US Custom Thermoplastic Compounding Market

  • February 2013
  • -
  • Freedonia
  • -
  • 285 pages

US demand to surpass 11 billion pounds in 2017

US demand for custom compounded thermoplastics is forecast to surpass 11 billion pounds in 2017, valued at over $14 billion (resin content only). The total value of custom thermoplastic compounding, including resins, additives, fillers, and other production costs, will reach more than $18 billion at that time. Advances will be fueled by ongoing efforts among custom compounders to develop new and innovative products that will broaden the range of applications for thermoplastics, making them more competitive with alternative materials.

Advances will also be propelled by strong growth in the large construction and motor vehicle markets, which are expected to rebound from the 2007-2009 recession. The expansion of the construction and motor vehicle industries will also promote demand in the wire and cable sector, where thermoplastics serve as insulation and/or jacketing. In the consumer and institutional market, health care applications will see rapid gains, with catheters and medical devices used for drug delivery representing key areas of growth.

Construction market to offer best growth prospects

Construction is anticipated to offer the best prospects, as it was just beginning to emerge from its post-recession trough in 2012, leaving significant room for expansion going forward. Gains in the pipe and fittings segment will be supported by plastic pipe’s competitive cost structure, light weight, corrosion resistance, long service life, and lower installed costs relative to competitive materials. Thermoplastic compounds also find favor in applications such as decking, fencing, siding, and windows due to a number of advantages over traditional wood products, including greater durability and lower maintenance requirements. However, pipe and siding processors frequently perform commodity compounding in-house, thus restricting opportunities for custom compounders.

Demand for thermoplastics used in motor vehicle parts and components will be driven by ongoing efforts on the part of automakers to comply with increasingly stringent fuel economy standards. This will generate demand for thermoplastics that can be used in place of metals to help reduce vehicle weight. Compounded plastics will also benefit from their durability, design flexibility, and relatively low cost. In particular, long glass fiber reinforced polypropylene (LGFPP) is making significant inroads, serving as an alternative to steel in semi-structural applications and also expanding into aesthetic and under-hood uses.

PVC is largest, fastest growing compounding resin

Polyvinyl chloride (PVC) represents the largest, fastest growing resin in the custom thermoplastic compounding market. Advances will be based on the dominance of PVC in the rebounding construction market, where it is widely used for pipes, fittings, and siding. Rising construction activity will also create substantial opportunities for polyethylene in areas such as pipe, decking, and vapor barriers. Healthy gains are also anticipated for polypropylene, engineering thermoplastics, and thermoplastic elastomers, with each deriving strength from the motor vehicle market, where they are valued for their ability to reduce vehicle weight and cut costs while providing enhanced aesthetics and innovative design features.

Study coverage

This upcoming Freedonia industry study, Custom Thermoplastic Compounding, is priced at $5100. It presents historical demand data for 2002, 2007 and 2012, with forecasts for 2017 and 2022 by resin and market. The study also considers key market environment factors, evaluates company market share and profiles 36 industry competitors, including Ampacet, DuPont, and PolyOne.

Table Of Contents

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Overview 5
Demographic Trends 8
Manufacturing Outlook 12
Thermoplastics Overview 15
Thermoplastic Resins 17
Thermoplastic Elastomers 19
Thermoplastic Compounding Overview 20
Historical Market Trends 22
Pricing Trends 24
Regulatory Considerations 26
Recycling Activity 28
International Activity 32

III. RESINS 34

General 34
Polyvinyl Chloride 37
Characteristics and Producers 38
Markets 41
Engineering Thermoplastics 46
Characteristics and Producers 49
Markets 53
Nylon 57
Acrylonitrile-Butadiene-Styrene 59
Polycarbonate 60
Other Engineering Thermoplastics 63
Polypropylene 64
Characteristics and Producers 65
Markets 67
Polyethylene 71
Characteristics and Producers 72
Markets 73
Thermoplastic Elastomers 76
Characteristics and Producers 77
Markets 79
Polystyrene 83
Characteristics and Producers 84
Markets 85
Other Thermoplastic Resins 88
Characteristics and Producers 89
Markets 90

IV. MARKETS 93

General 93
Construction 95
Building Construction Outlook 96
Resins 98
Applications 102
Pipe and Fittings 103
Siding, Windows, and Doors 105
Other Uses 107
Motor Vehicles 107
Motor Vehicle Outlook 108
Resins 111
Engineering Thermoplastics 113
Polypropylene 115
Thermoplastic Elastomers 116
Other Resins 118
Applications 118
Interior 119
Engine and Mechanical 121
Structural and Exterior 122
Consumer and Institutional 123
Consumer Spending Outlook 124
Resins 127
Polyvinyl Chloride 130
Polypropylene 131
Engineering Thermoplastics 131
Thermoplastic Elastomers 132
Other Resins 133
Applications 133
Electrical and Electronic Equipment 136
Electrical and Electronic Equipment Outlook 137
Resins 139
Applications 144
Insulated Wire and Cable 147
Insulated Wire and Cable Outlook 148
Resins and Applications 149
Other Markets 154
Packaging 155
Packaging Industry Outlook 156
Resins and Applications 158
Appliances 162
Appliance Industry Outlook 163
Resins and Applications 165
Machinery 169
Machinery Outlook 169
Resins and Applications 171
All Other Markets 174

V. INDUSTRY STRUCTURE 177

General 177
Market Share 180
Acquisitions and Divestitures 184
Types of Compounders 188
Processors 190
Independent Compounders 190
Resin Producers 191
Marketing Strategies 191
Channels of Distribution 193
Research and Development 194
Competitive Strategies 196
Cooperative Agreements 197
Company Profiles 200
Accel Color, see Techmer PM
Adell Plastics Incorporated 201
Advanced Composites, see Mitsui Chemicals
Americhem Incorporated 202
AMETEK Incorporated 205
Ampacet Corporation 207
Asahi Kasei Corporation 209
Axiall Corporation 211
BASF SE 213
Bayer AG 217
Berkshire Hathaway Incorporated 219
Celanese Corporation 222
Citadel Plastics Holdings Incorporated 224
Clariant International Limited 226
ColorMatrix Group, see PolyOne
Dover Chemical, see ICC Industries
Dow Chemical Company 228
Dow Corning Corporation 231
DuPont (EI) de Nemours 232
ECM Plastics, see Schulman (A.)
Equistar Chemicals, see LyondellBasell Industries
Exxon Mobil Corporation 234
Ferro Corporation 236
ICC Industries Incorporated 239
ICO, see Schulman (A.)
Kraton Performance Polymers Incorporated 241
LANXESS AG 243
Lubrizol, see Berkshire Hathaway
LyondellBasell Industries NV 245
Matrixx Group, see Citadel Plastics Holdings
Mitsui Chemicals Incorporated 248
Multibase, see Dow Corning
O’Neil Color and Compounding, see ICC Industries
PolyOne Corporation 250
Ravago SA 257
RheTech Incorporated 260
Royal DSM NV 261
RTP Company 263
SABIC Innovative Plastics US, see Saudi Basic Industries
Saudi Basic Industries Corporation 265
Schulman (A.) Incorporated 267
Shin-Etsu Chemical Company Limited 272
Shintech, see Shin-Etsu Chemical
Spartech Corporation 273
Standridge Color Corporation 275
Techmer PM LLC 276
Teknor Apex Company 278
3M Company 282
Ticona, see Celanese
Washington Penn Plastic Company Incorporated 284
Westchester Plastics, see AMETEK



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

ASummary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population and Households 12
3 Manufacturers’ Shipments 15
4 Thermoplastics and Thermoplastic Elastomers Demand 16
5 Thermoplastic Compounding Market, 2002-2012 23
6 Thermoplastic Compounds Pricing 26

SECTION III -- RESINS

1 Compounded Thermoplastics Demand by Resin 36
2 Compounded Polyvinyl Chloride Demand 38
3 Compounded Polyvinyl Chloride Demand by Market 45
4 Compounded Engineering Thermoplastics Demand 49
5 Compounded Engineering Thermoplastics Demand by Market 56
6 Compounded Polypropylene Demand 65
7 Compounded Polypropylene Demand by Market 70
8 Compounded Polyethylene Demand 72
9 Compounded Polyethylene Demand by Market 75
10 Compounded Thermoplastic Elastomers Demand 77
11 Compounded Thermoplastic Elastomers Demand by Market 82
12 Compounded Polystyrene Demand 84
13 Compounded Polystyrene Demand by Market 87
14 Other Compounded Thermoplastics Demand 89
15 Other Compounded Thermoplastics Demand by Market 92

SECTION IV -- MARKETS

1 Compounded Thermoplastics Demand by Market 94
2 Building Construction Expenditures 97
3 Construction Market for Compounded Thermoplastics by Resin 101
4 Construction Market for Compounded Thermoplastics by Application 103
5 Motor Vehicle Indicators 111
6 Motor Vehicle Market for Compounded Thermoplastics by Resin 112
7 Motor Vehicle Market for Compounded Thermoplastics by Application 119
8 Personal Consumption Expenditures 127
9 Consumer and Institutional Market for Compounded Thermoplastics by Resin 129
10 Consumer and Institutional Market for Compounded Thermoplastics by Application 136
11 Electrical and Electronic Equipment Shipments 139
12 Electrical and Electronics Market for Compounded Thermoplastics by Resin 143
13 Electrical and Electronics Market for Compounded Thermoplastics by Application 146
14 Insulated Wire and Cable Shipments 149
15 Wire and Cable Market for Compounded Thermoplastics by Resin 153
16 Other Markets for Compounded Thermoplastics 155
17 Packaging Supply and Demand 158
18 Packaging Market for Compounded Thermoplastics by Resin 162
19 Appliance Shipments 164
20 Appliance Market for Compounded Thermoplastics by Resin 168
21 Machinery Shipments 171
22 Machinery Market for Compounded Thermoplastics by Resin 174
23 All Other Markets for Compounded Thermoplastics by Resin 176

SECTION V -- INDUSTRY STRUCTURE

1 US Sales of Selected Custom Thermoplastic Compounders by Company, 2012 178
2 Selected Acquisitions and Divestitures 186
3 Selected Cooperative Agreements 199



LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Thermoplastics and Thermoplastic Elastomers Demand by Type, 2012 17
2 Thermoplastic Compounding Market, 2002-2012 24

SECTION III -- RESINS

1 Compounded Thermoplastics Demand by Resin, 2012 37
2 Compounded Polyvinyl Chloride Demand by Market, 2012 46
3 Compounded Engineering Thermoplastics Demand by Market, 2012 57
4 Compounded Polypropylene Demand by Market, 2012 71
5 Compounded Polyethylene Demand by Market, 2012 76
6 Compounded Thermoplastic Elastomers Demand by Market, 2012 83
7 Compounded Polystyrene Demand by Market, 2012 88

SECTION IV -- MARKETS

1 Compounded Thermoplastics Demand by Market, 2012 95
2 Construction Market for Compounded Thermoplastics by Resin, 2012 102
3 Motor Vehicle Market for Compounded Thermoplastics by Resin, 2012 113
4 Consumer and Institutional Market for Compounded Thermoplastics by Resin, 2012 130
5 Electrical and Electronics Market for Compounded Thermoplastics by Resin, 2012 144
6 Wire and Cable Market for Compounded Thermoplastics by Resin, 2012 154

SECTION V -- INDUSTRY STRUCTURE

1 US Custom Thermoplastic Compounding Market Share, 2012 181
2 Thermoplastic Compounding Industry Flowchart, 2012 189

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