • Table OTHER THERMOPLASTIC DEMAND FOR FLAME RETARDANTS (million pounds)
    • Thermosets
      • Table THERMOSET RESIN DEMAND FOR FLAME RETARDANTS (million pounds)
      • Polyurethane
        • Table POLYURETHANE DEMAND FOR FLAME RETARDANTS (million pounds)
      • Unsaturated Polyester
        • Table UNSATURATED POLYESTER DEMAND FOR FLAME RETARDANTS (million pounds)
      • Epoxy Resin
        • Table EPOXY RESIN DEMAND FOR FLAME RETARDANTS (million pounds)
      • Phenolic Resins
        • Table PHENOLIC RESIN DEMAND FOR FLAME RETARDANT (million pounds)
      • Other Thermosets
        • Table OTHER THERMOSET RESIN DEMAND FOR FLAME RETARDANTS (million pounds)
    • Other Materials
      • Table OTHER MATERIALS DEMAND FOR FLAME RETARDANTS (million pounds)
      • Cellulosics
        • Table CELLULOSICS DEMAND FOR FLAME RETARDANTS (million pounds)
      • Adhesives & Coatings
        • Table ADHESIVES & COATINGS DEMAND FOR FLAME RETARDANTS (million pounds)
      • Elastomers
        • Table ELASTOMER DEMAND FOR FLAME RETARDANTS (million pounds)
      • All Other Materials
        • Table ALL OTHER MATERIALS DEMAND FOR FLAME RETARDANTS (million pounds)
  • MARKETS
    • General
      • Table FLAME RETARDANT DEMAND BY MARKET (million pounds)
    • Construction Products
      • Construction Products Overview
        • Table CONSTRUCTION INDICATORS (million pounds)
      • Flame Retardant Demand
        • Table CONSTRUCTION PRODUCTS MARKET FOR FLAME RETARDANTS BY APPLICATION (million pounds)
      • Demand by Product
        • Table CONSTRUCTION PRODUCTS MARKET FOR FLAME RETARDANTS BY PRODUCT (million pounds)
    • Electrical & Electronic Products
      • Electrical & Electronic Products Overview
        • Table ELECTRICAL & ELECTRONIC PRODUCT INDICATORS (billion dollars)
      • Flame Retardant Demand
        • Table ELECTRICAL & ELECTRONIC MARKET FOR FLAME RETARDANTS BY APPLICATION (million pounds)
      • Demand by Product
        • Table ELECTRICAL & ELECTRONIC MARKET FOR FLAME RETARDANTS BY PRODUCT (million pounds)
    • Wire & Cable
      • Wire & Cable Industry Overview
        • Table INSULATED WIRE & CABLE INDICATORS
      • Flame Retardant Demand
        • Table WIRE & CABLE MARKET FOR FLAME RETARDANTS
      • Demand by Product
        • Table WIRE & CABLE MARKET FOR FLAME RETARDANTS BY PRODUCT (million pounds)
    • Motor Vehicles
      • Motor Vehicle Industry Overview
        • Table MOTOR VEHICLE INDICATORS (thousand units)
      • Flame Retardant Demand
        • Table MOTOR VEHICLE MARKET FOR FLAME RETARDANTS
      • Demand by Product
        • Table MOTOR VEHICLE MARKET FOR FLAME RETARDANTS BY PRODUCT (million pounds)
    • Textiles
      • Textile Industry Overview
        • Table TEXTILE PRODUCT SHIPMENTS
      • Flame Retardant Demand
        • Table TEXTILE MARKET FOR FLAME RETARDANTS
      • Demand by Product
        • Table TEXTILE MARKET FOR FLAME RETARDANTS BY PRODUCT (million pounds)
    • Aircraft & Aerospace
      • Aerospace Industry Overview
        • Table AEROSPACE EQUIPMENT SHIPMENTS
      • Flame Retardant Demand
        • Table AIRCRAFT & AEROSPACE MARKET FOR FLAME RETARDANTS
      • Demand by Product
        • Table AIRCRAFT & AEROSPACE MARKET FOR FLAME RETARDANTS BY PRODUCT (million pounds)
    • Other Markets
      • Table OTHER MARKETS FOR FLAME RETARDANTS (million pounds)
  • INDUSTRY STRUCTURE
    • General
      • Table SELECTED US FLAME RETARDANT SALES BY COMPANY, 2011 (million dollars)
    • Market Share
    • Mergers & Acquisitions
      • Table SELECTED ACQUISITIONS & DIVESTITURES
    • Marketing & Distribution
    • Research & Development
    • Competitive Strategies
    • Cooperative Agreements
      • Table SELECTED COOPERATIVE AGREEMENTS
    • Company Profiles
      • Adeka Corporation
      • Albemarle Corporation
      • Almatis GmbH
      • Ampacet Corporation
      • Amspec Chemical Corporation
      • Apexical Incorporated
      • BASF SE
      • Chemtura Corporation
      • Clariant International Limited
      • Cytec Industries Incorporated
      • Eastern Color & Chemical Company
      • Eastman Chemical Company
      • Elementis plc
      • Ferro Corporation
      • Freeport-McMoRan Copper & Gold Incorporated
      • Hangzhou JLS Flame Retardants Chemical Company Limited
      • Huber (JM) Corporation
      • ICC Industries Incorporated
      • Israel Chemicals Limited
      • JJI Technologies LLC
      • LANXESS AG
      • Martin Marietta Materials Incorporated
      • MCA Technologies GmbH
      • Mount Vernon Mills Incorporated
      • Nabaltec AG
      • Nyacol Nano Technologies Incorporated
      • Occidental Petroleum Corporation
      • PAG Holdings Incorporated
      • PolyOne Corporation
      • Rio Tinto Group
      • RTP Company
      • Schulman (A.) Incorporated
      • Sherwin-Williams Company

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