The global plastic additives market is expected to grow by an average of 4.9% per year from USD 41.4 bn (EUR 29.8 bn) in 2013 to USD 57.8 bn by 2020, driven by the continuing replacement of metal equipment by plastics and strong plasticisers demand, according to Allied Market Research (Portland, Oregon / USA; www.alliedmarketresearch.com). Decreasing mineral ore resources are leading to a rise in the costs of metal equipment, resulting in the higher adoption of plastics and increased consumption of additives that enhance the properties of plastics, the market research company says. The manufacturers of the additives are mainly concentrating on specialty chemicals that are used in construction and automotive equipment.

By volume the global market is forecast to grow by an average of 4.4% per year from 12.6m t in 2013 to 17.1m t in 2020, Allied Market Research says in its new report, "Plastic additives market (functions, types, applications and geography) – size, share, global trends, analysis, opportunities, growth, intelligence and forecast, 2012-2020".

The plasticisers market was valued at USD 21.4 bn in 2013 and is expected to remain the largest revenue generating segment throughout the analysis period, the report says. Meanwhile, the flame retardants plastic additives market has the highest growth potential, and is forecast to rise by 5.4% per year. The antimicrobial market is expected to grow at a moderate rate, driven by increased demand for disposable products in the healthcare industry.

Drivers of global plastic additives demand include increased environmental awareness and intervention by governments to promote non-toxic plastic additives, the report says. However, governments have introduced controls on phthalates-based plasticisers because of health concerns.

Constraints to growth include strict government regulations on products such as chlorinated flame retardants, which are banned in the USA, Canada and the EU. Companies are also facing problems with lawsuits in areas such as patent imitation and the commercial application of banned products.

Global plastic additives manufacturers tend to have a high focus on developing economies, which are generally more lucrative as a result of the availability of low labour costs and raw materials, the report says. Asia Pacific is the largest revenue generating region, with growth forecast for countries including China, India and Japan.

Asia Pacific and the rest of the world region accounted for 42.1% of revenues in 2013 and this is expected to soar to 60% by 2020. “The increase in consumption of plastic products and rising awareness for the preservation of depleting resources is facilitating the growth of the plastic additive market in these regions,” Allied Market Research says.