An increase in environmental awareness will help the global plastics additives market grow to $57.8 billion by 2020, up from $41.4 billion in 2013, according to a report by Allied Market Research.
That represents a compound annual growth rate of 4.9 percent over that time period, according to Plastic Additives Market (Functions, Types, Applications and Geography) – Size, Share, Global Trends, Analysis, Opportunities, Growth, Intelligence and Forecast, 2012-2020.
Plastics additives are the substances that are added in polymer during reaction in the final stage or in the process of polymer/plastic production. These additives help in improving the characteristics of polymers such as strength, shine, durability and heat sensitivity, according to the report.
Impacting drivers of plastic additives market such as increase in environmental awareness and intervention by government to promote non-toxic plastic additives is promoting the growth in plastic additives market. However, increase in health concerns due to consumption of Phthalates based plasticizers is forcing the government to harness the regulations for controlling commercialization of such additives. In the United States, the application of phthalates in the manufacturing of toys and other children’s product is banned under the guidance of Consumer Products Safety Improvement Act.
Decreasing mineral ore sources have increased the cost of metal equipment, which has triggered the application of plastics to replace the metal equipment. The low cost of plastic equipment and properties that match metal equipment is also pushing the higher adoption of plastics in a number of applications. Thus the demand for additive which enhances the properties of plastics is also on rise. The companies involved in manufacturing of additives are majorly concentrating on specialty chemicals that are used in construction and automobile equipment, the report says.
The global plastic additives market growth is dampened by strict government regulations as some plastics additives such as chlorinated flame retardant are banned in countries, namely Canada, US and the European Union. The pending legal suits are also hindering the growth of plastic additive market. Companies are facing problems with lawsuits such as patent imitation suit, commercial application of banned product etc.
In November, the US Federal Trade Commission took action against six plastics companies — ECM Biofilms, American Plastic Manufacturing, Champ, Clear Choice Housewares, Carnie Cap and AJM Packaging — for making false claims that some of their products were biodegradable.